SAP Localization Summit 2011, Bangalore, India

SAP INDIA LOCALIZATION PORTFOLIO
It’s time to Run Better

. and cost. Applicability for VAT or CST based on the regional scope of transactions is automatically taken care of. Tax Deducted at Source (TDS) and Service Tax. SAP Business ByDesign reduces the cost. so you can be confident about a successful deployment and predictable operation. Complying with government regulations is not optional. India localization provides for compliance covering the requirements with respect to legal provisions in scope of business operations such as Value Added Tax (VAT). and nature of payment (tax deducted at source (TDS)) etc. tax rates. format being state specific is provided in a generic way with relevant data. And with SAP Business ByDesign. Cash flow statements provided also gives an insight to the financial health of the organization. VAT return.r. Tax Compliance India localization provides for tax computation w. it’s a necessity. SAP Business ByDesign helps you streamline and optimize every area of your business. Legal Reporting The localization solution also provides for Challan process w. Profit and Loss statement.LOCALIZATION AT SAP Business ByDesign Run Adaptive Run Better The SAP® Business ByDesign™ solution is the world’s most complete and adaptable on-demand business offering. Service categories (service tax). so you can meet new business requirements with minimal time. with minimal total cost of ownership. Balance Sheet and Profit and Loss accounts are also provided for as per Companies Act 1956. you have SAP managing your software for you. Provisions governing the requirements for Balance Sheet. and Tax Deducted at Source (TDS) as applicable at business transactions covering procurement and sales of goods and services.TDS vendor certificate as per legal format (Form 16A) and TDS Quarterly Return as per legal format (26Q) is also supported. Service Tax..r. India Localization also provides preconfigured content for tax codes with applicable components. so you can immediately identify and respond to issues and opportunities – and it’s adaptable.t Service Tax and Tax Deducted at Source (TDS) with details of tax paid and Challan submission data being captured at the system. enabling faster implementation and easy adaptation. SAP Business ByDesign provides visibility. and integrity to all your business processes – as well as localized business content and best practices to help you with regulatory compliance in all countries where the solution is currently available. and effort required to comply with regulations. Service Tax Return (ST3) is also provided for with the limitations based on the data captured and available at the system. designed specifically for midsize companies that want to grow profitably. central Sales Tax (CST).t Value Added Tax (VAT). Additionally depreciation calculation. Central Sales Tax (CST). The solution provides transparency and control over all your operations. transparency. time. effort. Cash Flow statements as per Companies Act are also supported.

The solution has undergone continuous enhancements since then resulting in improved usability and consistent compliance with Indian tax requirements. Until SAP R/3 4. Incoming excise invoices can be SAP CIN provides complete provisions for excise definition captured and posted instantly in the SAP ERP solution for goods including material chapter ID configuration. subcontracting and stock transfer. Service Tax Service tax is of the nature of deferred tax. receipts arising from external procurement. India Localization provides a comprehensive support for tax credit utilization in a seamless manner. Quick Reference Notes: utilization in a seamless manner.1s under deemed exports. Such specific treatment as per law is fully supported by Country Version India (CIN). thus ensuring traceability. India Localization was available as an add-on solution complementing SAP ERP with functionality for Indian-specific statutory requirements. the running bond report. 2005. Factory Sales An excise invoice can be created during the billing cycle. India localization (Country Version India – CIN) has been a key factor for its customers to bring in profitability together with legal compliance to their businesses. Under exports. India Localization supports the same. the provisions of Procurement laws governing these taxation segments. It Excise Register RG23D provides the complete support for tax maintenance as required by credit utilization across goods and excise laws is also been services. Procurement India Localization provides for integration of excise processes with the goods movement functionality. Tax credit cross utilization between goods and services are also supported. source transaction data. Export / Import operations India Localization allows you to process exports and deemed exports under excise regulations. For depot sales or stock transfers. quantity reconciliation and CENVAT reversal on nonreceipt of material within prescribed time-frame and re-credits on subsequent receipts are provided for. India procurement and sales transactions Localization between different business entities.6C. laws governing the tax credit are equally complex. enabling complete compliance. creation and processing of ARE . These features have proved to be very effective in accelerating implementations as well as enabling quick adaptations to legal changes. Reporting in terms of ARE document ageing. and deemed exports are also addressed by India Localization. Specific provisions w. and dealers. It provides the complete support for tax credit utilization across goods and services. as there is no value Credit Utilization addition done at a depot. laws governing duties at commercial invoice and creation that is based on a the tax credit are equally complex.70 release onwards.r. India Localization provides for maintenance and processing of excise bonds (running bonds). stock transfer. Ease of Implementation From SAP R/3 Enterprise core 4. SAP proactively keeps track of legal changes affecting its customers in India and incorporates such changes into its solutions seamlessly. Localization functionality facilitates the service tax computations and transfer of duty payable/ input credit from interim account to final account on part receipts or full payment ofbill/ invoice respectively. credit availment for countervailing duty (CVD) and additional duty for customs