MM BBP GST Implementation Otil

Business Blueprint
Submitted
To
SAURER
By
Material Management
MAY, 2017
Version 1.2
Blue Print Document – Material Management
DOCUMENT RELEASE NOTICE
Customer: SAURER
Project : GST IMPLEMENTATION PROJECT
Document details:
Date Version No. Description
05.05.2017 1.0 This document outlines the Material Management

business processes with GST Implementation of
SAURER

SAURER-One scenario omitted and one scenario is
under discussion
SAURER-More details added in To Be Process after
internal discussions
These are confidential documents. Unauthorized access or copying is

prohibited.
2 of 32
PREFACE
Purpose of this Document
The purpose of this document is to record the business process requirements of SAURER and outline the
requirement mapping in SAP for GST.
Intended Audience
The intended audience for the Material Management Business Blueprint is the employees of SAURER and
other persons authorized by SAURER who are in any way related to Business Processes involving Material
Management.
Related Documents/References
Documents referred to prepare Material Management Business Blueprint Document are as

follows:
Sl. No. Title Version Author
SAP Notes & GST

1. MILIND KORLEKAR
Implementation 1.0
Document
2. MILIND KORLEKAR
As IS Process 1.1
To-Be process MILIND KORLEKAR
3 1.1
document
Sign Off
3 of 32
Role Name Signature Date
Functional
Mr. MILIND KORLEKAR
Consultant
Project Manager Mr. MILIND KORLEKAR
Mr. Anurag Sidh

Core Team Member
Sangeetha
Core Team Member
Medha Kulkarni
Core Team Member
Shailesh Contractor
Core Team Member
Siddhartha Tikader
Core Team Member
Project Manager –
Mr. Sameer Kalgutkar
SAURER
4 of 32
Contents
GENERAL EXPLANATION ............................................................................................... 7
1. OVERVIEW .................................................................................................................. 8
2. GST IMPACTED BUSINESS PROCESS .............................................................. 9
3. TO BE PROCESS FOR GST ....................................................................................14
4. MASTER DATA ..........................................................................................................19
5. GST TAX CALCULATION .......................................................................................22
6. GST IMPACT IN STO PROCESS .........................................................................27
7. GST IMPACT IN PURCHASE ORDER ................................................................28
8. OUTPUT TYPE FOR PO, SO & GRN ...................................................................30
9. REPORT CORRECTION ..........................................................................................31
10. MASTER DATA UPLOAD........................................................................................32
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6 of 32
GENERAL EXPLANATION
Business Blue Print - This is the document where we define the business processes and
operating procedures for your company to support the corporate growth initiatives and also to
adapt to the new SAP system that will be implemented.
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.
In a Business Blueprint, we create a project structure in which relevant business scenarios,

business processes and process steps are organized in a hierarchical & tabular structure to
specify how your business processes should run in your SAP systems.
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 calculation for all sales, purchase &
services and SAP is recommending migrate the Tax procedure from “TAXINJ” to “TAXINN”.
Since the customer is already done with that, we need to update Patch for GST
implementation. The impact of GST will affect following modules MM, SD & FI.
In India, there are three types of GST.
CGST, Central Goods and Service Tax.

SGST, State Goods and Service Tax.
IGST, Integrated Goods and Service Tax.
Apart from above, there is UTGST, Union Territory Goods and Service Tax meant for Union
Territories of India.
CGST and SGST will be applicable in Intra State Transactions.
IGST will be applicable in Inter State Transactions.
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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2. GST IMPACTED BUSINESS PROCESS

2.1.1 Procurement Process
GST (Goods & Services Tax), a single unified tax system aims at uniting India’s complex taxation
structure to a ‘One Nation- One Tax’ regime. It is the biggest tax reform since India’s
independence.
2.1.2 AS IS
Purchase
Business Procurement Pricing
Document AS IS Process
process Type Procedure
Type
Material master is created
and purchase order is
created using document
type NB
- Based on vendor schema
group system will pick
import pricing procedure
along with taxes BCD, CVD
and SAD ,Edu Cess on CVD,
Sec ECESS ON CVD , Customs
Edu Cess.
- During Import procurement
V0 Tax is selected.
1.Procurement Import - Once PO gets released
NB ZORIMP
Process Procurement Customs invoice gets
posted and payment is done
against that.
- Then in MIGO transaction
goods receipt is done and
other additional duties will
be availed in excise invoice,
Asset procurement 50% of
credit excise availed in
current year and next year
50%.
Invoice verification (MIRO) is
done against that.
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- Purchase Order is created using

document Type ‘CP’ Account
Assignment A is used
- Condition record is maintained in
FV11 for tax.
- Based on vendor schema group
system will pick Domestic pricing
2.Procurement Asset ZORDOM procedure along with ED and VAT
CP
Process Procurement conditions
- PO is released.
- Once material gets received GRN is
posted in case of Asset
procurement 50% of credit excise
availed in current year and next
year 50%.
- Invoice verification (MIRO) is done
- Purchase order is created with

