Resources

The implementation of SMART business’s solution for SAF-T UA data preparation and report generation includes the following steps:

1. Identifying data sources for all components of the Report.
2. Analyzing the current system configuration.
3. Assessing data completeness when not all data is maintained in Microsoft Dynamics 365 Finance and Operations Applications.
4. Reviewing supplementary information required for reporting, such as responsible officers, founders, accounting policies, etc.
5. Analyzing the Ukrainian localization used by the Customer — TIN codes, EDRPOU, UKTZED, KSPOVO, chart of accounts correspondence, first event determination, etc. Identifying data sources for report generation if the Ukrainian localization is not used (master files, first event, and account correspondence).
6. Installing the solution in the Customer’s environment.
7. Mapping between standard fields and Customer-specific fields.
8. Preparing report data based on D365FO Apps using dedicated user-friendly forms.
9. Importing data from external systems (outside D365FO Apps). The solution supports data import from other systems in Excel or XML format.
10. Generating the XML report in accordance with the Detailed Technical Description of SAF-T UA Elements for subsequent upload to reporting systems via the Taxpayer Portal or other solutions supporting this format (e.g., M.E.DOC).
11. Validating the generated files against the XSD schema.

Features included in SMART SAF-T UA Release 2025.10:

• Development of the file generation logic in accordance with the defined constraints.
• Creation of the Accounting Policy table, including a form, menu item, translations, and security objects.
• Adaptation of the existing StandardAccountID and Tax Codes mappings, along with sample mapping configurations aligned with reporting requirements.
• Implementation of solutions for accounting and reporting of ledger memos and other source documents (OtherSourceDocuments), as well as tax differences (TaxDifferences).
• Development of Sections I. Header, II. Master Files, III. General Ledger Transactions, and IV. Supporting Documentation for Accounting Records.
• Addition of new fields to the report run settings form and enabling storage of report parameters in Azure Storage.
• Development of a periodic task for automated report execution.
• Development of the XML generation logic and multi-file output structure.
• Addition of master files for mapping.
• Implementation of the TransactionType assignment procedure.
• And more.

Mineral Water Producer: Large-Scale Digital Transformation of Operational Processes

International System Integrator: Automation of Forecasting and Budgeting Processes

Transnational Automotive Corporation: Comprehensive Automation of Finance, Logistics, and Distribution

Project 1: Warehouse Process Automation for a New Warehouse

Objective

• Deploy a warehouse process model for the new facility within a few months.
• Propose optimal processes for a consignment stock scheme.
• Ensure integration with the owner’s systems.
• Automate the generation of inbound and outbound requests.
• Enable staff to perform all warehouse operations using handheld devices.

Results

• A consignment stock management system for spare parts has been implemented.
• The receiving processes for spare parts have been automated, with inbound documents automatically generated through integration with the inventory owner's systems.
• All warehouse operations in the location-managed warehouse have been automated, including product put-away, product labeling, quality control, picking, internal transfers, and inventory counting.
• Employee picking routes have been optimized to eliminate repeated visits to the same locations.
• Spare parts shipping processes have been automated, with outbound documents automatically generated through integration with the inventory owner's systems.
• Cross-docking processes have been automated.
• Packaging processes and printing of accompanying documents have been automated.

Project 2: Automation of Business Processes for an Auto Parts Sales Company

Objective

• Replace the outdated accounting system.
• Automate financial and logistics processes.
• Automate storage and import of manufacturer catalogs (over 100,000 items).
• Set up integration with distributor companies and the corporation’s retail network.
• Automate spare parts sales via the online store.
• Develop management reporting for operational analysis.

Results

• Procurement planning (MRP) was implemented based on sales statistics and demand.
• Items receiving, customs clearance, and warehouse placement were automated.
• Location-managed warehouse operations were implemented using data collection terminals (HHD) and printing equipment.
• Sales for wholesale and retail clients were automated, including returns processing.
• Data exchange processes with distributor companies were integrated to handle orders.
• Integration with the existing online store and POS terminals was implemented.
• Financial and accounting processes were automated.
• Extended inventory management was conducted.

Project 3: Large-Scale Automation for a Group of Distribution Companies

Objective

• Implement a full-scale ERP system for financial management and supply chain processes across multiple legal entities.
• Automate processes in a series of distribution companies by developing a comprehensive solution that could be replicated by the client’s staff.
• Ensure integration with already implemented systems and use intercompany operations to automate internal transactions.

