Tax Migration in Indian Localization - KPIT Technologies · PDF file• SAP MM Functional...

www.kpit.com

Tax Migration in Indian

Localization

TAXINJ -> TAXINN

© KPIT Technologies Limited

Agenda

1/28/20162

1 Customer requirement

2 Scope

3 Out of scope

4 Assumptions

5 Phases of implementation

6 Challenges

7 Delivery model


Customer Requirement

1/28/20163

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


Scope

1/28/20164

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


Out of Scope

1/28/20165

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


Assumptions

1/28/20166

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


Phases of implementation

1/28/20167

Project preparation

Blueprint

Realization

Deploy, Go-live and support


Project preparation

1/28/20168

High Level Activity Activity DetailsCustomer Pre

RequisitesAssumptions 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

and Tax Migration in Indian

Localization

Availability of Project

team


Blue print (1 of 2)

1/28/20169

High Level Activity Activity Details Customer Pre Requisites Assumptions Exclusions

Study of existing

TAXINJ procedure

• 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

• 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

Study of reporting

and return

process

• Understand the reports usage for tax

• Understand the reports or

development for return preparation

Interface with

other

applications

• Understand interface with Collabra

• Understand interface with any other

custom applications

• Understand interface with any other SAP

applications

Logistic scenario

• Understand the procurement process

from tax angle

• Understand the sales process from tax

angle


Blue print (2 of 2)

1/28/201610


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)


Realization

1/28/201611


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


phase for all critical issues after

migration

• QA system with latest copy

of production data.


Deploy & Go Live Phase

1/28/201612


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

2)

• Level 1 support to be provided by

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


phase for all critical issues after

migration

• QA system with latest copy

of production data.


Challenges

1/28/201613

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


Delivery Model

1/28/201614

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


Time Lines

1/28/201615

Phase/ Timeline

(Weeks)

Week

1

Week

2

Week

3

Week

4

Week

5

Week

6

Week

7

Week

8

Week

9

Week

10

Week

11

Week

12

Week

13

Week

14

Week

15

Preparation

Business Blue print

Realization

Deploy

Go-live

© KPIT Technologies Limited3/9/201716

We offer a high quality of

End-to-end SAP servicesto cover

every aspect of your business

Thank You

Tax Migration in Indian Localization - KPIT Technologies · PDF file• SAP MM Functional...

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