High Level Impacts

GST Training & SAP Landscape - High Level Impacts.

Key Questions

Compliance to legal requirements?

What needs to be done in systems and processes to comply with GST regulations?

Efficiency that reduces costs?

Do you have a solution design that automates accounting for GST input and output tax
and provide accurate data for tax returns &auditing?

Flexibility to respond to the pace of business?

How to achieve a standard GST compliant SAP solution which support the pace of your
business?.

Business Challenges
Pressure from the authorities for Legal Compliance / Penalties on late
submission and incorrect reporting
Demand for accurate GST reporting
Deadlines for submitting GST returns /Cash Management & Tax Liability
Impacts entire sales and purchase transactions and resultant Data
Integrity / Master Data changes and validations
Complex rules (e.g. Cross-border services, Transition Rules, mixed
supply)
 Industry specific GST requirements

IT challenges
IT challenges covered in the training
Need to deliver a standardized approach to supporting GST for SAP
users with low TCI to drive business continuity
Consistent upgrade path for GST functionality
Total Cost of Development for custom GST applications, Forms and
Reports increase the overall TCO
Maximized use of standard SAP functionality
A solution aligned with the long-term direction of SAP products
High pressure from government to ascertain compliance versus high
effort, restricted time line and limited budget

GST Compliant system

GST Compliant system Challenges
Inaccurate & delayed GST returns can attract penalty
Complex rules to manage special conditions
Interfaces and SAP customizations may pose additional challenges for
GST enablement
Impacts entire supply chain and related financial accounting
Regression testing of SAP and all connected systems
Managing transition scenarios such as Taxable Goods / Services Sold
Before
Sub optimal implementation of GST can even result in cash flow issues
for organization

Key business impacts

Training on Multiple business areas where GST will put an impact
Summary of key business impacts
Inter-State procurement could prove to be a viable strategy
Sourcing This may also open opportunities to consolidate
suppliers/vendors
Distribution Changes in tax system could also warrant changes in
distribution arrangements
Current arrangements for distribution of finished goods may
 no longer be optimal with the removal of the concept of excise duty
on manufacturing
Current network structure and product flows may need
review and redesign
Tax savings resulting from the new GST structure would
Pricing and require re-pricing of products
profitability Margins or price mark-ups would also need to be
reexamined
Removal of excise duty on manufacturing can result in
improvements in cash flow and inventory costs since GST will now
Cash flow
be paid at the time of sale/supply rather than at the time or removal
of goods from the factory
Required changes affect multiple areas including master
data, supply chain transactions, Audit and Reporting
Open transactions and balances will need to be migrated on
System changes the cut-off date to ensure smooth transition to GST
and transaction Changes to supply chain reports (e.g., purchase register,
management sales register, services register), other tax reports and forms (e.g.,
invoices, purchase orders) will need review and adjustments
Enhanced need for reconciliation of data with suppliers,
government and other partners
Training and education of employees to understand new
Training
compliance requirements under GST to ensure a smooth transition

Training on GST Impact

Training on GST Impact SAP Landscape - Summary

SAP Materials Management (Procure to Pay)
Material/Service Master | Purchase orders | Subsequent Credit /Debit | Purchase Info Records |
Debit/Credit Notes | Invoices

SAP Sales & Distribution (Order to Cash)

Sales Orders | Distribution Channel | Pricing (Types of Conditions) | Sales Area | Billing
Schedule | Debit/Credit Notes | Invoicing | Delivery

SAP Financial Accounting

Accounts Payable and Receivables | Invoicing (Non-PO) | Management of Master Records
Billing (Non-SO) | Petty Cash | Invoices and Credit Notes | General Voucher | G/L Account

