SAP GST CONFIGURATION

1. Topic: SAP's Solution Approach for GST
Development Strategy including Pre-requisites
Prasoon Anand
Development Expert, SAP Labs India
Thejas A G
Product Owner and Development
Architect, SAP Labs India

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Agenda
• Goods and Service Tax India
• Areas of Impact
• Solution Proposals
• Pre-requisites

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GST: Areas of Impact
Configure Tax and Pricing procedures; Tax computationTax Configuration & Computation
Outgoing Invoice NumberingDocument Numbering
Extend Support to currently localized Business ProcessesBusiness Process Localization
GST Input and Output Tax postingsGST Tax Postings
Input tax credit utilization against payable for GST TaxesUtilization
Tax RegisterReporting
Business Partner Tax Data, GST Accounts
Define GST Registration levels
Master Data Maintenance
Tax Registration

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Tax Registration
GSTIN – GST Identification number
 Single registration for CGST, SGST and IGST
 Individual registration to be obtained in each
state of business establishment
 PAN based registration number – Up to 15
characters in length

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Tax Registration - Proposed Solution
Capture GST registration at Business Place level

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Master Data Maintenance
Business Partner Tax Data
 GST reg. no. to be captured for each Registered
Customer and Vendor
GST Tax Accounts
 Separate tax A/P and A/R accumulation might be
required at GST registration level
 To be defined for CGST, SGST and IGST
separately

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Vendor GST Registration- Proposed Solution

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Customer GST Registration- Proposed Solution

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Tax Account - Proposed Solution
Business Place based G/L account determination – Both for MM and SD

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Tax Configuration and Computation
 Intra-state transactions
– CGST and SGST applicable
 Inter-state/Import transactions
– IGST applicable
 Export Transactions
– Zero rated
 Region level rate variations may exist
 New condition types/access sequences and
account determination

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Tax Configuration and Computation- Proposed Solution
Tax Procedure – New Condition Types

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Tax Configuration and Computation- Proposed Solution
SD Pricing Procedure – New Condition Types

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Tax Configuration and Computation- Proposed Solution
SD Access Sequence

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Tax Configuration and Computation- Proposed Solution
MM Access Sequence

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Document Numbering
Unique sequential numbering for outgoing GST invoices
 Criteria for legal numbering may be specified by govt.
 It could be for example:
– Registration level
– Document type (Invoice / Credit Memo)
– A combination of above
– …

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Document Numbering- Proposed Solution
Maintain Document Class

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Document Numbering- Proposed Solution
Assign Document class to Document Types

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Document Numbering- Proposed Solution
Assign Number Range to Business Place

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Business Process Localization
 Sales Processes
 Procurement Processes
 Stock Transfers
 Subcontracting
 Others

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Sales - Proposed Solution
Sales Order

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Sales - Proposed Solution
Billing Document (A/R)

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Procurement - Proposed Solution
Purchase Order

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Procurement - Proposed Solution
Vendor Invoice (A/P)

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Stock Transfers - Proposed Solution
Purchase Order

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Stock Transfers - Proposed Solution
Replenishment Delivery from sending plant

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Stock Transfers - Proposed Solution
Outgoing GST Invoice
 ‘Consideration’ Value for tax calculation.
 Will it be a pure tax Document? Example:
 OR, Will it be a GST Invoice with an account receivable? Example:

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Stock Transfers - Proposed Solution
Goods Receipt at receiving plant

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Stock Transfers - Proposed Solution
Incoming GST Invoice
 ‘Consideration’ Value for tax calculation.
 Will it be a pure tax Document? Example:
 OR, Will it be a GST Invoice with an account receivable? Example:

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Subcontracting - Proposed Solution
Purchase Order

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Subcontracting - Proposed Solution
Purchase Order - Components

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Subcontracting - Proposed Solution
Purchase Order - Taxes

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Subcontracting - Proposed Solution
Transfer Posting

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Subcontracting - Proposed Solution
Outgoing GST Invoice
 ‘Consideration’ Value for tax calculation.
 Will it be a pure tax Document? Example:
 OR, Will it be a GST Invoice with an account receivable? Example:

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Subcontracting - Proposed Solution
Goods Receipt

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Subcontracting - Proposed Solution
Incoming GST Invoice
 ‘Consideration’ Value for tax calculation.
 Will it be a pure tax Document? Example:
 OR, Will it be a GST invoice with an account payable? Example:

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GST Tax Postings
 Separate accumulation of credit and payables for
– CGST
– SGST
– IGST
 Separate accumulation at Registration level
 Automatic Tax posting to respective accounts from
business processes

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GST Tax Postings - Proposed Solution
Billing (A/R) Accounting Document

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GST Tax Postings - Proposed Solution
Vendor Invoice (A/P) Accounting Document

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Utilization
 Utilization of Input tax credit would be as under
– Input CGST to be utilized against output CGST
and IGST
– Input SGST to be utilized against output SGST
and IGST
– Input IGST to be utilized against output IGST,
CGST and SGST in the order of IGST, CGST and
SGST
Input Output

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Utilization - Proposed Solution
New Utilization program to handle GST credit utilization

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Utilization - Proposed Solution
Cross Utilization as per GST rules

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Reporting
 Tax register
– CGST
– SGST
– IGST
 Registration level segregation

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Tax Register - Proposed Solution

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Pre-requisites
 Tax Procedure
– TAXINN
 Minimum Support Pack level
– SAP Note no 1175384

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Thank you
Contact information:
Prasoon Anand, Thejes AG
SAP