Professional Documents
Culture Documents
For
BY
BUSINESS BLUEPRINT
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CONTENTS
1 Solutions in SAP...................................................................................................................7
1.1 Changes in Key Data Structure -.............................................................................................................................5
1.1.1 Business Place:.............................................................................................................................................5
1.1.2 Chart of Accounts:........................................................................................................................................7
1.2 Master Data:................................................................................................................................................8
1.2.1 Vendor Master Data:.................................................................................................................................8
1.2.2 Material Master Data..................................................................................................................................8
1.2.3 G/L Account Master Data:........................................................................................................................9
1.2.4 Service Master Data:....................................................................................................................................9
2 Business Process – Scenarios:............................................................................................10
2.0 Customer Master Changes - GST Regime………………………….……………………………………………………………………10
2.1.1 Order to Cash.............................................................................................................................................10
2.1.2 New Condition type for GST..................................................................................................................11
2.1.3 Factory Sales..............................................................................................................................................17
2.1.4 Depot Sales................................................................................................................................................22
2.1.5 Export Sales..............................................................................................................................................27
2.1.6 Stock Transfer Process...............................................................................................................................30
2.1.7 Inter Company Sale.................................................................................................................................31
2.1.8 Clinker Sales...............................................................................................................................................32
2.1.9 Consignment Sales....................................................................................................................................34
2.2.0 Scrap Sales................................................................................................................................................36
2.2.1 Sales Return...............................................................................................................................................38
2.2.2 Credit Note.................................................................................................................................................41
2.2.3 Debit Note..................................................................................................................................................42
2.2.4 Supplimentary Sales...................................................................................................................................43
2.2.5 Frieght Settlement.....................................................................................................................................44
3 Tax Procedure and Tax Codes:............................................................................................45
3.1 Tax Condition records:..................................................................................................................................50
3.2 Procure to Pay:..............................................................................................................................................50
3.2.1 Intra State Procurement Scenarios:..............................................................................................................51
3.2.2 E-1 Procurement:..........................................................................................................................................54
3.2.3 Inter State Procurement process..................................................................................................................54
3.2.4 Stock transfer process:.................................................................................................................................56
3.2.4 Import Procurement Process:.................................................................................................................60
3.2.5 Service Procurement:...................................................................................................................................62
3.2.6 Vendor Returns:...........................................................................................................................................64
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1 Solutions in SAP
Business Places will be used as an identification of GST Registration in SAP. GSTIN number will be stored in the
Business Place and reporting can be done at Business Place level. Hence Business Place must be created based on
the number of GST registrations.
Currently in MCL following Business Places are defined. As understood, these Business Places are being used
for withholding tax reporting. These are to be revamped as per the new GST registrations being taken.
Observatio
Company Code
n
There are 14 Business
Existing
Places in the existing
model
system
Plant
Business places are
assignment
assigned to respective
in Existing
plants
model
GST registration number
GST will be maintained in the
relevant Business Place and
changes assigned to respective
plants
It is understood that MCL is in process for GST registration at state level for each legal entity.
GST registration number will be maintained in the Business Place in SAP.
The business places are used in countries that by law require returns for taxes on
sales/purchases to be submitted at a level below the company code. For this reason, companies
have to register each business place with the tax authorities as the unit responsible for tax
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reporting. As per the GST model law, the GST Registration number needs to be obtained for each
of the State in which operations are carried out. Since Business places are configured in SAP
essentially for reporting purpose, the GST registration number should be obtained for each of the
business place configured.
