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WINLEN 4-1 SAP AG
SAP AG 2002
Sales with VAT
Contents:
VAT Implication on Sales Process Business Place SD ConfigurationMaster DataSales Scenarios
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WINLEN 4-2 SAP AG
SAP AG 2002
VAT Implication in Sales Processes
SAP R/3
Purchasing
Invoice Verification
Inventory Valuation
Delivery
VAT Accounting
Sales Order Billing
Utilization & Tax Payment
VAT impact
The areas getting affected by VAT are the sales order in which the VAT taxes appear and the billing document where the accounts get posted. We are not covering the VAT utilisation.
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WINLEN 4-3 SAP AG
SAP AG 2002
Business Place in R/3
BUSINESS PLACE A New
Organizational Unit in Logistics
Tax Reporting entity
Defined at Company Code
Level
A new Organizational entity - Business Place (BUPLA) has been brought in use in Logistics.
Business Place represents a Tax Reporting entity for an Organization in a state or Region.
Business Place in R/3 will be defined at the Company Code level and will be assigned to Plant(s).
One Business Place can be assigned to more than one Plant in a Region, but one Plant cannot be assigned to more than one Business Place.
Business Place is currently used by SAP customers in many countries for VAT related Tax Reporting.
Note: In India Business Place field was in use in Finance for EWT before 1st April 2003, however, 1st April 2003 onwards this field was replaced with Section Code for EWT. Now this field is in use for Logistics.
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WINLEN 4-4 SAP AG
SAP AG 2002
Business Place Assignment
Business Place is assigned to Plants
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WINLEN 4-5 SAP AG
SAP AG 2002
Business Place Applicability
Business Place used for VAT related Tax reporting in Sales and DistributionMaterials Management
Before using in Logistics, Business Place was used in Finance till 1st April 2003.
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WINLEN 4-6 SAP AG
SAP AG 2002
Business Place
Entity Business Place will primarily be used for -Defining Vat Registration Number Determining Official Number Range for :
All Billing Transactions in SDAll Credit Memo Transactions in MM
Consolidating data for Period End Processing requirements Determining "Alternate G/L Accounts" for Taxes
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WINLEN 4-7 SAP AG
SAP AG 2002
Business Place Scenario 1
Define Single Business Place for all the Plants in a state.Define Single Business Place for all the Plants in a state.
PLANT 1PLANT 2
PLANT 3
# Single VAT Registration
# Consolidation for all Plants
before utilization
# Single period end process
reports for all plants
COMPANY ABC
STATE : KARNATAKA
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WINLEN 4-8 SAP AG
SAP AG 2002
Business Place Scenario 2
Define Separate Business Place for both Plants in the state.Define Separate Business Place for both Plants in the state.
PLANT 1PLANT 2
VAT Registration : XXX
COMPANY ABC
STATE : KARNATAKA
VAT Registration : YYY
Output is under deferral/ exemption scheme
An Organization has two plants in one state
Output of one plant is under deferral/ exemption scheme
State Law may require separate registration number for both the plants
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WINLEN 4-9 SAP AG
SAP AG 2002
Business Place Scenario 3
State specific number range requirements may be specified
Solution: Business Place is used to determine number range objects.
Solution: Business Place is used to determine number range objects.
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WINLEN 4-10 SAP AG
SAP AG 2002
Business Place Scenario 4
Need for maintaining separate VAT Credit and Debit accounts for different states
Solution: Separate G/L Accounts are maintained at state level. Business Place is used to determine correct G/L account at the time of posting.
Solution: Separate G/L Accounts are maintained at state level. Business Place is used to determine correct G/L account at the time of posting.
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WINLEN 4-11 SAP AG
SAP AG 2002
Intra State Finished goods VAT applicable Sales pricing and Tax procedure
Sales Order Pricing
Basic Rate Rs85X 10 pcs= Rs 850
Excise Duty @20 = Rs 170
Tax Base Amount Rs 1020
VAT Rs. 102
Total Rs.1122
Pricing procedure JFACT
Condition type UTXJ
Access sequence JIND
Access Country/ Plant Region / Region/ TaxCl1Cust/ Tax Cl.Mat
Tax Code S1
Plant detailsCustomer masterMaterial master
Tax procedure TAXINJ JIN 6
10% VAT
10% VAT rate used for ease of representation. Actual VAT rates as per law.