are supported. Various components of excise tax.com) for Country Version India. official document numbering. materials can be received from manufacturing facilities. thus ensuring traceability.t. The posting of excise invoices generates the appropriate accounting entries for CENVAT credit. Features such as challan creation and tracking. Consolidation in requirements of business and. Best Practices for Baseline and select Industries are offered with India Localization as an integral part to facilitate quicker implementation. excise rates. Tax Compliance Indirect Taxation system in India covering business operations taxation is quite complex and Process Compliance includes excise tax. free samples. Since its inception in 1996. In case of imports. immediate CENVAT credit to the extent of only fifty percent for capital goods and the balance can be availed in subsequent VAT (Value Added Tax) financial years. quantity reconciliation and CENVAT reversal on nonreceipt of material within prescribed time-frame and re-credits on subsequent receipts are provided for. valuation based on VAT applicability of material and credit treatment is also covered as a part of India Localization. The posting of excise invoices generates the a condition-based method and a formula-based method supported appropriate accounting entries for CENVAT credit. at the same time. as required by the legal provisions in India as explained below. Services SAP offers you a complete spectrum of services for India Localization: ? Professional consulting services for project planning and system implementation ? Training ? E-Learning ? Audits bill/ invoice respectively. SAP Library documentation is also available online (http://help. From SAP R/3 Enterprise Core 4.r. maintenance of licenses and creation and processing of ARE-3s are provided. provided for. where by Pre-Defined tax procedures ensuring standardization and applicable. . India Localization configuration is a part of SAP standard implementation guide (IMG) including preconfigured templates for tax calculation based on Indian statutory requirements. Entries in CENVAT registers are maintained in the system with reference to source transaction data. stock transfers. subcontracting and assessable value etc. complete compliance across the service tax on a logistics operations covering broad scale. Incoming excise invoices can be captured and posted instantly in the SAP ERP solution for goods receipts arising from external procurement. India Localization supports the same. Depot Operations At a depot. Subcontracting The India Localization provides for monitoring materials issued to a subcontractor under excise law. India Localization provides for both immediate and periodic credit utilization. VAT registration number. 4 & 5) Process Compliance Country version India (CIN) provides complete compliance across the logistics operations covering procurement and sales transactions between different business entities.t concessional rates scenarios. Its ease-of-use and accessibility makes it the ideal companion to a feature packed localization solution. With a dedicated team at Labs Bangalore. In addition. surcharges and CENVAT utilization. Reporting Capabilities India Localization facilitates data capture at transaction and master level and offers a comprehensive set of report generation capabilities covering reports as per Indian statutory requirements as well as business audit requirements. provides complete as required by the legal provisions in “India Localization provides compliance across the logistics map” compliance as per India as explained below. Current excise rules allows for availing immediate CENVAT credit to the extent of only fifty percent for capital goods and the balance can be availed in subsequent financial years. India Localization is delivered as part of the standard SAP Solution. There are functions for handling Excise implications w. having Indian operations. where applicable. has been a key factor in the success of our solutions. Tax credit cross utilization between goods and services are also supported. Immediate CENVAT utilization provides for inline updates on CENVAT credit in the relevant registers (RG 23A/C) during goods movement. Features such as challan creation and tracking. India Localization provides a delivery document prior to comprehensive support for tax credit goods issue is also supported. Excise duty needs to be passed on as it is received. Entries in Determination VAT rates. The amount posted to these accounts is available for CENVAT utilization.sap. applicability and computation is CENVAT registers are maintained in the system with reference to completely supported by India localization. SAP provided 24/7 support to our customers to ensure a smooth transition to a VAT regime on April 1. Country version India (CIN) provides value added tax.ST3 (section 3. Some of the major reports supported are: ? ? ? ? ? ? ? RG 23A Parts I and II (CENVAT) RG 23C Parts I and II (CENVAT) RG 23D RG 1 ER-1 (including xml data file export) GAR 7 Challan data Service tax Return . It offers two ways of calculating excise duty. which is a comprehensive user manual with detailed information on the India Localization functionality from a user’s perspective. The amount posted to these accounts is available for compliance. other depots. for example. India Localization provides for integration of excise processes with Excise Tax (CENVAT) the goods movement functionality. Credit Utilization Tax credit utilization greatly impacts the working capital requirements of business and. India Localization provides for the mother Tax credit utilization greatly impacts the working capital excise invoice selection & referencing at depot. Current excise rules allows for availing Cess (ECess & SHECess) applicable are also supported. and bond summary report provide for tracking their status. at the same time.The utilization functionality provides for cross utilization between goods and services whereby CENVAT credit can be utilized to pay service tax and viceversa.LOCALIZATION AT SAP ERP OPERATIONS Run Compliant Run Better Subcontracting The India Localization provides for monitoring materials issued to a subcontractor under excise law. Close interaction with SAP ERP customers.7. Periodic CENVAT utilization functionality allows you to utilize CENVAT accumulated during a period and debit balance to your personal ledger account (PLA).

