What is the Rel­e­vance of TAX­INN Mi­gra­tion?

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sAP, a ma­jor soft­ware sup­plier in In­dia, pro­vides wellknit in­te­grated mod­ules that im­proves busi­ness...

SAP, a ma­jor soft­ware sup­plier in In­dia, pro­vides well-knit in­te­grated mod­ules that im­proves busi­ness ef­fi­ciency of any in­dus­try. Ma­jor­ity of the man­u­fac­tur­ing com­pa­nies are us­ing SAP sys­tem to pre­cisely cal­cu­late the du­ties for the in­ward and out­ward move­ment of goods. To ad­here with the Gov­ern­ment poli­cies, com­pa­nies have to re­port their tax struc­ture to the rel­e­vant au­thor­i­ties. To sup­port ac­cu­rate tax cal­cu­la­tion, SAP has pro­vi­sioned the com­pa­nies with Coun­try Ver­sion In­dia (CIN). CIN has to be ac­ti­vated in the Sys­tem for Duty – Tax re­lated cal­cu­la­tions.


For cal­cu­lat­ing the taxes, SAP has two types of Tax de­ter­mi­na­tion pro­ce­dures – TAX­INJ and TAX­INN. Only one among the two tax pro­ce­dures needs to be used in the SAP sys­tem. SAP has stopped the sup­port for is­sues that are aris­ing on us­age of TAX­INJ tax pro­ce­dure. With the Goods and Ser­vices Tax (GST) to be im­ple­mented in In­dia shortly, it is manda­tory for com­pa­nies to ei­ther im­ple­ment TAX­INN or mi­grate their tax pro­ce­dure from TAX­INJ to TAX­INN. SAP In­dia has al­ready made changes in the soft­ware to ac­com­mo­date GST and com­pa­nies need to get the pre­req­ui­sites ready for im­ple­ment­ing GST. Mi­grat­ing to the lat­est tax struc­ture helps to:

Es­tab­lish a com­mon in­fra­struc­ture that in­cludes doc­u­ment and file man­age­ment. This helps in ef­fi­cient tax cal­cu­la­tion

Build a user-friendly in­ter­face for both tax pay­ers and tax ad­min­is­tra­tors to ease ac­cess­ing

En­able the or­ga­ni­za­tions to eas­ily mod­ify the tax struc­ture when there is a change in the tax regime

Sim­plify the tax cal­cu­lat­ing pro­ce­dures with ap­pli­ca­tions, based on the lat­est gov­ern­ment guide­lines


TAX­INN pro­ce­dure is the pre­req­ui­site for GST im­ple­men­ta­tion. Hence, com­pa­nies us­ing TAX­INJ tax pro­ce­dure need to mi­grate to TAX­INN tax pro­ce­dure and then GST has to be im­ple­mented. While TAX­INJ is for­mula based, TAX­INN is con­di­tion based. A stan­dard rou­tine (set of spe­cific stan­dard cod­ing) is used in the for­mula based TAX­INJ tax pro­ce­dure for tax cal­cu­la­tion pur­poses, whereas, con­di­tions are used in the TAX­INN tax pro­ce­dure.


There are sev­eral ad­van­tages in the tax cal­cu­la­tion us­ing TAX­INN of which the pri­mary is con­trol of tax codes. In TAX­INJ tax pro­ce­dure, a tax code will be for a spe­cific tax per­cent­age. When the Gov­ern­ment im­ple­ments a new pol­icy or changes the ex­ist­ing pol­icy in the tax per­cent­age, a new tax code has to be cre­ated. Cre­ation of new tax codes for ev­ery pol­icy will re­sult in a large num­ber of tax codes, which be­comes dif­fi­cult to con­trol. Whereas, in the TAX­INN tax pro­ce­dure when there is a change in tax per­cent­age ac­cord­ing to Gov­ern­ment pol­icy, the same tax code can be used with the va­lid­ity date. This en­sures that there are lesser and con­trol­lable limit of tax codes when the TAX­INN tax pro­ce­dure is used.


The mi­gra­tion from TAX­INJ to TAXIN in­cludes: Prepa­ra­tion on af­fected sce­nar­ios mostly in Sales and Pur­chase, re­quired sys­tem con­fig­u­ra­tions, me­thod­i­cal test­ing, changes in mas­ter data, cor­rect­ing ABAP ob­jects, and con­ver­sion of open pur­chase re­lated doc­u­ments. SAP has also given a spe­cific tool to con­vert the open Pur­chase Or­ders/Con­tracts for the mi­gra­tion. An im­por­tant point to be noted in this mi­gra­tion is, there will be no changes in the pro­cesses for Ma­te­rial Man­age­ment and Sales and Dis­tri­bu­tion mod­ules in SAP.


Dur­ing mi­gra­tion, the changes are per­formed only in the back­ground – con­fig­u­ra­tion changes alone will be made in the TAX­INJ to TAX­INN mi­gra­tion. This mi­gra­tion process in­volves ap­pli­ca­tion of notes pro­vided by SAP. Nearly 20 to 30 Notes are re­quired to be ap­plied dur­ing the mi­gra­tion process. The num­ber of notes de­pend on the ex­act SAP ver­sion that the com­pany is presently us­ing. The ap­pli­ca­tions of notes re­quire SAP tech­ni­cal ex­per­tise. The proper im­ple­men­ta­tion of notes would en­sure that the pro­cesses are run with­out er­rors af­ter mi­gra­tion. Un­less the SAP Part­ner has the re­quired ex­pe­ri­ence in the ap­pli­ca­tion of notes, the project will not be suc­cess­ful. Un­suc­cess­ful im­ple­men­ta­tion of tax mi­gra­tion project re­sults in con­flicts/con­fu­sions/bugs.

Since most of the pro­cesses hap­pen in back­ground the user will no­tice very min­i­mal changes af­ter the mi­gra­tion. They might re­quire min­i­mal train­ing from the SAP ex­perts to han­dle the sys­tem ef­fec­tively.

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