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INDIA LOCALIZATIONA SNAPSHOTSAP Globalization Services2011

© 2011 SAP AG. All rights reserved. 2Confidential

Globalization Services – Overview

Must be usable across the world

Multiple currencies - Transact and record in multiple currencies across the globeUnicode - Sharing of files/ data across systems dealing with different languagesTime Zones/ Calendars –Record activities in local time zone and consolidate it globally

Internationalization

Must support local business practices and

legal requirementsBusiness solutions must incorporate local practices (e.g. Basic increments)Legally compliant with tax/ deductions/ contributions/ exemptions calculation and relevant statutory reportingSupporting over 50 country versions

Localization

Must be usable by everyone

Data entry, Supporting documentation and Data storage in 37 languages

Translation+ +

G L O B A L I Z A T I O N S E R V I C E S

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Evolution of Globalization Services Team in Bangalore

2000

HCM localization1997

FI and LO localization

CRM localization

2004

Utilities localization

SRM localization

2006

2007

Real Estate localization

Public Sector localization

Automotive localization

Retail localization

Asset Accounting localization

2011


WHAT WE HAVE FOR INDIA

Process Oriented Solutions

Focus shift to develop an end-to-end process which can be easily integrated into customer business chain/process to derive instant value e.g. e-Separation

Innovative Mobile Application for mass adoption

SMS alerts for the bill payments/ Lodging a complaint for Utilities sector

India Best Practices going Global

Energy Audit solution for tracking Commercial Energy Loss

Listening to Customers

Feedback from customers resulting in improved solutions.• Depreciation as per Income Tax Act• MIS reporting on TDS• Dealer’s Report• Sales Return Credit, Purchase/ Sales Register etc• Extensive ESS applications on HCM• Correction Run, Global Payroll and other solutions• Tax Simplifier Statement• Down port of certain solutions to EhP4

Building Mindshare with Government of India

Discussing the impact of GST ; Support in drafting legislation by asking right questions in advance

Creating awareness of SAP solutions and differentiating Product companies from Services in general

Representation at Conference on National Policy on Information Technology, 2011

Ecosystem Empowerment

Empowering partner and customer community by knowledge sharing on the solutions offered• Customer/Partner Summits, Workshops• Webinars, e-booksDiscussions with Customer teams on Roll-

In of new requirements.

CONTINOUS IMPROVEMENT COLLABORATIONINNOVATION

WHAT WE ARE DOING NEW

Export Import Process

Consolidated view of an Organization’s Export and Import operations, Optimizing EXIM license consumption across ports, products and plantsEXIM Solution for India

Address CleansingParsing of Addresses specific to India address format.Address Cleansing

SRM: Data Encryption

Secured transactions during e-Bidding processCVC Guidelines

Easy to Implement Solutions

ENTERING NEW MARKETS REDUCE TCOINCREASING EFFICIENCIES

WHAT IS NEXT (ROADMAP)

P2E – Policy Creation Engine

Service Award Request Creation

Positioning SAP stronger than before in the local market

Phased Delivery of ERP/ CRM in Hindi

Entering into Government sector and Public Services

Digital File Management: Solution to manage the back end data, processes and approvals for the govt. sector units

Simplifying Citizen Value Chain

Citizen Portal offering the most commonly used public services

Thank You!

Contact information:

Arun SubramanianGlobalization ServicesSAP Labs India+91 99725 98394


Block assignment:Define Asset BlockAssign Block (CSMD)Maintain Opening WDVAdditional customizing

Block

Transactions:AcquisitionInvestment SupportTransfer InTransfer outRetirementOthers..

Assets

Depreciation as per Income Tax Act

Reports:DepreciationProjectionTransaction Details

Migration Reports:Asset BlocksOpening WDVAssigning Block

Block TransactionsUpdate Asset transactions to BlocksAdjustment Transactions

Reporting


Export Import Processes

Interactive analytics dashboards that summarize key export and import metrics

Export Promotion Schemes MgmntDuty Drawback, DEPB and so on

License ManagementIntegration of Licenses to Sales/ Purchase processesLicense Utilization tracking

Document SetsExport Import DocumentsBill of Entry, Shpping Bill, Bill of Exchange

Export Import FinancialsLetter of Credit, Bond or Bank GuaranteeExport ReceivablesInsurance for Exports/Imports


Next generation Web-UIWeb application with embedded analytics for managing schemes, licenses and data-sets

Ability to customize and assign document sets to customer specific export and import processes

Role based functionality Configurable role-based functionality for logistics user, financials user and export-import manager

Export Import Processes


Address Cleansing

Conversion of addresses into a standard format

Validation of addresses against a vast database

Recommendation of possible correct addresses based on address matching rules

Highlight for India : Landmarks

Data Cleanse

TransformInput Output

Data Cleanse Dictionary

Parsing Rules


SRM : CVC E-Procurement Compliance

SRM Localization : CVC E-Procurement Compliance

Sensitive Data Encryption (Price and Tech Docs.)

Digital signature for Bid Documents.