The solution offers depreciation computation until date at any point of time in a financial year.r.g. bill of sales. Tax Compliance Taxation system in India covering business operations is quite complex in nature. Tax Collected • TDS/TCS Quarterly Returns at Source (TCS) and (e-File output) Asset Depreciation. AED) by including sub-components such as Education Cess (ECess) and Secondary & Higher Education Cess (SHECess) as per the legal provisions. . One aspect of this Localization Highlights complexity is the Indian Income Tax Act • TDS/TCS computation at 1961 such as tax transaction level deducted at source • TDS/TCS Certificate Print (TDS). Tax Collection at Source (TCS) The provisions of Income Tax Act 1961 requires the seller to collect TCS amount from the buyer on specific materials and services (e. the solution provides for a projection program that shall forecast depreciation values for the remaining part of the fiscal year based on probable transactions. and service tax by including sub-components such as Education Cess (ECess) and Secondary & Higher Education Cess (SHECess).t. Data Migration To facilitate master data maintenance of existing assets. Tax Compliance India localization of SAP CRM enables computation of applicable taxes as per the governing statute and fulfills the corresponding invoicing requirements for CRM scenarios where billing takes place in CRM. invoice posting or provisions whichever is earlier. reporting etc. Asset Block Definition As per Income Tax Act 1961. SED. India Localization • TDS on Provisions (Country Version India • Asset depreciation computation – CIN) for ERP as per Income Tax Act Financials provides compliance as per the provisions of laws governing these taxation segments. A migration tool has been provided for customers on Classic TDS to migrate into an Extended Withholding Tax scenario seamlessly. taxing. asset transactions. TDS vendor certificates as per legal format and Quarterly returns. The localization solution offers grouping the assets along with the applicable depreciation rates as per the prescribed rules. From SAP R/3 Enterprise Core 4. TCS Challan update. The solution has since undergone continuous enhancements resulting in improved usability and consistent compliance with Indian tax requirements. In addition. as per the statutory requirements. Scrap sales) applicable at the time of debiting the amount payable to the account of the buyer or at the time of receipt of such amount from the said buyer. India Localization for SAP ERP Financials provides compliance across such segments of the governing statute. Localization piece transaction tax engine (TTE) provides the capability for identifying applicable tax components and the respective calculation covering value added tax (VAT). whichever is earlier. depreciation calculation methods. India Localization solution provides for invoice splitting based on the applicability of tax at the invoice line items and invoice document numbering accordingly. The solution consolidates normal transactions such as acquisitions. has been a key factor in the success of our solutions.LOCALIZATION AT SAP ERP FINANCIALS Run Compliant Run Better LOCALIZATION AT SAP CRM Run Integrated Run Better Since its inception in 1996. India Localization supports customer TDS scenario where TDS deducted by customers can also be tracked. enabling complete compliance. Additional Features The solution offers a drill down program enabling users to see the details of asset level transactions that impact depreciation under the asset block. India Localization was available as an add-on solution complementing SAP ERP with functionality for Indian-specific statutory requirements. Additionally VAT numbering is regionspecific. rates. TCS certificate printing and TCS return as per the legal format. Invoice splitting can also be customized to achieve a fixed number of line items per invoice. Additionally the pricing procedure takes care of applicability and computation of excise taxes (BED. This includes determination of which 'category' an invoice belong to: excise invoice. adjustments and capital gains/losses. transfers. Additionally taxation impacts as per the legal requirements needs to be taken care of at the CRM Billing. vendor down payments.70 release onwards. having Indian operations. Reporting Capabilities India Localization provides support for various statutory reports and forms including: ? ? ? ? TDS certificate (form 16A) TDS quarterly returns ( e-File 26Q / 27Q) TCS certificate (form 27D) TCS quarterly returns (e-file 27EQ) Asset Depreciation The Income Tax Act 1961 provides specific provisions for governing depreciation accounting in India w. TDS Challan is linked with individual transactions. Additional Features Tax laws in India necessitate additional requirements with respect to official document numbering and invoice splitting at CRM Billing. retirements. Tax Deduction at Source (TDS) India localization (Country Version India – CIN) provides for the computation and deduction of TDS at service acceptance. invoicing. India Localization of SAP CRM solution addresses these Localization Highlights requirements via • Enhancement on taxation and billing providing a logical combination of • Invoice splitting optimized tax • Document Numbering engine and pricing • Seamless integration with SAP ERP procedure to assist Financials the customers in • Extensibility and performance performing optimization of billing application compliant and efficient billing in CRM.6C. depreciation is computed and allowed on the written down value (WDV) of the block of assets. Billing comprises of the collection of billable items in the billing due list and the functionality to invoice this data and producing billing documents that are transferred to accounting. data migration programs are provided for: ? ? ? Existing group assets to asset blocks Opening WDV for the existing block of assets Assignment of assets to asset blocks Customer deployments of CRM “stand-alone” sales and service scenarios continue to increase at a steady pace (stand-alone refers to scenarios where ordering. India Localization is delivered as a part of the standard SAP solution. as well as special transactions like post capitalization. India localization (Country Version India – CIN) has been key for its customers to bring in profitability together with legal compliance to their businesses. SAP proactively keeps track of legal changes affecting its customers in India and incorporates such changes into its solutions seamlessly. that is. Up to SAP R/3 4. central sales tax (CST). Each category has its specific requirement and individual numbering series to be used. With a dedicated team at SAP Labs Bangalore. write-up etc at block level and computes depreciation considering opening WDV. one series is required per region (state) if the selling company is registered in several regions (states). Billing is an essential part of sales and service processes and is critical in ensuring the timely processing of a company’s revenue stream. or service invoice. India Localization provides for TCS computation on buyer A/c Debits or Receipts. Close interaction with SAP ERP customers. and pricing occur in CRM). VAT invoice. including e-file return for online submission can be generated using the system. providing details on TDS payables. SAP CRM LOCALIZATION SNAPSHOT Depreciation Computation Depreciation computation is performed at the asset block level as required by the governing statute.

