Apply both HSN Code & SAC Code on same material Code

[amars88]

Dear Experts,

We are using the same material codes for both manufacturing as well as Job work purpose. Currently we have maintained HSN Codes on all the materials. However, our client requires that when we are manufacturing the material the HSN code should be picked (as happening currently) but in job work scenario the SAC code should be picked. Kindly suggest how we can maintain both HSN & SAC code for same material code.

Regards.

[Lakshmipathi]

SAP does not support dual classification (HSN + SAC) for a single material in standard setup because, both HSN and SAC codes are stored in the same field (STEUC) in table MARC.

Below are some recommended approaches

Use Different Document Types or Billing Types

• Configure separate billing types for manufacturing and job work.
• Use condition technique or output determination logic to differentiate the tax code application.

Enhance Tax Determination Logic

• Use Business Rules Framework (BRF+) or Condition Contract Management to dynamically determine whether to apply HSN or SAC based on:
• Document type
• Customer type
• Usage scenario (job work vs manufacturing)

Custom Field or Extension

• Add a custom field to the material master or billing document to store SAC code.
• Use in-app extensibility to:
• Create a custom logic that overrides the HSN with SAC when job work is detected.
• Ensure this logic is applied during tax determination and e-invoice generation.

Alternative: Use Service Material for Job Work

• Create a service-type material (with SAC code) for job work.
• This avoids conflict and aligns with GST classification (goods vs services).