GST in Hana

GST in SAP Hana – How to
Implementation GST in SAP S4

HANA
GST in SAP Hana – Complete GST Tax
Configuration in SAP S4 HANA
In Country India, Every business organization should register their
business for GST and the registration number obtained upon
registration is called GSTIN. Once an organization receives the GST
Identification Number, it must be maintained in the SAP system.
The implementation of GST in SAP S4 Hana includes the following

configuration steps:
1. Activate Business Place SPRO

2. Define Business Places SPRO
3. Define Tax Access Sequence OBQ2
4. Define Condition Types OBQ1
5. Define Accounts Keys for GST OBCN
6. Define G/L Accounts for Account Determination FS00
7. Assign GL Accounts to Account Keys (Account Determination) OB40
8. Define Tax Calculation Procedure OBQ3
9. Assign Tax Procedure to Country GGBO
10. Create GST Tax Codes FTXP
1. Activate Business Place
You can Activate the business place by using the following IMG menu
Path:
:
SPRO > SAP Reference IMG > Cross Application Components >
General Application Functions > Business Place > Activate
Business Place.
Click on the “New Entries” button
Now enter your C/R key and enable the option for BP Active. Click
on the save button to save the details.
2. Define Business Place
You can create business places in SAP Hana, by using the following
menu path
:
SAP IMG Path: SPRO > SAP Reference IMG > Cross Application
Components > General Application Functions > Business Place
> Define Business Places.
On determine work area: entry screen – Update your company code

and press enter to continue
Click on “New Entries” to create new business places in SAP
Now update the required details like
Business Place
Tax Information
GST Identification number, etc
:
3. Define Access Sequence
Access Sequence in the SAP system allows finding the valid

condition record for a condition type.
In this scenario, we are going to use the following access sequence

for Input GST and Output GST
:
Access Sequence Description
MWST Tax Classification
However, you are recommended to create access sequences as per

the business requirements.
You can also define a new access sequence by using the following
IMG Path:
IMG > Financial Accounting > Financial Accounting Global

Settings > Tax on Sales/Purchases > Basic Settings > Check
Calculation Procedure > Access Sequence.
Transaction code: OBQ2
4. Define Condition Types
Condition types are important steps we need to define for GST in

SAP S4 HABA. As per the requirements, we need to define the
following condition types for each Input GST and Output GST.
Condition Types for Input GST

Condition Type Description
A1 Input CGST
A2 Input SGST
A3 Input IGST
Condition Types for Output GST
:
B1 Output CGST
B2 Output SGST
B3 Output IGST
You can define the condition types in SAP S/4Hana by using the
following path:
IMG > Financial Accounting > Financial Accounting Global

Settings > Tax on Sales/Purchases > Basic Settings > Check
Calculation Procedure > Define Condition Types
Transaction Code: OBQ1
Click on the “New Entries” option to create the condition types for
Input GST & Output GST.
On the Condition Types configuration screen, update the following

details:
Condition Type
Access Key
Condition Class
Condition Condition type
Condition Category
:
Similarly, create other condition types A2, A3, B1, B2 & B3.
Condition Type A2: Input-SGST
Condition Type A3: Input-IGST

:
Condition Type B1: Output-CGST
Condition Type B2: Output-SGST

:
Condition Type B3: Output-IGST
5. Define Transaction Account Keys
The transaction accounts keys are used to determine the G/L

accounts, posting keys to post the GST tax amount automatically by
the SAP Hana system. To full fill this requirement, we need to define
the following tax account keys.
A/R Input Transaction Keys
Account key Description

AR1 Input Central GST
AR2 Input State GST
AR3 Input Integrated GST
A/P Output Transaction Keys
Account Key Description

AP1 Output Central GST
AP2 Output State GST
AP3 Output Integrated GST
Configuration Steps:
:
You can create the Transaction tax account keys in SAP S4 Hana by
using the following configuration steps
SPRO > IMG > Financial Accounting > Financial Accounting

Global Settings > Tax on Sales/Purchases > Basic Settings >
Check and change settings for tax processing.
Transaction Code: OBCN.
Execute the transaction code “OBCN” in the command field and

enter to continue.
On the change view “Tax Processing in Accounting” screen, click

on “New Entries”
On the new entries screen, update the following details
Process: Enter the new tax account key

Description: Update the description of the account key
Tax Type: Update the tax type whether it is input Tax or Output
tax
Posting Indicator: Update the 2 to post the tax amount separate
per line item.
:
Similarly, create other account keys in the SAP S/4HANA system.
Tax Account Key AR2 – Input State GST
Tax Account key AR3 – Input Integrated GST

:
Tax Account Key AP1 – Output Central GST
Tax Account Key AP2 – Output State GST

:
Tax Account Key AP3 – Output Integrated GST
:
6. Define G/L Accounts for Tax Account
Determination
When you are posting GST tax documents, the GST tax amount will
be posted to the particular G/L accounts. To full fill this requirement,
we need to do account determination by linking the G/L accounts to
the tax account keys.
Based on the requirements, we need to create the following G/L

accounts for Input GST and Output GST.
Input Tax G/L Accounts
G/L Account Description G/L Account Type

180010 Input Central GST B/S Account
180011 Input State GST B/S Account
180012 Input Integrated GST B/S Account
Output Tax G/L Accounts
G/L Account Description G/L Account Type