in effect a financial year of March to February. . A correction run can be run on any day before the pay date of the next pay period and triggers retro recalculation of gross to net during the retro run. Correction Run One of the recent significant enhancements provided at localization for SAP ERP HCM: India Payroll is “Correction Run”. As of now impacts of such errors can't be addressed until the next payroll. and tax computation only for part of the year. computation. and loans. impacting tax calculation and reporting. SAP boasts over 9500 SAP® Human Capital Management (HCM) solution customers worldwide. In the event you are implementing SAP India Payroll in the middle of a financial year. Retrospective Processing SAP India Payroll supports retrospective computation of changes to the various data heads and makes the appropriate computation and payments in the current period. Non-resident status determination and the income tax implication thereon is a feature of this solution. annual increment process. SAP India Payroll offers a suite of state-of-the-art functions that cover the daily requirements of those working in the payroll management environment. Payroll Management India Payroll solution responds to tomorrow’s needs today. The taxation treatments of these reimbursements can also be defined. labor welfare fund contributions and professional tax for states where applicable at the relevant frequency. Benefits SAP India Payroll computes varied benefits provided to your employees such as leave travel allowance. sub-limits on individual components of the package and the processing of outstanding balances during and at the end of the year.LOCALIZATION AT SAP ERP HCM Run Compliant Run Better Retirement Benefits Gratuity and superannuation computation supporting multiple trusts and user definable contributions can be implemented with SAP India Payroll. Since its inception. Taxation Designed to comply with the individual income tax laws of India. In each case. professional tax ? Changes in tax exemptions e. outgoing payments. In addition the system provides for computation of Sec 89(1) relief for arrear payments. the retroactive processing program automatically recalculates pay. These include changes in: ? Eligibility for a wage element ? Changes to wage amounts (arrears payments) ? Changes in applicability of statutes e. and designed to meet your payroll requirements. Voluntary tax/ additional tax payments on behalf of the employee can be configured in the system. correspondence relating to various actions during employment. SAP ERP HCM is the ideal solution for you. the system provides for transferring legacy payroll results into SAP. Employee Separation SAP India Payroll has been configured to address requirements for employee separation due to resignation. house rent allowance. medical insurance. applicability of surcharge and any additional cess. The tax calculations take into consideration an employee’s taxable income. If employee’s pay details require back dated changes. retirement. SAP Payroll is available in 55 countries by means of standard versions (35). Close interaction with Indian SAP ERP HCM customers has been a key success factor. companies have sundry payments processing requirements. in the languages of each specific country. and tax related errors. Localization for Public Sector The India Localization of SAP® ERP HCM has been enhanced to include requirements specific to Indian Public Sector/Services organizations. This provides limits on the FBP. Statutory Reporting: Besides the standard reports of HCM. tax slabs. It can also handle provisions for multiple CPIs for different locations and maintain linkages to basic salary. company housing and other long term reimbursements. the system stores all your employee tax details. including previous employment tax and professional tax. add-on versions (11) from SAP and add-on solutions (9) from partners. and the location he works at. and any additional information. With this the employee movement from one country to another in the same organization can be processed along with payroll data transfer. Wage Elements Any number of wage elements can be created and used for administering compensation. The salary slip is flexible in design and can meet customer specific format requirements or changes with less effort. furniture.g. and tax records as well as ledger entries. SAP India Payroll supports multiple user defined deductions from salary. state specific Professional tax and LWF reports are provided. The India Localization of SAP ERP HCM has been developed after an extensive study of Indian tax and business practices across industries and organizations of varying sizes. Off-Cycle Payroll Processing Besides the regular payroll. The wage elements can be assigned to various employee groups depending on their characteristics such the department of the employee. SAP India Payroll computes the dearness allowance (DA) using options such as fixed Dearness Allowance and linkage to consumer price index (CPI). maintenance of balances. reservation policy for the public sector/services. Flexible Benefit Packages (FBP) The SAP India Payroll offers the functionality of FBP/ basket of allowances practice as seen in a number of companies. India Localization of the HCM solution brings about providing the global business practices with Indian tax compliance as a solution for a company’s HR and payroll processing needs. deductions permitted. Additionally India Localization of SAP ERP HCM provides for business process requirements specific to the Indian Public Sector organizations. ESI. taxability. Basic Salary SAP India Payroll can handle scenarios with different variations of basic salary and increments which are normal or due on promotion of the employee. Payslips The salary slip lists amounts and information for the employee per payroll period in a clear format. computation and so on to suit your organizational requirements. Loans The standard loans functionality has been enhanced to meet the requirements of eligibility. The revised figures update the employee’s history. or VRS. a dedicated team has been enhancing and supporting the localization features and functions well integrated with the SAP ERP HCM solution. computation of interest and monthly installment repayment. India Localization now provides for such corrections via "Correction Run" enhancement. India Payroll now provides our customers with the option selecting the financial year applicable to them. The pre-configured SAP India Payroll allows you to set parameters and update data as and when any policy or legislative changes occur. Multinational Capabilities If your company is a multinational operation with subsidiaries in various countries. rent paid for housing Mid-Year Go-Live Since the financial year as regards to income tax is April to March. These benefits are computed after considering parameters such as eligibility. The system provides the flexibility of defining certain payments paid in March to be accounted in the previous financial year. and the perquisite computation relating to interest subsidy for company loans. ESI eligibility and contributions. notice pay. Further correction run functionality can also prove to be the key in the following use cases: ? Late submission for investment proofs at the year end ? Adjustments required at transfer cases ? Corrections to salary data after close of financial year ? Probation confirmation and promotions Global Payroll Global payroll functionality of SAP is activated for India. It is flexible. Financial Year: March to February Certain Public Sector organizations follow the financial year of salary of March paid in April to salary of February paid in March. payment of terminal benefits. SAP India Payroll supports off-cycle payments along with the computation of respective tax.g. SAP India Payroll calculates your employee’s compensation accurately and efficiently from ‘configuring’ rules of salary. and taxability. taxation to provident fund contributions and deductions. These can be regular monthly wage elements or periodic wage elements or annual/one-off wage elements. in order to support annual tax reports. medical reimbursement. wrong base amounts. Being a world leader in business software. missing allowances. SAP India Payroll offers the following statutory reports: Income Tax • Form 16 with digital signature • Form 24Q (e-filing) • Form 27A Provident Fund • • • • • • • • • • Form 3A Form 5 Form 6A Form 10 Form 12A Form 4 Form 5 Form 6 Form 7 Form 8 Pension Fund Employee State Insurance (ESI) • Form 5 • Form 6 Company’s Act • Form 217 (2A) In addition to the above. deductions. company cars. You can define characteristics for payment. payroll. provident fund. Corrections on a payroll may be required for the reasons such as. payroll is run in local currency while taking into account the relevant statutory regulations. which enables re-processing the payroll for those periods for which payroll accounting is closed. Other Statutory Aspects SAP India Payroll automatically computes provident fund benefits. the system needs to be updated with data for the entire year. reliable. Tax is computed not only for salary income but also for other income declared by the employee. A detailed study of the business processes across public sector/services organizations was conducted interacting with the experts in the industry and the result has been incorporated into the solution. and taxes. pay fitment during promotions as well as during annual increments and ESS scenarios for claims and loans. his pay scale grade. It can handle recovery of benefits for part year service. Correction Run is one of the types of Off-Cycle Run. This includes gross and net payments. Allowances & Reimbursements SAP India Payroll can handle multiple allowances and reimbursements. These enhancements are well integrated within SAP ERP HCM solution and handle topics such as rosters. and leave encashment processing.

