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FI BBP Template
FI BBP Template
Submitted
To
XXXX
By
FINANCE
March, 2017
Version 1.0
Blue Print Document – FI
Customer: XXXXX
Project : GST IMPLEMENTATION PROJECT
Document details:
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PREFACE
The purpose of this document is to record the business process requirements of XXXX
and outline the requirement mapping in SAP for GST.
Intended Audience
The intended audience for the FI Business Blueprint is the employees of XXXX and
other persons authorized by XXXX who are in any way related to Business Processes
involving FI.
Sl. Versio
Title Author
No. n
SAP Notes & GST
1. Implementaion 1.0
Document
To-Be process
2. 1.0
document
3
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Sign Off
Project Manager
Project Manager –
XXXX
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Contents
GENRERAL EXPLANATION.....................................................................6
1. OVERVIEW........................................................................................7
3. CONFIGURATION CHANGES............................................................46
5. TAX PROCEDURE..............................................................................53
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GENRERAL EXPLANATION
Business Blue Print - This is the document where we define the business processes and
operating procedures for your company to support the GST Implementation in SAP System.
SAP Blueprint is the architectural foundation for the success of our project. This is where we
define the business requirements, set expectations from the new system and gain alignment of
the key business stakeholders with the capabilities and expected output from the new SAP
system GST Implementation.
The project documentation and the project structure that you create during the Business
Blueprint will be integral part in the configuration and test organization phases.
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1. OVERVIEW
The Government of India going to introduce the GST for Goods movement & services
provided.
To meet the legal requirement in the business process following changes need to
incorporate in SAP
This “To Be” Document is prepared based on our understanding on current Draft GST Law,
any changes to the Law shall be incorporated accordingly.
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In Invoice verification
Tax will flow
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CENVAT
CLEARING A/C -
DR
- Vendor debit
Vendor debit memo/credit memo FI
memo/Credit posting without
memo reference of Purchase
F-02 order.
Non – Inventory
Invoice - non Inventory invoice
MIGO MIRO
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SALES
Customer A/c
- DR
SLAES Basic-
CR
ED Collection
A/C - CR - Standard SAP Process of Outbound
PGI J1IIN Delivery followed with Billing Document
Domestic VAT payable - Excise Invoice generated for MFG
COGS A/C ED Paid -
Sales - CR Locations and VAT/CST also applicable.
– DR DR - Other Sales Plants Applies VAT/CST in
For MFG CST Payable Billing Document
FG A/C – ED Payable - Installation & Testing charges are
- CR
CR CR added manually in the manual
Installation Condition, service tax applicable for this
charges - CR value.
Service Tax -
CR
VF01
Customer A/c
- DR
SLAES Basic-
CR
Service Tax -
CR
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J1IIN
PGI ED Paid -
DR - Standard SAP Process of Outbound
COGS A/C -
Delivery followed with Billing Document
FOC (Free of DR ED Payable for some minimum assessable value.
Charge) - No accounting generated.
- CR
FG – CR - Excise Invoice generated for MFG
Locations.
No Tax
PGI
COGS A/C -
FOC (Free of
DR
Charge) For
Trading FG – CR
J1IIN
VF01 - Triggering the STO PO in Z Program
ED Paid -
with respect to customer SO and Based
DR on this PO STO Sales Order is Created
IPT customer
STO process
DR to receiving plant in the Supplying
Customer / PGI ED Payable Plant. Supplying Plant Transfer the
Vendor - CR material with Invoice and Excise
IPT Sales CR
Invoice to Receiving Plant.
IPT ED - Receiving Plant do the GRN, PGI, Billing
with tax & Excise Invoice to end
customer.
J1IIN
PGI VF01 ED Paid -
Inventory
DR - Triggering the supplying plant SO in Z
A/C DR IPT customer
STO -MFG program with respect to receiving plant
DR manual STO PO, Supplying Plant
PLANT to ED Payable
INVENTORY
Service Plant - CR Transfer the material with Invoice
A/C CR IPT Sales CR
(Accounting) and Excise Invoice to
Receiving Plant.
