BY,

PUSHPA K

SAP FICO
HENRY HARVIN
INTERNSHIP

TOPIC NO. 4
“GST CONFUGURATION”
 INDEX
SL PAGE
CONTENTS
NO NO

1 Introduction to GST 1

2 GST Calculation Procedure 2

3 Assign Country to GST Tax Calculation Procedure 5

4 Define Access Sequence 6

5 Define Condition Type for GST 9

6 Define Account Keys in SAP for GST 11

7 Summary Table of GST Configuration 12

 GOODS AND SERVICE
TAX
INTRODUCTION
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many
indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax
Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words, Goods and Service Tax (GST) is levied on the supply of goods and services.
Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that
is levied on every value addition. GST is a single domestic indirect tax law for the entire country.
Generally, taxes are divided into two types, i.e.
1. Direct Taxes – Direct taxes are imposed on individual persons and paid directly to the
government (e.g., Income Tax as it is collected directly from a person based on the income,
he/she earns)
2. Indirect Taxes – Indirect taxes are imposed on goods & services and paid to the
government via the third person (e.g., Service Tax)
GST Structure GST can be divided into three types, i.e.
 CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
 SGST: It is the tax collected by the state government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
 IGST: It is a tax collected by the Central Government for an inter-state sale (e.g.,
Maharashtra to Tamil Nadu)

GST CONFIGURATIONS
o GST Calculation Procedure
o Assign Country to GST tax Calculation Procedure
o Define Access Sequence
o Define Condition Type for GST
o Define Account Keys in SAP for GST
 GST CALCULATION PROCEDURE
MEANING OF GST CALCULATION PROCEDURE
The standard tax configuration settings for sales and purchases are done at the country
level in SAP system. The SAP system provides the standard calculation procedure for all
countries. However we can define new tax calculation procedure or modify the existing
procedure based on the requirements.

STEPS TO DEFINE GST CALCULATION PROCEDURE

We can define a GST Calculation Procedure in SAP FICO by using:
 Navigation Path: SPRO – SAP Reference IMG – Financial Accounting – Financial
Accounting Global Setting – Tax on Sales/ Purchases – Basic Settings – Check Calculation
Procedure
 Transaction Code: OBYZ or OBQ3

Step 1) Enter transaction code “OBYZ” in the SAP command field and enter.

Step 2) A pop up window condition element screen displays with options, you need to choose
procedures so double click on it.

Step 3) On change view procedure screen, click on new entries button for definition of new tax
procedure in SAP.
Step 4) On new entries calculation procedures screen, update the following details.

 Procedures: – Enter the four digits key that identifies the tax procedure in SAP.
 Description: – Update the descriptive text of tax calculation procedure – Sales tax India.

After maintaining the details, click on save button and save in your request number.

Step 5) Now select TKCP procedures row and double click on control data folder.

Step 6) Select new entries button.

Step 7) On new entries screen, update the following details.

 Step: – Enter the number (10, 20, 30…) which specifies the sequence of the conditions
within a procedure
 Condition type: – Update the condition type key that indicates the each activity or tax.
 Description: – Description text will be automatically updated based on condition type
text.
 From, To: – This indicate which tax should be calculated on which base amount.
 Account key: – Assign the account that respective to condition types.
After maintaining all the required details, click on save button and save the configured details.
 ASSIGN COUNTRY TO GST TAX CALCULATION
PROCEDURE
After defining Calculation Procedure, the next step assigning the country to the
calculation procedure. The link between country and calculation procedure is established
thorough the assignment of country and tax calculation procedure.

STEPS TO ASSIGN COUNTRY TO GST TAX CALCULATION

PROCEDURE
We can Assign Country to GST Tax Calculation Procedure in SAP FICO by using:
 Navigation Path: SPRO - IMG - Financial Accounting (New) - Financial Accounting Global
Settings (New) - Tax on Sales/Purchases - Basic settings - Assign Country to Calculation
Procedure.
 Transaction Code: OBBG

Step 1) Enter T-code “OBBG” in the SAP command filed and enter.

Step 2) On change view “Assign country –> calculation procedure”: overview screen, click on
position button and enter the country key “IN” in the given field and press enter.

Step 3) Now country IN displays on top of the screen. Now assign your calculation procedure to
IN.

Step 4) After assignment, click on save button and save in your request.
 DEFINE ACCESS SEQUENCE
MEANING OF ACCESS SEQUENCE

An access sequence is a search algorithm that is used by the system to find valid data for a
particular condition type. It fids out the sequence in which the system searches for data. The
access sequence contains multiple accesses. This sequence of the accesses establishes which
condition records have priority over others. The accesses tell the system where to look first,
second, and so on, until it finds a valid condition record. You specify an access sequence for
each condition type for which you create condition records.

This is the search strategy, which is used by the system to find valid data for a particular
condition type. It tells about the order in which a system searches for the data. An access
sequence consists of one or more access sequences. It helps the system to search first, second
and so on until it finds a valid record. An access sequence is defined for each condition type
where a condition record is created.

STEPS TO DEFINE ACCESS SEQUENCE

We can define a Access Sequence in SAP by using:
 Navigation Path: SPRO - IMG - Sales and Distribution (SD) - Basic functions - Pricing -
Pricing control - Set access sequences.
 Transaction Code: V/07

Step 1) Enter T code “V/07” in the command field and click on execute option.

An information – caution: the is cross -client displays on the screen, press enter to continue.