130010 Output Central GST B/S Account
130011 Output State GST B/S Account
130012 Output Integrated GST B/S Account
We can create G/L accounts in the SAP S4 Hana system using the
transaction code “FS00”
On the G/L account centrally screen, give the G/L accounts

number, Company Code and then click on the “Create” button
:
On type/Description, update the G/L account type, Account group,
short text & long text.
On the Control data tab, update the required details of account

control and account management in the company code.
:
On Create/Bank/interest tab, update the field status group and click
on the save button and save the created G/L account.
7. SAP GST Account Determination
After the creation of account keys and G/L accounts, we need to map
the G/L account to the Tax account keys. Through this account
determination, the S4HANA system allows posting the GST amount
automatically to the G/L accounts.
We can assign the G/L accounts to the account keys by using the
following configuration steps
SPRO > SAP Reference IMG > Financial Accounting > Financial
Accounting Global Settings > Tax on Sales/Purchases >
Postings > Define Tax Accounts
Transaction Code: OB40.
:
Now we are going to link the account keys to the following G/L
accounts
Account key Description G/L Account

AR1 Input Central GST 180010
AR2 Input State GST 180011
AR3 Input Integrated GST 180012
AP1 Output Central GST 130010
AP2 Output State GST 130011
AP3 Output Integrated GST 130012
On Configuration Account Display: Automatic Postings screen,

double click on the transaction key
Enter the chart of accounts key and click on enter to continue.

:
Click on the “Save” icon and save the details. Now click on “Posting
Keys”
Update the posting keys Debit – 40 & Credit – 50 and click on the
save button to save the details.
:
Click on the “Accounts” option to link the G/L account for this
transaction account key AR1.
Now update the G/L account# 180010 under the account assignment
filed and click on the save button to save the details.
:
Similarly, assign the G/L accounts and posting keys to the remaining
account keys AR2, AR3, AP1, AP2, and AP3.
8. Define Tax Calculation Procedure
Tax procedure is defined for each country with the calculation

procedures. In this configuration step, we define the procedure by
assigning the condition types, account keys, and how the amount to
be calculated.
IMG Menu Path: IMG > Financial Accounting > Financial

Accounting Global Settings > Tax on Sales/Purchases > Basic
Settings > Check Calculation Procedure > Define Procedure
Transaction Code: OBQ3.
Execute the transaction code OBQ3” or follow the IMG menu path
and execute “Define Procedure”
:
Click on the “New Entries” button to create the new GST tax
procedure as per the requirements
Now provide the new tax procedure key and description.
After updating the new tax procedure key, select the procedure and
click on control data under the dialog structure.
:
Click on the “New Entries” button
Now update all the required details of
Step
Condition Type
From
Account Key
Click on the save icon and save the details.
9. Assign Country/Region to the Calculation

procedure
Finally, we need to assign the “GSTIN” tax calculation procedure to

Country “IN”.
Configuration Steps:
IMG Path: Financial Accounting > Financial Accounting Global

Settings > Tax on Sales/Purchases > Basic Settings > Assign
Country / Region to Calculation Procedure
:
Transaction Code: OBBG
On change view: Assign Country/Region to Calculation procedure,

update the GST calculation procedure GSTIN
Now you can easily configure and implement GST in SAP S4 Hana
system.
:

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GST in SAP Hana – How to

Implementation GST in SAP S4

The implementation of GST in SAP S4 Hana includes the following

1. Activate Business Place SPRO

1. Activate Business Place

Click on the “New Entries” button

2. Define Business Place

On determine work area: entry screen – Update your company code

Click on “New Entries” to create new business places in SAP

Now update the required details like

Access Sequence in the SAP system allows finding the valid

In this scenario, we are going to use the following access sequence

MWST Tax Classification

However, you are recommended to create access sequences as per

IMG > Financial Accounting > Financial Accounting Global

4. Define Condition Types

Condition types are important steps we need to define for GST in

Condition Types for Input GST

IMG > Financial Accounting > Financial Accounting Global

On the Condition Types configuration screen, update the following

Condition Type A2: Input-SGST

Condition Type A3: Input-IGST

Condition Type B2: Output-SGST

5. Define Transaction Account Keys

The transaction accounts keys are used to determine the G/L

A/R Input Transaction Keys

Account key Description

A/P Output Transaction Keys

Account Key Description

SPRO > IMG > Financial Accounting > Financial Accounting

Execute the transaction code “OBCN” in the command field and

On the change view “Tax Processing in Accounting” screen, click

On the new entries screen, update the following details

Process: Enter the new tax account key

Tax Account Key AR2 – Input State GST

Tax Account key AR3 – Input Integrated GST

Tax Account Key AP2 – Output State GST

Based on the requirements, we need to create the following G/L

Input Tax G/L Accounts

G/L Account Description G/L Account Type

Output Tax G/L Accounts

G/L Account Description G/L Account Type

On the G/L account centrally screen, give the G/L accounts

On the Control data tab, update the required details of account

7. SAP GST Account Determination

Account key Description G/L Account

On Configuration Account Display: Automatic Postings screen,

Enter the chart of accounts key and click on enter to continue.

8. Define Tax Calculation Procedure

Tax procedure is defined for each country with the calculation

IMG Menu Path: IMG > Financial Accounting > Financial

Now provide the new tax procedure key and description.

Now update all the required details of

Click on the save icon and save the details.

9. Assign Country/Region to the Calculation

Finally, we need to assign the “GSTIN” tax calculation procedure to

IMG Path: Financial Accounting > Financial Accounting Global

On change view: Assign Country/Region to Calculation procedure,

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