Reducing Bureaucracy With SAP HCM

E3: What exactly is behind the
Consensus notification procedure (KMV) and why was it introduced?

Andre Weis, FIS: Basically, the procedure serves to standardize and simplify reporting channels. The KMV is part of a comprehensive initiative to reduce bureaucracy. The aim is to replace paper-based processes with uniform, electronic transmission. This reduces the burden on authorities and employers, and transmissions are carried out digitally and in a standardized manner.

E3: Keyword: digital. What challenges have companies faced so far without standardized and automated processes?

whiteWithout automation, companies faced typical challenges: high manual effort for HR and IT, increased susceptibility to errors during data entry, inconsistent processes across different tools and portals, delayed feedback, and, above all, the risk of fines for violations of the notification regulation.

E3: Who is affected by the consensus notification procedure, when did it come into effect, and what is new?

whiteThat depends on the specific area of application. In the public sector, for example, it concerns certificates of additional income, while in both the public and private sectors it concerns the reporting of capital-forming benefits. Electronic reporting has been mandatory in these areas since 2023. Other areas are in the planning stage, such as income tax certificates.

E3: So will other processes be mapped using the consensus notification procedure in the future?

whiteYes, definitely. The reporting procedure is modular in design via an XML interface. On the esteuer.de platform, you can see which types of notifications are already implemented within the KMV and which are already in the planning stage. As mentioned, the mapping of the income tax statement, which is currently still sent using the existing transfer procedure, is in the planning stage. Productive implementation is planned from the 2026 assessment period onwards.

E3: How did the development of the FIS/HRD KMV tool as a supplement to the SAP HCM standard come about?

whiteOriginally, customers asked SAP directly whether it would develop a solution for specific use cases within the KMV. At the time of the request, however, it was not yet clear which reports would be implemented via the KMV, such as the income tax certificate, which was only added to the planning at a later date. Initially, this only affected a small area of application and only a few companies, so SAP developed a standard solution. That is why existing customers with a very high manual workload and a large number of cases to transmit approached us. With the FIS/HRD product family, FIS already offers a number of enhancements to the SAP HCM standard, so the request was a logical step. This led to the creation of FIS/HRD KMV, which we developed in close cooperation with and with the support of SAP.

E3: Since when has the tool been ready for use?

whiteFIS/HRD KMV has been operational since February 2025, meaning that notifications have been successfully sent via the tool since then. Our pilot customer has already sent 5,000 notifications regarding capital-forming benefits – users are very satisfied with the solution.

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„The KMV is part of a comprehensive initiative to reduce bureaucracy.“

Andre Weis,
SAP HCM developer,
FIS Information Systems and Consulting

E3: What are the advantages over the previous procedure, and what makes FIS/HRD KMV special?

whitePreviously, data had to be prepared and transferred manually – mostly using Excel, but also via external service providers. This was very time-consuming and, above all, prone to errors. FIS/HRD KMV is seamlessly integrated into SAP HCM and automatically accesses the relevant HR master data and payroll results – such as taxable payments, contribution data, or personnel numbers. This information is prepared in accordance with the requirements of the tax authorities and structured to comply with current interface standards.

The messages are then transmitted in encrypted form via the central KMV interface, usually via the Elster platform, directly to the relevant tax authority. For users, this process takes place entirely in the background – without manual exports or separate portal access. The resulting advantages are: automated message creation based on current HCM master data, use of SAP standard channels (Business to Administration Manager B2A), secure feedback and confirmations, fewer sources of error, and no media discontinuity.

With regard to „secure feedback,“ I would like to address the question from earlier about what is new, because one of the key advantages of FIS/HRD KMV is the automated coverage of the return channel: Feedback and notifications from the tax authorities are not only received digitally, but also assigned directly to the corresponding processes in SAP HCM. This means that confirmations or queries from the authorities are sent directly to the SAP system, where they are processed automatically.

E3: How exactly is FIS/HRD KMV implemented?

white: As a rule, implementation of the tool takes only a few days. This time is mainly needed for customer-specific customization and agreements regarding the data structure, i.e., how capital-forming benefits are stored in the system, which varies from customer to customer.

If, as a service provider, we also import the coding base, adapt the customizing, and coordinate the shipping parameters, such as signatures or encryption, with the customer, then the implementation can take a few weeks—but that is the maximum duration. In this case, BAdls, i.e., customer-specific enhancements, are also implemented. These read the respective personnel master data and prepare it accordingly, such as the amount of the VWL or the institution key. The customer themselves checks the customization and carries out tests before go-live. The overall effort is manageable in both cases – especially on the customer side.

E3: Are there any additional training materials, and what kind of support is available once FIS/HRD KMV has been implemented?

whiteWe offer initial workshops and key user training courses tailored to customer requirements, in which the application and the notification process are explained. In addition, our support team is available at all times to answer any questions. Each customer is assigned a dedicated team, which makes it much easier for them to handle support requests.

E3: What advice would you give to companies that are not yet using KMV?

whiteThe process is mandatory, so anyone who does not yet use an integrated solution is either working with manual processes or expensive external services. FIS/HRD KMV is actually a must, as everything can be mapped directly in the SAP system without errors, securely, and efficiently. Companies therefore save a lot of time, reduce sources of error, and relieve the burden on both HR and IT.

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