Tax Migration in Indian Localization
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1 Tax Migration in Indian Localization TAXINJ -> TAXINN
2 Agenda 1 Customer requirement 2 Scope 3 Out of scope 4 Assumptions 5 Phases of implementation 6 Challenges 7 Delivery model 2
3 Customer Requirement GST is being rolled out in India to simplify the indirect taxation regime and to remove the cascading effect of indirect taxes on the end consumer It is now mandatory to use TAXINN tax procedure (condition based rather than tax code based) in SAP Hence the primary requirement is to migrate from TAXINJ to TAXINN 3
4 Scope Understanding current logistic scenario (procurement, sales, subcontracting) and the tax calculations using TAXINJ frame work Map the scenario to TAXINN frame work Execute calculation of taxes in TAXINN scenario and validate with TAXINJ framework results (procurement and sales scenarios) Setting up necessary enhancement for TAXINN if needed Maintain mapping table of TAXINJ tax code to new TAXINN tax codes Execute migration of open MM documents (PO and contract) to TAXINN frame work 4
5 Out of Scope Changes in process of procure to pay, order to cash, record to report etc. Change management needed for the new tax procedure End user training Changes to indirect tax return preparation and filing process Changes to any enhancement or development other than covered in the scope Any kind of basis activity Re-design of user authorizations Changes to any legacy system or interfaces Changes to business place setting in the system Changes in any other SAP systems (SRM, CRM, Ariba etc.,) Data cleansing Performance optimization 5
6 Assumptions Availability of core SAP team (FI, MM and SD) Availability of business team to validate the results in the new TAXINN procedure Separate system or a new client with copy of production data (may not be full data) for executing mock migration before migrating in quality environment Quality system should be copied with the latest production data (may not be full data) for executing quality system migration Need production system shutdown (no logistic operations) during productive migration Patch level required for tax procedure migration would be ensured by customer before start of the project 6
7 Phases of implementation Project preparation Blueprint Realization Deploy, Go-live and support 7
8 Project preparation High Level Activity Activity Details Customer Pre Requisites Assumptions Exclusions Check the patch level Check the compliance to patch level as pre requirement Update to the patch level required Patch level would be updated before project start Helping in update to the required patch level Ensure availability of system Check the availability of system for the project (mock system) Make the mock system available Mock system with copy of production data (may not be full data) Setting the mock system with production data Empower the project team Will conduct brief session on TAXINN Tax procedure Availability of Project and Tax Migration in Indian team Localization 8
9 Blue print (1 of 2) High Level Activity Activity Details Customer Pre Requisites Assumptions Exclusions Study of existing TAXINJ procedure Study of reporting and return process Interface with other applications Logistic scenario Tax procedure and routines Tax conditions and controls Account key used for posting to FI User exit or BADI in tax calculation List of Tax codes and usage Custom development in tax calculation Understand the reports usage for tax Understand the reports or development for return preparation Understand interface with Collabra Understand interface with any other custom applications Understand interface with any other SAP applications Understand the procurement process from tax angle Understand the sales process from tax angle Availability of Core tax processing team Availability of documented business process relating to Taxes Availability of Test scripts used for validating tax process Customer to share all the Business Scenarios SAP can provide standard scenarios which can be considered for initial testing Changes to existing custom development would For changes in Non SAP applications or changes in Collabra analysis should be done by Customer ABAP and Basis Resource will be provided by Customer Only higher level impact of custom program for reporting and return process would be Studied Any changes on non SAP applications/custom applications 9
10 Blue print (2 of 2) High Level Activity Activity Details Customer Pre Requisites Assumptions Exclusions Recommendation of TAXINN (Blue print document) TAXINN procedure to be used Tax conditions to be used Access sequence to be used Usage of user exit or BADI for meeting customer specific requirement Enhancement needed in logistic transactions to meet TAX requirement Changes or enhancement to Reporting and return process Changes or enhancement to interface with other systems Identification of Number of Condition Records to be maintained and how it will be maintained (Tool to upload condition records per condition types) Identification of Changes with regards to Master Data (Material, Vendor, Customer & Services) 10
11 Realization High Level Activity Activity Details Customer Pre Requisites Assumptions Exclusions TAXINN Configuration Configure TAXINN Realize all development objects Creating the required Tax Codes (MM, SD and FI side) Support in building the effective condition technique / Access sequence Creating condition records for all the scenarios & Tax Codes in TAXINN Identifying the custom reports/programs, external interfaces and testing with new tax procedure Existence of mock system Transport route for moving changes to development System Setting up system or transport route Testing Test various scenarios Confirm tax calculation as per current TAXINJ procedure Testing all the tax related scenarios effectively in short period SAP will support throughout the testing phase for all critical issues Migration to TAXINN (QA with Production data) Maintain mapping table between TAXINJ and TAXINN Execute migration of open logistic (MM) documents Test the result of migration SAP will provide custom reports and tools related to migration in few cases to reduce the efforts and improving the project quality SAP will support throughout the testing phase for all critical issues after migration QA system with latest copy of production data. 11
12 Deploy & Go Live Phase High Level Activity Activity Details Customer Pre Requisites Assumptions Exclusions Plan for system shutdown (no logistic transactions) Transport all changes to production Migrate production system Ensure no logistic users are using the system during production migration After go-live support Support business users (Level Level 1 support to be provided by 2) customer Availability of system to log the issues and tracking Status Level 1 support Setting up system for support Migration to TAXINN (QA with Production data) Maintain mapping table between TAXINJ and TAXINN Execute migration of open logistic (MM) documents Test the result of migration SAP will provide custom reports and tools related to migration in few cases to reduce the efforts and improving the project quality SAP will support throughout the testing phase for all critical issues after migration QA system with latest copy of production data. 12
13 Challenges Identification of all logistic scenario Availability of core team and business users Availability of system for doing configuration and mock migration Through testing to ensure results of all scenario under TAXINN 13
14 Delivery Model Scope & Timelines Location Scope: India Resources : KPIT Project Manager DFG Expert ( need based) SAP MM Functional Consultant SAP SD Functional Consultant SAP FI Functional Consultant SAP ABAP Technical Consultant SAP BASIS Technical Consultant Resources : Customer Project Manager System Administrator or Basis expert Accounts Payable process expert Accounts Receivable process expert Financial Accounting process expert Logistics Process Expert Delivery Highlights Configurations as per the SAP Standard CIN processes Approach for deploying SAP CIN functionalities in SAP system Support customer team in Unit & Integration Test Support End user and configuration documentation preparation by customer team Knowledge transfer Execution highlights Global Template developed & maintained by customer team Knowledge Transfer at Customer site 14
15 Time Lines Phase/ Timeline (s) Preparation Business Blue print Realization Deploy Go-live 15
16 We offer a high quality of End-to-end SAP services to cover every aspect of your business Thank You 16 3/9/2017
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