Account Assignment K and Cost
Center is selected for which the
Procurement is required to be
done.
- These are Non-Stock Items
- Condition record is maintained in
Cost Center
3.Procurement FV11 for tax.
Proc. GC ZORDOM
Process - Based on vendor schema group
Domestic
procedure along with ED and VAT
conditions
- Once GR is posted in MIGO
transaction stock is posted to the
Cost Center
- Invoice is posted against that.
- For Material code Purchase,
Material master is created and
chapter ID is maintained in J1ID
transaction.
- During purchase order creation
system will pick the taxes based on
4.Procurement Stock Items condition record FV11
GS ZORDOM
Process Procurement maintenance.
conditions
- JEXS,EDSP,EDSE,EDCL and VATS
tax gets calculates in PO.
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- During MIGO transaction we will

post Part 1 or directly Part2 and
our register will get update
automatically.
- Invoice verification (MIRO) is
posted and payment is processed.
-
- For procurement of Service
Purchase Order is created against
Service Code maintained in
Service Master or w/o Service
Code - Short Text for Service is
used
- During the creation of Service
Order taxes based on Tax code
and condition records (FV11) are
WORK
5.Procurement maintained
ORDER WO ZORDOM
Process - Based on vendor schema group
PROCESS
conditions
- Service order will get created and
service Entry Sheet is posted
Material Document gets posted.
Based on Service Entry Sheet and
GRN, invoice (MIRO) is posted
manually.
- Subcontracting Purchase order is
created with Item Category L
along with bill of material.
- Transfer posting is done and
against that challan will be
created in J1IF01.
- Once material gets received,
goods receipt is posted and
SUB
challan reconciliation done in
6.Procurement CONTRACTI
SB ZORDOM J1IFQ.
Process NG Purchase
- Invoice is posted against the
Order
subcontracting order and payment
is processed to subcontracting
vendor.
conditions
-
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Purchase Requisition
Release of Requisition
Check the TDS Applicable for this Vendor
Check the Vendor Master Record for TDS
Codes to be used
Creation of Service PO and Assign the
Cost Center
Purchase Order Release
Maintain Service Entry Sheet
Invoice Verification
Service Check the Vendor Line Items
7.Procurement
Purchase PS ZORDOM Outgoing Payment and clear the Vendor
Process
Order Invoice Line amount
Check the Vendor Line Items
Based on vendor schema group

conditions
- STO order is created from Depot.

- Outbound delivery is created
STO - PGI is made
8. Procurement PROCESS - Based on vendor schema group
UB2 ZM2000
Process Depot to system will pick STO process
Plant depot to plant along with
BED,ECS,AED,CVD,SAD taxes.
- STO order is created from

manufacturing plant.
- PGI is made
STO
- Inventory is valued more with
9.Procurement PROCESS
UB1 ZM2000 some % value of Additional
Process with Excise
Charges
Duties
system will pick STO process
depot to plant along with
BED,ECS,AED,CVD,SAD taxes.
- There are two scenarios; Local
and Import
- In Local scenarios, the missing
machine part is supplied at Free of
10.Procurement Receipt FOC MTA ZORIMP Cost and Purchase Order is made
Process for Sample with zero Price
- Purchase Order is created with
free sample and goods receipt is
posted against the same Purchase
Order
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- In case of Imports in few cases

Import vendor requests us to pay
import duty on assessable value
to our customs authority
system will pick import pricing
procedure along with BCD, CVD
and SAD Edu Cess on CVD, Sec ECESS
ON CVD , Customs Edu Cess
conditions
- The Import Duty amount is paid
through MIRO to Customs and the
Free Sample/Missing Parts are
cleared and received at the plant
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3. TO BE PROCESS FOR GST

