ARCHROMA - BBP - GST Implementation Solution Design Document - Consolidated - Final

ARCHROMA Business Blueprint
GST SOLUTION
Business Blue Print

GST Solution Design Document
By
MAY 2017
Version 1.0
Capgemini India Ltd 1

GST SOLUTION
Document review and approval Revision history

Version Author Module Date Revision
V1.1 Mahesh Thoguru FICO 10/05/2017
V1.1 Sachin Kulkarni / Boudhayan Mukherjee MM 10/05/2017
V1.1 G. Mahaboobbasha SD 10/05/2017
This document has been reviewed by

Reviewer Date reviewed
1
2
3
4
This document has been approved by
Name Signature Date reviewed

1
2
3
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5
Capgemini India Ltd Page 1 of 69

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Contents
1 Introduction4
1.1 Business Blueprint Overview 6
2 Support Package (SP) level 7

2.1 Tax Procedure 7
3 Organization Structure 8
3.1 Company Code 8
3.2 Operating Concern 8
3.3 Business Place9
3.4 Plants 9
3.5 Sales Organization 10
3.6 Distribution Channel 11
3.7 Division 11
3.8 Sales Office 12
4 Master Data14
4.1 Vendor Master 14
4.2 Customer Master 16
4.3 Material Master 18
4.4 Service Master 20
4.5 General Ledger Account 21
4.6 Tax Codes 22
5 Tax pricing Procedure Configuration 23
6 Pricing Procedure for MM 25
7 Pricing Procedures for Sales: 26
8 Business Process (AS IS - TO BE) 27
9 Business Processes- Procurement 28

9.1 Procurement of Direct Spend - Raw Material (interstate / intrastate) 28
9.2 Procurement of In-Direct Spend - Consummable (interstate / intrastate) 30
9.3 Procurement of Domestic Capital goods 32
9.4 Procurement of Imported Material and Capital goods 33
9.5 Procurement of Services 33
9.6 Procurement of Sub-contracted Material 35
9.7 Finished Goods Scrap 36
9.8 Debit/credit memo 37

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10 Business Processes- Sales 39

10.1 Sale of Finished Goods (Mfg.) – Domestic 39
10.2 Sale of Finished Goods- Export 40
10.3 Sale of Scrap 41
10.4 Free Goods Sale with Delivery 42
10.5 Down payment Process 43
10.6 Sales Returns 44
10.7 Debit memo request 45
10.8 Credit memo request 45
10.9 Depot Sales 46
10.10 Depot Returns50
10.11 Sample Sales 50
10.12 Stock Transfer process 52
11 Business Processes- Financial Transactions 53

11.1 Invoicing (GL Expenses) 53
11.2 Direct FI Debit/Credit Memo 53
11.3 Month end activities: 54
11.4 Vendor invoice 54
11.5 Document Numbering 55
12 Utilization 57
13 Custom Developments 59
13.1 GST Related Reports60
14 Cutover and Transition Impact 61
15 Returns and GSTN interface 63
16 Key SAP Impact Areas 64
17 Open Issues 65
18 Authorization Requirements 66
19 File Conversion / Interface Considerations 67

GST SOLUTION
1 Introduction
Archroma is a global color and specialty chemicals company headquartered in Reinach near Basel,
Switzerland. It operates with 3,000 employees over 35 countries and with 24 production sites. Its
three businesses – Brand & Performance Textile Specialties, Packaging & Paper Specialties, and
Coatings, Adhesives & Sealants – deliver specialized performance and color solutions to meet
customers’ needs in their local markets, touching and coloring people’s lives every day,
everywhere.
Archroma is passionate about delivering leading and innovative solutions, enhancing people’s lives
and respecting the planet. The company is committed to challenging the status quo in the deep
belief that it can make its industry sustainable; an approach reflected in its innovations, world-class
quality standards, high service levels and cost-efficiency.
Products enhanced, colors enhanced, performance enhanced – “Life enhanced”.
Heritage… and ambition
Archroma was formed in October 2013 from the textile, paper and emulsions businesses of
Clariant. Clariant itself was formed in 1995 as a spin off from Sandoz, a chemical company which
was established in Basel in 1886. In 1997, Clariant acquired the speciality chemicals business of
Hoechst, a German chemical company.
Since then, Archroma has been growing organically and with its first acquisitions:
– In May 2014: 49% in M. Dohmen SA, an international group specializing in the production of
textile dyes and chemicals for the automotive, carpet and apparel sectors;
– In July 2015: The global textile chemicals business of BASF.
Through this direct lineage, Archroma has knowledge and experience of chemistry and industry
spanning more than 120 years.
We continuously challenge the status quo in the deep belief that we can make our industry
sustainable.
Solid foundations
Decades of experience, inherited from leading European companies and dating back to 1886.
Recognized brands, such as Diresul®, Drimaren®, Foron®, Nylosan®, Nuva®, Cartabond®, Cartafix®,
Cartaguard®, Cartaren®, Cartasol®, Cartaspers®, Leucophor®, Mowilith®, Mowicoll®.
Award-winning innovation, e.g. the 2012 ICIS Innovation Award for Advanced Denim, or the 2007
EPA “P2 Recognition Project” Award for Cartaspers® PSM, a product used in paper manufacturing.
Commitment to sustainability, as demonstrated by a strong support and focus on compliance to

eco-standards, the 2012 ICIS Innovation Award for Advanced Denim, the EU Ecolabel for Advanced
Denim Illustration Collection (ES-CA/016/007), and continuing commitment to ESHA as a fair and

GST SOLUTION
responsible company and employer.
Certified quality, environmental and safety management, with the global IQNet and SQS
certification to ISO 9001, ISO 14001 and OHSAS 18001 (Occupational Health and Safety Assessment
Series).
Every new innovation we develop today at Archroma combines our rich tradition of materials
excellence and expertise, our market insight, and our commitment to talent management and the
specialty materials and chemicals sector.
We touch and color people’s lives every day, everywhere.
A member of a team focusing on customer success
Archroma is a portfolio company of SK Capital Partners, a private investment firm with a disciplined
focus on the specialty materials, chemicals and healthcare sectors.
With SK Capital Partners, we become part of a $6 billion USD force in the industry, backed by
significant operating experience, a collaborative culture and active engagement of people as the
driving force to achieve success.
As a part of the SK Capital Partners portfolio team, Archroma offers our global customers a reliable
and long term commitment to developing new product solutions, application development,
process technologies and services with world class quality and technical support.