IPT ED
- Receiving Plant do the GRN.
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A/C CR
location
PGR
632 mvt
Inventory
A/C DR
Consignment - Consignment transfer to consignee with
Return PGI and raising Pro forma Invoice.
Inventory
A/C CR
VF01
CUSTOMER
PGI
In bond Sale A/C – DR
NORMAL - Sales from Bond Without Excise & tax
to end customer.
SALES BASIC
- CR
INVOICE
CUSTOMER
A/C – DR - Normal Sales SO, PGI & Billing with
BBK COGS
Buy Back Excise and CST/VAT.
- DR SALES BASIC
(SCRAP – CR - Base on that Invoice, Z program
INVENTORY
SALES) triggering the PO for Buyback Material
CR VAT/CST - from end Customer.
CR
J1IIN
PGI ED Paid -
DR - Against STO PO, Mfg. plant to Mfg.
Stock Transfer INVENTORY
plant Pro forma invoice (ZF8) with
A/C – DR PRO FARMA ED Payable Excise.
PLANT TO
- CR - Sales plant to sales plant (ZF8) and
PLANT INVENTORY
Service plant to Service plant only pro
A/C - CR
forma (ZF7), No excise invoice.
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ED Payable
INVENTORY - CR
A/C - CR
VF01
Customer A/c
- DR
SALES Basic
- CR
ED Collection
PGI A/C - CR J1IIN
SCRAP VAT payable ED Paid -
SCRAP FROM COGS A/C - CR DR - Normal Sales with ED & tax in Mfg.
FACTORY – DR Plant to customer.
CST Payable ED Payable
INVENTORY - CR CR
A/C – CR
Installation
charges - CR
Service Tax -
CR
PGI
Stock Transfer INVENTORY
WHILE RETURNING ED CAPTURED IN
A/C – DR
BRANCH TO J1IH
MFG INVENTORY
A/C - CR
CST Payable
- CR
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VF01
Customer A/c
- DR
Credit/Debit
SALES Basic - Reference to Billing doc raise the Credit
memo
- CR memo & Debit memo Request
VF01
Customer A/c
PGR
- CR J1IIN
INVENTORY
SALES Basic
– DR ED Paid - - Sale Return reference to customer
Customer - DR CR billing Doc, do the PGR with ED & Tax
returns for Mfg. plant.
COGS A/C -
ED Collection - In the Sales Plant only Tax applicable,
CR ED Payable
A/C - DR No excise invoice..
DR
VF01
Customer A/c
- DR
- Billing Document Generated from the
SALES Basic
Source of existing Billing Doc.
- CR
Octroi
- Manually entering the value in ZOCT
CST Payable
condition.
- CR
- CST captured.
PGI VF01
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DR
FG - CR
MIRO
SERVICE PO
Vendor -
will trigger
CR
Expenses a/c
TDS - DR
to SR/IR A/C Shipment Purpose with Service tax.
Shipment VI01 GTA – DR
- CR
GTA - CR
Thru
W.HOLDING
TAX
VF01
PGI Customer A/c
- DR
COGS A/C -
Export sales - Normal Export Sales with ARE1.
DR SALES Basic
FG - CR - CR
INVOICE
VAT A/C – CR
INVOICE
VF01
Customer A/c
- DR
- Normal Service sales only VAT
Rental SALES Basic applicable.
- CR
SERVICE TAX
A/C – CR
VAT A/C - CR
PCB INVOICE
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VF01
Customer A/c
- DR
Service Tax and VAT for Consumed
SALES Basic Material.
- CR
SERVICE TAX
A/C – CR
VAT A/C - CR
INVOICE
VF01
SERVICE TAX
A/C – CR
VAT A/C – CR
The implementation of GST will significantly improve the competitiveness and performance of
India's manufacturing sector. However, prior to its roll out, it will be incumbent upon the Indian
government to address certain stakeholder concerns, if it wants to foster long term growth in this
sector.
