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Sales Tax conditions in Tax procedure

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Hello all,

We are defining Tax procedure for the India customer.

system : S4 Hana (2020) On premise

Query is , To post sales invoice, do we need to maintain Output (sales) conditions in Fi Tax procedure ?

As I know, that is not required, because Those condition types can be maintained in Sales pricing procedure and condition records need to be maintained (VK11). (i.e: Tax rate not through FTXP).

Can anyone please share your views / any changes in GST /S4 Hana solutions ?

Thank you..

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Your question is around GST, it makes sense also to tag Goods and Service Tax (India) tag for your question, so that it reaches the right experts.

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Answers (2)

Answers (2)

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Thank you Sanil for the detailed reply.

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hi sankar22

You need to have the tax conditions in SD Schema as well as Tax Procedure. Please read through the below links:

https://wiki.scn.sap.com/wiki/display/SD/Tax+Determination+Procedure

https://wiki.scn.sap.com/wiki/display/SD/FAQ+in+SD+Taxes+SD-BF-TX

https://blogs.sap.com/2017/01/25/gstgoods-and-service-tax-india-solution/

Please also look at the below notes specifically, which talks about the recommended set of tax procedure as well as condition types for GST on SD Side.

https://launchpad.support.sap.com/#/notes/2407980

Please also read through the FAQ Notes:

https://launchpad.support.sap.com/#/notes/2405801

I am not sure, what process you would use for IRN Generation, but the data model has requirements to be picked up from underlying transactional data, so have consistency across the application areas, whether in SD or FI or MM

Hope this answers your question.

Thanks & Regards

Sanil Bhandari

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Dear Sanil,

Thank you for your reply.

Yes, I had checked the note 2407980 and attachment. In that attachment only mentioned as below, hence I got doubt.

11th page in that note attachment :

Thanks

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hi sankar22

I checked the page number 11 you mentioned in your comment in the note. It is not mentioned on that specific page that you do not need to create the condition types in your tax procedure and create it only in pricing schema in SD. If you have business scenario where the below types of tax should be charged:

Intrastate: CGST+SGST

Interstate: IGST

You should have condition types for these taxes in both the places.

When you assign a tax code and rate in VK11, it is picked up and determined in sales pricing. A similar set of GL Accounts should be set for FI Postings since you would have scenario where some invoices are posted without a sales order (example: Asset sale to a customer with revenue etc) and which are not regular trade transactions (Trade Sales transactions are those which happen due to a normal course of sales of your product to a customer). So a tax code A1 for 18% GST - Intrastate may be used in both SD as well as FI Transactions.

Now coming to posting, the tax data from SD Document (released to accounting) as well as FI Invoices is captured in table BSET. Typically tax reports like GSTR 1, GSTR2 are picked up primarily from table BSET. If you have a different set up for FI and SD, the tax reporting can go hay wire for a similar kind of transaction.

This is why it is critical to have your tax configurations in synch for SD Schema as well as FI Scehma including the GL Assignments and also the set up of tax conditions.

Hope this helps to answer your question.

Thanks & Regards

Sanil Bhandari