GST SOLUTION
1.1 Business Blueprint Overview

This business blueprint is prepared based on the inputs given by ARCHROMA INDIA process
owners, core users and core team members till the date of submission of the business
blueprint. Configuration of SAP GST solution for the processes of ARCHROMA INDIA will be done as
mentioned in the business blueprint.
This document summarizes the findings of the Capgemini consulting team and ARCHROMA INDIA
Team, with respect to SAP GST solution processes to be implemented in ARCHROMA INDIA Project.
Following activities were carried out during different phases of the project.
 AS IS -Current State Business Process Mapping
 TO BE -Future State Business Process Mapping
 GAP Analysis and Report Analysis
The information was gathered through above activities carried out during different phases of projects
i.e. reviews of business processes, business procedures, documentation and relevant reports.
The purpose of Business Blueprint document is to prepare to move forward with the
Implementation of SAP GST solution for ARCHROMA INDIA. At the conclusion of the blueprint, the
Capgemini consultants will determine the SAP functionality required to run the ARCHROMA INDIA
business.
The Blueprint and its associated appendices present a summarized perspective of all functional
business processes that will be implemented. As such, the Blueprint document will serve - from this
point forward the dual role of both official project scope as well as system acceptance criteria.
The body of this document describes the organizational structure, Master Data, and R/3 functional
process flows to be implemented at ARCHROMA INDIA. Generally, requirements that can be met
using standard R/3 functionality through routine configuration tasks are not explicitly documented.
The information gathered and documented in the Blueprint is sufficient for the team to go forward
into the Realization phase. However, it is critical that both the Capgemini and ARCHROMA INDIA
team agree on the scope of the project as presented in this document. Acceptance - by both teams
- is required to move the project into the next phase.

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2 Support Package (SP) level

Pre requisite:-
Minimum Support Package (SP) level to obtain support for legal change in India Logistics and Indirect taxes
there should have minimum Support Pack level for SAP_APPL software component as mentioned in SAP Note
1175384 to get subsequent legal change support for SAP GST Solution (All Indirect taxes)
SAP_APPL Release Support Pack

SAP ERP 6.0 (600) SP 26
EHP2 FOR SAP ERP 6.0 (602) SP 16
EHP6 FOR SAP ERP 6.0 for HANA (616- SAP HANA) SP 08
EHP7 FOR SAP ERP 6.0(617) SP 07
EHP8 FOR SAP ERP 6.0(618) SP 02
SAP S/4HANA ON-PREMISE 1511 SP 02
Current status-
The instance is currently on patch level SAP_APPL -ECC EHP 4 SP 05.
The system is compliant as per note #1175384
2.1 Tax Procedure

Pre requisite:
For GST implementation Tax procedure should be based on TAXINN (Condition based).
Current Status:
Tax procedure used currently is TAXINJ (Formula based)

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3 Organization Structure
3.1 Company Code

A company is an organizational unit in Accounting which represents a business organization according
to the requirements of commercial law in a particular country.
It is the smallest organizational unit for which individual financial statements are created according to
the relevant legal requirements
Company Codes in scope are as under;
Company Code Name of Company code City
INX1 Archroma India Pvt. Ltd THANE
Impact /Changes due to GST -

Individual registration number shall be obtained for entities presence in each of the states.
Therefore ARCHROMA India Pvt. Ltd shall require capturing GST registration at Business Place level,
which will be under Company code.
Also refer section Business place Business Place
ARCHROMA INDIA GST Registration details:
3.2 Operating Concern

The highest organizational unit within SAP-CO used to represent a part of an organization for which the
sales market is structured in a uniform manner.
An operating concern may include single or multiple controlling areas.
Operating Concern defined is as follows
Operating Concern Name of Operating Concern
OPCO Operating Concern Archroma
Impact /Changes due to GST:-

There is no impact on Operating concern.
3.3 Business Place
The business place is an organizational unit below company code level that is primarily used for
reporting tax on sales and purchases. Business Places are defined as follows
Business Place Name of Business Place

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APH Andhra Pradesh

CCIL Archroma India Private Limited
DEL Delhi
GUJ Gujarat
KAR Karnataka
MAH Maharashtra
PON Pondicherry
PUN Punjab
TMD Tamil Nadu
WBN West Bengal
IN11 ARCHROMA India GST. (For GST Purpose need to create new
Business place)
Impact /Changes due to GST: -

In order to Capture GSTIN registration at each transaction Business place is used.
A new field will be provided to store the GSTIN of the business in master data of Business Place.
New Business Place must be created for ARCHROMA India Ltd for GST purpose.
The relevant plants must be assigned to their corresponding business places i.e. region/state wise
association. As the GST registration is unique to each state, the plant(s) in the same region must be assigned
to state specific business place.
Customizing for Financial Accounting, under Financial Accounting Global Settings-> Withholding Tax ->
Extended Withholding Tax -> Basic Settings -> India -> Define Business Places
3.4 Plants
Plant is a place where inventory are kept and valuated.
Following plants are defined for company code.
Company Plant Plant Name Status (Active/

code code Inactive/Virtual)
INX1 3501 Archroma Plant Active

3502 DHL Logistics Pvt Ltd–FTWZ(SEZ Active
3503 Archroma India Pvt Ltd-EDepot Not Active
3504 Panvel Relable 2
3505 Panvel Depot
3506 Archroma India Private Limited

