07 prasoon thejes gst solutionapproach

7/25/2019 07 Prasoon Thejes Gst SolutionApproach

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Topic: SAP's Solution Approach for GSTDevelopment 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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2015 SAP SE or an SAP affiliate company. All rights reserved. 2Public

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 numberUp 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


7/45 2015 SAP SE or an SAP affiliate company. All rights reserved. 7Public

Vendor GST Registration- Proposed Solution



Customer GST Registration- Proposed Solution



Tax Account - Proposed Solution

Business Place based G/L account determination

Both for MM and SD



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



Tax Configuration and Computation- Proposed Solution

Tax ProcedureNew Condition Types




SD Pricing ProcedureNew Condition Types




SD Access Sequence




MM Access Sequence



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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Assign Document class to Document Types


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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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Replenishment Delivery from sending plant


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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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Goods Receipt at receiving plant


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Incoming GST Invoice





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Subcontracting - Proposed Solution

Purchase Order


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Purchase Order - Components


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Purchase Order - Taxes


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Transfer Posting


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Outgoing GST Invoice





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Goods Receipt


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Incoming GST Invoice



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

07 prasoon thejes gst solutionapproach

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