Plant
Business Place Region
Company Code Plant Description Plant
1000 MCL-Guwahati 1000 1020 3
1000 MCL-Kolkata 1001 1040 25
1000 MCL-Lumshnong 1002 1030 15
1000 MCL-Silchar 1003 1020 33
1000 MCL-9th Mile 1004 1030 15
1000 MCL-Badarpur 1005 1020 3
1000 MCL-Agartala 1006 1010 23
1000 MCL-Dharmanagar 1007 1010 23
1000 Mizoram 1008 1030 16
1000 MCL-Pailapool 1009 1020 3
1000 MCL-Manipur 1010 1050 14
1000 MCL-Gorchuk 1011 1020 3
1000 MCL-Banderdewa 1012 1060 2
1000 Bhalukpong 1013 1060 2
1000 MCL-Dimapur 1014 1070 17
1000 MCL-Gouripur 1015 1020 3
1000 MCL-Wokha 1016 1070 17
1000 MCL-Boxirhat 1017 1030 25
1000 MCL-Siliguri 1018 1030 25
1000 MCL-Coochbehar 1019 1030 25
1000 MCL-Malda 1020 1030 25
1000 MCL-Khatkhati 1021 1030 3
1000 MCL-Nagaon 1022 1030 3
1000 MCL-Narengi 1023 1030 3
1000 MCL-Mokokchung 1024 1030 17
1000 MCL-Namsai 1025 1030 2
1000 MCL-Kishanganj 1026 1030
2000 TOPCEM-Guwahati 2000 2010 3
2000 TOPCEM-Kolkata 2001 2030 25
2000 TOPCEM- Kamrup 2002 2010 25
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This is a list of all G/L A/Cs used by one or several company codes. Under GST Regime, the
chart of Accounts need to be reviewed to include the GST relevant A/Cs. As suggested by SAP,
the GL A/Cs should be created for each component of GST (CGST, IGST and SGST) at
Registration level.
1 1000 1000
2 2000 1000
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Vendor GSTN would be captured in the vendor master Control tab under TAX Number 3 field. LSMW tool
would be used for updating the existing vendor masters.
A new field will be provided under CIN details Tab (Vendor master data) for vendor classification. This
would enable vendor classification as per GST requirement and the same would be used to maintain tax
condition records.
SAP standard tool LSMW for Vendor Master Change with template would be provided to capture this
detail in existing vendor master data.
Under GST model law, GST tax rates can be maintained against HSN number (Harmonized system of
Nomenclature). This HSN code would be one of the parameter for determining GST rate under GST rule.
The HSN code maintained in the material master will be copied to MIRO and can be changed if there is any
mismatch, so that any discrepancy at the reporting level can be avoided
Material Master is created in SAP for material transactions and stock. In SAP for each Material the HSN
code will be updated in Control code field of foreign data tab for tax calculation and tax reporting. This
code will be defaulted at invoice line item during posting of invoice.
Tax classification for new GST sales Condition types needs to be maintained in material master for relevant
sales area.
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Additionally, to categorize the materials in the GST regime, Tax Indicator for Material field present in the
Purchasing tab of the Material Master will be used.
For new material master creation the above mentioned field should be Mandatory fields.
GL accounts are needed to post both input (credit ledger as per GSTN) and output taxes (Tax ledger as per
GSTN). This can be maintained at each business place per GST tax types (SGST, CGST, IGST). One GL
account at business place level is recommended to post the tax payment (this reflects the cash ledger as
per GSTN)
Based on the GST return filing, for adjustment of various categories, FI GL journal voucher would be
posted.
Under GST Regime, the chart of Accounts need to be reviewed to include the GST relevant A/Cs. As
suggested by SAP, the GL A/Cs should be created for each component of GST (CGST, IGST and SGST) at
Registration level.
Since it is not possible to use the document splitting characteristics, all the GST postings should be assigned to
a common document splitting characteristics
Service master is created for Services procured and rendered during business operation. Service masters
are created in SAP. For GST compliance Service masters need changes to capture new fields. It is
recommended to have separate service master for each type of service. If service master is not maintained
HSN code should be maintained manually in the invoice verification transaction (MIRO). In this case
condition records should be maintained accordingly.
For services, SAC number (service Accounting code) will be updated in service master for GST tax rates
calculation and reporting. This SAC code would be defaulted during invoicing and transaction posting in
SAP it is also has to be uploaded in GSTR1 for outbound supplies and GSTR2 for inbound supplies.
SAC number would be maintained in Service master under Tax tariff code.
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Tax indicator will help in the classification of services for tax calculation as well as reporting. Additionally,
to categorize the service in the GST regime, Tax Indicator for service field will be used.
From inbound transaction (procurement), tax classification of service master needs to be maintained to
identify whether the service is under GST, exempt or under service tax.
LSMW recording with template for Service master would be provided to update these fields for all service
masters currently in the system.
Maintain the Customer Registration number in control data in Tax Number 3 of customer master.