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3507 HO and virtual Export / Imports Active

3508 Archroma India Pvt Ltd-Relabel Active
3509 Archroma India Pvt Ltd-Depot Active
3510 Archroma India Pvt Ltd-Imports Active
Restructuring of organization structure:

Archroma India might plan to retain only two plants:
a) 3501: Archroma Plant (Main manufacturing plant at Roha)
b) 3507: HO and virtual Export / Imports
c) 3508: Bhiwandi Manufacturing Plant??
Both plants to be assigned to state specific business place with the same GST registration. Further
details to be discussed during BBP workshop.

The relevant plants must be assigned to their corresponding business places i.e. region/state wise
association. A new field will be provided to store the GSTIN of the business.
As the GST registration is unique to each state, the plant(s) in the same region must be assigned to
state specific business place.
Assignment of Plants to Business Place Template attached.
Table maintenance- J_1BT001WV
3.5 Sales Organization

Sales Organizations can be used to subdivide the market by region. The sales organization represents a
selling unit in legal terms. It is responsible for product liability, resolving customer complaints, and
negotiating terms of sales (pricing, payment terms) with customers.
It is necessary to specify a sales organization when executing any SD business transaction. A sales
organization must be assigned to a single company code. Following Sales Organizations are defined
Company Code Sales Organization Name of Sales Organization
INX1 INX1 Archroma India

There is no impact.
Capgemini India Ltd Page 10 of

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3.6 Distribution Channel

The distribution channel is the channel through which saleable materials or services reach the
customer
Represents your strategies to distribute goods and / or services
For example: Direct Sale etc.
Currently following Distribution Channel are defined.
Distribution Channel Name of Distribution Channel
01 Direct, Triang.,3rd
02 Direct Indent Sales

There is no impact.
3.7 Division
A division represents product line.
A division can be assigned to one or more sales organization.
Divisions can exist across company codes.
It is a mandatory element in Sales and Distribution Organization Structure.
Currently following Divisions are defined.
Sales Organization Division Name of Division
INX1 12 Textile
INX1 13 Paper
INX1 15 Emulsions
INX1 19 InterCompany

There is no impact.
3.8 Sales Office

A sales office is an organizational unit in Sales and Distribution which is responsible for sales within a
specific geographical area.
Sales offices are used in sales transactions in the Sales and Distribution component. They can be used
for reporting purposes. Sales offices are optional.

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A sales office can be assigned to one or more distribution chains.

Currently following Sales Offices are defined.
Sales Office Name of Sales Office
IEXP INDIA EXPORTS
IN11 AHMEDABAD 1
IN12 AHMEDABAD 2
IN13 BANGALORE (SOUTH II)
IN14 CHANDIGARH
IN15 CHENNAI (SOUTH III)
IN16 DELHI 1
IN17 INDORE-VAPI
IN18 KOLAKATTA
IN19 LUDHIANA
IN21 MUMBAI
IN22 NAGPUR
IN23 PANIPAT
IN24 RAJASTHAN
IN25 SURAT
IN26 TIRUPUR (SOUTH I)
IN68 UTTAR PRADESH
IN70 PUNE
IN71 AHMEDABAD
IN72 VAPI
IN76 MAHARASHTRA
IN79 ERODE
IN83 DELHI 2
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IN92 C FIBER
IN93 C MAHARASHTRA
IN94 C SIZING
IN95 CO-PRODUCERS
ZZZZ CDS-SALES OFFICE

There is no impact.

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4 Master Data
4.1 Vendor Master

Number of Indian Vendor Master Account Groups defined in Production system, at the moment of AS-
IS analysis.
Vendor Account Group Vendor account Group Description

0007 Plants
CPD One-time vend.(int.no.assgnmt)
KRED Vendor (int.number assgnmnt)
REIS Commercial traveller(Employee)
Z008 Archroma Affiliate Vendors

It is necessary to capture GSTIN number of Vendor at each transaction which is required for reporting
and reconciliation.
For calculation of taxes and reporting Vendors also needs to be classified as Registered/Non Registered/
Under Compounding Schemes.
Therefore,
1 The GST registration number to be saved in the Tax number 3(LFA1-STCD3) field of vendor master.
This field will be enabled for one time vendors as well.
2 Updations of GST Vendor Classification in CIN master Data.

Blank- Registered
0 - Non Registered
1 - Compounding Scheme

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3 Multiple supplying locations of the same vendor to be captured using Partner Function in the
vendor master record as individual master is required per region.
Note:
All the above mentioned fields are mandatory for Archroma India.
4.2 Customer Master

Number of Indian Customer Master Account Group defined in Production system, at the moment of AS-
IS analysis.
Customer Account Group Account Group Description

0001 Sold-to party
0002 Ship-to party
0003 Payer
0004 Bill-to party
CPD One-time customer

It is necessary to capture GSTIN number of Customer at each transaction which is required for
reporting and reconciliation.