Business
GR/IR & SR EXCISE INVOICE TO BE
process
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- In to be process, we
should create
material code along
with HSN code in
foreign trade export
view and tax
indicator value in
purchasing view for
GST Standard rate
or Exempted like
that.
MIRO - In vendor master
also GST Number
VENDOR A/C- CR and partner function
needs to be
GR/IR A/C - DR maintained for
different supply
CGST A/C – DR
region vendors.
MIGO - While creating
SGST A/C – DR
Purchase Order
Domestic INVENTORY based on the
OR
Procurement A/C - DR selection plant and
IGST A/C –DR vendor, system will
GR/IR A/C- CR pick the appropriate
OR CGST,SGST or IGST
tax in the pricing
UGST A/C – DR conditions(by
comparing business
place GST of plant
and vendor partner
GST region).
- Goods receipt is
posted in MIGO
transaction with
actual received
quantity.
- In MIRO transaction
vendor invoice post
based on Business
place and HSN for
CGST & SGST
taxes.
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- In to be process, we
should create
material code along
with HSN code in
foreign trade export
view and tax
indicator value in
purchasing view for
GST Standard rate
or Exempted like
that.
MIRO - In vendor master
also GST Number
VENDOR A/C- CR and partner function
needs to be
GR/IR A/C - DR maintained for
different supply
CGST A/C – DR
region vendors.
MIGO - While creating
SGST A/C – DR
Purchase Order
Domestic INVENTORY based on the
OR
Procurement A/C - DR selection plant and
IGST A/C –DR vendor, system will
GR/IR A/C- CR pick the appropriate
OR CGST,SGST or IGST
tax in the pricing
UGST A/C – DR conditions(by
comparing business
place GST of plant
and vendor partner
GST region).
- Goods receipt is
posted in MIGO
transaction with
actual received
quantity.
- In MIRO transaction
vendor invoice post
based on Business
place and HSN for
CGST & SGST
taxes.
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based on Business
place and HSN for
CGST & SGST
taxes.
based on Business
place and HSN for
CGST & SGST
taxes.
based on Business
place and HSN for
CGST & SGST taxes
WITH REVERSE
CHARGE.
4) MIRO (Foreign
Vendor)
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STO
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- Purchase order is
created with
VENDOR A/C- CR Account Assignment
A and condition
GR/IR A/C - DR record is
maintained in FV11
MIGO CGST A/C – DR for tax.
- Once GR is posted
Asset SGST A/C –DR
INVENTORY in MIGO transaction
Procurement(For
A/C - DR - In MIRO transaction
Production Or
GR/IR vendor invoice post
purpose)
CLEARING A/C based on Business
- CR IGST A/C - DR place and HSN for
CGST & SGST
taxes.100% avail
within 1 year as per
draft suggest by
E&Y.
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VENDOR A/C- CR
100
SR/IR A/C – DR
100
CGST A/C – DR
10
- Once we trigger
SGST A/C –DR shipment cost
10 document against
delivery
Shipment MIGO Or automatically service
order will get create
WORK ORDER EXPENSES A/C IGST A/C – DR and goods receipt
PROCESS – DR will get posted.
CGST A/C – CR - Invoice post based
SR/IR A/C - CR Invoice (MIRO) post
10
based on the
HSN/SAC code and
SGST A/C –CR
business place CGST
10 & SGST trigger.
