Can anyone plz tell me what is a procedure( in detail step

by step ) to migrate from tax procedure TAXINJ to TAXINN ?

TAXINJ -- Formula based condition type.

you can directly enter the tax rate condition in FTXP.
but in TAXINN, you have to maintain the condition types.
but mainly the configuration part also you need to assign
as TAXINJ, but if the transactions are already assinged ,
you cannot simply migrate to TAXINJ

Getting ready for GST - TAXINJ to TAXINN

migration in SAP
With each step taken by Government authorities towards passage of
GST, it is evident that this reform of Indian taxation system will soon
be a reality. Industry has been waiting in anticipation as this will be a
huge change to the way indirect taxes are computed and collected
in India. At the same time, this also means a significant change to
your SAP system in order to support the new tax regime. One of the
pre-requisites from SAP is to migrate from TAXINJ to TAXINN
procedure. Solsynch has compiled a list of initial questions for this
tax procedure migration which will help you assess your situation.
FAQs for Tax Procedure Migration in SAP

What are TAXINJ / TAXINN procedures?

So far, SAP has been supporting two methods for computation of

indirect taxes viz. TAXINJ and TAXINN. TAXINJ is the old procedure
which uses India localization program routines for computation of
taxes, especially excise duty. TAXINN is the newer procedure which
eliminates the need for these ABAP routines and allows for tax
computation using master data records in the form of condition
records. SAP had introduced the new procedure during the LST to
VAT cutover in 2004-05 and has been advocating switching over to
the new procedure since. However, there are several customers who
are still using the old procedure.
Why do we need to migrate?
TAXINN is not a new procedure developed specifically for GST. It has
been in place for more than 10 years and is the more suitable
method for computing taxes.
With the advent of GST, SAP has mandated that the old procedure
(TAXINJ) will no longer be supported. The ABAP codes developed by
SAP to compute the duties in TAXINJ will not be upgraded to
compute GST. Customers will therefore need to migrate of will need
to develop their own routines for tax computation. The latter is not
advisable since it will be more expensive and cumbersome than the
migration itself.
Why now?
The tax procedure migration is a mini-project in itself and it is
advisable to complete this well before the work for actual GST

migration starts. When the deadline for GST implementation arrives,

all the companies would be forced into the migration activity.
Migration of the tax procedure at that time will add to the
complexity, project duration and efforts for the project. It is
therefore recommended to complete this part and be ready.
How do I know if I need a migration from TAXINJ to TAXINN
Answers to the following questions could give you a rough
indication:
1.

Was your SAP implementation first completed before 2006-07?

2.

Do you use transaction code FTXP to update the tax rates (not
new tax codes) when there are any changes?

3.

Do you need to create new tax codes when there is a rate

change without being able to simply update the rates with validity
dates?
If you have answered Yes to any of the questions above, you might
need a tax procedure migration. However, this is not a final
deduction. You can check the configuration in your SAP system to
verify this. If you need any assistance for this, please write
to GST.Helpdesk@solsynch.com

What is the Relevance of TAXINN

Migration?
Arun Kumar VC , Senior General Manager, Enterprise Solutions, HTC Global
Services
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 toprecisely 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.
SAPs Tax Procedures
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

Need for TAXINN

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.
Significance of TAXINN
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.
Migration from TAXINJ to TAXINN
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.
Challenges faced while Migrating from TAXINJ to TAXINN
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.