In sales area view of customer master maintain the tax classification for customer for IGST, CGST and IGST
condition type.
LSMW recording with template for Customer master would be provided to update these fields for all
Customer master currently in the system
Order to cash sales process can be further sub divided is of two types
The sales scenarios coming under Intra/Intra state sales are as object.
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Condition Condition
Selection parameters
Types Description
Factory Sales
Depot Sales
Exports
Intercompany Sales
Clinker Sales
Consignment Sales
Scrap Sales
Sales Return
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Credit Note
Debit Note
Supplementary Sales
Freight Settlement
New condition types will be created for GST i.e. JOCG for CGST, JOSG for SGST, JOIG for IGST
By using the delivering plant Region and the region of ship to party, system would determine the
characteristic (interstate or intra state). Based on this the appropriate access sequence would be derived
to calculate SGST, CGST and IGST
The supply of services and supply of goods which does not involve the goods movement, in this condition
taxes will determined based on the location of the supplier and the place of supply, both location would
be maintained in the master data and based on that taxes will determined in the transactions
New access sequence will be created to maintain the condition record, however it can be changed
according to the business requirement. Region of delivering plant & region of ship to party is mandatory.
NO Table Description
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BDC (Batch Data Communication) or LSMW (Legacy System Migration Workbench) to delimit the condition
records will be provided to the Business
Through the Template we can run the BDC/LSMW to upload the Master data in SAP system user will
provide the inputs in template
The pricing procedure will be changed in the current landscape and insert new condition types for GST
In Intra state sales SGST and CGST will work, whose condition types are given as JOCG and JOSG
respectively. These condition types should be incorporate with the existing pricing procedure wherever its
applicable.
Procedure Description
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Pricing Procedure
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ve)
Applicable for Factory sales Trade and Factory sales Non Trade for MCL and Topcem Companies
The sales scenarios coming under Intra state sales are as object.
Sales Process:
Inquiry Creation: It is an agreement with ACG and Customer to render the Job Work or materials
VA11 Create Inquiry Here Excise Duty & CST condition Here impact of IGST Tax Condition
type will impact in pricing condition type
Here Excise Duty & CST condition Here impact of SGST Tax
type will impact in pricing condition Condition type
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Here Excise Duty & CST condition Here impact of IGST Tax
type will impact in pricing condition Condition type
In Intra state sales SGST and CGST will work whose condition types JOCG and JOSG respectively and in
inter-state sales IGST will work and it should be incorporate with the existing pricing procedure.
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Note—MCL is using Gate Entry (tcode-ZGM01), After delivery, Gate entry has to be provided after receiving
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Here Excise Duty & CST condition Here impact of IGST Tax
type will impact in pricing condition Condition type
Change as per GST regime in the pricing Procedure for the intra state sales.
Change as per GST regime in the pricing Procedure for the inter-state sales
Change as per GST regime in the pricing Procedure for the inter-state sales
Requirement 000, system checks tax rate only in case of plant region and ship-to party region would be
different. If there are same plant region and ship-to party region then tax rate for CGST and SGST would
not be determined.
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MCL and Topcem both companies are having depot sales. Taxes are applicable as per GST given below
The sales scenarios coming under Intra state sales are as object.
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Sales Process:
Inquiry Creation: It is an agreement with ACG and Customer to render the Job Work or materials
Here Excise Duty & CST condition Here impact of IGST Tax Condition
type will impact in pricing condition type
Here Excise Duty & CST condition Here impact of IGST Tax
type will impact in pricing condition Condition type
In Intra state sales SGST and CGST will work whose condition types JOCG and JOSG respectively and in
inter-state sales IGST will work and it should be incorporate with the existing pricing procedure.
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Here Excise Duty & CST condition Here impact of IGST Tax
type will impact in pricing condition Condition type
Change as per GST regime in the pricing Procedure for the intra state sales.
Requirement will be used against CGST and SGST (Condition Types JOCG and JOSG).
Requirement, system checks tax rate only in case of plant region and ship-to party region would be same.
If there are different plant region and ship-to party region then tax rate for CGST and SGST would not be
determined.
Change as per GST regime in the pricing Procedure for the inter-state sales
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Requirement, system checks tax rate only in case of plant region and ship-to party region would be
different. If there are same plant region and ship-to party region then tax rate for CGST and SGST would
not be determined.
All the Export pricing procedures will be modified, IGST condition type JOIG will be added to these existing
pricing procedures
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T-
Description CIN Impact GST Impact
Code
BUSINESS BLUEPRINT
If the export is on payment of duty (Refund cases) while billing the amount of IGST will be posted. So for
this we need to add the IGST tax condition type in the export pricing procedure. If business don’t want can
be skipped.
Acc.
Pricing Con. Sub Cal. Bas
Step Co Des From To Print Req Acc
Procedure Type total Type Type
Key
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Change as per GST regime in the pricing Procedure for the intra state sales
Requirement 000 will be used against CGST and SGST (Condition Types JOCG and JOSG).
Requirement 000, system checks tax rate only in case of plant region and ship-to party region would be
different. If there are different plant region and ship-to party region then tax rate for CGST and SGST would
not be determined.
Now in GST regime, compulsorily actual invoice has to be raised by supplying plant in STO process.
In Intra state STO Plants if having same registration no. in one state, then there no taxes under GST
Regime.
In intra state STO plants, if both supplying and receiving plants are in same state and having different
registration, then SGST & CGST is applicable.
Now in GST regime, GST invoice should be raised for interstate STO and intra state STO with different
registration for both receiving & supplying plant.
STO Scenarios TO BE
Process
Process Flow AS-IS Scenarios Described CGST SGST IGST
No
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Any movement of goods between two registrations of different plant between two states, IGST is
applicable.
Now in GST regime, GST invoice should be raised for interstate STO and intra state STO with different
registration for both receiving & supplying plan
STO Scenarios TO BE
Impact of Interstate STO Pricing Procedure: In case of the Inter-state STO process with sales transactions JOIG
condition type will be incorporated with STO pricing procedure for IGST tax.
Acc.
Pricing Co Con. Sub Cal. Bas
Step Des Fro To Print Req Acc
Procedure Ty Type total Type Type
Key
In MCL billing type for STO is relevant for accounting entry. So as suggested by SAP for creating the new billing
type is required and need to add the IGST condition type in the exiting pricing procedure..
Condition record required to be maintained for valuation which will be base for calculating IGST.
Accounting Entry for interstate STO in GST Regime for IGST at the time of Billing/Invoicing is as
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Mcl and Topcem are in two different states and two different Registrations
In Inter-company sales IGST will work, whose condition types are given as JOIG. These condition types should be
incorporate with the existing pricing procedure
Accounting entry:
Topcem YES NA
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In Case of intra/Interstate Clinker sales scenarios CGST, SGST/ IGST are applicable.
The Clinker sales scenarios coming under Intra state sales are as object.
Change as per GST regime in the pricing Procedure for the intra state sales.
Requirement 000 will be used against CGST and SGST (Condition Types JOCG and JOSG).
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Requirement 000, system checks tax rate only in case of plant region and ship-to party region would be
same. If there are different plant region and ship-to party region then tax rate for CGST and SGST would
not be determined.
Change as per GST regime in the pricing Procedure for the inter-state sales
Requirement 000, system checks tax rate only in case of plant region and ship-to party region would be
different. If there are same plant region and ship-to party region then tax rate for CGST and SGST would
not be determined.
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Consignment Sales TO BE
Change as per GST regime in the pricing Procedure for the intra state sales.
Requirement 000 will be used against CGST and SGST (Condition Types JOCG and JOSG).
Requirement 000, system checks tax rate only in case of plant region and ship-to party region would be
same. If there are different plant region and ship-to party region then tax rate for CGST and SGST would
not be determined.
Change as per GST regime in the pricing Procedure for the inter-state sales
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Requirement 000, system checks tax rate only in case of plant region and ship-to party region would be
different. If there are same plant region and ship-to party region then tax rate for CGST and SGST would
not be determined.
For Intra state scrap sales CGST and SGST is applicable and IGST is applicable in case of Interstate Scrap
sales
Existing taxes like VAT, CST, Excise etc. will get subsumed under GST except TCS which will continue under
GST regime.
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The below mentioned condition types and accounting keys to be incorporated into the existing scrap sale
Pricing procedure ZSCRAP as per the GST compliance.
Accounting Entries:
Intra State-
Inter State -
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Quality Problems
Return sales order is created with reference to original invoice and also without reference.
In case of return with reference the pricing and taxes will be copied from the original invoice and incase of
without reference a separate pricing procedure is used, all the pricing procedures will require to be
modified to insert GST condition types
All the existing as-is process will be continued under GST tax regime
Sales Process:
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SGST is applicable
In intra sales VAT is
applicable
CGST is applicable
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Change as per GST regime in the pricing Procedure for the intra - state sales
Change as per GST regime in the pricing Procedure for the inter - state sales
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A credit note is issued against any Schemes, Promotion, Price difference, these credit notes are different
from customer complaints
The below mentioned condition types and accounting keys to be incorporated into the existing credit
memo Pricing procedure ZDMSPL as per the GST compliance.
Accounting Entries:
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Debit note is created with reference to the corresponding customer invoice document.
The below mentioned condition types and accounting keys to be incorporated into the existing Debit
memo Pricing procedure ZDMPAN as per the GST compliance.
Accounting Entries:
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MCL matches the current rates with WPI, and compares the WPI rates with sales order which are processed in that
month
If MCL Undercharged the if will collect remaining amount from the customer
Supplementary sales:
TO BE
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MCL is having Transport agencies for goods transfer, where MCL is paying Service tax, swachh bharat, Krushi Kalyan
Tax and TDS applicable
Freight Settlement
TO BE
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New conditions for GST are to be added in the existing TAXINN procedures. New Tax Codes will be created
for input and direct FI postings. The tax code mapping to be evaluated during realization.
Old Tax codes: Redundant Tax Codes to be delimited from 01.07.2017 (subject to government notification
on GST Law roll out)
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All tax rates for P2P process and FI process will be maintained as condition record with appropriate tax
codes. The condition records have to be maintained centrally.
Procure to Pay process further classified into Intra state, Interstate, Import, Services, Asset procurements.
New condition types will be created for GST (proposed in SAP note)
CONDITION
TYPES DESCRIPTION
JICG Central GST Condition Type
JISG State GST Condition type
JIIG IN Integrated GST
JISN IN State GST ND
JICN IN Central GST ND
JIIN IN Integrated GST ND
The tax procedures “ZTAXIN” will be changed in the landscape with the new condition types mentioned in
the above table
New Access Sequence (JGSI) to be created to maintain condition record. The below are the recommended
conditions and any further combinations can be added according to requirement
NO TABLE DESCRIPTION
10 790 Region/PlntRegion/GSTClass/Material
20 791 Region/PlntRegion/GSTClass/Activity /
30 794 Dest.ctry/Region/Plant region/GST Class. /Tax ind/Ctrl code/Tax code
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40 03 Tax Classification
New condition record to be maintained for the JISG, JICG, JIIG, JISN, JICN and JIIN.
MIRO Process Change – SAP recommends to use the additional fields provided for HSN code, GST partner
and Place of supply in MIRO to input right HSN code or Place of supply, cases where it mismatch the
Vendor Invoice, to avoid any discrepancy at the GSTN portal.
For Stock statement HSN code will be from material master. For Purchase register HSN code will fetch from
MIRO.
Tax code and calculation for other conditions like freight, security etc , user will continue existing process
of manual selection of tax code in MIRO.
The intra state procurement process will attract CGST and SGST.
The intra state procurement process as mentioned bellow
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Domestic Procurement Procurement of capital goods ( other than project YES YES NA
within State related )
ME51N Create Purchase Requisition No Impact with Taxes No Impact with Taxes
ME55 Approve PR Process not adopted by MCL & Process not adopted by
TOPCEM. Approval of PR is done MCL & TOPCEM
manually
ME41 Create RFQ Process not adopted by MCL & Process not adopted by
TOPCEM MCL & TOPCEM
ME47 Maintain RFQ Process not adopted by MCL & Process not adopted by
TOPCEM MCL & TOPCEM
ME49 Price Comparison Process not adopted by MCL & Process not adopted by
TOPCEM MCL & TOPCEM
ME21N Create Purchase order Taxes will be impacted. Taxes will be impacted.
Tax code will be maintained. Tax code will be
Excise and VAT. maintained.
Excise and VAT is maintained in the CGST and SGST.
below combinations CGST and SGST maintained
Plant/Vendor/Material in the below
Country/Plant/Ctrl code/Material Condition record
combination will be
finalized in realization
phase.
ME29N Approve Purchase order Process not adopted by MCL & Process not adopted by
TOPCEM. Approval of PO is done MCL & TOPCEM
manually
ZGM01 Gate Entry No impact of Tax No impact of Tax
ZGM01 Gate Out No impact of Tax No impact of Tax
MIGO Goods Receipt Goods receipts against purchase Goods receipts against
order with Movement type 101. purchase order with
If taxes are cenvat tax, amount will Movement type 101.
not be added to material cost. If taxes are cenvat tax,
If taxes are Non cenvat tax, amount will not be added
amount will be added to material to material cost.
cost. If taxes are Non cenvat, tax
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J1IEX Capture and Post Excise If excise duties are cenvat capture Not applicable
invoice and post excise against the
material document. Here system
generates part1 and part2 serial
numbers in the register.
Accounting entry will be
generated.
Excise duty Dr
Cenvat Clearing A/c Cr
MIRO Invoice Verification Invoice verification against the Invoice verification against
Purchase order. the Purchase order.
Accounting document will be Accounting document will
generated. be generated.
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Following processes are covered under domestic Inter- state procurement process.
In inter-state purchase scenarios IGST is applicable.
New condition record will be maintained for JIIG and JIIN
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manually
ZGM01 Gate Entry No impact of Tax No impact of Tax
ZGM01 Gate Out No impact of Tax No impact of Tax
MIGO Goods Receipt Goods receipts against purchase Goods receipts against purchase
order with Movement type 101. order with Movement type 101.
If taxes are cenvat tax amount will If taxes are cenvat tax amount
not be add to material cost. will not be add to material cost.
If taxes are Non cenvat tax amount If taxes are Non cenvat tax
will be added to material cost. amount will be added to
Stock A/c Dr material cost.
GR/ IR A/c Cr Stock A/c Dr
GR/ IR A/c Cr
J1IEX Capture and Post If excise duties are cenvat capture Not applicable
Excise invoice and post excise against the material
document. Here system generates
part1 and part2 serial numbers in
the register.
Accounting entry will be generated.
Excise duty Dr
Cenvat Clearing A/c Cr
MIRO Invoice Verification Invoice verification against the Invoice verification against the
Purchase order. Purchase order.
Accounting document will be Accounting document will be
generated. generated. CGST and IGST are
posted
Plants within MCL and TOPCEM, transfer of stocks is done within and outside state.
In MCL, Cement is the finished product and transferred to other plants of MCL within the state.
Clinker is the finished product of MCL and is sold to TOPCEM (No STO is done)
For TOPCEM clinker is the raw material and clinker is transferred to other plants of TOPCEM within the
state.
PO is created by Plant 1002 (MCL) & 2002 (TOPCEM) for stock transfer to their respective plant.
PO is approved manually by authorized person.
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While receiving material, Gate Entry is done with T.Code- ZGM01 and Gate Out for vehicle is done with
T.Code- ZGM01 in receiving plant.
Outbound delivery Dodument with T-Code-VL10B & Post Goods Issue with T Code-VL02N is created
On receipt of material, Invoice & Delivery Challan is submitted by the vendor.
After quality check of materials, gate entry is done by stores.
Purchase department instruct stores do Goods Receipt(MIGO)
Original Invoice with all supporting documents are submitted by supplier to Purchase Department for
MIRO (Bill entry purpose).
Excise is applicable in this process. VAT & CST are not applicable.
In GST regime major process change is expected in Stock Transfer process. The STO would require an
invoice, along with the Goods issue document, if stock transfers are happening between two GST
Registration numbers.
Currently in ACG below process is followed for stock transfer:
Create a Stock order using ME21N
Process goods issue against STO movement type 351
Process goods receipt against STO movement type 101
In Intrastate STO, the goods movement is between same registrations, GST is not applicable.
GST is only applicable when the goods movement is between two different registrations.
Asset to be created as non-valuated material for this STO process.
Info record is mandatory for STO process where tax code should be maintained.