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WINLEN 4-12 SAP AG
SAP AG 2002
SD Configuration
Define Condition Types
IMG PathSales and Distribution Basic Functions Pricing Pricing Control Maintain Condition Types (Transaction V/06)
New SD tax conditions are introduced for the VAT:JIN6: A/R VAT PayableJIN7: A/R CST Payable under VATJIN8: A/R CST Surcharge Payable under VAT
The condition category of these and the existing condition types should be changed to D
These new tax conditions would need to be added to the relevant pricing procedure and the tax procedure
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WINLEN 4-13 SAP AG
SAP AG 2002
SD Configuration
Change SD Pricing Procedure
IMG PathSales and Distribution Basic Functions Pricing Pricing Control Define and Assign Pricing Procedure (Transaction V/08)
The control parameters for JIN6, JIN7 and JIN8 would remain same as JIN2, JIN4 and JIN5 respectively
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WINLEN 4-14 SAP AG
SAP AG 2002
SD Configuration
Create New Condition Table
IMG PathSales and Distribution Basic Functions Pricing Pricing Control Define Condition Tables (Transaction V/04)
2 condition tables are required to determine UTXJ in domestic and export sales document: Table 368 and Table 11
Table 368 (condition table for domestic pricing) to have following fields:ALAND: CountryWKREG: Region of delivering plantREGIO: Region of ship-to-partyTAXK1: Customer tax classification 1TAXM1: Material tax classification 1
Table 11 (condition table for export pricing) to have the following fields:
ALAND: CountryLAND1: Destination countryTAXK1: Customer tax classification 1TAXM1: Material tax classification 1
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WINLEN 4-15 SAP AG
SAP AG 2002
SD Configuration
Change in Access Sequence
IMG PathSales and Distribution Basic Functions Pricing Pricing Control Define Access Sequence (Transaction V/07)
Add the condition tables 11 and 368 in the access sequence JIND Put condition table 11 before 368, so that the system checks first if the sale is an
export or domestic
The additional accesses are used in UTXJ to determine the Output Tax Code in SD Documents
These accesses do not use jurisdiction code and would help users to determine the tax code when Tax Jurisdiction code is switched off
In Export Pricing Procedure also UTXJ would determine the Output Tax Code maintained for Export
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WINLEN 4-16 SAP AG
SAP AG 2002
SD Configuration
Define Condition Types (TAXINN)
IMG PathSales and Distribution Basic Functions Pricing Pricing Control Maintain Condition Types (Transaction V/06)
New SD tax conditions are introduced for the VAT:JVAT: A/R VAT PayableThe condition category of these and the existing condition types should be changed to D
These new tax conditions would need to be added to the relevant pricing procedure and the tax procedure
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WINLEN 4-17 SAP AG
SAP AG 2002
SD Configuration
Settings for Tax Processing (TAXINN)
IMG Path Financial Accounting Tax on Sales and Purchases Basic Setting Check and Change setting for tax processing (Transaction OBCN)
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WINLEN 4-18 SAP AG
SAP AG 2002
SD Configuration
Define Account Keys (TAXINN)
IMG Path Sales and Distribution Basic Function Account Assignment/Costing Revenue Account Determination Define and Assign Account Keys Define Account Keys
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WINLEN 4-19 SAP AG
SAP AG 2002
SD Configuration
Change SD Pricing Procedure (TAXINN)
IMG PathSales and Distribution Basic Functions Pricing Pricing Control Define and Assign Pricing Procedure (Transaction V/08)
Condition type JVAT added
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WINLEN 4-20 SAP AG
SAP AG 2002
SD Configuration
Define Business PlaceSM31 Table name: J_1BBRANCV
Define a new business place Create business place for different controlling areas Enter the country and region for which Business Place is created
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WINLEN 4-21 SAP AG
SAP AG 2002
SD Configuration
Assign Business Place to PlantSM31 Table name: J_1BT001WV