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For calculation of taxes and reporting Customers also needs to be classified as Registered/Non
Registered/ Under Compounding Schemes.
Therefore,
1 The registration number to be saved in the Tax number 3(KNA1-STCD3) field of customer master.
This field will be enabled for one time customers as well.
2 Updations of GST Classification of Customers for tax categories of new GST condition types for
SGST, CGST and IGST
Blank- Registered
0 - Non Registered
GST Tax Classification and assignment with GST Tax Category:

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Tax Category Tax classification
JOCG 0
JOCG 1
JOSG 0
JOSG 1
JOIG 0
JOIG 1
3 To identify and manage the various registration numbers (GSTIN) of the customer regions, the main
customer must be extended using a Goods Recipient account group, per region of business. Each of
these will have the region and the corresponding registration number.
4.3 Material Master

Number of Material Types defined in Production system, at the moment of AS-IS analysis.
Material Type Material Type Description

DIEN Service
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ERSA Technical material

PROD Product group
VERP Packaging
VKHM Additionals
WERT Value-only materials
ZCHE ZCHE Chemical materials
ZCHU Non-val.chemical material
ZCON Concentration materials
ZDOU Double Denominations
ZLAB R&D Material
ZLAG ARCHROMA material
ZMBA Master batches
ZPAC sec. Shipping material
ZPRI PRIMA MB (Non WINS)
ZRSA Harm.tech.Mat.Germany
ZTPK Packaging Materials
ZVPU Packaging non-valuated
HSN/ SAC codes needs to be captured in each invoice line items. Also for tax determination material
needs to be classified as GST exempt/GST Standard Rate/ Excisable w/o GST etc.
Therefore,
1 HSN code to be updated in Material Master in Control Code field for tax calculation as well as
reporting which should be captured at each invoice line item level.
2 Tax classification indicator in purchasing Tab will be used in tax determining purchase transaction
and reporting.

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3 Tax classification in Sales Org/Sales org 1. Tab will be used in tax determining sales transaction and
reporting.
Tax Category Tax classification
JOCG 0
JOCG 1
JOSG 0
JOSG 1
JOIG 0
JOIG 1
Note:
All the above mentioned fields will be mandatory for Archroma India.
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The Tax Classification field in Purchasing view and Sales Data View has an impact on customized
program for material master (T Code: ZMM01)
4.4 Service Master

Number of Service Types defined in Production system.
Service type No. Of Services
Note:
Currently No Service Master is used in case of ARCHROMA India.
SAC codes needs to be captured in each invoice line items. Also for tax determination Services needs to
be classified as GST exempt/GST Standard Rate/ Excisable w/o GST etc.
1 As Service Master is not used in Archroma India at the time of creating a service PO. SAC Code
needs to be maintained in the Tax Tariff Code field in Purchase Order.
4.5 General Ledger Account

GL accounts relevant for ARCHROMA India (INX1) company code defined in Production system.
Chart of Account Company Code Description
CLR1 INX1 Archroma India Pvt. Ltd
INX1 Chart of ARCHROMA GL

Accounts.xlsx Mapping_GST.xls

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Accumulation of SGST/CGST/IGST will be as per GST Registration. Input, Output, RCM and ISD GL
accounts needs to be posted and utilization for relevant taxes.
Existing Tax GLs defined will become obsolete.
Therefore,
1 New set GL Accounts needs to be created under adequate tax account group for each
registration / Region. Approximately 8 GLs are required per registration
New GL codes will be updated with the mapping of BOPC GL accounts for consolidated
system of reporting
a) CGST Input Credit Account
b) SGST Input Credit Account
c) IGST Input Credit Account
d) CGST Rev Charge Account
e) SGST Rev Charge Account
f) IGST Rev Charge Account
g) CGST Output payable tax Account
h) SGST Output payable tax Account
i) IGST Output payable tax Account
j) RCM Payable Account
k) Basic Customs Duty
2 Financial Statement Version needs to be updated
3 Block the GLs for posting which are obsolete to avoid the posting in those GL account

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4.6 Tax Codes

Tax Code represents a tax category which must be taken into consideration when making a tax return to
the tax authorities. Tax codes are unique per country. The tax rate calculation rules and further features
are stored in a table for each tax code. For tax-exempt or non-taxable transactions, you should use tax
codes with a 0 percentage rate if the corresponding transactions are to be displayed in the tax returns.
You must define new tax codes if tax rates are changed by the state. The old codes with the old tax rates
must remain in the system until no more open items which use this tax code exist.
Tax Codes for ARCHROMA India (INX1) company code defined in Production system:
TAX code with

Description.xlsx
Impact /Changes due to GST:-

As per the GST draft bill issued by Govt. of Indian new rates (0%, 5%, 12%, 18% and 28%) have been
suggested. Below are the new 10 tax codes will be created for GST.
To be defined the tax rate in order to distinguish between input and output GST tax.
Tax Rate Description Tax type Country

0 0% Input GST Input IN
0 0% Output GST Output IN
Note: After Final GST notification if there any changes, as per the changes new tax codes will be created.

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5 Tax pricing Procedure Configuration

GST Tax Components:
 Intrastate Transactions:
-Central GST (CGST)
-State GST (SGST)
 Interstate Transactions:
-Integrated GST (IGST)

 Imports:
-Basic Customs Duty (BCD)

-Integrated GST (IGST)
 Exports:
-GST -Zero rated
To accommodate the Legal changes Tax Procedure needs to be modified
-TAXINN with GST

-Reference conditions to be delivered for all relevant tax components
ARCHROMA TAX
Procedure.xlsx
Tax account Determination:
Tax account determination will be done as based on Business place and Transaction key
Separate Transaction keys for each tax component (Input & Output taxes)
ARCHROMA GL
Mapping_GST.xls
Tax Settings
Company Code settings -Tax item must be ‘unchecked’

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6 Pricing Procedure for MM

As- Is Process
Company Code: INX1
Purchase organization: INX1
Pricing Procedures: IN0001 (For RM/Service/E Procurement), Z_IMP (Import)
MM Pricing
Procedures.xlsx

1. Create new pricing condition table if required as per business apart from standard SAP tables
2. Create Access sequences.
3. Condition types for GST: JICG,JISG & JIIG
4. Update above condition types in the existing pricing procedures.
5. Maintain condition records for JICG,JISG & JIIG and set validity for the existing condition records.
6. Specify account keys for the GST condition types : JIC, JII & JIS

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7 Pricing Procedures for Sales:

As- Is Process
Company Code: IN10
Sales organization: IN10
Pricing Procedures: IN001, IN010, IN050
Insert Archroma Sales Pricing procedure spreadsheet here
1. Create new pricing condition table if required as per business apart from standard tables
Condition Types.xlsx
2. Create Access sequences
3. Condition types for GST: JOCG,JOSG & JOIG
4. Update above condition types in the existing pricing procedures.

