GST- India (Goods & Service Tax) in SAP Treasury (Transaction Manager) – Configuration & User Manual.



Items and repair tax generally refereed as GST in India, is a compliance firms should comply with correctly. So, what’s items and repair tax and the way it’s relevant in Treasury Transaction. On this weblog we are going to study, how the Treasury and threat administration module address the GST Adjustments.

Full GST data could be discovered within the under Hyperlink.

State of affairs

When coming to Treasury, we typically Offers with IGST, CGST and SGST .so we’ll talk about briefly on these 3 taxes on treasury administration perspective. for any instrument primarily cash market devices and safety devices require tax compliances like in the event you’re paying your financial institution fees the CGST, SGST &  IGST is relevant based mostly on the state of affairs. In our first instance we’ll take financial institution fees with SGST & CGST.

So, the accounting entries in case of Financial institution Expenses Seems like under.

Financial institution Expenses A/c             Dr

SGST Receivable             Dr

CGST Receivable             Dr

To Buyer.     Cr


Within the case of IGST, Accounting entries are as per under.

Financial institution Expenses A/c             Dr

IGST Receivable               Dr

To Buyer       Cr


Let’s take an Curiosity Rate instrument into Instance.


As standard we have to do the essential configuration of Product kind – transaction type-flow kind – replace kind and it’s accounting.

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We’ve configured right here the stream kind Financial institution Expenses as under.

In the identical line we should configure, one other three stream sorts for CGST, SGST & IGST.

Assign stream sorts to Replace Sort:

Please bear in mind the replace kind as its necessary in TBB1.

Subsequent within the task of GL A/c you’ll be able to assignee the tax GLs or Treasury Clearing A/c as its not necessary. The tax GLs shall be picked based mostly on the FI tax Configuration.

Be aware: I’ve not configured right here as Derived flows because the tax sorts are completely different enterprise place smart. In derived flows we will’t set it enterprise smart as like in SAP FI Module.

Now let’s do a transaction to see the impact of the transaction.

Person Testing.

I’ve taken one rate of interest instrument in Borrowings state of affairs for instance for the tax calculations.

Within the Different flows tab I’ve taken two bills stream (Financial institution Expenses & Processing Charges) and added SGST & CGST on Financial institution Expenses, the place as charged IGST on Processing Charges.

Please word the tax quantity is not going to be calculated in System by Tax code, so you need to enter the tax quantity by calculating manually.  Additionally, the tax stream is all the time calculated based mostly on the shopper, so please ensure the shopper posting in Fee particulars tab as under.

Now we should keep AT210 Desk.

Please bear in mind to get the tax codes from SAP FI & its sequence. You may see, G3, JIS is maintained the place the tax code is G3 & Sequence is JIS. This data you may get from OBYZ.

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This desk have to be maintained with Product kind and enterprise accomplice as maintained above.

Now let’s run TBB1 in check mode.

TBB1 (Take a look at Run)

You may see there are two completely different entries for Financial institution fees and Processing charges. Additionally, you’ll be able to mark the tax flows acquired clubbed together with the bills flows. That is due to AT210 desk, the place we have now maintained the bottom replace kind because the bills replace kind and dependent replace sorts are tax replace sorts.

You may mark right here as a substitute of tax flows, Treasury Clearing A/c are getting picked. I’ve configured it intentionally to verify if the Tax GL are getting picked on the of precise run.

Now let’s run TBB1 within the in actual.

TBB1 (Precise Run)

Now you’ll be able to see the tax flows are getting clubbed and posted and the tax codes are picked together with tax GL based mostly on the tax configuration.

You may see the tax data within the doc itself.

Please ignore the tax quantity right here as its not in line with 9%. I’ve made it intentionally to point out you, that treasury is not going to calculate tax, it would seize the tax quantity solely. So within the Different stream tab, it’s essential calculate the tax and enter the quantity.


This can be a good performance supplied by SAP, in order that the tax reposting could be achieved in a correct approach for Treasury & Danger Administration module.

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Under Enhancement from SAP is predicted on this state of affairs, in order that the treasury and threat administration module shall be extra organized in tax matter.

  1. A number of buyer strains are getting generated even after clubbing the entries, the place as within the case of the withholding tax, buyer line is clubbed
  2. Tax calculation ought to occur on tax code stage like withholding tax, because the guide entry is liable to error.

Thanks for studying.

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