SAP Forms & Master Data

SAP FI, SD, MM, G/L Reports |Other Statutory Reporting | Vendor, Customer | G/L Account
Reporting | SAP Human Capital Management | Employee Benefits | Travel & Expenses
Knowledge Sessions for companies to proactively identify areas
impacted and prepare and test business scenarios to measure
impacts
Understand key areas of impact in their business
Prepare different scenarios for the application of GST
Continually track policy development regarding GST and update
prepared scenarios accordingly
Identify issues and concerns needing representation to the authorities
and develop a strategy for effective management of these
Regression testing of SAP and all connected systems
Prepare a business and IT transition roadmap and align relevant
teams/li>
Prepare IT systems to build and test process scenarios
How this training can help
GST Tools Project Phase Description
Analysis on current
Configurations
Analysis on current Master Data
setup
GST Assessment Tool Discovery Technical Feasibility analysis.
(SAP version, Support Pack Level and
etc.)
High-level analysis on As-Is
transactions
Mass updates for Master Data
Managing open transactions
GST Migration tool Realization
during transition period
Managing Tax re-determinations
Regression testing
GST Testing Tool Realization Load testing
Embedded test scenarios
Rapid GST end user training
GST Content Realization /Post Go content creations
Development tool Live Rapid GST demo creations
Rapid GST Exam creations
Exception reports on deviations
GST Audit Tool Post Go live Transaction accuracy analysis
GST Compliance analysis
Run with SAP for 100 % Compliance
Understand key areas of impact in their business
Prepare different scenarios for the application of GST
Continually track policy development regarding GST and update
prepared scenarios accordingly
Identify issues and concerns needing representation to the authorities
and develop a strategy for effective management of these
Regression testing of SAP and all connected systems
Prepare a business and IT transition roadmap and align relevant teams
Prepare IT systems to build and test process scenarios

SAPs GST Service Categories

SAPs GST Service Categories - a 4 Pillar Approach
Professional SAP Training content will actively simplify the below
service plans
SAPs GST Assessment service - Benefits
Visibility of GST impact on SAP across entire business process.
Road map for GST implementation provides clear insights to system
changes, cost and time line
Risk reduction and assured legal compliance
Reduced manual intervention in AP/AR and full benefit of input tax credit
Recommendation in line with standard SAP / best practice guidelines
Leverage learnings from SAP GST implementations worldwide (Brazil,
Australia, Malaysia etc.)

GST Check points

Review General Ledger Master Records
Review Customer Master Records
Review Vendor Master Records
Review Material Master Records
Review Service Master Records
Review Pricing Procedure Configuration
Review external interfaces
Review Custom Programs
Business Processes Review
Procure to Pay process How to maximize Input Tax Credit
Supplier Invoice Management & Record keeping
Material classifications
Review supplier base and categories
Order to Cash Process Output Tax determination, Tax Benefits
Payment terms
Financial Accounting Process
Cash Flow Management
Organizational structure
Configuration & Customization Review
Purchase Pricing Procedures
Sales Pricing Procedures
FI Configuration
HCM Configuration
Reports, Enhancements, Forms & GST impact
3rd Party interfaces (Inbound & Outbound)
SAP modules beyond SD, MM, FI - PS, PM
Beyond ECC SRM, CRM, Industry Solutions
Data Cleansing and Update Requirements
Vendor Maser Update for GST Registration #
Customer Master Update for GST Registration #
Material Master
Change of Tax classification in the existing PO
Change of Tax classification in the existing SO
Pricing Procedure
GL Accounts
Change Management & Training Needs
Enterprise wide GST Awareness & readiness
Project Team training
Key User and End User Training
Change Management
Testing, Cutover & Go live Needs
Regression testing to ensure non GST functions works properly
Explore Test Automation possibilities
 Impact of other projects in parallel
Availability of business / IT team
Trial cutover, Technical Go live, Business Validation
Business Go live & Post go live support
Transition Related Requirements
Taxable Goods / Service Sold Before 1 April 2016 and Returned On Or
After 1 April 2016
Taxable Service Provided Before 1 April 2016 and Terminated On Or After
1 April 2016
Progressive and Periodic Supply Spanning GST Implementation
Long Term contracts
How to switch off current tax configuration