There is a shift to the cloud to provide business flexibility across finance solutions. Innovation is driving expectations higher while requiring you deliver real business outcomes. Financial strategists need to be enabled to execute on business strategy, initiate business transformation while ensuring value realization and management. You need the right expertise to develop your strategy, drive business value and, ultimately, defeat complexity by taking advantage of new SAP accounting software available in the cloud or on-premise. Our Financial Services can help your business.
You can adopt SAP`s next generation architecture for finance in an evolutionary, non-disruptive way leveraging past investments, and continue to leverage your investment in your current ERP implementation without having to sacrifice critical industry-specific capabilities of your current systems.
You can start with several side-by-side implementation steps to minimize the risk and migrate SAP ERP to SAP HANA at a later point in time. Or, you can also change the sequence of these adoption steps in many different ways. For example, you can start with the migration of your entire SAP ERP system technically to SAP HANA to simplify the architecture and then optimize gradually on a common SAP HANA platform.
Deploying this alternative in-memory functionality for SAP ERP customers on SAP HANA, you can take advantage of a single logical document as the common basis for regulatory and managerial accounting. The resulting inherent consistency between FI and CO eliminates the need for time-wasting and error-prone manual reconciliation. All aggregation and transaction processing is now performed on-the-fly with SAP HANA Live views. Imagine what can be done now in your business as new capabilities are understood and activated from real-time reporting to near real-time processes all through a simplified and streamlined user experience.
Goods and Services Tax (GST), one of the most significant reforms introduced in the history of the Indian fiscal evolution, is likely to come into effect in 2017. GST is expected to have a far-reaching impact, much beyond taxes on business, economy and the society. Globally, GST is acknowledged as a progressive tax regime, with inbuilt efficiencies to broaden the tax base, decrease cascading effect and reduce revenue leakages. The proposed GST in India is expected to bring in uniform tax rates and provisions to simplify the compliance requirements across the country, supported by automated systems and processes. A well designed GST structure can foster common market and economic growth.
India is expected to adopt a dual GST model where the central and state governments will levy GST simultaneously, on a common taxable value, on the supply of goods and services. However, in the case of imports and interstate supplies, an IGST (Integrated GST) shall be levied by the central government. The proposed GST will subsume most of the existing central and state taxes on the supply of goods and services including central excise, service tax, state level Value Added Tax (VAT) and other local levies on goods.
While there is a consensus on the nature of levies that shall be subsumed in the GST, however, there is no consensus on the final GST rate. It has been recommended in the Chief Economic Advisor’s report (December 2015), that the GST regime should have a dual rate structure – low GST rate of approximately 12 percent on merit goods (e.g. essential commodities), and standard GST rate of approximately 18 percent on other goods. That apart, it is expected that there may be a higher GST rate of approximately 40 percent on a few demerit goods (like tobacco, aerated beverages, etc.), lower GST rate of approximately 2 percent on bullion, and exemption from GST on a few select goods. Over and above GST, there is a proposal to levy 1 per cent additional tax on all interstate supply of goods, which is non-creditable and will be retained by the selling state.
With GST, there will be a significant shift from origin-based taxation to a destination-based tax structure impacting not only the operating business models but also the revenues of the centre/states. The proposed levy of an additional 1 percent origin-based non-creditable tax on the interstate supply of goods is a deviation from the destination-based taxation system.
GST has the potential to impact cash flow, pricing, working capital, supply chain and IT systems and hence provides an opportunity to transform your business.
Businesses need to adopt a structured approach to prepare for the transition. Broadly, the approach should encompass the following: