GST_Configuration Document_GANESH_SAPSD

Yash Technologies Continue……
Contents
1. INTRODUCTION ABOUT GST ...........................................................................................................3
1. Present Tax structure in India.....................................................................................................3
2. GOODS & SERVICES Tax Structure ..............................................................................................4
2. Changes to be carried out in SAP....................................................................................................4
3. Tax related Configuration>>FI MODULE.........................................................................................5
1. Define Tax procedure..................................................................................................................5
2. Assign tax procedure to country.................................................................................................6
3. TAX G/L Determination_FI MODULE...........................................................................................7
a. Creating transaction keys -Transaction code: OB40...............................................................7
b. Assign G/L accounts transaction code: OB40 .........................................................................7
c. Business place wise G/L accounts: SM30...............................................................................9
4. Pricing procedure configuration for GST>>SD MODULE...............................................................10
1. Create Condition table=>V/03 ..................................................................................................10
2. Create Access sequence=>V/07................................................................................................11
3. Create Condition types .............................................................................................................12
4. Classify Condition Types............................................................................................................13
4. Create GST_Account keys SD MODULE (SD).............................................................................14
5. Update Pricing procedure – GSTFAC.........................................................................................15
6. Maintain Pricing procedure determination..............................................................................16
5. Maintain Tax Classifications_SD MODULE....................................................................................17
1. Define Tax Determination Rules ...............................................................................................17
2. Define Tax Relevancy of Master Records..................................................................................17
3. Capture GSTIN Number _Customer master_FI-SD MODULE....................................................20
4. Copy control for STO commercial invoice (GST invoice)...............................................................23
5. Official Document Numbering (ODN) Configuration Output side for GST ...................................25
Step-1 :- Assign account document RV to your billing type................................................25
Step -2 :- Maintain document class in V_DOCCLS via SM30..............................................25
Step-3:- Assign document types to document class in view J_1IG_T003_I via SM30 ......26
Step-4:-Maintain number group in J_1IG_V_NUMGRP via SM30................................................26
Step -5:- Maintain number ranges for ODN with GROUP wise.....................................................26
Step-6:- Maintain the number ranges group wise........................................................................27
Step-7:- Assign Number range group to Company Code, BUPLA and other fields in
J_1IG_V_OFNUM via SM30...........................................................................................................28

Step-8:- ODN- Account entry and Output.....................................................................................28
Related SAP Notes for ODN Configuration ...........................................................................................29
Final Output with ODN Number ...........................................................................................................29

1. INTRODUCTION ABOUT GST
GST stands for Goods and Services Tax, and is an attempt to simply the indirect taxation
scheme in India.
Availability of differential tax structures across geographies has remained one of the key
decisional elements for structuring the supply chains, procurement patterns and distribution
networks in India. With that consideration, the Goods and Service Tax (GST) stands as an
inflexion point in India’s fiscal landscape. It marks the transition from an existing origin-
based taxation regime to a destination-based taxation regime. The introduction of GST is
expected to remove the cascading effect of taxes by moving to a common tax base and
subsuming various state and central taxes into Central Goods and Service Tax (CGST) and
State Goods and Service Tax (SGST).
The introduction of GST will significantly impact the procurement process, supply chains
and distribution networks of manufacturing units. This will present both opportunities and
challenges for firms doing business in India.
1. Present Tax structure in India

2. GOODS & SERVICES Tax Structure
2. Changes to be carried out in SAP
 Organization Set-up: Create Business Place and assign to Plants
 Master Data Set-up: Vendor Masters, Customer Masters, Material & Service Masters
 Tax and Pricing changes: Adjustments in Tax Procedures and Pricing Procedures
 RICEFs: Forms, Layouts, Modifications to EDIs and Upload programs

3. Tax related Configuration>>FI MODULE
1. Define Tax procedure
Transaction code: OBQ3 or OBYZ
Here we need to maintain GST condition types in TAXINN procedure. This configuration is
related FI and MM module but SD consultants should aware of this step.
SPRO
IMG ⇒ Financial Accounting ⇒ Financial Accounting Global Settings ⇒ Tax on
Sales/Purchases ⇒ Basic Settings ⇒ Check Calculation Procedure ⇒ Define Procedures.

2. Assign tax procedure to country
SPRO
IMG ⇒ Financial Accounting ⇒ Financial Accounting Global Settings ⇒ Tax on
Sales/Purchases ⇒ Basic Settings ⇒ Assign Country to Calculation Procedure.
In this step we need to assign tax procedure at country level. This configuration is related FI
module.

3. TAX G/L Determination_FI MODULE
This is related to FI configuration.
Here we need to create transaction keys (SD side account keys JOC, JOI, JOS), before assigning tax g/l
accounts in OB40 transaction.
a. Creating transaction keys -Transaction code: OB40
Here we need to select MWS then copy MWS to JOC, JOI, JOS, JOU, but at the same time we need to
same transaction keys as SD account keys.
b. Assign G/L accounts transaction code: OB40

Here FI consultants they have create transaction keys (Account keys) for GST condition
types. But SD account keys and FI transaction should be same. Otherwise GST G/L accounts
will not determine while releasing accounting documents in billing document.
Here we need to maintain G/L accounts tax code +transaction key +G/l Account with chart
of accounts.

c. Business place wise G/L accounts: SM30
Transaction code: SM30 Enter Table: J_1IT030K_V click on
This is new setup for tax g/l determination for GST taxes.
Before GST the G/L determined based on a chart of account, Transaction keys, Tax code and
business place is not required.
After GST configure the tax G/L account determination is based on new combination of
chart of account, Transaction keys (account keys), Tax code, business place (first preference)
As per client requirement we can create business place state wise or plant wise (depends on
client GSTN registration state wise or Plant wise).but my client is having state wise GST
registration number that’s why am also mapped state wise G/L accounts.

4. Pricing procedure configuration for GST>>SD MODULE
1. Create Condition table=>V/03
a. Create condition table for GST
Combination#1: Country/PlntRegion/TaxCl1Cust/TaxCl.Mat/Region/Ctrl code (760)
Combination#2: PlntRegion/Region/TaxCl1Cust/Material
SPRO
IMG ⇒ Sales and Distribution⇒ Basic Functions⇒ Pricing ⇒ Pricing Control⇒ Define
condition tables=> Create condition tables

b. Create condition table for services using transaction code V/03
Combination#1: PlntRegion/Region/TaxCl1Cust/Activity
The above condition tables are standard given by SAP. As per SAP NOTES we have created
condition tables for tax condition types (SGST, CGST, and IGST).But we need to maintain
one tax classifications for pricing condition types.
2. Create Access sequence=>V/07
a. Create Access sequence for GST tax condition types
We have to create a separate access sequence for GST condition types and this access
sequence we have to assign required pricing condition types.
1. Example: JOCG>>>>>>CENTRAL GST
2. JOSG>>>>>>> SATE GST
3. JOIG>>>>>>> INTEGRATED GST
SPRO
condition tables=> Define Access sequence for GST condition types

3. Create Condition types
a. Create output State GST condition type : CGST
b. Create output Central GST condition type : SGST
c. Create output Central GST condition type: IGST
We have to assign access sequence to required GST condition types for maintaining
condition records.
SPRO
condition tables=> Define condition types for GST

Please follow below example:
1. Condition type – JOCG to Access sequence – JOCG
2. Condition type – JOIG to Access sequence – JOIG
3. Condition type – JOSG to Access sequence – JOSG
4. Classify Condition Types
This step will help to update GST partner, HSN code (Chapter Id) in BSEG table and tax
calculations also.
SPRO
IMG ⇒ Logistics - General ⇒ Tax on Goods Movements⇒ India ⇒ Basic Settings ⇒
Determination of Excise Duty⇒Condition-Based Excise Determination⇒Classify Condition
Types

4. Create GST_Account keys SD MODULE (SD)
a. Maintain account keys as GST
b. Assign account keys to GST condition types with pricing procedure
Pricing Procedure: ZGSTFA—FACTORY SALES_GST
Note: if you assign account keys here against condition types it will automatically update in
V/08 Pricing procedures.
The first part is about creating the account keys and assigning them to a pricing condition in
the pricing procedure The flow is that you assign account keys to a pricing condition in a
pricing procedure. This pricing procedure is picked by sales order. In the sales order a $
value pricing condition is determined. All these prices flow from sales order to billing. And
then from billing to Accounting. So ont the basis of the account key defined for the pricing
condition, the customer accounting group and material accounting group, a general ledger is
determined and this price entry is passsed to this G/L.
For creating and assigning the acccoun key in pricing procedure you have to use the pricing
procedure traansactions. But for Account determination you will have to use VKOA. This is
an activity done by SD consultant but owned by Finance people. Because of they are the
people who tell you the G/L number.
SPRO
IMG ⇒ Sales and Distribution⇒ Basic Functions⇒ Account Assignment/Costing ⇒
Revenue Account Determination⇒ Define And Assign Account Keys

5. Update Pricing procedure – GSTFAC
Note: This is an illustration of GST conditions only; steps may vary from actual, GST
conditions should get calculate on BASE condition
SPRO
condition tables=> Define And Assign Pricing Procedures

6. Maintain Pricing procedure determination
Sales Area is determined in Sales Order Header Level. Customer Pricing Procedure is
determined from Customer Master - Sales Data - Sales Tab - Pricing Section. Document
Pricing Procedure is determined from Sales Document Type (TCode VOV8) / Billing Type
(TCode VOFA) (if configured). Once the pricing procedure is determined, Condition records
are fetched. If appropriate condition records are found, the price is determined.
SPRO
condition tables=> Define Pricing Procedure Determination

5. Maintain Tax Classifications_SD MODULE
1. Define Tax Determination Rules
Specify the valid tax types, that is, the tax condition types for every country. If more than one
tax type can be defined for a country, you define the sequence of their use here.
2. Define Tax Relevancy of Master Records
In this Step, you define the tax relevance for customers and materials for each tax category.
You define tax relevance with the tax classification indicator in the master data:
 Tax classification for customers is valid for each sales area.
 Tax classification for materials is valid at the level of sales organization/distribution
channel/plant.
1. Maintain Classification for Customer master
Double click customer taxes and system will appear below screen
SPRO
IMG ⇒Sales and Distribution⇒Basic Functions⇒Taxes⇒Define Tax Determination
Rules and Define Tax Relevancy Of Master Records

Customer Master:
We need to maintain tax classification for required tax condition types.
2. Maintain Classification for Material master
Double click Material taxes and system will appear below screen

We need to maintain the tax classification for required tax condition types. Once maintain
the tax classification for the customer and the material master system will give the TAX tab
in customer master and Material Master.Please check in customer master and material
master
Customer Master:
In TAXINN we have maintained customer tax classification for JIN1/JIN2.Coming to GST we should
maintain the tax classification for JOCG, JOSG, JOIG
Material master:
Maintain HSN CODE (control code-Chapter Id)

3. Capture GSTIN Number _Customer master_FI-SD MODULE
Enter the GSTIN number in the Tax Number 3 field of the customer master
SPRO
IMG ⇒ Financial Accounting(New) ⇒ Accounts Receivable and Accounts Payable
⇒Customer Accountss ⇒ Master Data ⇒Preparations for Creating Customer Master
Data⇒Define Account Groups with Screen Layout (Customers)
Select account group and double click
Once you go in, you should be able to see three button options appear under field status section.
These three options represent different views you see in the customer master.

If you click on any option in the account group (Eg: General data), you will see same tab options
appear in the customer master (in my case it is general data in control tab) under “select group”
section.
By double clicking on each group you can go in to details of each section for example, if I
double click on “Control tab” section, you see below
The four columns appear in the customizing is to control whether a specific field to hidden,
mandatory, optional or display only. If I activate TXNUMBER-3 in control tab you will get
this field in customer master. Please check in below screen.

We need to activate this field (TAX NUMBER-3) in FI account groups and we need to check in
customer account groups (OVT0-SD).
GST number (TAXNUMBER -3):-
 GST number will be PAN based and all the activities like tracking of transactions through
GSTIN, Input and output credit counters, Sales and Purchases, filing of returns, payment
of taxes will be carried out through a single portal that will be called GSTN.
 Purchases and Sales (logistics) and Input credits in SAP can be connected to the online
portal to automatically update the information with the government.
The following existing registrations will subsume into GSTIN (GST Identification Number)
Excise registration for Plant / Depots
Service Tax registration
VAT registration
There will be single registration for CGST, SGST & IGST
However, individual registration is expected to be obtained in each state of establishment
The GSTIN is expected to be 15 character long, and would include the existing PAN
Number

4. Copy control for STO commercial invoice (GST invoice)
Transaction code: VOFA
The new billing type created as per GST law we need to maintain separate GST invoice.
Copy Control=> VTFL
 Create copy control for the new Billing type(ZGST) created in previous step, by
copying the existing copy control setting of the Billing type ‘F2’ and delivery ‘LF’.
SPRO
IMG ⇒Sales and Distribution⇒Billing⇒Billing Documents⇒Define Billing Types
SPRO
IMG ⇒Sales and Distribution⇒Billing⇒Billing Documents⇒Maintain Copying Control
For Billing Documents=>Copying control: Delivery document to billing document

NOTE: In case you are using a different document type than LF for Outbound deliveries
w.r.t STO process, then the Copy Controls must be set accordingly.
We need to create copy control between delivery type NL and billing type F2 then only
system will allow to create commercial invoice.

5. Official Document Numbering (ODN) Configuration Output side for GST
Step-1 :- Assign account document RV to your billing type
Step -2 :- Maintain document class in V_DOCCLS via SM30
SPRO
SPRO > Sales & Distribution > Billing > Billing documents > Define billing type > Here assign
the document type Here assign the document type RV and Here transaction group will be “7”

Step-3:- Assign document types to document class in view J_1IG_V_T003_I via SM30
Ensure the same document type that is linked to billing type in VOFA is linked here-
Step-4:-Maintain number group in J_1IG_V_NUMGRP via SM30
As per client requirement we can create group business place wise or same group for all business
place.
Step -5:- Maintain number ranges for ODN with GROUP wise
The Transaction code: SNRO and object-J_1IG_ODN
Enter object name and Click interval editing

Step-6:- Maintain the number ranges group wise

Step-7:- Assign Number range group to Company Code, BUPLA and other fields in
J_1IG_V_OFNUM via SM30
Step-8:- ODN- Account entry and Output
For SD- The generated Official Document Number will be updated against VBRK-XBLNR.
For FI postings- The generated Official Document Number will be updated against BKPF-
XBLNR.
The same can be viewed in FB03 -

Related SAP Notes for ODN Configuration
2487589 - GST India: Data Dictionary Activities for Official Document Numbering
2472623 - GST India: Official Document Numbering
2489866 - GST India: Official Document Numbering ----> VALID ONLY FOR SAP_APPL: 606 SP (17,18 and 19)
2490434 - GST India: Corrections to Official Document Numbering Solution
2487781 - GST IN: Invoice and ODN numbers are skipped while saving billing document in transaction VF01
2496105 - GST India: ODN Corrections to note 2490434
Final Output with ODN Number

GST_Configuration Document_GANESH_SAPSD

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