SAP localisation is the adaptation of the SAP system to the tax, accounting and statutory reporting rules of the country in which a company operates. It consists of three layers: the standard country content SAP provides for each country, validation of this content against current legislation, and additional settings, reports and developments made for the company's own structure.
In Türkiye, this scope covers statutory accounting in line with the Turkish Uniform Chart of Accounts (THP), depreciation under the Turkish Tax Procedure Law (VUK), inflation adjustment in the periods in which it applies, and statutory financial statements and reports. Depending on the company's structure, the Uniform Chart of Accounts can be set up as the operational chart of accounts or as an alternative country chart of accounts. The aim is to run these statutory requirements consistently, in the same system as reporting under Turkish Financial Reporting Standards (TFRS)/IFRS or the group standard.
Every business has statutory obligations it is responsible for fulfilling. Through the "Localisation" service, the statutory requirements that international businesses in particular need are localised and country-specific settings are configured. With its professional team, Montag responds precisely to client needs and offers solution packages that comply with local legislation.
Montag's localisation service makes it possible to run applications in the required language. Within its scope, it enables planning and actual cost reporting based on VUK; profit-and-loss statements and balance sheets that comply with local legislation; the preparation of statutory financial statements and reports; and the processing of fixed assets and depreciation in accordance with VUK.
Although the scope varies with the company's structure, the main requirements faced by SAP users operating in Türkiye are:
In Türkiye, inflation adjustment has been back on finance teams' agenda since the end of 2023. There are two separate regulations here, and they need to be handled separately in SAP:
The indices on which the two adjustments are based (the Domestic Producer Price Index, D-PPI, for VUK, and in Türkiye the Consumer Price Index, CPI, as the general price index for TMS 29), the items they cover and their results may differ. It is therefore important that the calculations are run within SAP, in line with the parallel accounting structure, in a traceable and auditable way, rather than being done in Excel and posted to SAP manually.
Montag's Inflation Accounting Package is designed to automate, on SAP, the adjustment calculations under TMS 29, the separation of monetary and non-monetary items, the creation of accounting entries and reporting; calculation and filing processes under VUK are handled separately from this package. For details, see our Inflation Accounting solution.
When an international group rolls SAP out to its company in Türkiye, it usually arrives with a global template designed at headquarters. The template ensures the same processes and reports across the group, but it does not meet Türkiye's statutory requirements on its own. In these projects, the success of localisation is determined by a few decisions:
For the general framework of the roll-out approach, see our SAP Roll-Out article.
Custom reports and developments built for Türkiye's requirements in the ECC era should not be carried over as they are in an S/4HANA migration. There are three reasons for this:
A good starting point in migration projects is therefore to take an inventory of the existing localisation developments and decide on each one: leave it to the standard, rewrite it, or retire it because it is no longer needed. For the changes S/4HANA brings on the finance side, see our SAP S/4HANA article.
Montag embeds local legislation and reporting requirements into finance processes while preserving SAP standards. Bringing statutory reporting and management reporting together in the same financial architecture is one of the core principles of our services; IFRS compliance, inflation accounting under TMS 29 and financial reporting in multi-company structures are an important part of this work.
Companies that want to move TMS 29 inflation adjustment out of Excel into a sustainable and auditable process on SAP can explore our Inflation Accounting solution. Calculation and filing processes under VUK are handled separately from this package.
To review your current localisation setup, or to plan for Türkiye's requirements in a roll-out or S/4HANA migration, you can reach us through our contact page.
Last updated: 2 November 2026. Regulatory information was checked at the time of publication; subsequent regulations should be assessed separately.
SAP localisation is the adaptation of the SAP system to the tax, accounting and statutory reporting rules of the country in which a company operates. It consists of the standard local version SAP provides for each country and company-specific settings, reports and developments. The aim is to run statutory obligations and group reporting consistently in the same system.
The main areas are statutory accounting in line with the Uniform Chart of Accounts, parallel valuation under the Tax Procedure Law (VUK) and Turkish Financial Reporting Standards (TFRS), VUK depreciation, statutory financial statements, reports that provide data for tax returns and notifications, and inflation adjustment; inflation adjustment under VUK has been generally postponed for the 2025–2027 period. Electronic document obligations are also within the scope of SAP's localisation for Türkiye; here, the terms for using SAP's standard solution or an integrator are assessed separately. Which areas are covered by the standard and which by additional development depends on the company's structure.
Parallel accounting in SAP is set up in two main ways: different valuations are tracked either in separate ledgers or in separate accounts within the same ledger; depending on the release in use, the ledger approach is preferred. For fixed assets, VUK and TFRS depreciation are calculated on the same asset record, in different depreciation areas mapped to accounting principles. Which approach is chosen depends on reporting needs and the existing system structure.
Inflation adjustment consists of separating monetary and non-monetary items, restating them using official price indices and turning the results into accounting entries. These steps can be carried out in Excel and transferred to SAP manually, or run directly within SAP in a traceable and auditable way. VUK and TMS 29 are separate regulations and should be handled separately: the adjustment under VUK has been generally postponed for the 2025–2027 period by Law No. 7571 (with limited exceptions), while the conditions for continuing TMS 29 calculations should be assessed separately.
Localisation design should be addressed at the start of the roll-out project, together with the fit-gap analysis between the global template and Türkiye's requirements. If it is left to the end, it may become necessary to build hard-to-maintain solutions outside the template for statutory reporting. SAP's standard Türkiye functions should be evaluated first, and local additions should be kept separate from the core of the template.