income from other sources. The solution provides employee the facility to request for leave encashment through ESS. loan application. Reimbursement Claims Processing The reimbursable claims process provided in the India Localization of SAP ERP HCM has been enabled in ESS to support entry of such claims by employees using the web based ESS functionality. The localization solution provides for defining the date of increment at the employee level either on calendar year basis or on the date of joining / confirmation / promotion of the employee. Salary Fitment during Annual Increment and Promotion Public sector/ services organizations in India have a well defined structure for salary fitments. the approver can modify the claim amount. right from employees’ decision to leave their organization until the 'due clearance' and acceptance of their separation request. The standard delivery for ESS on leave encashment provides for three levels of approval as per the Indian public sector / services needs. . special repayments along with their status for the valid selection period. ST and OBC). activate applicability of tax exemption. Additional housing types have been delivered along with Employer paid tax on perquisites Correspondence during Personnel Actions Particularly in the Indian public sector / services. The e-Separation solution offers an end-to-end process. Leave Encashment Request An employee is entitled to encash leave either during service or at time of leaving the organization depending on the organization policy. These model rosters are a reference for creation of reservation rosters which are subsequently updated with the details of employees hired into the organization. The standard delivery provides for three levels of approval as per the Indian public sector / services needs. Section 80 and 80c deductions. The solution supports defining of various reimbursements as per the each policy. and any other reimbursement provided by the organization to employees. Workflow is provided for claims approval after which the relevant data elements in the solution are updated for subsequent processing either during off-cycle or regular payroll run. ESS for Reimbursement Claims provides for recording and processing the various claims such as medical. and rosters for ex-servicemen. The salary fitment component is either percentage based or quantum based on the pay scale of the employee. leave encashment. horizontal rosters (for handicapped).g. The tax declarations supported in the service are: ? Sec 80 / Sec 80C ? House rent for HRA exemption ? Income/loss from house property ? Income from other sources ? Previous employment income Salary and Income Tax Projection One of the recent offering at India Localization for SAP HCM: Employee Self-Service is "Salary and Income Tax Projection Statement" that facilitates an employee to get an overview of all the salary components and the income tax calculations for the current financial year. The salary components (referred to as wage types in SAP ERP HCM) that constitute the basic pay for the purpose of increment processing can be configured in the solution. etc. income tax declarations and projections. The salary fitment process in the India localization of SAP for Public Sector: HCM provides for defining the various pay scales and increment structure as per the Indian public sector rules. bank and personal identification details provides for India specific requirements. storage of documents.. Loans and Other features Public Sector specific requirements of slab based interest calculation. repayment status. During the approval. customers are increasingly moving from transaction-based applications to processbased solutions. In addition. Both. Employee Self Services localized for India covers an array of solutions by SAP. The services of information capture such as personal data. promotions and transfers. record of self declarations. communicated to employee. The solution supports batch processing of printing or emailing the letters based on certain selection criteria. annual increments. and these are validated during of the employee’s request for leave encashment. if any. leave travel allowance. This helps an employee to check and assess how the Income tax for the current financial year will be affected due to such changes. This solution enables an employee to view the projected income tax figures for the current financial year. leave travel concession (LTC). As the employee is entitled to various reimbursement benefits. In addition the treatment of increment in the event of approaching the maximum limit specified. e-Separation To meet people management tasks effectively. the solution provides a summary representation of the various claims applied for along with the status details along with drilldown flexibility for each claim. the loan request as well as the repayment request follow a workflow process for approval. and multiple levels of workflow on ESS. providing distinction between less than 13 roster and general roster. and balance loan amount with the employee. printed. The tax declarations process provides for capture of both proposed and actual amounts as applicable with the facility to choose workflow process if required. All the above processes are supported for the various types of rosters such as vertical rosters (for SC. SAP offers ESS on reimbursement claims. These correspondences are required to be generated. The solution enhancements in the Loan functionality delivered for India. The benefits as seen by organizations are reduction in paperwork. consideration of stagnation increment. The relevant master data for vertical rosters (for SC. hiring or transfer). This functionality provides information on the status of the letter on whether the same has already been printed or emailed and by whom. The relevant master data such as caste. Besides the regular repayments through payroll. Organizations are required to follow the reservation policy norms as specified by the central and state governments. Ensuring tax exemption benefits where applicable. Furthermore there is a provision to upload legacy roster data into the system. and rosters for ex-servicemen is supported. the solution provides for the respective updation on