Audit Logs

Encryption Key Management


TAX COMPUTATION

CENVAT (Excise)

Import Duties (BCD / CVD etc.)

Value Added Tax (VAT)

Central Sales Tax (CST)

Service Tax

Tax Deducted at Source (TDS)

Tax Collected at Source (TCS)

STATUTORY RECORDS & RETURNS

Excise Registers (RG 23 A/C/D)

GAR 7 Challan

ER1

Dealers Return

Service Tax Return – ST3

TDS Return – 26Q

TCS Return – 27Q

SAP : INDIA LocalizationLogistics


ERP LOGISTICS

LOCALIZATION at ERP LOGISTICS

Procurement Excise Computation and invoicing at Domestic Procurement Customs and Imports duty handling at Import Procurement.Excise Register maintenance (RG 23 registers).Service Tax handling on Service Procurement.Subcontracting Process including statutory challan and Excise handling.

Sales

Posting of Excise Tax Liability and Register Update (Plant and Depot) including Invoice capturing & Printing.Cenvat Utilization – Immediate and PeriodicSupport for LST, CST and VAT and VAT Document Numbering.CENVAT utilization done for export sales under no-bondSupport for Deemed Exports – AREDispatch against mother Excise Invoice (Plant) and refer at Depot.ER1 ReportingService Tax computation ,Credit utilization, Payment (GAR7) and Reporting under ST3


ERP FINANCIALS

LOCALIZATION at ERP FINANCIALS

Tax deducted at Source (TDS)

TDS computation on Service acceptance / Invoicing / Down –payments including PAN ValidationTDS payments via Challan processVendor TDS Certificate (Form 16A) Prints in Legal formatTDS Returns (26Q) output as per Legal format. TDS on Provisions.

Tax Collected at Source (TCS)

TCS computation on Buyer A/c Debits or Receipts.TCS Challan TCS Certificate (27D) Prints in Legal formatTDS Returns (27EQ) output as per Legal format.

Asset Accounting

Asset Block definition as per the Income Tax Act (Tangible and Intangible Asset Blocks).Master Data maintenance for Asset BlocksDepreciation Calculation as per the ActAsset Depreciation ReportAdjustment Entries and Drill Down Reports


ERP HCM (Human Capital Management)

HCM (PA) – Personal AdministrationSalary components e.g. Basic Pay, Dearness Allowance etcTaxation related master data e.g. Income from other sources, Previous employment details, Sec 80 investment Company Cars/Conveyance, AccommodationDisciplinary Action ProcessMemberships/ Third Party payments

HCM – Benefits ManagementReimbursement Process from Claim submission to payment with eligibility checks and taxation impactCompany Loans to Employees

HCM (ESS) – Employee Self Service

Tax Personal InformationPersonal IDsForm 16 Reimbursement & Loan ProcessingLeave Encashment ProcessingInvestment Declaration (IT)Tax declaration for

Heads other than Salary Rent Previous Employer TDS.

E- SeparationIncome Tax Projection Statement

HCM – ReportingTax Reports to Statutory Bodies:Provident Fund ReportsRegion/State wise Professional Tax ReportsESI and LWF reportsIncome Tax reportsTDS certificate to Employee (with digital signature)Form 24Q with e-fileAs per Company Act - Form 217 (2A)Functionality based: Loans & Reimbursements

HCM – PayrollTax computation as per Income Tax Act covering Exemptions u/s 10, Perquisite computation, Sec 89 Relief etcEmployee Provident Fund (EPF) Region/State wise coverage of Professional Tax (Profession Tax)Employee State Insurance (ESI) and Labour Welfare fund (LWF)Retirement Benefits and Voluntary Retirement Scheme (VRS)Global Payroll & Correction Run


What is GST?Goods and Services TaxWill replace

Excise duties (CENVAT)VAT/Central Sales TaxService Tax

Proposed ModelDual GST – State and CentralIGST for Inter State movementsDifferent rates for Goods and Services

Specified goods to continue with existing taxes

System ImpactsMaster Data

Change in definition of tax entityTax structure

Consolidation of taxes (complete overhaul of CIN)Incidence of tax

E.g. from Goods Receipts to InvoicingDue/Accrual basis Actual Basis

Tax PaymentUtilization Rules for CGST; IGST;SGST

ReportingReplacement of supported Registers, Returns

Our ChallengesTimely availability of information

Changes released with very short noticeLack of clarity

Changes proposed are presented in briefDifferent interpretations of the same law

State specific variationsState GST : Rules could differ from state to state

Meeting customer expectationsImpacts all procurement/ sale transactions of customers –Business Stops if not supported on time

SAP ReadinessInteractions with Ministry of Finance (MoF)

Additional Revenue SecretaryMember Secretary: Empowered Committee for GSTJoint Sec. TRU, CBEC

Collaboration with IT committee on GST Govt. Of India. Rollout: through E-learning, Workshops/ Road Shows for Customers/ Partners on process to migrate to new tax structure

GSTGST

GST : Quick Snapshot


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© 2011 SAP AG. All rights reserved.

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