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SAP GST Draft Solution Proposal v1 by SAp On 10 Oct2016
SAP GST Draft Solution Proposal v1 by SAp On 10 Oct2016
SAP GST Draft Solution Proposal v1 by SAp On 10 Oct2016
2016-10-10
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1 Introduction ...................................................................................................................................4
6 Pricing ........................................................................................................................................... 18
6.1 Procurement ........................................................................................................................................ 18
6.1.1 Domestic Procurement Intrastate ..................................................................................... 18
6.1.2 Domestic Procurement Interstate ..................................................................................... 19
6.1.3 Procurement- for capital goods ......................................................................................... 19
6.1.4 Procurement Import ....................................................................................................... 20
6.1.5 Stock Transfer Order .......................................................................................................... 23
6.1.6 Subcontracting/Job Work ..................................................................................................26
6.1.7 Services ................................................................................................................................28
6.2 Sales ......................................................................................................................................................29
6.2.1 Domestic (Inter and Intra state) ........................................................................................29
6.2.2 Sales - Exports .................................................................................................................... 30
8 Utilization .....................................................................................................................................32
9 Reporting ......................................................................................................................................33
Disclaimer: This document is a draft, and provided as a courtesy. This document is not to be considered final, and
all information contained herein is subject to change. As such, this document is not to be quoted, cited in any
reference, or used by anyone for any purpose other than as a draft document.
The introduction of Goods and Services Tax will replace the existing indirect taxes in India. One Support has been
updated with the GST Legal change announcement details.
https://launchpad.support.sap.com/#/legalchangenotification/detail/GSCBIN-348
The GST solution will be made available in the following releases:
SAP ERP 6.0
SAP Enhancement Package 2 for SAP ERP 6.0
SAP Enhancement Package 3 for SAP ERP 6.0
SAP Enhancement Package 4 for SAP ERP 6.0
SAP Enhancement Package 5 for SAP ERP 6.0
SAP Enhancement Package 6 for SAP ERP 6.0
SAP Enhancement Package 6 for SAP ERP 6.0, Version for SAP HANA
SAP Enhancement Package 7 for SAP ERP 6.0
SAP Enhancement Package 8 for SAP ERP 6.0
SAP S/4HANA, on-premise edition 1511
The mandatory prerequisites to consume the GST solution to be provided by SAP are:
Minimum Support Package that the customer should be on is provided in the following note
https://launchpad.support.sap.com/#/notes/1175384
TAXINN is the default tax procedure. Please refer to the FAQ note related to the migration of the tax
procedure.
https://launchpad.support.sap.com/#/notes/2252781
To identify and manage the various registration numbers (GSTIN) of the customer regions, the main customer
must be extended using a Goods Recipient account group, per region of business. Each of these will have the
region and the corresponding registration number.
Data relevant for GST which is to be captured in customer master are mentioned below.
GSTIN
The registration number to be saved in the Tax number 3(KNA1-STCD3) field of customer master. This
field will be enabled for one time customers as well.
Together with the Tax classification of the material, pricing can be controlled.
The vendor master has to be extended as Goods Suppliers based on their region of operation. This
will ensure in storing GSTIN for each of these regions.
Data relevant for GST to be captured at vendor master are mentioned below.
GSTIN
The GST registration number to be saved in the Tax number 3(LFA1-STCD3) field of vendor master. This field
will be enabled for one time vendors as well.
Classification of materials:
The fields Tax indicator for material and/or material group under Purchasing tab may be used.
Capital/Raw classification
A new indicator may be introduced based on further clarity by Govt.
HSN/SAC code
For Goods the HSN code will be stored in Control code field of foreign data Tab.
Classification of Services:
The fields Tax indicator for services and/or services group under Basic Data tab may be used.
Business Place based G/L account determination: For Input and output, condition type wise transaction key to be
created and business place wise G/L to be created and assigned.
Intra-state transactions
o CGST and SGST applicable
Inter-state/Import transactions
o IGST applicable
Deductible and Non Deductible
Reverse Charge Conditions
Export Transactions
o Zero rated (Expected)
Region level rate variations may exist
New condition types/access sequences for pricing and account determination planned detailed below.
Tax Procedure
This can be achieved by using the existing ODN (Official document Numbering) functionality.
5.1 Procurement
In normal procurement scenario based on the Goods Supplier (GS) partner and receiving plant that you select in
the Purchase Order, system identifies transaction as intrastate or interstate, and calculates the taxes accordingly.
Goods supplier partner selected flows in the Goods Receipt document, which will then be passed on to invoice
verification to identify their GS Region and receiving plant region, and then taxes are calculated accordingly.
At the time of Invoice creation, if the captured goods supplier partner differs from the Purchase Order goods
supplier, the user can change the goods supplier in the relevant invoice verification (MIRO) transaction. To do so,
we plan to introduce a new editable field (called GST Partner) in the header data under the Basic Data tab. This
new field will default the goods supplier partner vendor that you select in the purchase order. If the user wants to
change this, the user will have the provision to search for the correct vendor code in the field help search.
Note
This design may change depending on the technical feasibility.
In the case of service purchase orders, we also expect a requirement to change the receiving plant region. That is,
if the service offered region is different to that of the receiving plant region maintained in the service order, the
user will be provided with a new editable field (called Actual Place of Supply) in the header data to select service
provided region in the field help search.
Note
This design may change depending on the technical feasibility and more clarity on the law in this area.
The business transactions are classified as intrastate or interstate, and based on the region of the selected GST
partner and the receiving plant, the taxes are calculated in the relevant invoice verification transaction,
As per the standard SAP partner determination technique, the sales order line items will be assigned an
appropriate Ship-to party, which will be used for creating individual delivery documents. These deliveries/orders
can then be used for billing per region.
Line item 10
Line item 11
The proposed sample access sequences / condition types/ accounting keys/ tax codes for major business
transaction are listed below.
6.1 Procurement
Access Sequence
Tax Procedure
Access Sequence
Tax Procedure
Access Sequence
Access Sequence
Tax Procedure
Maintain condition record for condition JIIG (inter-state GST) at a zero rate, for such a combination that it only
triggers for import scenario.
To CVD line (IGST in GST scenario), add your non-zero tax code.
In GST regime major process change expected in Stock Transfer process. The STO would require a Tax Invoice if
stock transfers are happening between two GST Registration numbers.
STO via SD
For stock transfer between the various plants (belonging to different GSTIN), a GST invoice will be created along
with the Goods issue document.
Sender
STO
OBD
Billing (VF01)
Outgoing GST
Invoice
Receiver
Goods Receipt
Capture Incoming
GST invoice
Outbound Delivery
Next step will be to capture the GST invoice. The GST Invoice with an account payable line.
Transfer Posting
Good Receipt
NOTE
As an alternate solution for subcontracting, the subcontractor can be defined as an additional place of supply. For
such scenarios, the STO process can be followed.
Existing process of Service Order Creation Service Entry Creation continues. SAC Code will be fetched from the
Service Master and Tax classification indicator would be used to determine the tax.
Based on the Plant Region and Goods Supplier Region, intra state or Interstate would be determined.
Access Sequence
Reporting for GST comprises of several GSTR Reports (from GSTR 1 till GSTR 12). These reports are
supposed to be generated by GSTN system based on data submitted by Tax Payers and their business
partners.
Standard Tax Registers are available in SAP system to view the summary of GST Input and output taxes via
Advance Return for Tax on Sales/ Purchases ( Tcode : F.12)
Material Number: