Understanding ODN Concepts

Objectives

After completing this lesson, you will be able to:
  • Understand Official Document Number and their significance
  • Understand the ODN framework

Understanding ODN Concepts

Over the course of the continuous integration between companies and tax authorities, the topic of official document numbering (ODN) is becoming more and more important.

Authorities are increasingly acting based on a single identifier that runs through the entire business process, for example, from customer invoicing to payment and tax reporting.

What are Official Document Numbers (ODNs)?

ODN (Official document numbering) is the number that companies have to assign to certain business documents, issued to customers and to tax authorities, adhering to specific rules determined by the legal authorities in a prescribed format. This format consists of numbers, letters and also some business fields.

The ODN comes on top of the number assigned by accounting applications. It can be:

  • either assigned by government authorities
  • or built in system according to specific rules defined by government authorities

Examples where an ODN can be applicable:

  • Customer invoice
  • Customer credit memo/debit memo
  • Supplier invoices
  • Purchase orders/return purchase orders
  • Settlement management
  • Delivery note

Understanding the ODN framework

What is the goal of the ODN framework?

The ODN framework is offered within the "Localization as Self-Service" solution, targeting countries/regions without a standard ODN solution. It's compatible with both SAP-delivered and customer local versions.

What are the key features for the ODN framework?

The key features are:

  • Unified solution across countries and processes.
  • Supports extended ODN references up to 200 characters.
  • Offers flexibility to set rules for country or business-specific ODN variations.

How can the new framework be defined?

SAP created several configuration apps to define and characterize the ODN you need for your business.

By using the Official Document Number Determination app, you can determine the rules for how the system generates an ODN that corresponds to an Official Document Number Type. It also enables you to create custom fields based on your business or legal requirements.

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