Results

• Procurement planning (MRP) was implemented based on sales statistics and demand.
• Deferred supply management and order fulfillment control were automated.
• Goods receipt and customs clearance were automated.
• Warehouse operations with location-mabaged storage were automated, including the use of handheld devices (HHD) and printing equipment.
• An extended pricing system was implemented, enabling automatic calculation of retail and transfer prices, taking into account cost, markups, and exchange rate differences.
• Sales processes for wholesale and retail clients were automated, including returns handling.
• Reservation and distribution of goods under limited stock conditions were automated.
• Data exchange with internal and external dealers was integrated.
• Financial accounting and bookkeeping processes were automated.
• Intercompany processes were automated, including intercompany procurement, sales, and returns.
• A dealer portal was additionally developed, enabling dealers to operate within a unified corporate environment.

Cardboard and Paper Manufacturer: Comprehensive Replacement of Legacy Systems

Global Pharmaceutical Company: Localization and Integration with D365FO Apps

1. VAT Accounting:

• Domestic supply of goods and services within Poland
• Export of goods outside the European Union
• Import of goods from non-EU countries
• Intra-Community acquisition of goods (imports from EU countries)
• Intra-Community supply of goods (exports to EU countries)

2. Statutory VAT Reporting Forms:

• Register of incoming VAT invoices
• Register of outgoing VAT invoices
• VAT Declaration

3. Integrations:

• Configuration of bank integration using the standard embedded mechanism of Microsoft Dynamics 365 Finance and Operations Applications, with support for VAT split payment processing
• Configuration of KSeF (National e-Invoicing System) integration based on the standard embedded mechanism of Microsoft Dynamics 365 Finance and Operations Applications.

4. Accounting Printed Forms:

• VAT: VAT invoices
• Fixed assets: Fixed asset acquisition act, Fixed asset inventory report, Fixed asset disposal act
• Cash operations: Cash receipt voucher, Cash payment voucher
• Inventory: Surplus recognition act, Material write-off act.

Key Enhancements in SMART Accounting for Poland:

1. Accounts payable and accounts receivable processing has been implemented in accordance with Polish legislation.
2. Payment functions have been separated to enable dedicated VAT split payments.
3. Registers for incoming and outgoing VAT documents have been introduced.
4. New Excel printed forms have been added, including VAT Invoice Final, VAT Invoice Correcting, VAT Declaration PL, Act of Surplus Profit Act, Act of Writing off Materials, Acquisition Act (with purchase details), FA Inventory List, FA Write-off Act, Incoming cash order, and Outgoing Cash order.
5. Integration with PKO Bank via the MT940 file format has been implemented.

What Is SMART SAF-T UA in Microsoft Dynamics 365 Finance and Operations Applications?

What Is SAF-T UA Reporting?

The Main Purpose of SAF-T UA: What Does It Mean for the STS and Businesses?

The SAF-T UA audit file allows tax authorities to:

• Quickly access complete accounting and financial data from companies.
• Ensure transparent access to data, helping tax authorities analyze reports faster and reduce the need for additional information requests.
• Reduce the impact of human error through automated data analysis.
• Minimize risks of mistakes associated with manual data entry and verification.
• Shorten audit time and reduce the administrative burden on both businesses and the STS.
• Decrease corruption risks by improving transparency and reducing subjective interference in the audit process.

What Data Does SAF-T UA Include?

SAF-T UA includes the following key data blocks:

• General Ledger — information from accounting registers reflecting the company’s overall financial position and account transactions.
• Accounts Receivable — includes a directory of customer counterparties, details on the sale of goods and services, and the history of incoming payments.
• Accounts Payable — covers a directory of vendor counterparties, data on purchases, and payments to vendors.
• Fixed Assets — data on tangible and intangible assets, including depreciation, revaluation, and other changes in asset value.

• Inventory and Products — includes directories of goods, works, and services, as well as their movement within warehouse and operational processes.

Structure of the SAF-T UA Audit File

The SAF-T UA audit file consists of several key sections:

1. Header — Contains general report data, including:

• Reporting period
• Company name
• Identification codes (EDRPOU, TIN)
• Report generation date
• Responsible officers

2. MasterFiles — This section includes all directories used in other parts of the file, such as:

• Counterparties
• Inventory and item lists
• Chart of accounts
• Accounting policies
• Organizational units
• Contracts, etc.

3. GeneralLedgerEntries — This section describes all financial transactions for the selected reporting period.

• Transaction date
• Amount
• Debit and credit accounts
• References to related documents, etc.

