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2016-10-06
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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.
Multiple business places must be created based on the region/state of operation. The relevant plants must be
assigned to their corresponding business places i.e. region/state wise association. A new field will be provided to
store the GSTIN of the business.
As the GST registration is unique to each state, the plant(s) in the same region must be assigned to state specific
business place.
View: J_1IT030K_V
Intra-state transactions
o CGST and SGST applicable
Inter-state/Import transactions
o IGST applicable
Export Transactions
o Zero rated (Expected)
Region level rate variations may exist
New condition types/access sequences for pricing and account determination
Tax Procedure
This can be achieved by using the existing ODN (Official document Numbering) functionality
5.1 Procurement
Actual Goods supplier will be captured in the Goods Receipt document, which will then be passed on to invoice
verification to identify the actual place of supply and for calculation of taxes accordingly.
To store the Goods suppliers region, we intend to introduce a non-editable field on header details (Basic data tab)
for the relevant IV transactions. This design may change depending on technical feasibility.
Based on the region of the Goods supplier and the receiving plant, the business transaction will be classified into
intra or interstate and the taxes will be determined.
5.2 Sales
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 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.
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
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
6.1.7 Services
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
The reporting for GST is to be made to GSTN (Goods and Services Network) via GSP (GST Suvidha Provider).
The most important forms to be reported to GSTN are:
o GSTR-1 (Outward supplies made by the taxpayer)
o GSTR-2 (Inward Supplies/Purchases received)
o GSTR-8 (Annual return)
Material Number: