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This Blog aims to Highlight The Process of Import Material Procurement in SAP S4HANA Cloud as part of Indian Localization


Target Audience


Business Users, Key Users, Consultants



Target Industry


All



In below example of Import Scenario, Tax conditions with below combination are used



JCDB - IN Basic Customs (Maintained in Material pricing procedure A18001-Service/Material)


JSWC - IN: Social Welfare C (Maintained in Material pricing procedure A18001-Service/Material)


JIMD - IN: Import GST Deduct (Maintained in Tax pricing procedure 0TXIN – Sales Tax India)




Sample Tax Computation - Only to Understand How Tax Conditions Are Calculated




Test Scenario For Import Material with IGST (Deductible)



Below Roles are used to simulate the system example







Business Role




Business Role ID as Delivered by SAP








Product Master Data Specialist




SAP_BR_PRODMASTER_SPECIALIST






Purchaser




SAP_BR_PURCHASER






Master Specialist




SAP_BR_BUPA_MASTER_SPECIALIST






Warehouse Clerk




SAP_BR_WAREHOUSE_CLERK






Accounts Payable Accountant -




SAP_BR_AP_ACCOUNTANT







Step – 1 Create Purchase Order (Import)


Role – PURCHASER


Fiori AppCreate Purchase Order – Advance


Let’s assume product SP001- Bearing is purchased from International Market


All the required details are entered in PO during creation step.At PO item level, Click on Invoice tab and maintain Tax code K1 – GST 18% Deductible




In Condition Tab at PO item level, Ensure Custom Vendor is maintained for the Condition type


JCDB – IN: Basic Custom





JSWC – IN: Social Welfare C



Save the Purchase Order after validating all the required entries. PO reference here is 4500020117


Step 2 - PO Approval


For this example, Purchase Order is subjected to automatic approval


Step 3- Book Custom Supplier Invoice


Role - AP_ACCOUNTANT


Fiori App – Create Supplier Invoice – Advance




After entering all the details system calculates IGST as follows



Below table shows calculation done in excel, just to ensure all the values are correct. In this example exchange rate for EUR is taken as 100 INR = 78 EUR



After validating all the entries, post the custom invoice. As result below FI accounting entries are generated


Step 4 - Delivery of Goods


After custom clearance, next step is receive the goods in plant


Role: WAREHOUSE_CLERK


Fiori App – Post Goods Movement



Accounting Entries - Custom clearing account can be set off against the inventory account or Price difference depending on Material Price Indicator



Step 5 – Book Supplier Invoice – Material Vendor


Role - AP_ACCOUNTANT


Fiori App – Create Supplier Invoice - Advance


Last step after posting the Custom invoice & Goods receipt is to post the invoice of material vendor



In case of foreign supplier invoice, tax code with zero value is selected


Below Accounting Entries are triggered after posting the material supplier invoice



Conclusion - We are able to understand role of Custom Duty, Social Welfare & IGST condition type in Import Material Procurement Scenario



Additional Learning – SNOTE – 2458404 – GST Import




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