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Implementing GST

Implementing GST in SAP SD involves configuring tax codes, adjusting pricing procedures, updating master data, and ensuring accurate tax determination and reporting. The implementation requires careful planning and testing to ensure compliance.

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Shomankar Mukherjee
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24 views3 pages

Implementing GST

Implementing GST in SAP SD involves configuring tax codes, adjusting pricing procedures, updating master data, and ensuring accurate tax determination and reporting. The implementation requires careful planning and testing to ensure compliance.

Uploaded by

Shomankar Mukherjee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Implementing GST (Goods and Services Tax) in the SAP Sales and Distribution (SD) module

involves several key steps and configurations. GST is a comprehensive tax levied on the supply
of goods and services in India, replacing various indirect taxes like VAT, service tax, and excise
duty. Below is a step-by-step guide on how to implement GST in SAP SD:

1. Pre-Implementation Steps:

 Understand GST Requirements: Familiarize yourself with the GST law, rates, and
compliance requirements.
 SAP Notes: Ensure your SAP system is updated with the latest SAP Notes related to
GST implementation. SAP regularly releases notes for legal changes and improvements.

2. Master Data Preparation:

 Material Master: Update materials with relevant GST tax classifications.


 Customer Master: Update customer master records with GST registration numbers and
other relevant tax information.

3. Configuration Steps:

 Define Tax Codes for GST: Create new tax codes for different GST rates (e.g., 5%,
12%, 18%, 28%).
o SPRO Path: Financial Accounting (New) -> Financial Accounting Global
Settings (New) -> Tax on Sales/Purchases -> Basic Settings -> Check Calculation
Procedure
 Assign Tax Codes to Country: Assign the created GST tax codes to the country (India)
in the tax procedure.
o SPRO Path: Financial Accounting (New) -> Financial Accounting Global
Settings (New) -> Tax on Sales/Purchases -> Basic Settings -> Assign Country to
Calculation Procedure
 Maintain Tax Jurisdictions: Define tax jurisdictions if required for regional tax
variations.

4. Pricing Procedure Adjustments:

 Define Pricing Procedure: Modify or create a pricing procedure to accommodate GST.


Include condition types for CGST, SGST, and IGST.
o SPRO Path: Sales and Distribution -> Basic Functions -> Pricing -> Pricing
Control
 Assign Tax Condition Types: Assign tax condition types to pricing procedures.
o Common Condition Types:
 JCST: Central Sales Tax
 JIN1: Input GST (IGST)
 JIN2: Input GST (CGST)
 JIN3: Input GST (SGST)
5. Tax Determination:

 Access Sequences: Create or modify access sequences for GST determination.


 Condition Records: Maintain condition records for the defined tax condition types.
o Transaction Code: VK11 (for maintaining condition records)

6. Account Determination:

 Maintain Account Keys: Ensure account keys are assigned to GST condition types.
 Automatic Account Determination: Set up automatic account determination for GST-
related transactions.
o SPRO Path: Financial Accounting (New) -> Financial Accounting Global
Settings (New) -> Tax on Sales/Purchases -> Basic Settings -> Specify Accounts
for Automatic Postings

7. Logistics Invoice Verification:

 Purchase Order and Invoice: Ensure GST configuration is in place for purchase orders
and invoices.
 Tax Code Usage: Use appropriate tax codes during purchase order creation and invoice
verification.

8. Reporting:

 GST Reports: Implement GST-compliant reports for tax filing and compliance. SAP
provides standard reports, but custom reports may be needed based on specific business
requirements.
 GST Returns: Ensure that the system can generate returns such as GSTR-1, GSTR-2,
GSTR-3B, etc.

9. Testing:

 Unit Testing: Test individual components to ensure correctness.


 Integration Testing: Ensure end-to-end process flow is GST compliant.
 User Acceptance Testing (UAT): Conduct UAT to validate the system configuration
meets business needs.

10. Go-Live and Post-Go-Live Support:

 Go-Live: Move configurations to the production environment and ensure smooth


transition.
 Post-Go-Live Support: Provide support to resolve any issues and make necessary
adjustments.

Key SAP Transactions and Paths:


 OBYZ: Define Tax Calculation Procedures
 OBQ1: Define Tax Jurisdictions
 OVK1: Define Condition Types
 VK11: Maintain Condition Records
 FTXP: Create and maintain tax codes
 VF03: Display billing document

Conclusion:

Implementing GST in SAP SD requires careful planning and detailed configuration. It’s crucial
to ensure all master data is updated, pricing procedures are adjusted, and tax codes are accurately
maintained. Regular testing and updates based on the latest SAP notes are essential for a
successful GST implementation.

This guide provides a high-level overview; for detailed steps, refer to the specific SAP
documentation and notes related to GST implementation.

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