5. Maintain condition records for JOCG, JOSG & JOIG and set validity for the existing condition
records.
6. Specify account keys for the GST condition types : JOC, JOI & JOS

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8 Business Process (AS IS - TO BE)

Serial Number Business Process Description Module
1 Direct Spend (Domestic Procurement)- Raw Material MM
2 Direct Spend (Domestic Procurement)- Capital Goods MM
3 In-Direct Spend / E Procurement for Engg./Material consumables MM
4 Subcontracting Process MM
5 Service Receipt Process MM
6 Import Procurement Process MM
7 Vendor Returns Process MM
8 Scrap Process MM
9 MM
10 MM
11 FG Reconditioning Process SD
12 FG Scrap Process SD
13 Treatment of Obsolete Mat. - Model stoppage, Damage, Shelf expiry SD
14 Standard Sales SD
15 Export sales direct form manufacturing SD
16 Return Sales SD
17 Debit Memo Request SD
18 Credit Memo Request SD
19 Depot Sales SD
20 Depot Return SD
20 Sample sales SD
21 SD
22 SD
23 Invoicing (GL Expenses) FI
24 Direct FI Debit/Credit Memo FI
25 Month end activities FI
26 Vendor invoice FI
27 Customer invoice FI
28 Scrap Sale FI
29 COPA for group reporting purpose FI
30 Internal orders for capturing the income and settled to COPA FI
31 FI
32 FI
33
34
35
36
37
Final presentation for Archroma Workshop – Understanding workshop for India
Workshop
Understandings_Final.pptx

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9 Business Processes- Procurement
9.1 Procurement of Direct Spend - Raw Material (interstate / intrastate)

As- Is Process
1. Process: Create Purchase RequisitionCreate Purchase Order Create Goods Receipt Note
Create Invoice
2. Document type: PR (NB), PO (NB)
3. Pricing Procedure : ZRM000
To – Be Process
Create Invoice & GST Availment
3. Pricing Procedure: ZRM000
In case of Domestic Procurement (interstate) following details need to be captured:
1. Place of Supply- Derived from receiving plant.
2. Vendor Registration Code- Derived from goods supplier from vendor master data
Business Process Changes
Process -
1. Changes in PO creation. T code ME21N.
In case, Main vendor in PO is different than actual Goods supplier, goods supplier number
needs to be captured in Partner function tab.
In local procurement scenario based on the Goods Supplier (GS) partner and receiving plant
that you select in the Purchase Order, system identifies transaction as interstate, and calculates
the taxes accordingly.
Note:
For Non Coded Material HSN Code need to be maintained during creation of Purchase Order.
2. Changes in Goods receipt. T code MIGO.
Goods supplier partner selected flows in the Goods Receipt document, which will then be
passed on to invoice verification to identify their GS Region and receiving plant region, and
then taxes are calculated accordingly.
GL Acc. Description Amount Debit/ Credit
Inventory Account 100 Dr
GR/ IR Clearing Account 100 Cr
3. Changes in Invoice verification T Code MIRO

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At the time of Invoice creation, if the captured goods supplier partner differs from the Purchase
Order goods supplier, the user can change the goods supplier in the relevant invoice
verification (MIRO) transaction. In addition to this Place of supply can also be changed if it
differs from original POS in Purchase order.
For internal control it is recommended not to change HSN code flown from Material Master.
Illustrative Accounting entries: Interstate Supply.

Vendor Reconciliation Account 118 Cr
GR/ IR Clearing Account 100 Dr
IGST Receivable Account 18 Dr
Illustrative Accounting entries: Intrastate Supply.
CGST Receivable Account 9 Dr
SGST Receivable Account 9 Dr
Document type - PO (NB)
Pricing Procedure - Changes in Pricing procedure ZRM000 and Tax procedure TAXINN.
Access Sequence
Pricing procedure ZRM000
Tentative Change in Pricing Procedure as mentioned in the attached sheet

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MM Pricing
Procedure V1.1.xlsx
9.2 Procurement of In-Direct Spend - Consumable (Stationary / Catalogue

items)
As- Is Process- Catalogue
1. Process: Create Purchase RequisitionCreate Purchase Order Create Goods Receipt
Note Create Invoice
2. Document type: PR (EC), PO (EC)
3. Pricing Procedure : ZRM000
To – Be Process - Catalogue
1. Process: Create Purchase RequisitionCreate Purchase Order Create Goods Receipt
Note Create Invoice & GST Availment
2. Document type: PR (EC), PO (EC)
In case of Domestic Procurement (interstate) following details need to be captured:
Process -
a. In case, Main vendor in PO is different than actual Goods supplier, goods supplier
number needs to be captured in Partner function tab.
b. In local procurement scenario based on the Goods Supplier (GS) partner and receiving
plant that you select in the Purchase Order, system identifies transaction as interstate,
and calculates the taxes accordingly.
Note:
For Non Coded Material HSN Code need to be maintained During creation of Purchase Order.
Goods supplier partner selected flows in the Goods Receipt document, which will then be passed
on to invoice verification to identify their GS Region and receiving plant region, and then taxes are
calculated accordingly.
Inventory Account 100 Dr
GR/ IR Clearing Account 100 Cr

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At the time of Invoice creation, if the captured goods supplier partner differs from the Purchase
Order goods supplier, the user can change the goods supplier in the relevant invoice
verification (MIRO) transaction. In addition to this Place of supply can also be changed in it
differs from original POS in Purchase order.
For internal control it is recommended not to change HSN code flown from Material Master.
Illustrative Accounting entries: Interstate Supply.

IGST Receivable Account 18 Dr
Illustrative Accounting entries: Intrastate Supply.
CGST Receivable Account 9 Dr
SGST Receivable Account 9 Dr
Pricing Procedure - Changes in Pricing procedure ZRM000 and Tax procedure TAXINN.
Access Sequence
Pricing procedure ZRM000

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GST SOLUTION
Tentative Change in Pricing Procedure as mentioned in the attached sheet
9.3 Procurement of Domestic Capital goods

As- Is Process-
Create Invoice
To – Be Process
Create Invoice & GST Availment
In case of Domestic Procurement of Capital Goods (interstate & intrastate) following details need to be
captured:
Process -
Same as Point 9.1
Same as Point 9.1
Same as Point 9.1

Access Sequence: Same as 9.1
9.4 Procurement of Imported Material and Capital goods

As- Is Process-

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GST SOLUTION
1. Process: Create Purchase RequisitionCreate Purchase Order Create Customs

Invoice(Customs Duty + CVD + SD + Other Import conditions)  Create Goods Receipt Note
Avail CVD , SD Create Invoice
To – Be Process
1. Process: Create Purchase RequisitionCreate Purchase Order Create Customs
Invoice(Custom Duty + IGST)  Create Goods Receipt Note Create Invoice & GST Availment
1. In case of import of material, IGST will be applicable and Basic Custom Duty will remain
applicable.
2. All other duties will be subsumed by IGST.
3. To accommodate these changes pricing procedure ZRM000 needs to be change.
9.5 Procurement of Services

As- Is Process-
1. Process: Create Purchase Order Create Service Entry Sheet Release Service Entry Sheet 
Create Invoice (Service Tax)
2. Document type: PO (NB)
To - Be Process-
1. Process: Create Purchase Order (Maintain SAC Code in Service Sub Line Item) Create Service
Entry Sheet Release Service Entry Sheet  Create Invoice ((CGST+SGST) / IGST It depends on
intra or interstate purchase)
2. Document type: PO (NB)
Impact /Changes due to GST –
In case of Domestic Procurement of service (interstate & intrastate) following details need to be
captured:
1. Place of Supply - Derived from receiving plant.
2. Vendor Registration Code - Derived from Service Supplier from vendor master data
3. SAC Code will be derived from Purchase Order.
4. Based on the Plant Region and Goods Supplier Region, intra state or Interstate would be
determined.
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GST SOLUTION
Note:
Currently in Archroma India no service master is maintained, for GST therefore while creating Purchase
order user needs to maintain SAC for each sub line item.
Process –
In domestic procurement scenario based on the Service Supplier (SS/GS) partner and Plant
Region that you select in the Purchase Order, system identifies transaction as interstate or
intrastate and calculates the taxes accordingly.
Note:
If Service Master is not used then SAC Code need to be maintained in Tax Tariff Code field as
shown below

At the time of Invoice creation, if the captured service supplier partner differs from the
Purchase Order service supplier, the user can change the service supplier in the relevant
invoice verification (MIRO) transaction. In addition to this Place of supply can also be changed if
it differs from original POS in Purchase order.
For internal control it is recommended not to change SAC code flown from Service master.
4. To accommodate these changes pricing procedure ZRM000 needs to be change.
Document type – PO (ZGL1, ZSL1, ZSG1)

9.6 Procurement of Sub-contracted Material

As- Is Process-
1. Process: Create Purchase RequisitionCreate Purchase Order Transfer Material To
Subcontract Vendor Create Challan Create Goods Receipt Note Reconcile Challan 
Create Invoice
To – Be Process

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GST SOLUTION
1. Process: Create Purchase RequisitionCreate Purchase Order Transfer Material To

Subcontract Vendor Create Outgoing GST Invoice Create Goods Receipt Note Create
Incoming GST Invoice  Create Invoice
Impact/Changes due to GST:-
SAP Recommended using functionality of subcontracting with chargeable components
The process is very similar to the existing subcontracting process.
The main changes are that invoice needs to be posted when components are provided to the
subcontractor and vendor invoices you for the components that it has consumed. Also it is needed to
offset the invoices against each other.
Changes in Material info records-

1. Info category- ''Subcontracting''- for subcontracting material
2. Info category- ''Chargeable''- Taxable base for chargeable and Deductible payable GST invoices for
raw material
Illustrative Accounting entries

Transfer Posting – When raw material is sent to subcontractor
Ac Debit Credit
Sub.Con Vendor stock A/c 10000
Raw Material Inventory A/c 10000
Chargeable outgoing GST Invoice – When material is to be taken out of send to

Subcontracting location
Ac Debit Credit
Sub-Contractor A/c 23600
Receivable-Pending A/c (
Customer account )
Chargeable clearing A/c 20000
IGST Tax Payable A/c 3600
Goods Receipt in Plant (IN10)

Ac Debit Credit
Subcontracting Products 13000
A/c
Manufacturing Expenses 3000
A/c
Material Consumption 10000
A/c
Change in Inventory A/c 13000
GR/IR clearing A/c 3000
S/C Vendor stock A/c 10000

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GST SOLUTION
Deductible Payable Incoming GST Invoice from subcontractors. This will be Set off against original
invoice
Ac Debit Credit
Chargeable Clearing A/c 20000
IGST Input tax A/c 3600

Alternative Vendor 23600
Payable A/c
GST Invoice for Service

Ac Debit Credit
GR/IR Clearing A/c 3000
IGST Input tax A/c 540

S/C Vendor Payable A/c 3540
Note:
Sub Contracting Challans may completely be phased out with GST awaiting confirmation on the same
from Govt. & SAP.
Document type – NB
9.7 Finished Goods Scrap

As- Is Process-
1. Process:
Once Goods are received in stores quality check is done. If Quality check fails it is checked
whether the product can be repaired or not. If it can be repaired the treatment will be same as
in point 9.6. If it cannot be repaired the goods are scrapped and RG1 register is update.
Goods Receipt in Store
RG1 Register update
Quality Check Fails

c
Cannot be repaired Can be repaired
Goods Issue to Scrap Same as 9.6

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GST SOLUTION
RG1 Register
To – Be Process
Awaiting Confirmation on RG1 Register from Government and remaining process same as As -Is Process
2. Process
Once Goods to be reconditioned are received back in stores a production order is created to
rectify the same.
Create Production Order Issue of Finished Goods / Semi finished Goods  Issue of
Additional Items if any & Remove defective part  Scrapping of Defective Part  Stock Update
FG/SFG  Technical Completion of Production Order Production Order Settlement.

In Excise after scrapping the defected product, the same will be updated in RG1 register, under the GST
regime RG1 will be obsolete, and which register will get updated for finished product scrapping. The
Solution is awaited from SAP when the material which is scrapped is excisable material.
9.8 Debit/credit memo

As- Is Process-
Excise Availment (if Applicable) Create Invoice Create Return Delivery for Rejected
Quantity Debit Memo for Shortages Debit Memo For Excise
To-Be process
1. Process: Create Purchase RequisitionCreate Purchase Order Create Goods Receipt Note 
Create Invoice & GST Availment Create Return Delivery for Rejected Quantity Debit Memo
for Shortages

As per the GST law '' Any registered taxable person who issues a debit note/ credit note in relation to a supply
of goods and/or services shall declare the details of such debit note, in the return for the month during which
such debit note has been issued and the tax liability shall be adjusted in the manner specified in this Act.
Process:

Same As Point 9.1
Same as Point 9.1
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GST SOLUTION

Same as Point 9.1
4. Debit Memo T code MIRO
Due to provision of the Law it is necessary to capture details of Debit note / Credit note
therefore it should be with reference to Original invoice. Original Invoice number needs to be
captured in the debit note or Credit note issued in financial accounting .

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GST SOLUTION
10 Business Processes- Sales
10.1 Sale of Finished Goods (Mfg.) – Domestic
As Is Process-
1. Process:
Create Sales Order (VA01)  Create Outbound Delivery (VL01N)  Create Invoice (VF01) 
Create Excise Invoice (J1IIN)
2. Document type: OR
3. Pricing Procedure: ZJFACT
To- Be Process- (Going to change)
1. Process:
Create Sales Order (VA01)  Create Outbound Delivery (VL01N)  Create GST Invoice (VF01)
2. Document type: OR
Pricing Procedure: ZJFACT
In case of Finished Goods (Mfg.) - Domestic- Inter State following details need to be captured:
1. Condition records needs to be modified to capture place of supply, Customer region as per GST
reporting provision.
2. New Access sequence needs to be changed to determine tax as per GST
Process -
Sales pricing procedures used in domestic sales needs to be reworked in order to accommodate GST
related changes. Also the custom routines needs to be reviewed and modified accordingly.
New condition types required
1. JOCG- IN:: Central GST

2. JOSG-IN: State GST
3. JOIG-IN: Interstate GST
Access Sequence -
Country/Plant Region /Region/Material
1. Changes in SO creation. T code VA01.

As per the standard SAP partner determination technique, the sales order line items will be
assigned an appropriate Ship-to party.
2. Changes in Outbound Dlv. with Order Ref T Code VL01N.
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GST SOLUTION
Ship-to party will be used for creating individual delivery documents. These deliveries/orders
can then be used for billing per region.
3. Changes in Billing T Code VF01
Tax liability to be ascertain as per IGST/CGST&SGST payable GLs and the same needs to be
configured in the Sales account determination setting t code VKOA.
All debit notes / Credit notes are subject to GST and the same needs to be raised wrt the
original Invoices and reported accordingly.
Illustrative Accounting entries - Interstate sales

Customer Recon Account 118 Dr
Revenue Account 100 Cr
IGST Payable 18 Cr
Illustrative Accounting entries - Intra state sales

Customer Recon Account 118 Dr
Revenue Account 100 Cr
CGST Payable 9 Cr
SGST Payable 9 Cr
10.2 Sale of Finished Goods- Export

As- Is Process-
1. Process:
Sales Order (VA01)  Outbound Delivery (VL01N)  Create Invoice (VF01)  Print Invoice
(VF03)  Create Excise Invoice (J1IIN)  Print Excise Invoice (J1IP)  Create ARE-1 (J1IA101)
 Print ARE-1 (J1IA101)
2. Document type : OR
3. Pricing Procedure : ZJEXPO
To- Be Process-
1. Process:
Sales Order (VA01)  Outbound Delivery (VL01N)  Create Invoice (VF01)
2. Document type : OR
3. Pricing Procedure : ZJEXPO

Current GST model Law indicates Export to be zero rated and taxes and reporting needs to be modified.