Or
IGST A/C - CR
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SFG stock - DR
Existing process will
change in Stock GR IR A/C –DR
follow
- CR Sub-contractor
With SGST FOR THE
Sub contract vendor A/C-CR
SUB CONT CHARGES
SUB Rm - DR SUB CHARGES –DR
CONTRACTING To Rm Stock SGST - DR
Sub con CGST –DR
charges – DR Or
TCS – XXXX come back
Vendor - CR IGST -DR
on to include
SFG stock - DR
Existing process will
change in Stock GR IR A/C –DR
follow
- CR Sub-contractor
With SGST FOR THE
Sub contract vendor A/C-CR
SUB CONT CHARGES
Direct Supply to Rm - DR SUB CHARGES –DR
Job Worker To Rm Stock SGST - DR
Sub con CGST –DR
charges – DR Or
TCS – XXXX come back
Vendor - CR IGST -DR
on to include
Goods movement
Inventory account
Dr (receiving plant)
Inventory account
Cr (Sending Plant)
STO customer
Dr . (Customer
Account/ receiving
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plant)
Goods movement
Inventory account
Dr (receiving plant)
Inventory account
Cr (Sending Plant)
STO customer
Dr . (Customer
Account/ receiving
plant)
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Cr.
- Currently reverse
stock is posted
through 161 & 122
movement type.
- Quality rejection
QA32 GR/IR DR material is return to
Vendor Return
Process the vendor with GST.
Quality Stock CR
rejection
SGST A/C – CR
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OR
IGST A/C – CR
- Vendor debit
memo/credit memo
FI posting without
reference of Purchase
order.
- selection of SAC/HSN
code Popup should be
check with SAP
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STO customer
Dr . (Customer
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Account/ receiving
plant)
STO customer
Dr . (Customer
Account/ receiving
plant)
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manually changed
while doing
The SO.
- OBD & Billing
document going to
create with Accounting
Document CGST &
SGST.
STO customer
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Dr . (Customer
Account/ receiving
plant)
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SALES REVENUE –
DR/CR
Reference to Billing
CGST – DR/CR raise the Credit memo
& Debit memo Request
Credit/Debit and Credit memo &
memo Debit memo with CGST
SGST – DR/CR & SGST OR IGST will
post based on
condition.
Or
IGST – DR/CR
CUSTOMER A/C – CR
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Discontinued – after
GST
Octroi / ENTRY For reversal of Octroi
TAX it will be continued as
same in existing Tax
code.
VF01
PGI
CUSTOMER A/C – DR
COGS A/C – DR
High Sea Sales SALES REVENUE –
INVENTORY -
CR CR
CUSTOMER A/C – DR
PGI
COGS A/C – DR SALES REVENUE –
Export sales INVENTORY - CR
CR
CGST A/C – CR
10
Or
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IGST A/C - CR
VF01 - System
Automatically pick
Customer A/c – DR the SGST (JOSG
Condition) & CGST
Deferral A/C - CR (JOCG Condition)
from Ship to party
Service Contract CGST – CR and Condition Record
(AMC) based on Access
SGST – CR Sequence while
doing the SO for
Or materials as well as
service SAC CODE.
IGST A/C - CR - CGST & SGST WILL
CAPTURE for
Monthly service
VF01 - System
Automatically pick
Customer A/c - DR the SGST (JOSG
Condition) & CGST
LEASE RENTAL (JOCG Condition)
Income A/C- CR from Ship to party
and Condition Record
LEASE Rental
CGST – CR based on Access
Income
Sequence while
SGST – CR doing the SO for
materials as well as
OR service SAC CODE.
- CGST & SGST WILL
IGST – CR CAPTURE for
Monthly service
CUSTOMER A/C – DR
- Normal service sales
PCB INCOME – CR
with SGAT,CGST& IGST
PCB
Consumables while
CGST –CR
doing the DEBT memo
SGST - CR
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CUSTOMER A/C – DR
SGST - CR
- Customer debit
memo/credit memo
FI posting without
REVENUE A/C – reference of sale
DR/CR order.
Expected Accounting
entries
Vendor A/c - DR
ADVANCE PAID
waiting for SAP Patches
TO THE VENDOR SGST A/C - CR
CGST AC- CR
BANK A/C - CR
Expected Accounting
entries
BANK A/C - DR
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Suggested Document
Splitting activation for
this Business Area
Business Area
Clearing line item
Clearing/
wise. (To evaluate
Document
Document Splitting
Splitting
for Business Area)
Have to take a call.
