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ZTAXIN
Company Code
Individual registration number shall be obtained for entities presence in each of the states.Therefore
Sutlej Textiles require to capture GST registration at Business Place level, which will beunder
Company code.
2.2
Business Place
The business place is an organizational unit below company code level that is primarily used
forreporting tax on sales and purchases.Business Places are defined as follows
In order to Capture GSTIN registration at each transaction Business place is used.A new field will be
provided to store the GSTIN of the business in master data of Business Place.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
wiseassociation. As the GST registration is unique to each state, the plant(s) in the same region must
beassigned to state specific business place.Impact on TDS is to be reviewed and usage of business
place to be stopped.
(The CIN EWT solution allows definition of a withholding tax entity at a level below the company
code. The Business Placein SAP, used to depict this withholding tax entity. Section Code will now be
used as the central entity in CIN EWT solution,instead of the Business Place that was used earlier. All
the existing functionalities of Business Place will be transferred tosection code. All TDS specific
transactions will be carried out on the basis of Section Code (as is currently being done forBusiness
Place). TAN numbers will be assigned to the Section Code, which will also be the reporting entity.
(Refer Note603325 - Section Code for India - Withholding Tax (Concept Note))
Customizing for Financial Accounting, under Financial Accounting Global Settings-> Withholding Tax-
> Extended Withholding Tax -> Basic Settings -> India -> Define Business Places
2.3
Plants
Plant is a place where inventory are kept and valuated.Following plants are defined for company
code.
The relevant plants must be assigned to their corresponding business places i.e. region/state
wiseassociation. 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
tostate specific business place.Assignment of Plants to Business Place Template attached.Table
maintenance- J_1BT001WV
Sales Organizations can be used to subdivide the market by region. The sales organizationrepresents
a selling unit in legal terms. It is responsible for product liability, resolving customercomplaints, and
negotiating terms of sales (pricing, payment terms) with customers.It is necessary to specify a sales
organization when executing any SD business transaction. A salesorganization must be assigned to a
single company code.Following Sales Organizations are defined
There is no impact.
Distribution Channel
The distribution channel is the channel through which saleable materials or services reach
thecustomerRepresents your strategies to distribute goods and / or servicesFor example: Wholesale
trade, Retail trade, Internet trade etc.Currently following Distribution Channel are defined
There is no impact.
2.6
Division
A division represents product line.A division can be assigned to one or more sales
organization.Divisions can exist across company codes.It is a mandatory element in Sales and
Distribution Organization Structure.Currently following Divisions are defined
There is no impact.
2.7
Sales Office
A sales office is an organizational unit in Sales and Distribution which is responsible for sales withina
specific geographical area.Sales offices are used in sales transactions in the Sales and Distribution
component. They can beused for reporting purposes. Sales offices are optional.A sales office can be
assigned to one or more distribution chains.Currently following Sales Offices are defined
There is no impact.
Sales group is an organizational unit that performs and is responsible for sales transactions.The staff
of a sales office may be subdivided into sales groups. For example, sales groups canbe defined for
individual divisions.In sutlej, Sales order are created from all sales group and all sales order billing is
done fromMumbai sales group
There is no impact
Master Data
It is necessary to capture GSTIN number of Vendor at each transaction which is required forreporting
and reconciliation.For calculation of taxes and reporting Vendors also needs to be classified as
Registered/NonRegistered/ Under Compounding Schemes.
Therefore,
The GST registration number to be saved in the Tax number 3(LFA1-STCD3) field of vendormaster.
This field will be enabled for one time vendors as well.Updation of GST Vendor Classification in CIN
master DataBlank- Registered0 - Non Registered1 - Compounding SchemeMultiple
Invoicing Partners
of the same vendor to be captured using partner function in thevendor master record as individual
master is required per region.
3.2
Customer Master
Therefore,
The registration number to be saved in the Tax number 3(KNA1-STCD3) field of customermaster.
This field will be enabled for one time customers as well.Updation of GST Classification of
Customers for tax categories of new GST condition types forSGST, CGST and IGSTBlank- Registered
Non RegisteredTo identify and manage the various registration numbers (GSTIN) of the customer
regions, themain customer must be extended using a Goods Recipient account group, per region
ofbusiness. Each of these will have the region and the corresponding registration number.
3.3
Material Master
HSN/ SAC codes need to be captured in each invoice line items. Also for tax determinationmaterial
needs to be classified as GST exempt/GST Standard Rate/ Excisable w/o GST etc.
Therefore,
HSN code to be updated in Material Master in Control Code field for tax calculation as well
asreporting which should be captured at each invoice line item level.Tax classification indicator in
purchasing Tab will be used in tax determining purchasetransaction and reporting.Tax classification
in Sales Org/Sales org 1. Tab will be used in tax determining sales transactionand reporting.
3.4
Accumulation of SGST/CGST/IGST will be per GST Registration. Input, Output, RCM and ISD
GLaccounts needs to posting and utilization relevant taxes.Existing Tax GLs defined will become
obsoleteTherefore,1
New set GL Accounts needs to be created under adequate tax account group for eachregistration /
Region. Approximately 8 GLs are required per registrationa)
b)
Current Liabilityl)
Current Liability2 Financial Statement Version needs to be updated3 Block the GLs for posting
which are obsolete to avoid the posting in those GL account
4.1
As- Is Process-1.
1.
Changes in PO creation. T code ME21NIn case, Main vendor in PO is different than actual
number needs to be captured in Partner function tab.In local procurement scenario based on
partner and receiving plant thatyou select in the Purchase Order, system identifies transaction as
interstate, and calculatesthe taxes accordingly.2.
partner selected flows in the Goods Receipt document, which will thenbe passed on to invoice
verification to identify their
Invoicing Party,(PI )
Invoicing Party(PI )
in therelevant invoice verification (MIRO) transaction. In addition to this Place of supply can alsobe
changed in it differs from original POS in Purchase order.For internal control it is recommended not
to change HSN code flown from MaterialMaster.Illustrative Accounting entries: Interstate Supply
Update Tax Procedure - TAXINN Execute the transaction OBQ3 Maintain the defined condition
typesand account keys in the tax procedure as shown
As- Is Process-Process
ME51NME21NMIGOMIRO
Document type:
ZNB
Pricing Procedure:
1Z1000
In this process
is applicable
Invoicing Party
Process -1.
Changes in PO creation. T code ME21N.In case, Main vendor in PO is different than actual
,
Invoicing Party(PI)
number needs to be captured in Partner function tab.In local procurement scenario based on the
partner and receiving plantthat you select in the Purchase Order, system identifies transaction as
intrastate andcalculates the taxes accordingly.2.
Invoicing Party ( PI )
partner selected flows in the Goods Receipt document, which will thenbe passed on to invoice
verification to identify their
Changes in Invoice verification T Code MIROAt the time of Invoice creation, if the captured
in therelevant invoice verification (MIRO) transaction. In addition to this Place of supply can alsobe
changed in it differs from original POS in Purchase order.For internal control it is recommended not
to change HSN code flown from MaterialMaster.Illustrative Accounting entries: Intrastate Supply
New condition types required :JICG - IN: Central GSTJISG - IN: State GSTCondition type for Central
GST - JICG - IN: Central GST
Process
In case of Domestic Procurement of Capital Goods (interstate & intrastate) following details need
tobe captured:1.
Vendor Registration Code- Derived fromInvoicing Party (PI ) from vendor master data
Changes in PO creation. T code ME21N.In case, Main vendor in PO is different than actual
Invoicing Party
number needs to be captured in Partner function tab.In local procurement scenario based on the
,partner and receiving plantthat you select in the Purchase Order, system identifies transaction as
interstate orintrastate and calculates the taxes accordingly.2.
partner selected flows in the Goods Receipt document, which will thenbe passed on to invoice
verification to identify their
Changes in Invoice verification T Code MIROAt the time of Invoice creation, if the captured
Invoicing Party
differs from the PurchaseOrder
in the relevantinvoice verification (MIRO) transaction. In addition to this Place of supply can also
bechanged in it differs from original POS in Purchase order.For internal control it is recommended
not to change HSN code flown from MaterialMaster.Illustrative Accounting entries: Interstate Supply
Changes in Invoice verification T Code MIROAt the time of Invoice creation, if the captured
Invoicing Party
in the relevantinvoice verification (MIRO) transaction. In addition to this Place of supply can also
bechanged in it differs from original POS in Purchase order.For internal control it is recommended
not to change HSN code flown from MaterialMaster.Illustrative Accounting entries: Interstate Supply
As- Is Process-1.
1.
In case of import of material, IGST will be applicable and Basic Custom Duty will remainapplicable.2.
NB2
4.5
Procurement of Services
1.
