GST flow in SAP PO

[ss151]

Hello,

Can any control be created on checking GST flow in PO during PO creation stage ?

During PO creation in ME21N or auto PO creation through Ariba, System to check FV table and incase there is no data for materials mentioned in PO, system should not allow PO to be saved or put PO under hold ?

Thanks

Sriram

[sanilbhandari]

Hi

What do you mean by FV Table?

Thanks & Regards

Sanil Bhandari

[ss151]

Hi,

FV table is to maintain condition records for tax flow.

FV11 is for creation, FV12 is for modification and FV13 is for display.

Based on tax condition, data such as vendor state region, PO delivery region, HSN Code, GST % and Tax code are maintained.

In PO, tax flows based on % maintained in FV.

Prior to GST, tax flow (VAT, CST) is based on tax code in SAP . Post GST, tax flow is based on data maintained in FV.

Thanks

Sriram

[ss151]

Sir

Our process is below

Material code creation through MDG where we have made HSN code entry and Tax requirement identificartion as mandatory. When work flow is approved, these details get captured in SAP.

HSN Code, Tax Code, Vendor state and Receiving plant state are mapped with GST % in FV table by accounts team. This is independent process with manual entry.

In PO creation state, we have all 4 details (HSN Code, Tax Code, Vendor state and Receiving plant state).

Whenever these four details are not maintained by Accounts team in FV, there is no alert or PO exit mechanism in place and PO gets saved. Consideirng the volume of PO creation, it becomes very difficult to verify GST flow (can be seen in print preview) and PO goes to vendors without GST.

After getting details from vendor, we are sharing with Accounts for updating FV table. Once the mapping is done, tax flows.

Looking for any EXIT / control during PO creation stage when there is no tax flow due to mapping mismatch.

[sanilbhandari]

Hi

These are called as condition record table. You could make tax code mandatory in the layout of PO Document type. Below question answered earlier might be helpful:

how to make Tax code Mandatory in Purchase Order (MM) | SAP Community

Thanks & regards

Sanil Bhandari

[ss151]

Sir

Thanks for your response. We have made tax code mandatory in PO. By this, we have solved GST flow issues due to missing tax codes in POs.

There are many HSN codes that are not maintained in FV table and hence GST for materials linked to such HSN codes are not flowing in POs.

Looking for mandatory control linking PO and FV table during PO creation

[sanilbhandari]

First you should correct the term from FV Tables. These are condition record tables.

I do not understand your comment. If the condition record is not maintained for an HSN Code along with tax code, than tax code should not be determined at line item and if the tax code is mandatory, you should get an error in the PO

However, even if you solve the issue of tax code in PO, you could still have your tax reporting wrong if a wrong tax code is captured in invoice. Should you not address that issue rather than only looking at PO.

At the end of day, the tax reporting is based on Invoice or down payment and the tax code used in these transactions.

Thanks & Regards

Sanil Bhandari

[sanilbhandari]

First of all if you are providing further information, please add it as a comment rather than a new answer as a courtesy to other community members, should they face a similar issue in future.

Does marking tax code as a mandatory field at PO line item, does not solve your issue? If the tax code is not derived, than off course the error should come and stop the creation of PO itself.