ERP migrations are often viewed as the IT department’s domain—driven by deadlines, system requirements, and a checklist of technical tasks. But for tax teams, the shift to SAP S/4HANA presents something far more strategic: a rare opportunity to reimagine how tax operates, integrates, and adds value across the business.

This isn’t just about plugging tax into a new system. It’s about transforming manual work into automation, uncovering and correcting hidden inefficiencies, and ensuring tax data is built into the foundation—not bolted on at the end.

If tax isn’t involved early, this opportunity is missed. But when the tax team is proactive, S/4HANA becomes more than a system upgrade—it becomes a platform for long-term process improvement, compliance control, and smarter decision-making.

Tax’s New Role in ERP Transformation

Historically, tax has been downstream in ERP projects. IT builds the system, and the tax team is handed a box to work with. But as ERP environments become more integrated and more intelligent, tax has a new role to play: as a co-architect of the future-state operating model.

At DMA, we’re seeing tax teams shift from a reactive posture to a planning mindset—bringing clear requirements, future-state process maps, and automation priorities to the table before implementation begins. This isn’t just smart—it’s strategic. Why? Because tax has become one of the biggest sources of risk, complexity, and cost in global operations. And the only way to reduce that load long-term is to fix it at the system level.

Fixing “Hidden Architecture” in Tax Processes

One of the most common issues we uncover during tax automation and ERP projects isn’t bad tax logic—it’s invisible logic.

Many companies have buried tax processes in spreadsheets, email approvals, manual journal entries, and off-system workflows. These “hidden architectures” may be known to one or two team members, but they aren’t scalable, audit-proof, or integrated with any system of record.

S/4HANA gives you the chance to bring those processes into the light, but only if tax is at the table early enough to redesign them—not just replicate them.

The takeaway? Migration isn’t about replicating what you do today in a shinier package. It’s about building tax into the core design of tomorrow’s processes.

Learn how DMA helps tax teams lead successful SAP S/4HANA migrations—explore our approach.

Automation Doesn’t Start With a Tool—It Starts With a Vision

We often hear clients say they want more automation coming out of their migration—but when we ask what that means, the answer is fuzzy.

Automation doesn’t start with a tax engine or rules configuration. It starts with clarity:

  • What decisions should your team no longer make manually?
  • What logic can be embedded in upstream systems?
  • What data can be captured at the source instead of manipulated downstream?

The most successful tax automation strategies begin before tool selection—with a shared vision between tax and IT of what the business should look like when it runs right.

Strategic Play: Use the Migration to Solve Longstanding Tax Pain Points

We tell clients this often: if your tax team struggles with data access, inconsistent taxability determinations, or reconciling across systems today—S/4HANA won’t fix that. But it can, if you use the migration to address root causes.

Think of your ERP migration as a forced reboot. It creates a window where:

  • Master data can be redesigned
  • Tax logic can be centralized
  • Manual reviews can be replaced with smart validations

These aren’t pipe dreams—they’re achievable outcomes if tax leads the ask and partners with IT to build them into the design.

Bottom Line: Tax Can’t Just Participate—It Has to Co-Lead

We’re in the final chapter of ECC. But for tax, this isn’t just an end—it’s a beginning. Tax leaders who embrace a proactive role in S/4HANA migrations will not only streamline compliance; they’ll redefine their function’s impact on the business.

And those who wait to be brought in will inherit a system that works around them, not for them.

Make Tax a Strategic Asset in Your SAP S/4HANA Migration

DMA’s advisory and implementation experts bring a holistic approach to ERP projects—addressing process gaps, integrating automation, and aligning your tax strategy with your SAP S/4HANA goals. Our TransactionTax360™ approach ensures nothing is left to chance, from data and compliance to technology enablement.

This website content should be used for general informational purposes only, and not as a substitute for consultation with professional tax, legal, or other competent advisors. Before making any decision or taking any action based upon information contained on this website, you should consult with a DMA professional.