approval received by the relevant authority. a letter is provided to the employee covering organization and pay related information. The solution provides for consideration of loss of pay impact on the increment depending on applicability across pay scale groups. The correspondence during personnel actions are possible through the new functionality released wherein the solution would support generation of one or more letters for a personnel action and the same would be recorded for future reference. during any personnel action (e. The content and structure of the letter is normally standardized across the organization with only certain parameters varying depending on the personnel action. The employee can also seek an advance of a claim through this process. and facilitation of timely closure of the separation process thereby achieving higher sustainability targets. provide for additional information as applicable. Loan Application Processing The ESS application for company loans opens with an overview screen providing information of all loan requests and. whether handicapped has also been provided for. Salary fitments are of mainly two types. Letters can also be created online during the personnel action. This brings in the capability for customer to provide the input and approval screens as per their requirements without having to change standard code. withholding of increment. The employee would also be able to create a claim. ESS provides for flexible structure formatting by customer facilitating easy layout designing at customer end. provide his comments and decide on whether the payment is to be done through off-cycle payroll or regular payroll.. address. The solution also provides for year-end processes of roster management. and request for the claim to be processed. an employee can apply for a special repayment request based on his eligibility. India Localization of SAP for Public Sector: HCM provides for creation of model rosters on the basis of reservation rules prescribed by central and/or state Government as applicable.e. deferred interest payment(where the principal is recovered first). maintain records of the process followed and submit reports or respond to enquiries from the parliament as and when required. and promotion based increments. Customizing is provided to define the various features like mail format. ST and OBC). In addition to the status of the loan requests. and so on. ensures compliance of organization specific policies on the increment rate taking into consideration variation in increment rate depending on the length of service (in the event of the date of employee joining the organization is less than a year from the date of increment). and recorded. Suitable provision is available for organizations to create their specific information requests and list of documents. The solution also enables employee to send the salary and income tax projection statement to his/her mail ID. the solution displays disbursals done. Income Tax Declaration ESS for Income Tax Declaration supports capture of details of employee investment or income for the purpose of computation of income tax for employees. greater transparency. reorganization of roster settings in addition to roster maintenance as per the cadre strength i. Organization specific policy for roster updates can be maintained through configuration provided for the same. based on the changes made in the components such as additional payments.Roster Maintenance Public sector/ services organizations of India are governed by the reservation policy which necessitates consideration of reservation rules during the life cycle of an employee from hire to retire. encashable limits etc. Organizations can set up their own rules for leave type applicability. and increment reversal are supported by the solution. The letters can be created in Adobe format on the lines of the sample letter formats released by SAP and these can be assigned to various personnel actions which would help default the letters respectively. horizontal rosters (for handicapped). petty loan definition are part of the recent LOCALIZATION AT SAP HCM EMPLOYEE SELF SERVICE Run Easy Run Better SAP boasts over 9500 SAP® Human Capital Management (HCM) solution customers worldwide. The standard delivery provides for three levels of approval as per the Indian needs.

Availability IS Retail India Localization Solution shall be delivered in SAP ECC 6. set by the manufacturer. the system will amount.LOCALIZATION AT SAP FOR RETAIL Run Efficient Run Better LOCALIZATION AT SAP FOR UTILITIES Run Efficient Run Better Retailers worldwide are operating in increasingly complex and challenging business environment. SAP for Utilities is the as tolerance limits and exemption rules. other payments applicable updated such as the consumer type (commercial. The system provides for defining the interest Utilities 600 and FI-CA 600. interest computation of applicable components of the invoice or as a • TDS on Interest on security deposit arrears and security deposit. EhP5 release. India previous open items. Localization solution provides flexibility to bring it in this control framework. India accounts) can be informed of the LPC charge in the invoice Localization of SAP for Utilities provides the high degree of document itself. fixed amount. The solution covers the major the due date. Debit Payment’ up to the mandate limit. varied regulations across states/ territories. In situations where the amount. and a tolerance limit. which represents the maximum limit for payment pattern of the previous period(s). as configured. SAP for Retail localization helps you to eliminate such inefficiencies in the supply chain and provides a mechanism for retailers’ margin protection. the system provides for defining the delay period beyond which LPC is applicable. articles are physically labeled with a price referred to as the “Maximum Retail Price” (MRP). • Automated Purchase order Indian Scenario updates for price changes Retail is one of India’s • Seamless control process largest industries. transmission and distribution. In the event the components of invoice for determination of security deposit the invoice amount is within the mandate limit. the solution is flexible the