In case of Domestic Procurement of service (interstate & intrastate) following details need to
becaptured:1.
For all services, it is recommended to route through Service material or Service masters.4.
Service master is needed for service procurement & to maintain SAC number to file the GSTreturn.5.
SAC Code will be fetched from the Service Master and Tax classification indicator would beused to
determine the tax.6.
Based on the Plant Region and
Invoicing Party
1.
Invoicing Party
(SS/
PI
) partner and PlantRegion that you select in the Purchase Order, system identifies transaction as
interstate orintrastate and calculates the taxes accordingly.2.
Changes in Invoice verification T Code MIROAt the time of Invoice creation, if the captured
Invoicing Party,
Invoicing Party,
in the relevantinvoice verification (MIRO) transaction. In addition to this Place of supply can also
bechanged if it differs from original POS in Purchase order.For internal control it is recommended
not to change SAC code flown from Service master
Sales offices of Kolkata, Bengaluru, Chennai, New Delhi and Mumbai raises sales order and
billing,Delivery is done only through Mumbai.
5.1
Sale of Finished Goods (Mfg.) - Domestic- Inter State
As- Is Process-
1.
Process:
Creation of Sales order through T-code: VA01 in which Input of Inco-terms is FOR (Freightfor Rail)
and EXW (EX-Work),Delivery dates, payment Terms and Purchase Order Numberare maintained
manually.
In Condition, Base price is entered manually further tax are calculated through System.
Delivery is done through VL01n were picking, packing and PGI is done.
Document type :
: ZDMRTM
In case of Finished Goods (Mfg.) - Domestic- Inter State following details need to be captured:1.
Condition records needs to be modified to capture place of supply, Customer region as perGST
reporting provision.2.
New Access sequence needs to be changed to determine tax as per GSTBusiness Process
ChangesProcess -Sales pricing procedures used in domestic sales needs to be reworked in order to
accommodate GSTrelated changes.Also the custom routine needs to be reviewed and modified
accordingly.New condition types required
Changes in SO creation. T code VA01.As per the standard SAP partner determination technique, the
sales order line items will beassigned an appropriate Bill to party.2.
Changes in Outbound delivery. With Order Ref T Code VL01N.Ship-to party will be used for creating
individual delivery documents. Thesedeliveries/orders can then be used for billing per region.3.
Changes in Billing T Code VF01Tax liability to be ascertained as per IGST payable GLs and the same
needs to be configuredin the Sales account determination setting t code VKOA.Illustrative
Accounting entries - Interstate sales
5.2
As- Is Process-
1.
Process:
Creation of Sales order through T-code: VA01 in which Input of Inco-terms is FOR (Freightfor Rail)
and EXW (EX-Work), Delivery dates, payment Terms and Purchase Order Numberare maintained
manually.
In Condition, Base price is entered manually further tax are calculated through System.
Delivery is done through VL01n were picking, packing and PGI is done.
2. Document type:
3. Pricing Procedure
: ZDMRTM
In case of Finished Goods (Mfg.) - Domestic- Intra State following details need to be captured:1.
Condition records needs to be modified to capture place of supply, Customer region as perGST
reporting provision.2.
New Access sequence needs to be changed to determine tax as per GSTBusiness Process
ChangesProcess -
Sales pricing procedures used in domestic sales needs to be reworked in order to accommodate
GSTrelated changes.Also the custom routine needs to be reviewed and modified accordingly.New
condition types required1.
Changes in SO creation. T code VA01.As per the standard SAP partner determination technique, the
sales order line items will beassigned an appropriate Bill to party.2.
Changes in Outbound Del. with Order Ref T Code VL01N.Ship-to party which will be used for creating
individual delivery documents. Thesedeliveries/orders can then be used for billing per region.3.
Changes in Billing T Code VF01Tax liability will be ascertain as per SGST, CGST payable GLs and the
same needs to beconfigured in the Sales account determination setting t code VKOA.Illustrative
Accounting entries - Intra state sales
5.3
Deemed Export
As- Is Process-
1.
Process:
In Deemed exports, Export oriented unit (EOU) and Special Economic Zone (SEZ's) isconsidered.
Changes in SO creation. T code VA01.As per the standard SAP partner determination technique, the
sales order line items will beassigned an appropriate Bill to party.2.
Changes in Outbound Delivery with Order Ref T Code VL01N.Ship-to party which will be used for
creating individual delivery documents. Thesedeliveries/orders can then be used for billing per
region.3.