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WINLEN 4-22 SAP AG
SAP AG 2002
Alternate G/L Accounts: Introduction
To determine alternate G/L accounts for Taxes
It is used for Sales Taxes and not meant for excise posting
Helpful in reporting
Useful in maintenance of Tax Codes (input & output)
The concept of alternate G/L Account is used for LST, CST etc and not applicable to excise related duty
This feature will help to determine alternate G/L accounts for Taxes, which will in turn help user for reporting and maintenance of Tax Code
This functionality is available for both types of taxes (Input and Output)
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WINLEN 4-23 SAP AG
SAP AG 2002
Alternate G/L Accounts: Usage
Alternate G/L account can be used in the following business processes
Determination of Separate G/L Account for VAT and Non VAT StatesDetermination of Separate G/L Account for Deferral & Non-Deferral Plants by using Business PlaceDetermination of Separate G/L Account for Standard and Sub-contracting Purchases Any other Business requirements
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WINLEN 4-24 SAP AG
SAP AG 2002
Alternate G/L Accounts: Maintenance
Alternate G/L account can be maintained based on:
Chart of accounts
Business Place
Transaction Key
Tax Code
It may be created for Alternate Debit as well as credit account.
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WINLEN 4-25 SAP AG
SAP AG 2002
Alternate G/L Accounts: Configuration
Note 607907 to be applied
Transaction: SM30
Table name: J_1IT030K_V
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WINLEN 4-26 SAP AG
SAP AG 2002
Master Data
Plant Region
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WINLEN 4-27 SAP AG
SAP AG 2002
Master Data
Tax classification Customer
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WINLEN 4-28 SAP AG
SAP AG 2002
Master Data
Tax classification Material
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WINLEN 4-29 SAP AG
SAP AG 2002
Master Data
Tax code determination
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WINLEN 4-30 SAP AG
SAP AG 2002
Master Data
VAT rate 12.5%
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WINLEN 4-31 SAP AG
SAP AG 2002
Official Document number Configuration
Define document ClassAssign the Document class to the Sales Area and RegionDefine Document NumberingAssign the Document numbering for the Business Place
Define the Document class through SM30 in view the V_DOCCLS. For example V for VAT and B for BOS.
Assign the VAT/BOS document class for the Plant Region and Sales Area / Document type in the view J_1IDCLSDET.
Create the Number group in the view V_1ANUMGR1. Create the number range through the transaction J1AB. Assign the Document Class / Number Group / number range for the company code and
Business place in the view V_OFNUM_TW_2. Assign the accounting document type for the Billing type in transaction VOFA. Assign the Routine 350 at the item level of the Copying control. The transaction code is
VTFL for Delivery related and VTFA for the Order related billing. Assign any one of the document class for Example either V VAT or B- Bill of Sales for
the country IN in the view V_T003_B_I. You may refer the OSS note 831870 for other information.
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WINLEN 4-32 SAP AG
SAP AG 2002
Official document Number Process flow
Identify the country of the customer. IN Export -BOS
No
Check the Tax code in table J_1iexcdef
Yes
Deemed Export - BOS
Same Tax Code
Check the Tax code in table J_1iexmptcode
Exempted Sales - BOS
Exempted Tax Code
Different Tax Code
Check the VAT Registration No in the Customer Master Tax code Field
Normal Tax Code
Un Registered customers Sales - BOS
Unregistered CustomerRegistered
customers Sales - VAT
Yes
All the Logic for Determining the VAT or BOS has been written in the Data transfer routine 350 assigned to the item category.
The Tax code will be determined in UTXJ condition type. The Deemed Export tax code should be maintained in the Excise default table J_1iexcdef table. If the
determined tax code is similar in the default table then it is a Deemed export sales and the Bill of Sales document class will be used.