system provides the option to charge an interest on the in design and aims to handle subsequent major legal changes. The standard SAP for Utilities solution various components of an invoice can be identified as being applicable for LPC or not. computing an incentive to the consumer to mandate meter operation and retail and services encourage payment of utility charges well within • Late payment charges (LPC) utilities. Hence intricacies of taxes like excise and VAT are met strengthening the solution from the compliance side. consumer type and security deposit amount. The system computes the PPI • Pro-rated clearing options India Localization during the invoicing run. In this check. Keeping in mind the When a customer delays a payment beyond the next billing cycle. the system offers defining the processing. Retailer’s Margin Protection In India. if the previous invoice • Seal Management was fully cleared within the specified number of India Localization of SAP for Utilities has • Retrospective change of tax days before the payment due date. the various invoice 2005. the factor for the calculation of the security deposit proceed through the direct debit option. Margin also gets influenced by pricing factors (conditions) other than MRP. This solution addresses the requirements in the areas of components on which the interest would be applicable and the billing. for direct debit in the same period are also considered. The regulatory guideline of the applicability of a late payment charge (LPC) on any open items of invoices unpaid in a previous Pro-rated Clearing Options period is supported. The localization solution also handles the region dependency for taxes applicable via capability to default tax codes based on the region selected as vendor subranges at purchase orders/scheduling agreements. VAT rates. and related transactions. One of the most important challenge in organized retail sector in India is poor supply chain and logistics management coupled with Intrinsic complexity arising out of the rapid price changes in retailing. different state level and its computation as a percentage of the total value of treatments are applicable for clearing this value against the various applicable components of the invoice or as a fixed amount. residential etc). late • Interest on overdue items computed as a percentage of the total value of payment charges. Additionally. processes and challenges of the diverse Localization Highlights Prompt Payment Incentive utilities industries including power India Localization provides the provision of • Electronic clearance scheme (ECS) generation. SAP for Retail in India caters to the players in the organized sector and is continuously evolving to help its customers handle these challenges with a flexible approach. for example. There is a constant pressure towards operational efficiency and visibility across the entire Retail value chain. as well . and device management. if the previous invoice amount is yet to be paid by flexibility and adaptability to the state-of-the-art software (SAP for the consumer.0. tax deducted at Late Payment Charges (LPC) source (TDS) on interest on security deposit. SAP for Retail is designed to address the end to end retail value chain It provides a proven retail Localization Highlights merchandising solution that drives operational • Capture Price changes during excellence in core Goods Receipt process business processes • Protection of Retailer's Margin while delivering top line through approval based price revenue growth and changes cost reductions. The solution captures pricing changes and identifies margin breaches during the goods receipt process. The system India Localization of SAP for Utilities provides for a user triggered provides the administration of ECS Mandate amount at a contract updating of the security deposit amount based on the consumption account level. the relevant SAP release being ERP charge on an overdue amount slab basis. the on security deposit has been enhanced to meet India specific system offers the option of ‘No payment’ or the option of ‘Partial requirements such as definition of interest at the level of state. number of days beyond which the interest would be applicable. which needs to be protected against the MRP fluctuations by a manufacturer/ dealer. Additional features Complexities of Indian tax structure are also handled by SAP’s flexible tax procedure (TAXINN) framework in place. During payment section of utility customers. charge it in the invoice. This prompt payment incentive Indian regulatory and business • Prompt payment incentive (PPI) (PPI) can be defined at a state level and is requirements such as ECS mandate. The invoice components. A retailer is restricted to charge the consumer to the extent of MRP only. been conceptualized based on the regulatory and key business needs of the Interest on Overdue Items Indian customers. The standard functionality of interest invoice amount is greater than the ECS mandate amount. The interest payable is calculated on the total Localization of SAP for Utilities is released as an add-on to IS overdue amount. The system would compute the applicable LPC and Utilities) tailored to the specific standards. In order to cater to a cross processing through the direct debit option. contract accounting. through tolerance mechanism accounting for over 10 • Access control via role based percent of the authorization country’s GDP and • Region based tax code witnessing revolution in India. the system checks the invoice amount for the period conditions on the basis of which the security deposit value will be against the mandate limit. Consumers (contract trusted application for more than 1000 utilities worldwide. The system provides for defining the LPC at a In case of partial payment of an invoice by consumer. This helps to prevent the potential revenue leakage due to such MRP price fluctuations. Supported by SAP Netweaver platform. The retailer's margin is negotiated with the vendor based on the MRP of the product. India Localization of SAP for Utilities supports the RBI regulation Security Deposit Enhancements requirements for electronic clearing scheme (ECS). All Electronic Clearing Scheme (ECS) this can be defined at a state level.