4. SourceDocuments — Contains information on source documents that support accounting entries.

• Invoices
• Acts of completed work
• Tax invoices
• Bank statements
• Payment orders

File size limitations:

• 600 MB — maximum size of generated XML data files
• SAF-T UA XML data files must be archived in a .zip file
• The .zip archive size must not exceed 2 GB
• One .zip archive may contain multiple XML data files
• No more than 10 .zip archives can be submitted to the STS data processing system in a single transmission

Principles for Submitting Multiple SAF-T UA Data Files:

How does the SMART SAF-T UA solution automate the preparation of SAF-T UA reports?

Key features of SMART SAF-T UA:

• Deep integration with Microsoft Dynamics 365 Finance and Operations Applications and SMART Accounting for Ukraine enables automatic use of up-to-date accounting and tax data. All data is stored in D365FO Apps, eliminating the need for manual data entry and significantly reducing the risk of errors.
• Data import from other sources is available for companies that have used different accounting systems during the reporting period or lack certain data (e.g., “Accounting Policy”) in their current systems. The solution supports importing data via Excel using Data Management tools and allows adjustments of the imported data.
• Convenient data preview in table format — before final file generation, users can review data in tables, identify and correct potential errors or inconsistencies directly in the report. Additionally, tables can be exported to Excel for further processing and reimported into the system.
• Data adjustment functionality allows users to make changes to a previously generated data package with full change history logging.
• Built-in data validation before report generation — before creating the SAF-T file, the system checks for the presence of all required fields, compliance with formulas specified by the State Tax Service, and other key parameters. All detected discrepancies are saved in a separate table for analysis and further refinement.
• Storage of SAF-T UA versions in the system — all pre-export report versions are stored with file creation dates and reporting periods, enabling future review and re-export.
• Automatic generation of SAF-T files in XML format — SMART SAF-T UA produces reports fully compliant with the XSD schema approved by the State Tax Service of Ukraine. All information — from transactions to tax invoices — is structured according to the multiple-file principle (as required by the tax authority), organized by day, quarter, month, or year.
• Automatic creation of zip archives containing SAF-T files — generated XML files are automatically packaged into zip archives in the format required for submission through the Taxpayer’s Electronic Cabinet.
• Solution support — updates are provided free of charge to clients with an active subscription for Microsoft Dynamics 365 Finance and Operations Applications during Microsoft’s Mainstream Support period.
• Legal compliance updates — urgent legislative changes or critical bug fixes are delivered outside the regular update schedule. Each update includes a detailed description of all modifications, published no later than the release date.

Implementation of the SMART business solution for data preparation and SAF-T UA generation includes the following steps:

By helping businesses meet the challenges associated with legislative updates for SAF-T UA reporting, our team developed the SMART SAF-T UA solution and offers analysis and consulting services that help ensure compliance while saving time and effort for your specialists

Sofiia Kobryn

Product Owner, Senior AX/FO Consultant

Who Can Benefit from SMART SAF-T UA within Microsoft Dynamics 365 Finance and Operations Applications

• CFOs and Chief Accountants who value accuracy, stability, and the ability to quickly generate reports.
• Companies using Microsoft D365FO Apps and SMART Accounting for Ukraine, since SMART SAF-T UA integrates deeply with these systems without requiring additional reconfiguration.
• International companies and corporate groups already familiar with SAF-T requirements in other countries and seeking to implement similar standards in Ukraine while maintaining context.
• IT directors and heads of automation departments who want a controlled, scalable, and flexible solution that does not complicate the existing IT landscape.
• Companies preparing for audits or undergoing inspections — the standardized format allows SMART SAF-T UA to adapt easily to regulatory requirements, reducing the risk of non-compliance.

You will receive:

• Professional assistance at all stages of testing
• Help with error analysis, file validation, and explanation of format requirements
• Fast feedback and direct communication with the technical team
• The opportunity to be among the first to adapt your accounting processes to the future mandatory SAF-T UA submission

Frequently Asked Questions

What is the difference between SAF-T and SAF-T UA?

What is the SAF-T UA file format?

What are the benefits of using SAF-T UA?

Who is required to use SAF-T UA according to legislation?

• From 2025, submission will be mandatory for large taxpayers.

• From 2027, submission will be mandatory for all VAT-registered taxpayers.

When must SAF-T UA reports be submitted?

What reporting period does SAF-T UA cover?

What is the deadline for submitting a SAF-T file?

Can the submission deadline be extended?

How do I submit a SAF-T UA report via the STS Electronic Taxpayer Portal?

• The first receipt confirms that the SAF-T file structure complies with the XSD schema requirements.
• The second receipt confirms that the STS has accepted the report for processing.