Step 2) On change view access sequences overview screen, click on new entries button to create
a new access sequence in SAP as per requirements of project.
Step 3) On new entries access sequence screen, update the following details.

 AS : – Enter the key that identify as the access sequence in SAP

 Description : – Update the descriptive text of access sequence.
 Ty. : – Choose access category if required.

Click on save button and save the configured access sequences details in SAP .

Step 4) Choose newly defined access sequence key and double click on Accesses.

Step 5) On change view accesses overview screen, click on new entries button and place the
condition table from most specific to most general.

Step 6) On new entries accesses screen, update the required condition tables in the required
order from most specific to most general.
  No : – It specifies the sequential number condition table.
 Table :- In this field, you need to specify the condition table number.
 Exclusive : –By choosing exclusive check box, the system finds the valid condition record
and system will come out with search strategy and determine the price into sales
document.

Select the condition table entered in access sequences and click on fields. The system gives the
warning messages as “The field assignment has not yet been made”, press enter till you get the
fields. Repeat the same procedure for all the condition tables in access sequences. Choose the
save button and save the details.
 DEFINE CONDITION TYPE FOR GST
MEANING OF CONDITION TYPE
Condition type is a technique that controls the price components or price elements in SAP.
In a real time business scenario, the entire pricing can be divided into four elements i.e

 Basic Price
 Discount/Surcharge
 Tax
 Freight

There can be different types condition types for each type of price element. each pricing
element has its own functionalities and usage in the SAP system, and we need to define
corresponding condition types with the respective functionalities.

STEPS TO DEFINE CONDITION TYPE

We can define a Condition Type in SAP by using:
 Navigation Path: SPRO - IMG - Sales and Distribution (SD) - Basic functions - Pricing -
Pricing control – Define Condition Type - Set Condition Type for Pricing.
 Transaction Code: V/06

Note : – SAP system delivers various predefined condition types and you use this types as per
your requirements. However you can define new condition type in SAP as per requirements of
client using option new entries or copy as option.

Step 1) Enter T code “V/06” and enter.

Step 2) On change view conditions: condition types overview screen, choose new entries button
and update the following details.
 Condition type : – Update the key that identifies as condition type in SAP and update the
descriptive text of condition type.
 Access Sequence : – Update the corresponding access sequence key of the condition type.
 Condition class : – It determines the structure of condition type and allows to control each
condition type as per its functionalities.
 Plus/minus : – This filed for discounts and surcharges, if you enter negative (X), then it
becomes discount. If you choose the value as positive (A), it becomes surcharge.
 Calculation type : – It determines how the condition amount of condition type is to be
calculated.
 Condition category : – It specifies the classification of different condition types.
 Scale basis : – It specifies how the scale amount of condition type is calculated.
 Check value : – Specifies the scale rates to be entered as per ascending order or
descending order.
Step 3) Click on save button and save the configured condition type details in SAP.

 DEFINE ACCOUNT KEYS IN SAP FOR GST

MEANING OF ACCOUNT KEYS
 The Accounting key enables the system to post amounts to certain types of revenue
account. For example, the system can post freight charges (generated by the freight pricing
condition) to the relevant freight revenue account.
A condition type writes its value to a key established in the configuration outside the
pricing procedure. That key is called the Account Key in SAP MM, which is a table entry that tells
the pricing procedure where to copy calculated condition values for revenue account
determination in SAP.

STEPS TO DEFINE ACCOUNT KEYS

We can define a Account Keys in SAP by using:
 Navigation Path: SPRO – SAP Reference IMG – Sales and Distribution (SD) – Basic
Functions – Account Assignment/Costing – Revenue Account Determination – Define and
Assign Account Keys – Define Account Keys
 Transaction Code: OV34

Step 1) Enter Transaction code “OV34” in the command field and enter to continue.

Step 2) On the change View “Account Key”: Overview screen, click on “New Entries”.

Step 3) Enter the below details and click on Enter.

 ActKy – Enter 3-digit alphanumeric account key.
 Name – Enter the account descry

Step 4) Once all the details entered, click on the Save button to save the changes.

SUMMARY TABLE OF GST CONFIGURATION

 GST CONFIGURATION IN SAP FICO S/4 HANA
TRANSACTION
STEPS CONFIGURATIONS PATH
CODE
SPRO – SAP Reference IMG –
Financial Accounting – Financial
GST Calculation Accounting Global Setting – Tax
Step 1 OBYZ or OBQ3
Procedure on Sales/Purchase – Basic
Settings – Check Calculation
Procedure

SPRO – SAP Reference IMG –

Financial Accounting (New) –
Assign Country to GST Financial Accounting Global
Step 2 Tax Calculation Setting (New) – Tax on OBBG
Procedure Sales/Purchase – Basic Settings
– Assign Country to Calculation
Procedure
SPRO – SAP Reference IMG –
Sales and Distribution (SD) –
Step 3 Define Access Sequence Basic Functions – Pricing– V/07
Pricing Control – Set Access
Sequence
SPRO – SAP Reference IMG –
Sales and Distribution (SD) –
Define Condition Types Basic Functions – Pricing–
Step 4 V/06
for GST Pricing Control – Define
Condition Types – Maintain
Condition Types
SPRO – SAP Reference IMG –
Sales and Distribution (SD) –
Define Account Keys in Basic Functions – Account
Step 5 OV34
SAP for GST Assignment/Costing – Revenue
Account Determination– Define
and Assign Account Keys