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.
Purchase
Business Procurement Documen Pricing
process Type t Type Procedure TO BE Process
- 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.
- Purchase Order is created for
Import vendor.
1.Procurement Import - In Import pricing procedure BCD
NB ZORIMP and IGST condition vendor will
Process Procurement
be maintained in the Tax
Procedure for which condition
record will be maintained
- BCD invoice is posted first.
- Goods Receipt (MIGO) is posted
for received quantity.
- Invoice verification (MIRO) is
posted along with GST partner
vendors and Import vendor.
- Create material code along with
Standard rate or Exempted as
per the case.
- In vendor master GST Number
and partner function along with
GST registered/not registered
needs to be maintained for
ZORDOM different supply region vendors.
2.Procurement Asset
CP - Purchase order is created with
Process Procurement
Account Assignment ‘A’ and
condition record for GST
conditions is maintained in FV11
for tax.
- Based on access sequence
system will pick appropriate GST
tax.
- GR is posted in MIGO
transaction.
- Invoice is posted in MIRO and
100% credit availed in current
year itself.
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- Purchase Order is created using

document Type ‘FO’
- PO is used mainly for Quantity
Limits where Vendor is supposed
to supply material as per the
Quantity Limit mentioned in the
Purchase Order
- Scale is also used here to get
3.Procurement Framework the advantage of Price in terms
FO
Process Order of Quantity ordered
- Based on access sequence
system will pick appropriate GST
tax.
- GR is posted in MIGO
transaction.
- Invoice is posted in MIRO and
100% credit availed in current
year itself.
- Purchase order is created with
Account Assignment ‘K’ and in
the material description field
non-stock item text will be
entered.
- In vendor Master GST Number
and partner function needs to be
maintained for different supply
region vendors.
4.Procurement Cost Center - Condition record is maintained
GC ZORDOM
Process Proc. Dom for GST condition types in fv11
transaction.
- System will pick appropriate
GST tax based on vendor and
plant GST combination.
- Good receipt (MIGO) is posted
against the PO.
- Invoice (MIRO) HSN/SAC code
will be entered and credit is
availed.
- In to be process, we should
create material code along with
Standard rate or Exempted like
that.
- In vendor Master GST Number
5.Procurement Stock Items and partner function along with
GS ZORDOM
Process Procurement GST registered/Not registered
needs to be maintained for
different supply region vendors.
- While creating purchase order
based on the selection plant and
vendor, system will pick the
appropriate CGST, SGST or IGST
tax in the pricing conditions (by
comparing business place GST of
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plant and vendor partner GST

region).
- Based on Access sequence and
condition record for condition
types JICG, JISG & JIIG system
will pick appropriate GST tax.
- Goods receipt is posted in MIGO
transaction with actual received
quantity (Inventory will be
posted).
- In MIRO transaction invoice
verification is done based on
vendor invoice with appropriate
GST taxes and credit will be
availed by applying in GSTIN
portal.
- In pricing procedure system will

pick ZORDOM, RM0000 pricing
based on configuration.
- Based on Access sequence and
condition record for condition
WORK types JICG, JISG & JIIG system
6.Procurement
ORDER WO ZORDOM will pick appropriate GST tax.
Process
PROCESS - Service entry sheet will be
posted.
- Based on GRN, invoice (MIRO) is
posted manually along with SAC
Code, GST Vendor and place of
supply.
- Subcontracting Purchase order is

created with Item Category L
along with bill of material.
- Based on vendor partner
function and plant combination,
system will appropriate GST tax
in the purchase order.
- Transfer posting 541 is done and
against that challan will be
SUB
7.Procurement created in J1IF01.
CONTRACTIN
Process SB ZORDOM - Once material gets received,
G Purchase
goods receipt is posted and
Order
challan reconciliation done in
J1IFQ.
- Invoice is posted against the
subcontracting order along with
GST tax in MIRO and payment is
processed to subcontracting
vendor. The Process is under
finalization from SAP will be
conveyed later
16 of 32
- STO processes should be

differentiated based on whether
GST will be applicable or not.
- Transfer between 2 regions –
IGST is Applicable
- Transfer between plants of same
region falling in different GST
Reg. – SGST+CGST are
applicable
STO region falling in same GST Reg. –
8.Procurement
PROCESS UB No tax is applicable
Process
with MM - Material is transferred Through
Delivery STO with Transfer Posting which
is One Step. The stock gets
updated at receiving location
manufacturing plant.
- One Step Transfer is effected
- Inventory at the receiving Plant
is valued at same cost of sending
plant
- With Applicable GST
Plant/Depot.
- PGI is made
- GRN is made at receiving Plant
IGST is Applicable
STO
9.Procurement PROCESS
UB2 ZM2000 region falling in different GST
Process Depot to
Plant
applicable
region falling in same GST Reg. –
No tax is applicable
- Where GST is applicable mention
the T-code which will be used to
post incoming GST invoice
- This process was originally used
for transferring materials from
one Plant to another Plant which
is of ‘One Time’ in nature
- Still the same process is used to
transfer the materials from one
STO
Plant to another Plant
PROCESS
10.Procurement - STO order is created from
FOR ZUB ZM2000
Process manufacturing plant.
Additional
Charges
- PGI is made
- Inventory is valued more with
some % value of Additional
Charges
IGST is Applicable
17 of 32

region falling in different GST
applicable
region falling in same GST Reg. –
No tax is applicable
- Where GST is applicable mention
the T-code which will be used to
post incoming GST invoice
-
- There are two scenarios; Local

and Import
- In Local scenarios, the missing
machine part is supplied at Free
of Cost and Purchase Order is
made with zero Price
- Purchase Order is created with
free sample and goods receipt is
posted against the same
Purchase Order GST will not be
11.Procurement MTA ZORIMP charged
FOC Process
Process - In case of Imports in few cases
Import vendor requests us to pay
import duty on assessable value
to our customs authority
- The Import Duty amount is paid
through MIRO to Customs, IGST
will also be paid and the Free
Sample/Missing Parts are cleared
and received at the plant
-.
18 of 32
4. MASTER DATA
4.1 Master Data Impact in GST
For GST implementation we need to do certain modifications in Material Master, Vendor Master
and Service Master in the Material Management aspect.
4.1.1 Vendor Master:
In Vendor Master we should incorporate following changes
 Assign 15 Char Vendor GST number in Tax Number 3 field in Control tab.
 For different supply region vendors, we should assign the GST Partner numbers in partner
functions tab.
 For reporting as well as Tax calculation, we need to classify the GST vendor in CIN Master
Maintenance field.
GST VENDOR
Description
CLASSIFICATION
0 Registered
1 Not Registered
19 of 32
4.1.2 Material Master
As like Vendor Master we need to assign following changes in Material Master as well.
 To classify tax based on material, we need to maintain HSN code (Control Code) in foreign trade
export tab.
 Tax calculation and HSN outside GST regime, we should maintain data in Tax ind.f material
field.
20 of 32
4.1.3 Service Master
In service Master we need to include following changes
 Tax calculation and reporting SAC code will be maintained in Tax Tariff Code field.
 To determine tax, we should maintain Tax indicator.
21 of 32
5. GST TAX CALCULATION
5.1 AS IS CONDITIONS FOR ZTAXIN PROCEDURE
1TAXIN
Condition Type Description
JSST A/P Service Tax %
JSRT A/P Service Tax
JEC3 A/P ECS for ST
JES3 A/P SECess for ST
ZSBC Swachh Bharat Cess
ZKR1 IN: Krishi Cess %
JSSV A/P VAT Tax %
JVRD A/P VAT RM Deductibl
ZJVD A/P Add VAT RM D(G)
JVRN A/P VAT RM Non-Deduc
ZJVN A/P Add VAT RM ND(G)
ZIPS IN Asset Tax
ZSRT A/P Service Tax INV
ZEC3 A/P ECS for ST INV
ZES3 A/P SECess for ST IN
JMIP IN: BED inventory %
JMIQ IN: BED inventory Qt
JAIP IN AED inventory %
JAIQ IN AED inventory Qty
JSIP IN SED inventory %
JSIQ IN SED inventory Qty
JMX2 IN: A/P BED inventor
JAX2 IN: A/P AED inventor
JSX2 IN: A/P SED inventor
JECI IN: ECS inventory %
JSEI A/P SECess Inventory
JHX1 IN: A/P SECess SOTot
JHX2 IN: A/P SECess Invet
JIPC IN C Sales tax inv.
22 of 32
5.2 AS IS 1TAXIN EXISTING PRICING PROCEDURE
23 of 32
24 of 32
5.3 TO BE
 CONDITIONS FOR GST CALCULATION
25 of 32
5.4 Condition record is maintained for GST condition types in FV11 transaction.
5.5 Tax Pricing in Purchase order
26 of 32
6. GST IMPACT IN STO PROCESS

6.1 FLOWCHART – GST STO PROCESS
Stock
Transfer
Order
Outbound
Delivery
Billing with
Outgoing
GST Invoice
Goods
Receipt
Capturing
Incoming
GST Invoice
 In the existing STO process GST impact will reflect in Billing with Outgoing GST
invoice and capturing Incoming GST invoice stage.
27 of 32
7. GST IMPACT IN PURCHASE ORDER

7.1 FLOWCHART FOR PO
 In the existing Procurement Process, GST will impact in Purchase Order tax calculation
and invoice verification (MIRO) stage.
7.2 EXAMPLE process scenario
 Process Steps Involved in Scenario:
No. BUSINESS PROCESS STEPS MODULE T-CODE
1 Domestic Procurement Process with GST
MM ME51N
1.1 Manual PR Creation
1.101 Release of PR MM ME54N
1.2 Creation of PO Against PR MM ME21N
1.201 Release PO MM ME29N
1.3 Checking PO Output MM ZDPO
1.4 GRN Against PO MM MIGO
1.401 Checking GRN Output ZMGRN_N
MM
1.5 Credit Vendor (Invoice Creation) + GST Value update
MM MIRO
in GL
1.501 Update Vendor invoice in GSTIN portal to avail credit MM
1.6 Creation of Vendor payment in advance + GST is
FI F-48
applicable
28 of 32
1.7 Creation of Vendor payment in advance FI F-58/F110
AS IS TAX CODE LIST
Numeric existing
Tax codes.xlsx
29 of 32
8. OUTPUT TYPE FOR PO, SO & GRN

8.1 As of now SAP not yet provided any output type for Purchase and Service orders, we need to wait
for the update.
Existing
1. ZMM_PRITEMTEXT.
2. ZPO_RELEASE: To find out time taken for PO release at various levels.
3. ZPOREPORT.
30 of 32
9. REPORT CORRECTION
9.1 AS IS & TO BE PROCESS
 Reports which are impacted in the GST Implementation are mentioned below.
T.code Program Name Description Condition Types
31 of 32
10. MASTER DATA UPLOAD

10.1 To perform GST calculation, we need to adopt few changes in the Master data and we need to
upload the additional field changes as per bellow mentioned template format.
(Note – This may vary based on further releasing of notes by SAP)
Migration Template for Vendor

Vendor Purchase Plant Tax Number 3 GST Partner GST Vendor
Code Organization (Vendor GSTN) Number Classification
XXXXXXXX XXXX XXXX XXXXXXXXXXXXXXX XXXXXXXX
Migration Template for Material Purchase

Material Plant
Code HSN Code Tax ind.f.material
XXXXXXXX XXXX XXXXXXXX 0 or 1 or 2
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Business Blueprint

DOCUMENT RELEASE NOTICE

Date Version No. Description

05.05.2017 1.0 This document outlines the Material Management

22.05.2017 1.1 This document outlines the Material Management

These are confidential documents. Unauthorized access or copying is

Purpose of this Document

Documents referred to prepare Material Management Business Blueprint Document are as

Sl. No. Title Version Author

SAP Notes & GST

Role Name Signature Date

Project Manager Mr. MILIND KORLEKAR

Mr. Anurag Sidh

GENERAL EXPLANATION ............................................................................................... 7

2. GST IMPACTED BUSINESS PROCESS .............................................................. 9

3. TO BE PROCESS FOR GST ....................................................................................14

4. MASTER DATA ..........................................................................................................19

5. GST TAX CALCULATION .......................................................................................22

6. GST IMPACT IN STO PROCESS .........................................................................27

7. GST IMPACT IN PURCHASE ORDER ................................................................28

8. OUTPUT TYPE FOR PO, SO & GRN ...................................................................30

9. REPORT CORRECTION ..........................................................................................31

10. MASTER DATA UPLOAD........................................................................................32

In a Business Blueprint, we create a project structure in which relevant business scenarios,

In India, there are three types of GST.

CGST, Central Goods and Service Tax.

CGST and SGST will be applicable in Intra State Transactions.

IGST will be applicable in Inter State Transactions.

2. GST IMPACTED BUSINESS PROCESS

- Purchase Order is created using

- Purchase order is created with

- During MIGO transaction we will

Based on vendor schema group

- STO order is created from Depot.

- STO order is created from

- In case of Imports in few cases

3. TO BE PROCESS FOR GST

- Purchase Order is created using

plant and vendor partner GST

- In pricing procedure system will

- Subcontracting Purchase order is

- STO processes should be

- Transfer between plants of same

- There are two scenarios; Local

4.1.1 Vendor Master:

In Vendor Master we should incorporate following changes

4.1.2 Material Master

4.1.3 Service Master

In service Master we need to include following changes

 To determine tax, we should maintain Tax indicator.

5. GST TAX CALCULATION

5.1 AS IS CONDITIONS FOR ZTAXIN PROCEDURE

5.2 AS IS 1TAXIN EXISTING PRICING PROCEDURE

 CONDITIONS FOR GST CALCULATION

5.5 Tax Pricing in Purchase order

6. GST IMPACT IN STO PROCESS

7. GST IMPACT IN PURCHASE ORDER

7.2 EXAMPLE process scenario

 Process Steps Involved in Scenario:

No. BUSINESS PROCESS STEPS MODULE T-CODE

1 Domestic Procurement Process with GST

1.7 Creation of Vendor payment in advance FI F-58/F110

AS IS TAX CODE LIST