The Exempted tax code can be maintained in the view J_1iexmptcode. When the system find the determined tax code in this table then this sales will be treated as Exempted sales and Bill Of Sales Document class will be determined.
The VAT Registration number should be maintained in the Tax code 2 field of the customer master. Please note that the VAT Registration number provided in the standard can not be used for CIN.
For some of the state for the Unregistered Customer also the VAT Invoice should be issued. To handled this the User exit J_1I7_CHECK_CUSTOMER_VAT can be used to change the document class as VAT.
When the Customer country is in India and the tax code determined is not Deemed export Tax code and the tax code is not Exempted sales and the customer is Registered then VAT Document class will be determined.
All the VAT / BOS document class for the Plant Region and Document type of the Billing and Sales area will be maintained in the view J_1IDCLSDET.
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WINLEN 4-33 SAP AG
SAP AG 2002
Organization Structure
Chart of A/c INT
Plant 1 Mumbai IN10 Maharashtra
Plant 3 Chennai IN20
Sales Area (0001/ 01/ 01)
Company Code (EWT)
VAT Reg ID 1 VAT Reg ID 2
Shipping point 0001
Shipping point 0002
Ex gp E1, Series gp S1 Domestic, S2 Exports Ex gp E2, Series gp S3
We are doing sales from Plant IN10 only which is at Mumbai state Maharashtra
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WINLEN 4-34 SAP AG
SAP AG 2002
Master Data
Material Master MBG01 - Professional Mountain Bike with GearsMB01 - Professional Mountain Bike without Gears
Customer Master INC01 Mumbai DealerINC02 Chennai DealerINC08 Depot Customer for VATINC09 - Depot Customer for CST
G/L Accounts
VAT Payable A/c - Used for paying VAT on all sales
VAT Alternate GL A/c - Used for paying VAT on all sales
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WINLEN 4-35 SAP AG
SAP AG 2002
Sales Scenarios with VAT
Followings are the scenarios with VAT
Intra State Finished goods (VAT applicable- general VAT rates)
Finished goods (VAT exempt)
Depot sales (VAT applicable)
Inter State Finished goods
Exports Finished goods
Deemed Exports Finished Goods
Stock Transfer Inter State
Intra State
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WINLEN 4-36 SAP AG
SAP AG 2002
Intra State Finished goods (VAT applicable general VAT rates)
Sales Order Pricing
Basic Rate Rs85X 10 pcs= Rs 850
Excise Duty @20 = Rs 170
Tax Base Amount Rs 1020
VAT Rs. 102
Total Rs.1122
Pricing procedure JFACT
Condition type UTXJ
Access sequence JIND
Access Country/ Plant Region / Region/ TaxCl1Cust/ Tax Cl.Mat
Tax Code S1
Plant detailsCustomer masterMaterial master
Tax procedure TAXINJ JIN 6
12.5% VAT
Participants can try out Finished Goods (VAT applicable with alternate G/L Accounts)
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WINLEN 4-37 SAP AG
SAP AG 2002
Intra State Finished goods (VAT exempt )
Accounting documents
Accounting documents
CENVAT suspense ED payable
Sales revenue accountCustomer accountCENVAT suspense
3
Bill of Sale
4
Excise invoice
Billing
2
ShippingShipping
Sales Order
1
5
Period end processing
NVAT-MAT1 VAT 0%
Intra-State Customer Cus_intra1
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WINLEN 4-38 SAP AG
SAP AG 2002
Intra State - Depot Sales (VAT applicable)
Mumbai Plant IN10 (Factory)
Delivery
Excise Invoice
Mumbai Plant IN 30
(Depot)
Goods Receipt
