ISD-Input service distributor for distributing GST to multiple business places - In S4 Hana

[PrasadYanamala]

What Is input service distributor ?

 

When the company is having multiple business places among there is one Corporate office (head office/Business Place) where the common expense incurred/Recorded. now business wants to distribute the GST (CGST/SGST/IGST) to respective business places based on their turnover for current fiscal year.

To achieve this business process SAP has been introduced ISD process in SAP s4 Hana. (It is only for legal requirement)

 

Points to be Noted:

• ISD only applicable for common service purchases.


• Distribution would be happened between head office and its branches.


• It is a Month end activity.

Technical pre-requisites:

1. Maintaining BTE for Input Service Distribution

Open T code - FIBF & BF34 (In both T codes we should assign the below two FM's)

BTE

Functional Configuration Steps :

 

1. Create New  business place for ISD : J_1BBRANCV_IN (View)

Path - SPRO-Financial Accounting - A Global settings -Tax on Sales/Purchases -Basic Settings-India - Goods and Services Tax - General Settings -Define Business Places for Goods and Services Tax for India.

2.  Assign ISD Business place to the Plant (for MIRO related postings): J_1BBRANCV_IN 

Path - SPRO-Financial Accounting - A Global settings -Tax on Sales/Purchases -Basic Settings-India - Goods and Services Tax - General Settings -Assign Business Places to Plants for Goods and Services Tax for India.

 

3. Create Three sender GL's  (FS00):

Create 3 new GL's for ISD CGST,SGST, IGST and select post (automatically check box)

 

4. Create on new tax code for ISD: 

 

Create new tax code and assign "ZERO" values for below three conditions - JIS,JIC,JII

Tax code

5. Specify Document type for GST : J_1IG_DOCTYP_V  - (View)

(We should create new document type (OBA7) for ISD postings and assign number ranges (FBN1)

Assign that document type in below path.

Path - SPRO-Financial Accounting - A Global settings -Tax on Sales/Purchases -Basic Settings-India - Goods and Services Tax - General Settings -Assign Business Places to Plants for Goods and Services Tax for India.

 

6. ISD Main configuration:

Path - Financial Accounting - Global settings - Tax on Sales/purchases - India - Goods and service tax - input service Distributor.

Do configuration in below three Views/follow above path.

• J_1IG_ISD_MAP_V - Map ISD Business Places to Receiving Business Places


• J_1IG_ISD_TO_V - Maintain Turnover for Receiving Business Places:


• J_1IG_ISD_POST_V - Configure ISD Invoice Posting Settings:

6.1 Map ISD Business Places to Receiving Business Places:

In this step you will specify ISD business place which we have created for distribution and you need to specify receiver business place. (BUPLA means Business place)

 

 

6.2 Maintain Turnover for Receiving Business Places:

We have to maintain turnover ration for business places (EG: 52and 48)

 

6.3 Configure ISD Invoice Posting Settings:

 

Now We have successfully completed ISD configuration.

 

Post Vendor Invoice in F-43

1. Process a vendor invoice with ISD business place and any GST tax code.

 

final Distribution:

2. run T code - J1IG_ISDNSelect the below details:

1. Company code


2. Fiscal year


3. ISD Business place (PB01)


4. Posting date range

Select Display Invoice Distribution Radio button as shown below.

 

Execute:

Below you can see the distribution details.

here my receiver business places are Two:

Now come back and select - post invoice distribution radio button and execute.

 

 

ISD distribution will happen and two new documents will be generated for two business places.

 

Thanks 🙂

Please comment for any further clarifications needed.

[Jasmit_Sarna]

Hello Prasad,

Thanks for sharing this, nicely done.

Although you have mentioned clearly that this solution is available in SAP S4 Hana.

1. May i cross check with you about its availability in ECC as well as it is a legal requirement. And do you have any SAP note regarding this solution or any other references?

2. Also does this program generate any ISD invoice form output?

3. Regarding Post Vendor Invoice in F-43 - it should be with ISD tax code ? i guess you have a typo there..

If you could also include the posting results journal entries in the blog, would add value.

Regards

Jasmit Sarna

[kghurdale]

Hi Prasad,

Thanks for such beautiful and useful notes on ISD.

My question is

Why we need to create to assign "Zero" value to ISD new tax code? Why not some %. Pl explain to understand us.

Thanks

Kirtikumar

[g_subramaniam]

Hi,

Thanks for the document on ISD. 

However we are facing issue while posting the transaction as we have activated document splitting functionality- it is giving the error for profit centre not filled in any of the line items as its a normal JV from 1 balance sheet to another balance sheet account and there is no option to enter the same.

Is there a solution for this ?

Regards
Chetan

[SunilPatil2]

To resolve the error of profit center please implement the SAP note 2877752 - GST IN: Business area and Profit center error in J1IG_ISDN. SAP has suggested for Z implementation of BADI 'J_1IG_BADI_ISD' and fill the Business area/Profit Center in method 'FILL_BAPI_EXTENSION'.

Thanks

Sunil Patil

[Saurav_Thakur]

Hello Prasad.

Thanks for sharing the knowledge.

I'm getting an error while executing the isd 

Error - bkpff $ fico1002

Error - Gl 22800102 is not defined in chart of accounts.

Kindly guide me to solve these issues..

[shivanejar]

Dear Prasad, 

Thanks for sharing the detailed flow. 

We have multiple company codes in a single client. For testing purposes, only one company code's turnover data is maintained in J_1IG_ISD_TO_V [Ex. CC-1000]. We have posted a test document in ISD business place for a different entity [Ex.CC-2000]. Now if i try to execute the J1IG_ISDN for CC-2000, it's taking the turnover value from CC-1000 instead of giving an error. Have you come across such issue? Or how fix this issue?

Regards, 

Shiva. 

[Naveen11]

Hello Shiva,
To maintain turnover details for multiple company code use table  J_1IG_ISD_TN_V

Regards,
Amit