Changes in Billing T Code VF01Tax liability will be as certain as per IGST payable GLs and the same
needs to be configuredin the Sales account determination setting t code VKOA
Sampling Process
As- Is Process-
1.
Process:
Document type
Pricing Procedure
Process -
Sales pricing procedures used in sampling Goods Sales needs to be reworked in order
toaccommodate GST related changes.Also the custom routine needs to be reviewed and
modifiedaccordingly.New condition types required1.
Create sampling sales order with reference to original invoice. T-code: VA01.
Maintain “Reference Mandatory” = M With ref.to billing document When you
configurereturn sales order document type with the help of t-code VOV8. (In GST it is necessary
tocreate this with reference to the original invoice as this has to be reported in GSTR1.)
Create Sampling credit note document with reference to return delivery. T-Code: - VF01.Illustrative
Accounting entries - Interstate sales
As- Is Process-
4.
Process:
Return of goods is carried with 2 Distribution channel,A1- Direct Sales and E2- In-DeemedExport
The process is done w.r.t Billing Document Number were reason is been stated for return ofgoods.
Through T-code: VL04 (for Picklist) Range of Document is maintained, i/p of order no. issaved, and
Delivery is carried out.
Through T-code: VL02N Packing is edited and PGR (post good reverse) is done.
From VF01
Document type
Pricing Procedure
Create return sales order with reference to original invoice. T-code: VA01.
Maintain “Reference Mandatory” = M With ref.to billing document When you configure
return sales order document type with the help of t-code VOV8. (In GST it is necessary tocreate this
with reference to the original invoice as this has to be reported in GSTR1.)
Create Return credit note document with reference to return delivery. T-Code: - VF01.
As- Is Process-1.
Process:
Document type:
CR10 Dom. CR. Memo Request / DR10 Dom. DR. Memo Request3.
Pricing Procedure:
ZDOM1 Dom Credit & Debit Memo / ZDMRTM Dom Pricing Procedure
Create Credit memo request with reference to original invoice or without reference tooriginal
invoice. T-Code: VA01.
Create Credit Note document with reference to credit memo document. T-Code: VF01.Illustrative
Accounting entries - Interstate sales
Create Debit memo request with reference to original invoice or without reference tooriginal
invoice. T-Code: VA01.
Create Debit Note document with reference to credit memo document. T-Code: VF01.Illustrative
Accounting entries - Interstate sales
6.1
Invoicing (Non-PO)
As- Is Process-1.
Process:Following are the business scenarios where invoice is done directly in Finance.a)
Purchase of Asset F-90The purchase of asset is done in finance through FI and taxes are calculated
andtaxes are directly calculates.
Document type :
AA
3.
General Voucher through FB50General vouchers are the accounting records that show transaction
that do not happenregularly. No taxes are calculates while booking journal vouchersDocument type-
SA
4.
Booking of Vendor Invoice through FB60Upon receiving the invoice from the vendor the bill can be
booked and posted by using transactioncode FB60.the following T.code is used for Non
In case of Non PO based invoicing GS partner (if Different from original vendor) and place of
supplyneeds to be captured for tax determination. In addition to these details HSN Code / SAC code
alsoneeds to be captured while posting invoiceFor the procurement of asset through f-90 .the
following transaction code will not
besupported.GL Acc. Description Amount Debit/ CreditAsset A/c 100 DrVendor A/c 100 Cr
Process:
a) Since the F-90 is not an enjoy transaction the following field such as GST Partner, Place ofSupply,
HNC and SAC code are not present . Asset procurement is to be done through PO.Transaction FB50 is
supported in GST and the General Vouchers can be continued to bebooked through the transaction.
Users need to fill the fields manuallyC) Direct Vendor Invoice Booking can be continued to be booked
through FB60 as it is enjoytransaction and GST separate fields are available. Users need to fill the
fields manually
6.2
Advance Receipt
As- Is Process-1.
Process: Process: Advance from Customer is booked through F-02No indirect taxes are applicable for
advance on receipt
Document type :
The sap solution on advances is yet to be released and as the note releases the impact
canrealized.As the SAP releases the standard solution it will be deployed.
Tax Configuration
TAXINN.
Interstate Transactions:
Imports:
GST -Zero ratedTo accommodate the Legal changes Tax Procedure needs to be modified
Tax account determination will be done as based on Business place and Transaction keySeparate
Transaction keys for each tax component (Input & Output taxes)