SERVICE 06 · KOREA LOCALIZATION

Korea Local Pack Implementation

The last piece of a global ERP rollout, completed to Korean tax and accounting standards.
We handle e-tax invoice issuance and receipt (forward and reverse issuance), VAT closing, and Hometax e-filing file generation and upload — all inside D365 F&O. We complete Korea-specific requirements down to NTS cross-checks and activity-based costing/contribution-margin profitability analysis.

Not individual customizations — managed as a standard module. That's why functionality survives version upgrades.

VAT

E-tax invoice forward/reverse issuance · VAT closing

Filing

Hometax e-filing file generation and upload

Verification

Cross-check NTS data against system closing figures

Mgmt. Accounting

Activity-based costing · contribution-margin profitability analysis

Korea's first VAT Local Pack deployment

The first partner to apply a VAT Local Pack in a Korean Microsoft ERP implementation.

Proprietary management-accounting Local Pack

We've implemented Korean management-accounting practices — activity-based costing and contribution-margin profitability analysis — on top of D365 F&O.

Developed and maintained in-house

Managed as a standard module rather than relying on external solutions, so we can respond continuously to regulatory changes and version upgrades.

WHY LOCAL PACK

Korean tax practice that a global standard ERP doesn't cover

GLOBAL STANDARDD365 F&O is designed around a common global accounting and tax framework. Korea's reverse-issuance e-tax invoices, Hometax e-filing formats, and cross-checks against NTS data are difficult to handle with standard functionality alone.

KOREA LOCAL PACKFilling the gap with individual customizations becomes a burden at every upgrade. AXi4CNS holds this as a standardized Local Pack, shortening implementation time and keeping it stable across version upgrades.

VAT PROCESS

From issuance to filing, one flow with no extra data entry

VAT transactions generated across modules are aggregated with no additional entry to generate filing/closing documents, and the e-filing file is uploaded to Hometax.

STEP 1

Tax invoice issuance/registration

Sales invoices use forward or reverse e-tax-invoice issuance; purchase invoices register both issued/received electronic invoices and manual tax invoices.

STEP 2

VAT aggregation & closing

Sales invoice amounts from sales orders are linked, transmitted, and aggregated with Smart Bill to prepare the VAT return and its supporting schedules.

STEP 3

E-filing file generation

The filing file is generated and downloaded through the e-filing function in D365 F&O's VAT module.

STEP 4

Hometax upload

The generated e-filing file is uploaded to the Hometax system to complete the filing.

KEY FUNCTIONS

Functions the field actually needs

SALES

Sales tax invoices

Supports e-tax invoice issuance and receipt via forward and reverse issuance.

PURCHASE

Purchase tax invoices

Supports processing of reverse/forward-issued received invoices along with manual tax invoice registration.

EXCEL UPLOAD

Excel upload for manual invoices

Reflects data that couldn't be entered in ERP into the VAT module via Excel upload, and includes it in closing.

CLOSING

Flexible closing & roll-back

Rolls back and re-runs the closing procedure, incorporating reconciliation adjustments before completing the close.

E-FILING

E-filing

Handles the return and supporting schedule preparation, plus e-filing file generation, within the system.

INTERFACE

Smart Bill integration

Links and transmits sales invoice amounts to the Smart Bill e-tax invoice service to continue the issuance workflow.

RECONCILIATION

Catch discrepancies before you file

NTS data × D365 F&O closing figures, reconciled on one screen

VAT data downloaded from Hometax and figures closed through the Korea VAT module are reconciled on a single screen, with discrepancies visible immediately. Catching mis-registrations before filing reduces the risk of amended returns and penalties.

Sales reconciliation

Compares NTS sales data against the system's closing figures to confirm any discrepancy amount.

Purchase reconciliation

Reconciles purchase data on the same basis to check for omissions or duplicate registrations.

Drill-down by partner

Double-clicking a discrepancy jumps to a detail tab by partner to identify the cause immediately.

BEYOND VAT

Beyond VAT — Korean-style management accounting too

Our proprietary management-accounting Local Pack implements activity-based costing and contribution-margin profitability analysis on D365 F&O.

ABC · ACTIVITY-BASED COSTING

Activity-based cost calculation

Allocates cost based on activities to improve the integrity of the allocation basis.

Linking allocation accounts by activity and designing an allocation structure by base account
Automatic activity aggregation linked to production output
One-click allocation to minimize human error
Item-level manufacturing cost statements and cost-input monitoring across the entire process

PROFITABILITY · PROFITABILITY ANALYSIS

Multi-dimensional, contribution-margin-based analysis

Analyzes contribution-margin-based profitability from multiple angles — organization, store, item, and more.

Setting profitability-analysis accounts to measure contribution-margin-based profit
One-click closing based on pre-set allocation criteria
Multi-dimensional profitability analysis in a hierarchy structure
Minimizes human error and ensures data integrity through pre-configured settings

HOW WE APPLY

Application Methods

Included as a standard module in new implementation projects
Added as VAT/management-accounting modules only, to a live D365 F&O
Diagnosed and reapplied where another vendor's Local Pack is missing or faulty
System updates via the maintenance framework whenever regulations change

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Still filing VAT outside your ERP?

We'll diagnose your current VAT process and map out the scope for a Local Pack rollout.

Request a Consultation