SAP FICO

S/4 HANA

By
Pooja Kumbar

SAP FICO
HENRY HARVIN
INTERNSHIP

Project 2
“GST CONFIGURATION”
 INDEX
SL CONTENTS PAGE
NO NO
1 Introduction to GST 1

2 GST Calculation Procedure 2

3 Assign Country to GST Tax Calculation Procedure 5

4 Define Access Sequence 7

5 Define Condition Types for GST 9

6 Define Account Keys in SAP for GST 11

7 Summary Tables of GST Configuration 13

 GST CONFIGURATION
INTRODUCTION
GST stands for Goods & Service Tax; it is an indirect tax levied on goods and services. The new
GST tax system replaces all the major indirect taxes levied by central and state governments in
India.
The new indirect taxation system in India (GST) requires every business to register in every state
of establishment. After successful registration, an identification number will be obtained which is
also called as GSTIN (GST Identification Number).
Every organization should maintain the GSTIN number in the SAP system, along with their
registered address.
Generally, taxes are divided into two types, i.e.
1. Direct Taxes – Direct taxes are imposed on individual persons and paid directly to
the government (e.g., Income Tax as it is collected directly from a person based on
the income, he/she earns)
2. Indirect Taxes – Indirect taxes are imposed on goods & services and paid to the
government via the third person (e.g., Service Tax).
GST Structure
GST can be divided into three types, i.e.
1. CGST – CGST (Central Goods & Service Tax) refers to the tax levied by the central.
2. SGST – SGST (State Goods and Service Tax) refer to the tax levied by the state.
3. IGST – IGST (Integrated Goods and Service Tax) is levied by the central but divided
between the central and state.

Advantages of GST
1. GST replaces all the major indirect taxes, all central taxes will be replaced by CGST,
and state taxes are replaced by SGST.
2. GST removes cascading effect (tax on tax)
3. GST helps in reducing the flow of black money.
 ➢ GST CALCULATION PROCEDURE
MEANING OF GST CALCULATION PROCEDURE
The standard tax configuration settings for sales and purchases are done at the country level in SAP
system. The SAP system provides the standard calculation procedure for all countries. However, we can define
new tax calculation procedure or modify the existing procedure based on the requirements.

SAP provides two basic India Tax procedures, i.e., TAXINJ & TAXINN. Using TAXINJ
calculation procedure, you can define tax percentage rates for every tax jurisdiction.
STEPS TO GST CALCULATION PROCEDURE
We can define a New Company in SAP FICO by using:
• Navigation Path: SPRO – SAP Reference IMG – Financial Accounting – Financial
Accounting Global Setting – Tax on Sales/ Purchases – Basic Settings – Check Calculation
Procedure
• Transaction Code: OBYZ or OBQ3

Step 1) Enter Transaction code “OBYZ” in the command field and enter to continue.

Step 2) A opens with the options

1. Condition Type
2. Access Sequence
3. Procedure
Choose the option procedure to define the calculation.
Step 3) On change view procedure screen, click on new entries button for definition of new tax
procedure in SAP.

Step 4) On new entries calculation procedure screen, update the following details.
• Procedures - Enter the four digits key that identifies the tax procedure in SAP.
• Description – Update the descriptive text of tax calculation procedure – Sales tax India.

After maintaining the details, click on save button and save in your request number.
Step 5) Now select TKCP procedures row and double click on control data folder.

Step 6) Select new entries button.

Step 7) On the new entries screen, update the following details.
• Step – Enter the number (10, 20, 30…) which specifies the sequence of the conditions
within a procedure.
• Condition Type – Update the condition type key that indicate each activity or tax.
• Description - Description text will be automatically updated based on condition type text.
• From, To – This indicate which tax should be calculated on which base amount.
• Account key – Assign the account that respective to condition types.

Step C Type Description Fro To AccKey

10 BASB Base Amount

20 MWVS Input Tax 10 10 VST – Input Tax

30 MWAS Output Tax 10 10 MWS – Output Tax

After maintaining all the required details, click on save button and save the configured details.
 ➢ ASSIGN COUNTRY TO GST TAX CALCULATION PROCEDURE
The link between country and calculation procedure is established thorough the assignment
of country and tax calculation procedure.
Important configuration to refer:
1. How to define condition types
2. Maintain tax codes foe sales and purchases
STEPS TO ASSIGN COUNTRY TO GST TAX CALCULATION PROCEDURE
We can define a New Company in SAP FICO by using:
• Navigation Path: SPRO – SAP Reference IMG – Financial Accounting (New) – Financial
Accounting Global Setting (New) – Tax on Sales/ Purchases – Basic Settings – Assign
Country to Calculation Procedure
• Transaction Code: OBBG

Step 1) Enter Transaction code “OBBG” in the command field and enter to continue.

Step 2) On change view “Assign country –> calculation procedure”: overview screen, click on
position button and enter the country key “IN” in the given field and press enter
Step 3) Now country IN displays on top of the screen. Now assign your calculation procedure to
IN.

Step 4) After assignment, click on save button and save in your request.
 ➢ DEFINE ACCESS SEQUENCE
MEANING OF ACCESS SEQUENCE
An access sequence is a search strategy that helps the SAP system to determine valid
conditional records for condition types during pricing in sales documents. Access sequences is a
cross client and stored in work bench request.
Access sequences in SAP can have multiple condition tables and access sequence can
used for multiple condition types. In access sequence, condition tables are from most specific to
most generic.

STEPS TO DEFINE ACCESS SEQUENCE

We can define a New Company in SAP FICO by using:
• Navigation Path: SPRO – SAP Reference IMG – Sales and Distribution (SD) – Basic
Functions – Pricing – Pricing Control – Maintain Access Sequence
• Transaction Code: V/07

Step 1) Enter Transaction code “V/07” in the command field and enter to continue.