Raised to SAP.
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3. CONFIGURATION CHANGES
Here we have defined 25 Business Place with GSTN for 78 plants which are located in
different states.
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AS IS
Currently Business place is not used for any other purpose.
TO BE
For region wise GST calculation, we need to assign the plants to respective Business Place.
COMPANY BP
CODE STATE CODE PLANTS
(N002) 1006,1007,1012,1014,5001,9999,5003,2037,2006,2007,300
TN TN33 2,3006,3007
PY PY34 1002,1004,2001,3001
MH MH27 1005,2016,2019,2020,3016,3019,3020
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GJ GJ24 2003,3003
KA KA29 2004,3004
OR OR21 2005,3005
KL KL32 2008,3008
WB WB19 2009,3009
UK UK05 2010,3010
AS AS18 2011,3011
GA GA30 2012,3012
TS TS36 2013,3013
RJ RJ08 2014,3014
UP UP09 2015,2024,3015,3024
DL DL07 2017,3017
BH BH10 2018,3018
HR HR06 2021,3021
CH CH22 2022,3022
PB PB03 2023,3023
JH JH20 2025,3025
MP MP23 2026,3026
CG CG04 2027,3027
HP HP02 2029,3029
AP AP37 2030,2032,2033,2034,2035,3030,3032,3033,3034,3035
TR TR16 2036,3036
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AS IS
In Vendor Master Existing there is option for TAX Number 3 field but we are not using for any purpose.
TO BE
In Vendor Master Existing there is option for TAX Number 3 we going to update GST Number.
. Based on this we can update in GST (CHST, SGST and IGST) Government Portal.
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CUSTOMER MASTER
AS IS
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TO BE Process
In Customer Master TAX Number 3 field we going to update GST number. Based on this we can
update in GST (CGST, SGST and IGST) Government Portal.
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5. TAX PROCEDURE
Tax Procedure AS IS
ZTAXIN is condition based here the rates of taxes are maintained in condition records for
different Access Sequence combinations.
Tax rates will be maintained in ZTAXIN condition record with the Respective Key
Combination Condition type:
ZTAXIN
Condition Type Description
JMO1 IN: A/P BED deductible
JAO1 IN: A/P AED deductible
JSO1 IN: A/P SED deductible
JEC1 IN: A/P E Cess Setoff
JA1S A/P SE Cess for Setoff
JMO2 IN: A/P BED non deduct
JAO2 IN:A/P AED nondeductible
JSO2 IN:A/P SED non deduct
JEC2 IN: A/P E Cess Invent
JA1I A/P S ECess for Invent
JIP1 IN:A/P CST
JIP2 IN:A/P LST
ZSC1 IN: AP LST Surcharge
JIP5 IN:A/P VAT RM DEDUCT
JIP6 IN: A/P VAT RM NON-D
JIP7 IN:A/P VAT CG Deduct
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TO BE Process
TAXINN is condition based here the rates of taxes are maintained in condition records for
different GST Access sequence.
Tax rates will be maintained in condition record with the Respective Key Combination
These New Tax codes will be updated all Existing Info Records and in Open and PO which are
done with Partial GRN.
New Tax Code should create in Existing ZTAXIN Procedure. Based on Business place and we need to assign GL
for Tax Condition type with account key combination.
GL
Business place Condition Type Description Account Key Account
INPUT TAX -
TN33 JICG CGST JIC XXXXX
INPUT TAX -
TN33 JISG IGST JIS XXXXX
INPUT TAX -
TN33 JIIG IGST JII XXXXX
TN33 JISN INVENTORISED NVV XXXXX
TN33 JICN INVENTORISED NVV XXXXX
TN33 JIIN INVENTORISED NVV XXXXX
REVERSE
TN33 JISR CHARGE JSR XXXXX
REVERSE
TN33 JICR CHARGE JCR XXXXX
REVERSE XXXXX
TN33 JIIR CHARGE JIR
OUTPUT TAX -
TN33 JOCG CGST JOC XXXXX
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Tax code
In AS IS
There is no Separate Tax Code for Excise Duty Since they are using the Same Tax code which was
created for 0 VAT and 0 CST.