No tax impact in case of intra state stock transfer within same registration
In case of inter stock transfer between two registration there is process change as GST invoice will be
required to be created and accounting will be posted.
Post goods receipt by standard T-code MIGO
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Any movement of goods between two registrations or two states, IGST will be applicable.
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done manually.
ZGM01 Gate Entry No impact with Taxes No impact with Taxes
ZGM01 Gate Out No impact with Taxes No impact with Taxes
Create delivery at
VL10B No Impact with Taxes No Impact with Taxes
background
VL02N Post Goods Issue No Impact with Taxes No Impact with Taxes
GST STO Invoice is created and
VF01 Create Proforma Invoice No Impact with Taxes IGST will be applicable if STO is
B/w two registrations
Create Outgoing Excise Excise relevant taxes are
J1IIN NO Excise in GST
Invoice impacted
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Find the bellow attached Import scenarios list for import purchases
IGST condition type JIIG will be added to the existing import pricing procedure in the client.
A separate tax code will be created for Import tax condition.
During MIRO for Custom duty payment, IGST will be calculated using routine.
.
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manually
In PO B.C.D, C.V.D,A.C.D And In the PO B.C.D and IGST will be
ME21N PO creation other cesses are effected through applicable. all other CESS are
condition record replaced by IGST in Import
Process not adopted by MCL &
Process not adopted by MCL &
ME29N Release the PO TOPCEM. Approval is done
TOPCEM
manually
Invoice to be created with
Customs Duty
MIRO planned delivery costs. Customs Customs Duty will be paid
payment
Duty will be paid
ZGM01 Gate Entry No impact with Taxes No impact with Taxes
ZGM01 Gate Entry No impact with Taxes No impact with Taxes
For MCL and TOPCEM, service procurement are done for Service Kit (for servicing pumps, radiators)
Services also includes Manpower supply, third party inspection, repairing of machinery, printers &
laptops
PR is created by particular Department to Purchasing department.
Approval of PR is done manually by authorized person of MCL and TOPCEM.
Request for quotation to vendors is sent by mail. Prices submitted by the vendors are maintained in price
comparison sheet and depending on price and quality vendor is selected.
Service master (T.Code- AC03) is created by Accounts Department.
PO is created by Plant 1002 (MCL) & 2002 (TOPCEM).
PO is approved manually by authorized person.
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Once the service gets completed by the vendor, with reference to the bill Stores Department makes the
gate entry (T.Code- ZGM01)
Service Entry Sheet (T.Code- ML81N) is made by the respective plant.
Purchase Department does MIRO (Bill entry purpose).
ME51N Create Purchase Requisition No Impact with Taxes No Impact with Taxes
ME55 Approve PR Process not adopted by MCL & Process not adopted by MCL &
TOPCEM. Approval is done TOPCEM
manually
ME21N Create Purchase Order Taxes will be impacted. Taxes will be impacted.
Tax code will be maintained. Tax code will be maintained.
Sercive tax, swachh bharat cess CGST, SGST or IGST will be
and KKC maintained in the below impacted
combination Based in Inter or Intra state
Country/ Tax Code procurement of service
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2.2.9.1 Accounting entries at the time of Invoice (for Intrastate GST regime):
Service Invoice Verification in Intrastate procurement:
PO is created by Plant 1002 (MCL) & 2002 (TOPCEM) and for Storage Location SG01, SG02, SG03.
PO is approved manually by authorized person.
While receiving material, Gate Entry is done with T.Code- ZGM01 and Gate Out is done with T.Code-
ZGM01.
On receipt of material, Invoice & Delivery Challan is submitted by the vendor.
After quality check of materials, if the material is damaged or needs to be returned to vendor, a debit note
is made and sent back to the vendor and MIGO will be on hold.
After receiving the repaired material, MIGO will be done.
Original Invoice with all supporting documents are submitted by supplier to Purchase Department for
MIRO (Bill entry purpose)
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For GST returns, it is always recommended to have credit memo/debit memo from Vendor to enable business for
posting Debit memo. Communication should be made to vendor to get the relevant credit notes so that, ITC
adjustment can be done appropriately.
In this process, materials manufactured from the plant are used for the plant’s consumption.
