Challenge
For this client, a global specialty chemicals company, this was far more than a routine IT adjustment. Their existing SAP system was not configured to handle these unique requirements. Non-compliance posed a serious risk, with potential heavy fines and operational disruptions that could threaten the supply chain and product distribution. The client required a partner who could understand both the technical requirements and the business-critical implications of the challenge.
- Complex numbering logic required for ATCUD generation — the ATCUD is a unique identifier composed of a validation code (issued by the Portuguese Tax Authority when you register a document series) and a sequential number for each document in that series.
- Challenging integration of new logic into SAP — the solution needed to be non-disruptive, scalable, and able to generate and apply the ATCUD in real-time for every invoice.
- Automated, secure digital signatures applied to each invoice — each document required a certified digital signature to ensure its authenticity and integrity.
- Conditional country logic to ensure compliance for Portugal while leaving other jurisdictions unaffected — the solution needed to recognize the tax departure country intelligently to trigger the correct ATCUD and digital signature logic.
KGT's Solution
KGT's approach was founded on a deep understanding of both the client's business processes and Portugal's specific regulatory framework. The core of the solution was the creation of a new, dedicated number range intelligently integrated within the client's SAP system, specifically for Portugal's ATCUD and digital signature requirements. This new number range was designed to be conditional, activating only when the system identified the tax departure country as Portugal.
- Configuring a new document series: KGT established a new document series within the ERP system, dedicated to invoices originating from the Portuguese market.
- Automated ATCUD generation: A custom-built program was developed to interface with the Portuguese tax authority's API, automatically fetching validation codes and applying the correct numbering sequence in real time.
- Seamless digital signature integration: KGT integrated a certified digital signature module directly into the invoicing process, automatically applied once the ATCUD was generated.
- Tax departure country logic: The solution analyzes each transaction at invoice creation and triggers the new number range and ATCUD/digital signature process only when the tax jurisdiction is Portugal.
Results
The implementation was a model of efficiency and collaboration. KGT's team worked closely with the client's finance and IT departments, conducting thorough testing and user training sessions.
- 100% Compliance: On the go-live date, the client was fully compliant with Portugal's new regulations.
- Operational Efficiency: The automation eliminated the need for any manual intervention.
- Enhanced Data Integrity: The digital signature provided an unalterable record for each transaction.
- Future-proof scalability: The solution was designed to scale, easily accommodating future growth in transaction volume and potential regulatory changes.
Impact
By transforming a complex compliance requirement into a seamless automated process, KGT not only safeguarded the client against legal and operational risks but also enhanced overall efficiency. The solution freed critical resources, enabling the client to focus on innovation and its global mission, rather than being consumed by regulatory firefighting.