For VAT, Climbable Tax Rates will be maintained State/Region wise with separate GL Account as
ZTAXIN procedure and Total 26 New Tax Codes Assigned to 26 GL Accounts.
For VAT, Non-Claimable One Tax Code (Z0) One GL Account which will be used throughout the
Country (INDIA).
For CST with Multiple Tax codes (14 Tax Codes) as exists in the Present Procedure based on Rate
and the Value is getting posted to Material Expense Account as confirmed by the Business.
As Business have Some Tax Codes with Process wise like ED+VAT, ED Inclusive VAT, ED+CST, ED
Inclusive + CST, ED alone, VAT and CST for both Manufacturing and Trading Plants, For Each Process
there will be a Separate Tax code and assigned to the Respective GL Account.
TO BE
We are creating New Tax code based on Business place & 'CGST',' SGST', 'IGST' condition type
combination.
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The Existing VAT, CST, GTA, EXCISE Will be use further 6 months any reversal Inventory & service
and it will deactivate on date specific. We will follow as per GST with NEW TAX code.
Existing GTA configured in withholding tax and assigned in Vendor master. At the time of cutover
activity, we will removing from Vendor master wise.
Note: We will create tax codes for Input and Output, after the confirmation. (Mentioned in MM BBP and
SD BBP)
Taxation Structure
AS IS
In Existing Tax Structure Excise Rates were maintained through FV11 & FTXP
In Existing Tax Structure Tax Codes were created based on Product and Region wise.
In existing structure, there are 152 tax codes which are in active state (82- Input and 70- Output)
Containing total number of active tax codes (i.e. Input and Output) in the system with the combination
of:
o Tax Code
o Condition Type
o Account Key
o GL Account
o Tax Rate
ASIS tax
structure.xlsx
TO BE
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The Existing VAT, CST, EXCISE won’t be use further. Will follow as per GST with NEW TAX code.
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Accounting Key
There are 34 account keys which have been used in the ZTAXIN Procedure. We not use the same
account keys, we need to create NEW account key as per new scenario.
There are multiple tax codes in same account keys and their respective GL determination.
For the GST the number of tax codes will be reduced. Thus, the number of tax codes maintained
against each account key will be reduced.
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Note:
We will create Twelve GL for one business place. Input GST, Input reverse charge GST and Output GST
TAX, after the confirmation from respective FI Core team.
Existing Z Program in FI
ZFR0005 Billing PR00,ZINC,ZHD0,JEX2,JMOD,JIN1,JIN6,JIN7,ZAVT,Z
ZFRBILL_N3 Details VAT
ZFR0010 New
STO
Process
ZVREXI_NST Excise
OR Duty JIN1,JIN2,JIN6,ZINC,ZCSV,JSE4,JES4
Sales
ZFRSALES_N Analysis ZEXB,ZEFR,ZEIN,ZEPB,PR00,JIN1,JIN7,ZINC,JIN6,Z
ZFR0011 2 Report VAT,JSE4,JES4,
FI Billing
Details
ZFBILL_E1 ZFRBILL (Ext.) JIN1,JIN6,JIN7,ZINC,ZHD0,ZEXB
billing
details
ZFBILL_E2 ZFRBILL_N report ZEXB,JIN1,JMOD,JIN7,ZVAT,ZAVT,JSE4
ZFISALES_ Sales
N1 ZFRSALES_N Report JIN1,JIN6,JIN7,JSE4,JES4
Sales
ZMRSALABS Abstract
ZTAX_N T_N Report JIN1,JIN4,JIN6,JIN7
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