Materials are transferred to consumption (SCON) with movement type- 903 (MIGO)
Materials are issued (MIGO) for consumption.
Excise invoice (J1IS) is created.
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consumption
4. Finance Transactions:
Transaction code FB60 is used for posting of expenses like Transport services, Travel expenses, and mobile expenses
etc.
In post GST regime, in FB60 there would be additional fields like HSN/SAC code, place of supply(POS),GST partner
would be available and GST would be calculated based on Tax code.
It is recommended to use fields plant and material number with enabling field status group for expenses GL
Accounts (to be evaluated during realization) and user can update relevant material and plant values to use
condition records for calculating GST based on HSN/SAC code. This would enable business to avoid creation of FI
specific process based GST tax codes.
Accounting Entry:
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Expense A/C Dr
CGST Input A/C Dr
SGST Input A/C Dr
To Vendor A/C Cr
To TDS Payable A/C Cr
Vendor debit memo would reverse the appropriate GST as per the condition records. These should be posted
through MIRO with reference to relevant PO. If Dr. memo is directly posted in FI, relevant HSN/SAC code fields
need to be updated. In SAP transaction code FB65 new fields GST partner, Place of supply (POS) and HSN/SAC code
would have enabled.
For GST returns, it is always recommended to have credit memo/debit memo from Vendor to enable business for
posting Debit memo. Communication should be made to vendor to get the relevant credit notes so that, ITC
adjustment can be done appropriately.
Since advances are treated as deliveries to the extent of advance, there is a need to capture HSN/SAC code and
other relevant GST indicators for calculating GST for this advance. It is advised that advances to be routed through
PO, so that these fields can be copied for GST compliance.
If advances are paid directly in FI, the relevant fields HSN/SAC code, place of supply are not available for GST
compliance.
In case of current Down payment request creation at PO header level, business to adopt process change for Down
payment request at PO line items level (where multiple HSN code exist), so that Vendor Invoice adjustment can be
done at time of MIRO.
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Advance paid to third party employees through Contractors- Business team consider the advance as loan. But as
per GST law, it will be considered as advance against service and tax applicable.
4.4.Account receivable:
In some cases, Business posts customer invoice for sale with or without Tax as applicable for Material and services
in transaction code FB70.
In post GST regime, in FB70 there would be additional fields like GST partner, place of supply(POS), HSN/SAC code
would be available and GST would be calculated based on Tax code.
It is recommended to use fields plant and material number with enabling field status group for revenue GL
Accounts (to be evaluated during realization) and user can update relevant material and plant values to use
condition records for calculating GST based on HSN/SAC code. This would enable business to avoid creation of FI
specific GST tax codes.
Customer credit memo transaction code FB75 is directly posted in FI, relevant HSN/SAC code fields need to be
updated. In SAP transaction code FB75 new fields GST partner, Place of supply(POS) and HSN/SAC code would have
enabled.
4.6.Customer Advance:
Advance is received from customers directly in Finance. In most of cases it is not linked to SO.
In GST regime, the customer advance is recommended to be posted in relation to the sales order in SD module. A
Customer advance request is generated with reference to Sales Order and the same is cleared through receipt of
money in finance.
It is recommended to link the customer advance to SO condition types, so that this would be updated along with
HSN/SAC code.
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In Current business transactions, tax items are posted with transaction code F-02 and FB01. GST relevant new fields
like HSN/SAC code are not available in F-02, FB50 and FB01. Hence, no tax posting to be done in F-02, FB50 and
FB01.
Note: It is recommended to use FB60, FB65, FB70 and FB75 for Vendor and Customer related transactions to
capture GST relevant new fields.
In MCL, FI-AA module used to post purchase (F-90) of Low Value Asset and to add value to main
asset. FI-AA module should not be used for Asset purchase for GST compliance.
4.9.Asset Sale
In MCL, FI-AA module is used to Sale of Asset. FI-AA module cannot not be used for Asset sale
for GST compliance. That should be done from SD module.
4.10.Scrap Sale:
For Scrap sale, FI module is used. FI-AA module should not be used for Scrap sale for GST compliance. That should
be done from SD module.
In case of transfer of assets between states IGST would be applicable. Hence, it is recommended to follow logistic
module STO process.
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4 Assumptions
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