Availability These enhancements would be available with SAP ECC 6 EHP 6 release. A report is provided which gives an overview of the statuses of the various seals. To illustrate: ? ? Defining that tax is settled first and then the other components are to be adjusted in a predetermined order.t inbound system to make SUS Delivery at SAP ERPavailable to suppliers. Government duties and energy rates are frequent in India and the utility companies have to recover the difference amounts from the consumers. better manage supply bases. A required document list for a particular customer type can now be maintained in the system and can be defaulted at the new connection request for submission and verification.provides for a flexible generic definition on the clearing options against the components of invoice. Additionally franchisee evaluation based on the respective service efficiency results calculated as per the accepted industry standards is also provided for. Energy Audit Energy Audit provides the vital information base for overall energy conservation program covering essentially energy utilization analysis and evaluation of energy conservation measures. allocation. Amount in Local Language Pre-printed stationary in a local language is commonly used for generic text at utility bills. ? The revised calculation of the different components of the invoice starting from a given date. Seal Management Seals are placed on electricity meters to avoid misuse of power. Supplier needs to review such tax details as agreed upon at the purchase order and any related changes thereon. keeping in mind the specific needs of the region. user defined statuses can also be maintained and tracked. . simplifies. This can be a challenge to understand for a regional customer. build collaborative supplier relationships. and accelerates procuretopay processes for goods and services. Cess etc are also applicable on a business transaction involving sale or purchase of goods or services which forms an important component at the pricing. Availability The India Localization solution of SAP for Utilities will be delivered as an add-on for: ? ? IS-Utilities 600 FI-CA 600. However. Service tax. distribution franchisee management and energy audit. and improve your top line with innovative offerings and a faster time to market. India localization would be providing for franchisee and service definitions and respective relationship parameters. India Localization The Indian tax laws require Excise duty to be paid by the manufacturer when the goods leave the manufacturing site. without reversing the invoices ? The printing of the correction values on the next invoice for all consumers or for groups of them are supported. MM. in figures and in words. Tax & Pricing display India localization Localization Highlights enables the display of • Tax information at SUS orders Tax and Price details at • Excise info at SUS ASN SRM-SUS orders corresponding to the • Background Excise Invoice Posting Purchase orders • Tax information at SUS Invoice created in ERP (MM). Localization solution will enable the amount in words to get printed in local language chosen as per the customer contract. Distribution Franchisee Management A franchisee is an entity empowered to operate a distribution and maintenance system within an identified contiguous area for a prescribed duration and collect revenues directly from consumers. This data is SRM LOCALIZATION SNAPSHOT capabilities for service orders then seamlessly and integrates small or available at ERP medium-sized suppliers into MM Inbound delivery the procurement processes captured w. from SRM-SUS and Such suppliers do not require the same gets their own sales system to defaulted at the offer products and services – Excise Invoice just Internet access. and AT&C loss data at the consumption node level in a utility network. At the same time the reversal of invoices is not an allowed business practice in India. a status is derived. The localization solution will provide such vital information as injection and consumption data. new service connections. India Localization of SAP for Utilities offers a comprehensive solution for seal management whereby a seal is tracked through the various stages (statuses) of its life cycle such as: ? ? ? ? Generation of a seal with a unique seal number Issue of a seal to a responsible person Allocation of a seal to a device Removal of a seal Retrospective Change of Tax Retrospective changes of tax on sales percentages. to India localization solution enables Supplier to enter Excise Invoice empower Supplier Self-Services and streamline procurement for Number. A consulting note (SAP Note 983341) has been released for the retrospective energy rate and tax calculation permitting.r. posting date. Pressured to reduce supply costs while maintaining high quality output. The SAP Supplier Relationship Management (SRM) delivers comprehensive procurement functionality that automates. Such a scenario presents a need for a more efficient and flexible billing reversal process. LOCALIZATION AT SAP SRM Run Collaborative Run Better In addition to the above statuses. The relevant SAP release is ERP 2005. Additional features Localization solution also provides to capture Excise invoice in the background with respect to the inbound delivery captured against the ASN created at SRM-SUS. Localization solution will provide for a flexible selection criteria including portion.r. English. Additionally all applicable taxes as per the ERP supplier nvoice gets accumulated as a single amount and shown at the supplier invoice header at SRM-SUS (Supplier Self Service). Customers may look forward to some significant enhancements done in the areas of billing. SAP SRM-SUS Today's successful buying organizations must extend their reach into their supplier base so well that they are able to plan and Excise Invoice position supplier assets as if they were their own. New Service Connection An enhancement would be available at localization solution related to seamless document submission and maintenance at the new service connection notification. you can reduce procurement costs. and rate category enabling an efficient mass reversal. All components are cleared with an amount in the proportion of their value to the total invoice amount. Additionally Excise invoice can be captured manually through MIGO (at ERP) or J1IEX (CIN transaction for Excise Invoice Capture) w. The seal status is updated after processing each of the above activities. With SAP SRM.t ASN of large buying organizations. Based on which a document submitted. This solution will be released through the Support pack 0003 of the core components IS UT and FICA. Buyers Capture at the can easily enhance their Goods Receipt done Enterprise Buyer (EBP) w. the payable amount is always system generated and printed mostly in the system language. The SRM promotes communications and collaboration with your vendors. collection efficiency. and removal.r. Excise Invoice Date and text during creation of Advanced speed and efficiency. The Next Wave SAP is putting continuous efforts to make SAP for Utilities more and more suitable for customers in India. companies are seeking greater efficiencies and savings from their procurement operations. Invoice number and date entered at ASN gets defaulted at such Excise invoice.SUS (Supplier Self Service) and SAP ERP operations (MM: Material Management) in an integrated SUS-MM scenario. An Excise invoice should also needs to accompany the goods dispatched by the supplier and needs to be recorded at the buyer's financial books. which can also be used as one of the connection release criteria.t Inbound Delivery captured against ASN from SRM-SUS. Additionally taxes including VAT. India Localization solution provides for these requirements through seamless data exchange between SAP SRM . Billing Reversal The immaturity of utility billing systems in India results in frequent corrections at mass level. The system provides for both individual processing as well as mass processing for seal generation and the subsequent activities of issue. that is. SAP Supplier Self-Services (SUS) is a WebShipping Notification (ASN) with respect to purchase Orders based application that releases at SRMprovides full processing SUS.

com for details on eLearning from SAP.sap. Join us: To be a part of SAP Customer Community landscape for collaborative learning and development.com/localization for latest news and updates.com/india .sap.sap. contact your account executive about SAP INDUS (India User group) or reach us at http://www.saponeworld.com Contact us: To learn more about how SAP can help your business succeed in the global market.htm for Best Practices • www.induscommunity.sap. • http://help. contact us at globalization@sap.com/localization (requires S-User ID) OR www.Info – Sources: • http://service.com or visit us at http://service.com/bp_bl604/BL_IN/html/index.

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