An information – caution: the is cross -client displays on the screen, press enter to continue.

Step 2) On change view access sequences overview screen, click on new entries button to create
a new access sequence in SAP as per requirements of project.

Step 3) On new entries access sequence screen, update the following details.
• AS - Enter the key that identify as the access sequence in SAP
• Description - Update the descriptive text of access sequence.
• Ty. - Choose access category if required.
Click on save button and save the configured access sequences details in SAP.
Step 4) Choose newly defined access sequence key and double click on Accesses.

On change view accesses overview screen, click on new entries button and place the condition
table from most specific to most general.

On new entries accesses screen, update the required condition tables in the required order from
most specific to most general.

• No - It specifies the sequential number condition table.

• Table - In this field, you need to specify the condition table number.
• Exclusive - By choosing exclusive check box, the system finds the valid condition record
and system will come out with search strategy and determine the price into sales
document.

Select the condition table entered in access sequences and click on fields. The system gives the
warning messages as “The field assignment has not yet been made”, press enter till you get the
fields. Repeat the same procedure for all the condition tables in access sequences. Choose the
save button and save the details.
 ➢ DEFINE CONDITION TYPES FOR GST

MEANING OF CONDITION TYPES

Condition type is a technique that controls the price components or price elements in SAP. In a real
time business scenario, the entire pricing can be divided into four elements i.e

1. Basic Price
2. Discount/Surcharge
3. Tax
4. Freight

There can be different types of condition types for each type of price element. each pricing
element has its own functionalities and usage in the SAP system, and we need to define
corresponding condition types with the respective functionalities.

STEPS TO DEFINE CONDITION TYPES FOR GST

We can define a New Company in SAP FICO by using:
• Navigation Path: SPRO – SAP Reference IMG – Sales and Distribution (SD) – Basic
Functions – Pricing – Pricing Control – Define Condition Types – Maintain Condition Types
• Transaction Code: V/06
Step 1) Enter Transaction code “V/06” in the command field and enter to continue.

Step 2) On change view conditions: condition types of overview screen, choose new entries button
and update the following details.
Condition type - Update the key that identifies as condition type in SAP and update the descriptive
text of condition type.
Access Sequence - Update the corresponding access sequence key of the condition type.
Condition class - It determines the structure of condition type and allows to control each condition
type as per its functionalities.
Plus/minus - This filed for discounts and surcharges, if you enter negative (X), then it becomes
discount. If you choose the value as positive (A), it becomes surcharge.
Calculation type - It determines how the condition amount of condition type is to be calculated.
Condition category - It specifies the classification of different condition types.
Scale basis - It specifies how the scale amount of condition type is calculated.
Check value - Specifies the scale rates to be entered as per ascending order or descending order.
Click on save button and save the configured condition type details in SAP.
 ➢ DEFINE ACCOUNT KEYS IN SAP FOR GST

MEANING OF ACCOUNT KEYS

The Accounting key enables the system to post amounts to certain types of revenue account. For
example, the system can post freight charges (generated by the freight pricing condition) to the relevant
freight revenue account.
A condition type writes its value to a key established in the configuration outside the
pricing procedure. That key is called the Account Key in SAP MM, which is a table entry that tells
the pricing procedure where to copy calculated condition values for revenue account
determination in SAP.

STEPS TO DEFINE ACCOUNT KEYS IN SAP FOR GST

We can define a New Company in SAP FICO by using:
• Navigation Path: SPRO – SAP Reference IMG – Sales and Distribution (SD) – Basic
Functions – Account Assignment/Costing – Revenue Account Determination – Define and
Assign Account Keys
• Transaction Code: OV34
Step 1) Enter Transaction code “OV34” in the command field and enter to continue.

Step 2) On the change View “Account Key”: Overview screen, click on “New Entries”.

Step 3) Enter the below details and click on Enter.

• ActKy – Enter 3-digit alphanumeric account key.
• Name – Enter the account description.

Step 4) Once all the details entered, click on the Save button to save the changes.
Step 5) It prompt for the Change Request. Create/Select the change request and click on Right
Mark to proceed.

Step 6) Status bar displays the below message once the accounting key saved successfully.
SUMMARY TABLE OF GST CONFIGURATION

GST CONFIGURATION IN SAP FICO S/4 HANA

STEPS CONFIGURATIONS PATH TRANSACTION

CODE
Step 1 GST Calculation SPRO – SAP Reference IMG – Financial OBYZ or OBQ3
Procedure Accounting – Financial Accounting Global
Setting – Tax on Sales/ Purchase – Basic
Settings – Check Calculation Procedure
Step 2 Assign Country to SPRO – SAP Reference IMG – Financial OBBG
GST Tax Accounting (New) – Financial Accounting
Calculation Global Setting (New) – Tax on Sales/ Purchase
Procedure – Basic Settings – Assign Country to Calculation
Procedure
Step 3 Define Access SPRO – SAP Reference IMG – Sales and V/07
Sequence Distribution (SD) – Basic Functions – Pricing –
Pricing Control – Maintain Access Sequence

Step 4 Define Condition SPRO – SAP Reference IMG – Sales and V/06
Types for GST Distribution (SD) – Basic Functions – Pricing –
Pricing Control – Define Condition Types –
Maintain Condition Types
Step 5 Define Account Keys SPRO – SAP Reference IMG – Sales and OV34
in SAP for GST Distribution (SD) – Basic Functions – Account
Assignment/Costing – Revenue Account
Determination – Define and Assign Account
Keys