SAP has made another update to its business strategy, this time discontinuing SAP GRC, formally known as SAP Government, Risk & Compliance.
What is SAP GRC?
SAP GRC is the module responsible for issuing and receiving electronic invoices (NF-e), a fundamental process for all companies. Additionally, it is a key component for corporate governance, risk mitigation, and regulatory compliance.
The market-leading company has announced that support for this module will officially end on December 31, 2025.
One of the reasons behind SAP’s decision to discontinue GRC is the increasing complexity of Brazilian tax legislation and the constant need for adaptation to fiscal requirements.
SAP Cloud NF-e Tool
One of the tools within SAP GRC is SAP Cloud NF-e, a cloud-based system for issuing electronic invoices. Because it operates in the cloud, it reduces costs related to updates, infrastructure, and legal changes. However, this essential tool will also be discontinued by the end of next year.
What Does the GRC Discontinuation Mean in Practice?
This will have a direct impact on companies using the GRC module in Accounts Payable and Accounts Receivable. The challenge now is to find a new solution that meets the company’s needs and operational demands.
The transition to a new solution must be completed by December 31, 2025.
The most widely considered replacement for GRC NF-e is SAP DRC, also known as Document and Reporting Compliance. Learn more below.
What is SAP DRC?
SAP DRC (Document and Reporting Compliance) is a solution designed to meet Brazilian tax regulations within SAP S/4HANA and will replace SAP GRC.
Some key advantages of this new solution include:
- A standardized global interface
- Simplified communication between companies, the SEFAZ (Brazilian tax authority), and certain municipalities
- A standardized electronic invoice format for São Paulo and Rio de Janeiro, though other municipalities may require customization
SAP DRC Tools and Benefits
SAP Document and Reporting Compliance (SAP DRC) is designed for efficiency and better business governance, ensuring full compliance with tax regulations. Some of its key features and benefits include:
- Standardized and automated processes
- Regulatory compliance, preventing legal and financial risks
- Management of inbound and outbound invoices
- Real-time document submission
- Direct integration with public institutions and businesses
- Automated electronic documents
- Real-time monitoring and error correction
- Comprehensive automated reports based on updated data
- Custom reports tailored to business needs
- Simplified user experience
- Global compliance with international tax regulations
- Cloud-based solution, eliminating infrastructure investment
- Continuous maintenance and updates by SAP, fully managed in the cloud
- Consumption-based pricing, meaning costs are determined by the volume of issued documents
Key Differences Between SAP GRC and SAP DRC
As part of SAP’s cloud-first investment strategy, DRC is a cloud-based solution. Additionally, there are other technical differences, including:
- No more PI/PO integration, as SAP, through BTP (Business Technology Platform), will handle SEFAZ communication
- Elimination of GRC monitors, both for outbound and inbound processes
- Greater scalability
- Inbound and Outbound cockpits will be accessed directly from SAP S/4HANA (or SAP ECC)
Migration and Implementation of SAP DRC
Migrating from SAP GRC to SAP DRC is a simplified process, as DRC has an easier configuration compared to GRC.
Additionally, Meta has developed tools and accelerators to streamline migration and ensures ongoing support throughout the transition process.
Custom Developments and Personalization
Meta has the expertise to develop tailored solutions for clients, such as integrating monophase invoices for the oil and gas industry. This means businesses can customize the system to meet their specific needs.
Final Considerations
Now that you know more about this transition, it’s essential to remember that SAP GRC will no longer be supported after December 31, 2025. By then, companies must have the new solution implemented and their teams fully trained.
In these cases, working with an experienced and certified partner is crucial. Meta, with 30 years of expertise in SAP, is the ideal partner to support your company in this transition.