Stock in Transit
Sales Order
Goods Issue
Billing
Purchase Order
VAT Register Updation
VAT Register Updation
Mumbai Plant IN 30
(Depot)
VAT Register Updation
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WINLEN 4-39 SAP AG
SAP AG 2002
Inter State -Finished goods 2
ShippingShippingSales Order
1
4
Excise invoice
3
Bill of Sale
Billing 5
Period end processing
Accounting documents
Dr.Customer a/cCr.Sales revenue a/c Cr.CST payableCr. Cenvat Suspense
Dr.CENVAT suspenseCr. ED payable
Inter State Customer (KAR) Cus_inter1
VAT- MAT1 (VAT rate 10%)
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WINLEN 4-40 SAP AG
SAP AG 2002
Exports -Finished goods
2
ShippingShippingSales Order
1
4
Excise invoice
3
Bill of Sale
Billing
5
Period end processing
Foreign Customer (UK) Cust_exp1 MAT-EXP
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WINLEN 4-41 SAP AG
SAP AG 2002
Deemed Exports -Finished goods
2
ShippingShippingSales Order
1
4
Excise invoice
3
Bill of Sale
Billing
5
Period end processing
Deemed Export Customer CUST_DEXP1VAT- MAT1 (VAT rate 10%)
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WINLEN 4-42 SAP AG
SAP AG 2002
Intra State Finished goods (VAT exempt) Sales pricing and Tax procedure
Sales Order Pricing
Basic Rate Rs83X 10 pcs= Rs 830
Excise Duty @20 = Rs 166
Tax Base Amount Rs 996
VAT Rs. 0
Total Rs.996
Pricing procedure JFACT
Condition type UTXJ
Access sequence JIND
Access Country/ Plant Region / Region/ TaxCl1Cust/ Tax Cl.Mat
Tax Code S2
Tax procedure ZEXVAT ZIN 1
0% VAT
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WINLEN 4-43 SAP AG
SAP AG 2002
I N 1 0 M u m b a i
E x c i s e I n v o i c e
S t o c k i n T r a n s i t
C r I n v e n t o r y A / c P l a n t 1 = R s 1 0 0 D r I n v e n t o r y A / c P l a n t 2 = R s 1 0 0
N o A c c o u n t i n g E n t r i e s a n d N o I n v o i c e v e r i f i c a t i o n N o V A T c r e d i t s
S T O f r o m P l a n t 2 Q t y 1 E AR a t e 1 0 0
G o o d s I s s u e M v t 6 4 1
C r E D P a y a b l e A / c = R s 1 6 D r E D C l e a r i n g A / c = R s 1 6
I N 2 0 C h e n n a i
C a p t u r e & P o s t E x c i s e I n v o i c e
G o o d s R e c e i p t M v t 1 0 1
D r R G 2 3 A / C A / c = R s 1 6 C r E D C l e a r i n g A / c = R s 1 6
M A H A R A S H T R AV A T R e g I D 1
T A M I L N A D U V A T R e g I D 2
P e r i o d E n d P r o c e s s i n g
P e r i o d E n d P r o c e s s i n g
Inter-State Stock Transfer via SD
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WINLEN 4-44 SAP AG
SAP AG 2002
Intra-State Stock Transfer
M u m b a i P l a n t 1
E x c i s e I n v o i c e
S t o c k i n T r a n s i t
C r I n v e n t o r y A / c P l a n t 1 = R s 1 0 0 D r I n v e n t o r y A / c P l a n t 2 = R s 1 0 0
N o A c c o u n t i n g E n t r i e s a n d N o I n v o i c e v e r i f i c a t i o n N o V A T c r e d i t s
V A T R e g i s t e r U p d a t i o n
( Q t y & V a l u e )
S T O f r o m P l a n t 2 Q t y 1 E AR a t e 1 0 0
V A T R e g i s t e r U p d a t i o n
( Q t y & V a l u e )
G o o d s I s s u e
C r E D P a y a b l e A / c = R s 1 6 D r E D C l e a r i n g A / c = R s 1 6
M u m b a i P l a n t 2
C a p t u r e & P o s t E x c i s e I n v o i c e
G o o d s R e c e i p t
D r R G 2 3 A / C A / c = R s 1 6 C r E D C l e a r i n g A / c = R s 1 6 M A H A R A S H T R A
V A T R e g I D 1
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WINLEN 4-45 SAP AG
SAP AG 2002
VAT ListingReport RFUMSV00