Non-Deductible Expense (KKEG) Enhancements
Flag non-deductible expenses at posting — close your tax base clean and audit-ready.
What problem does it solve?
Non-deductible expenses are sorted out manually at period close; missed flags distort the tax base, over-flagging overpays tax. Errors surface late and costly during audit.
How does the solution work?
The Conforcus KKEG enhancement flags expenses as non-deductible at the moment of posting, tracks them through the period and auto-generates the tax base report. Correct classification at source replaces manual sorting.
What changes in practice?
The enhancement adds a KKEG flag field to FI expense postings, together with validation logic that checks it. An expense is flagged as non-deductible on the document at the time of posting, and the validation checks at that moment whether the flag is consistent with the defined rules, keeping incomplete or incorrect classification out of the ledger. Because the flag is stored with the accounting document, every KKEG amount can be traced back to the posting it came from. In multi-company structures the same logic applies to each company's expense postings.
Postings flagged during the period are collected in the periodic KKEG report, and the tax base breakdown is produced from the same data, so no separate sorting exercise is needed at close. Since the reported amounts rest on accounting documents, the document chain is ready for audit. For the finance and tax team the work changes from a retrospective scan at period end to a review, during the period, of classifications made at posting. The risk of a tax base error from a missed flag, or of unnecessary tax from over-flagging, is controlled at source.
Benefits
- Tax base in one click, accurate and traceable
- KKEG identification moves from close to posting time
- Full audit document chain, no surprise adjustments
Where it sits in SAP
Adds a KKEG flag and validation logic to FI expense postings; produces periodic KKEG reports and a tax base breakdown. Compliant with Turkish tax regulation, runs across multi-company structures.
Who it is for: Tax, Audit & Accounting Lead
Frequently asked questions
How is the KKEG flag set at posting, and how is misclassification prevented?
The KKEG field added to the FI expense posting is filled at posting time, flagging the expense as non-deductible on the document. The validation logic checks, at the moment of posting, whether the flag is consistent with the defined rules. Which expense accounts and expense types are subject to this check is defined during implementation in line with the company's tax practice.
How is the tax base breakdown produced, and how is it used in an audit?
Postings flagged during the period are listed in the periodic KKEG report, and the tax base breakdown is drawn from the same data in a single step. Every amount rests on an accounting document, so the source posting can be shown to the auditor. Because classification happens at posting, the need for surprise adjustments at close is reduced.
We run several companies; how does KKEG tracking work per company?
The solution runs in multi-company structures, with the flag field and validation logic active on each company's FI expense postings. The periodic KKEG report and the tax base breakdown are produced per company. The design is compliant with Turkish tax regulation, and differences in practice between companies are addressed during implementation.