Key Apps for GSTR-6 and ISD Management: India

[shashankjain05]

This blog provides a summary of the apps and their functions required to file GSTR-6 in SAP S/4HANA Cloud (formerly known as SAP S/4HANA Cloud Public Edition).

GSTR-6 is the mandatory monthly return for an Input Service Distributor (ISD),  a critical compliance piece for large enterprises with centralized procurement, such as software companies with multiple offices under the same PAN. The ISD mechanism allows the Head Office to receive input service invoices (like consulting or software licenses) centrally and then distribute the associated Input Tax Credit (ITC) to the unit locations where the services are actually consumed.

The SAP S/4HANA system manages this distribution automatically through ISD program known as J1IG_ISDN . It calculates how much of the total ITC each branch should get. This calculation is usually based on a fair measure, like the turnover (sales) of each branch relative to the others and maintained in configuration settings.

SAP generates special internal documents (ISD invoices) that formally transfer the tax credit to each branch. This allows the individual branches to legally reduce their own tax bill by the credit they received.

Here are the apps that assist users in creating ISD invoices and filing GSTR-6 returns:

1. Re-distribute and Create ISD Invoices
2. eDocument Cockpit/ Manage Electronic Documents
3. Resolve Electronic Document Inconsistencies
4. Run Statuary Reports

             I.                  Re-distribute and Create ISD Invoices:

   This app helps users to create, display and redistribute Input Service Distribution invoices. Users select the filter criteria like Company code, Fiscal Year, ISD Business Place and selection of documents based on posting date. Further, based on the selection, A processing action can be triggered to view the ISD distribution, Change ISD distribution or to Post ISD distribution and create ISD invoices.

   App Name/ Launcher Title	Re-distribute and Create ISD Invoices
   App ID	J1IG_ISDN
   Business Catalogue	SAP_FIN_BC_GLO_GSTISD_IN_PC
   Business Catalogue  Description	Globalization - Input Service Distribution for India
   Business Role	SAP_BR_PURCHASER_IN
   Business Role Description	Purchaser for India

   

             II.                  EDOCUMENT Cockpit/ Manage Electronic Documents

   Users can use either eDocument Cockpit app or Manage Electronic Document App to work with electronic documents.

   App Name/ Launcher Title	Manage Electronic Documents
   App ID	F4306
   Business Catalogue	SAP_SD_BC_GLO_EDOC_PC
   Business Catalogue  Description	Globalization - Electronic Documents
   Business Role	SAP_BR_BILLING_CLERK
   Business Role Description	Billing Clerk

    

   App Name/ Launcher Title	eDocument Cockpit
   App ID	EDOC_COCKPIT
   Business Catalogue	SAP_SD_BC_GLO_EDOC_PC
   Business Catalogue  Description	Globalization - Electronic Documents
   Business Role	SAP_BR_BILLING_CLERK
   Business Role Description	Billing Clerk

   eDocument cockpit app allows users to process electronic documents (eDocuments) that are created automatically based on source documents. Users can display eDocuments, submit documents in XML to external systems and monitor the respective status for subsequent actions.

   What are the differences between the Manage Electronic Documents app and eDocument Cockpit app?

   

             III.                  Resolve Electronic Document Inconsistencies

   This is the app where users can review inconsistencies in the documents for example a document is available in GSTR-6A but missing in Book of accounts or if a document is missing in Tax authority but available in Book of accounts. Users then decide to accept the documents based on available info or may wait for the correction of the records. Only the accepted documents are picked by ISD distribution program. Please note this is the same action you will be navigated to 'Prepare ITC' action mentioned in following  step IV - Run Statuary Reports.

   App Name/ Launcher Title	Resolve Electronic Document Inconsistencies - India
   App ID	F8406
   Business Catalogue	SAP_SD_BC_GLO_EDC_IN_PC
   Business Catalogue  Description	Globalization - Electronic Documents Consistency for India
   Business Role	SAP_BR_BILLING_CLERK_IN
   Business Role Description	Billing Clerk for India

   

             IV.                  Run Statuary Reports

   This is the main App where GSTR-6 filing steps are performed. There are 5 actions/steps involved as shown below:

   

   App Name/ Launcher Title	Run Statutory Reports
   App ID	F1515
   Business Catalogue	SAP_FIN_BC_GL_REPORTING_CN_PC
   Business Catalogue  Description	General Ledger - Reporting for India
   Business Role
   Business Role Description	General Ledger Accountant for India

   

   We have gone through the 4 important apps for GSTR-6 Filing. This concludes this blog for GSTR-6 Filing starting from ISD distribution to reconcile and file your returns.  Please ensure you have assigned the required business roles to locate these applications. Refer to Fiori Application Libary for latest information about catalogues, roles and spaces. Further resources can be accessed through SAP Help Portal:

   GSTR6 Report