Can a SAF-T UA report be corrected?

What challenges should businesses be prepared for when implementing the SAF-T standard in Ukraine?

Where can I find a detailed technical description of SAF-T UA elements?

From Axapta to Microsoft Dynamics 365 Finance and Operations Applications: A Brief History

• are researching information about Dynamics AX or Axapta,
• are currently working with AX 2009 / AX 2012,
• are evaluating the feasibility of upgrading to Microsoft Dynamics 365 Finance and Operations Applications,

Timeline of the Axapta ERP System Evolution

Key Features and Capabilities of Microsoft Axapta/Microsoft D365FO ERP at Different Stages of Its Development

Microsoft Business Solutions — Axapta 3.0 (2002)

Microsoft Dynamics AX 4.0 (2006)

Microsoft Dynamics AX 2009 (2008)

Microsoft Dynamics AX 2012 (2011)

Microsoft Dynamics AX 7 (2016)

From AX 7 to Microsoft Dynamics 365 Finance and Operations Applications

• Dynamics 365 Finance — for financial management, budgeting, and reporting,
• Dynamics 365 Supply Chain Management — for optimizing supply chains, manufacturing, and warehouse logistics,
• Dynamics 365 Commerce — for retail, e-commerce, and omnichannel service,
• Dynamics 365 Human Resources — for HR management, talent development, and HR analytics.

Architectural Differences Between Dynamics 365 Finance and Operations Applications and Its Predecessor, Dynamics AX

Is the Microsoft Dynamics AX ERP Still Available for New Implementations?

What About Companies Still Using AX?

• Assess the level of customizations and potential risks,
• Develop a phased transition plan,
• Minimize downtime and preserve critical business logic.

Conclusion

Frequently Asked Questions

What versions of Axapta exist?

What is Microsoft Dynamics AX?

What is the latest on-premises version of Microsoft Dynamics AX?

What are the drawbacks of Microsoft Dynamics AX ERP?

Who uses Microsoft Dynamics AX today?

What is the key difference between Dynamics AX and Microsoft Dynamics 365 Finance and Operations Applications?

What is the difference between Dynamics AX (now Dynamics 365 Finance and Operations Applications) and Dynamics NAV (Dynamics 365 Business Central)?

Is Dynamics AX still available?

What if a company wants to keep Dynamics AX but expand its functionality?

• Tax reform and risk management
• Maintaining financial and strategic resilience
• CFO–CIO collaboration
• Micro-automation, RPA, and internal audit
• Business digitalization and real-life GenAI use cases in finance

Conference Highlights: Takeaways from Key Discussions on the New Financial Reality

• The CFO as a growth driver: tools for making strategic decisions
• Modern approaches and tools for demand planning and forecasting
• Demand forecasting use cases integrated with Microsoft Dynamics 365 Finance and Operations Applications

How SMART business Supports Innovation and Growth

• VAT accounting
• Regulated reports
• Printed forms in Ukrainian
• Reports on fixed assets accounting
• Specifics of accounting entries
• Accounts correspondence

1. Financial posting of the «Product receipt» document based on the exchange rate of the prepayment has been added.
2. The ability to view financial transactions when posting tax invoices for both Vendor and Customer tax invoice forms has been introduced.
3. A new button in the “All free text invoices” form allows users to navigate to tax invoice lines created based on these invoices like in the “All sales orders” form.
4. The “Description” field in customer tax invoice lines has been expanded to 1,000 characters.
5. A new functionality has been developed to fill in the UKTZED code and mark a product as “Imported” when generating a Customer tax invoice based on a prepayment transaction settled with an invoice.
6. Editing incoming tax invoices is now possible, enabling the matching of two incoming tax invoices with a single prepayment.
7. Editing outgoing tax invoice lines is now possible, allowing users to issue tax invoices for specific sales invoice lines.
8. Differentiation of incoming and outgoing tax invoices has been implemented to simplify importing and matching of incoming tax invoices.
9. The ability to change the payment to prepayment and vice versa has been added.
10. Reverse of financial posting for a tax invoice is now possible using the "Revers" function.
11. Batch processing of accounts correspondence has been developed.
12. New records can now be added to the UKTZED codes table using the Excel add-in with new records automatically appended to the end of the list.
13. Financial posting for 0% VAT tax invoices has been implemented with no posting generated in such cases.
14. ER report «FA balance» added.
15. ER report «FA inventory» added.
16. The approach to menu item placement and printed form call buttons has been updated using the SMART Electronic Reporting Buttons solution within SMART Accounting for Ukraine.