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GST SOLUTION
Note:
i) In Archroma India ARE 1 Document is being used.
ii) Zero rated (GST) ARE1 Document will be obsolete/in case will remain ARE1 will be created with
reference of Shipping document /Invoice.
iii) For ARE1 continuation still awaiting from Indian Government notification.
Illustrative Accounting entries – Export

Foreign Customer Recon Account $100 Dr
Revenue Account $100 Cr
10.3 Sale of Scrap

As- Is Process-
1. Process:
Create Sales Order (VA01)  Create Outbound Delivery (VL01N)  Create Invoice (VF01) 
Create Excise Invoice (J1IIN)
2. Document type: ZO01
3. Pricing Procedure :ZIN001
To- Be Process-
1. Process:
Create Sales Order (VA01)  Create Outbound Delivery (VL01N)  Create GST Invoice (VF01)
2. Document type: ZO01
3. Pricing Procedure :ZIN001

In case of Sale of Scrap following details need to be captured:
Same as 10.1

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GST SOLUTION
10.4 Sales Returns

As- Is Process-
1. Process-
Create Return order (VA01) wrt Invoice  Create Return Delivery (VL01N)  Create credit
note (VF01)
2. Document type:
3. Pricing Procedure:
To- Be Process-
1. Process-
Create Return order (VA01) wrt Invoice  Create Return Delivery (VL01N)  Create credit
note (VF01)
2. Document type:
In case of Sale Returns following details need to be captured:
1. Condition records needs to be modified to capture place of supply, Customer region as per
GST reporting provision.
2. New Access sequence needs to be changed to determine tax as per GST
10.5 Debit memo request

As- Is Process-
1. Process-
Create debit memo request (VA01) wrt Invoice  Create debit memo (VF01)
2. Document type: DR
To-Be Is Process-
1. Process-
Create debit memo request (VA01) wrt Invoice  Create debit memo (VF01)
2. Document type: DR

As per the GST law '' Any registered taxable person who issues a debit note/ credit note in relation to a
supply of goods and/or services shall declare the details of such debit note, in the return for the month
during which such debit note has been issued and the tax liability shall be adjusted in the manner
specified in this Act.
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GST SOLUTION
Process:
Due to provision of the Law it is necessary to capture details of Debit note / Credit note therefore it
should be with reference to Original invoice. Original Invoice number needs to be captured in the debit
note or Credit note issued in financial accounting.
It is assumed that place of Supply of GS partner field as available in other enjoy transaction are
available in these transaction code as well.
10.6 Credit memo request

As- Is Process-
1) Process-
Create credit memo request (VA01) wrt Invoice  Create credit memo (VF01)
2) Document type: CR
3) Pricing Procedure:
To- Be Process-
1. Process-
Create credit memo request (VA01) wrt Invoice  Create credit memo (VF01)
2. Document type: CR

Process:
10.7 Depot Sales
As- Is Process-
1) Process-

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GST SOLUTION
Create Po at receiving plant (me21n)  Delivery WRT Po at supplying plant (VL10D)  Create Profroma
invoice (VF01)  Excise invoice (J1IIN)
After receiving the goods to depot
2) Process-
Create (MIGO)  Capturing excise at depot (J1IG)
End customer place order to depot
3) Process-
Create Sales Order (VA01)  Create Outbound Delivery (VL01N)  Distributing Excise at customer
(J1IJ)  Create Invoice (VF01)
Document type: ZIND
Pricing Procedure : ZDEPOT
The sales order shall be created central console inputs. The tax types VAT & CST based on the customer
& product tax classification shall be computed using transaction tax engine of SD. Outbound delivery
shall be created with reference to the replicated sales order in ERP. The outbound delivery shall contain

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GST SOLUTION
the delivery items and delivery quantity. After the stage of billing the appropriate taxes will be
computed and the posting to accounts will happen
Accounting entries are as follows:

At the time of post goods issue:
Credit
Depit ( Rs.)
Particulars (Rs.)
Cost of goods sold a/c Dr 1000
Inventory a/c Cr 1000
At the time of billing / Invoice

Credit
Depit ( Rs.)
Particulars (Rs.)
Customer a/c Dr 1200
Sales a/c Cr 1000
VAT / CST Payable A/c CR 200
STEP1: As per the standard SAP partner determination technique, the sales order line items will be assigned an
appropriate Ship-to party, which will be used for creating individual delivery documents. These deliveries/orders
can then be used for billing per region.
STEP2: New GST condition types/ Access sequence (IGST, CGST, and SGST) & Account Keys will be configured and
included in the Pricing procedure .
Old condition for Excise, VAT/CST & Cess will not be determined in the Sales order.
For Intrastate: CGST+SGST: Creditable

Both of these conditions will be determined for the intrastate sales, where the Region code for Delivering plant
and the Bill-to party is same.
For Interstate: IGST: Creditable

This conditions will be determined for the interstate sales, where the Region code for Delivering plant and the
Bill-to party are different.
Transaction value = Company list price

For Depot sales, the GST base value and margin structrure to be clarified from Business team.
1. Pricing procedure for FG –
Access Sequence for the sales processes is given below. This is for the reference purpose and can be changed as

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GST SOLUTION
per the business specific requirements.
As highlighted in the above snapshot, the access sequence is designed to include new parameters like
Tax classification for materials, control code, etc.. The details of these fields are already explained
above and will form an important part in the design of the access sequence.
Broad changes in the Pricing procedure will be as given below.
Above mentioned condition types and account keys are for reference and can be changed as per the
business specific requirements.
Accounting entries will be as follows.
At the time of Post Goods Issue :
Particulars Debit (Rs.) Credit (Rs.)

Cost of goods sold a/c Dr. 1000
Inventory a/c 1000
Billing Document :
(Assuming it’s an intra state sales)
Customer a/c Dr. 1200
Sales a/c Cr. 1000
SGST Output a/c Cr. 100
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GST SOLUTION
CGST Output a/c Cr. 100
Billing Document
(Assuming it’s an inter state sales)
Customer a/c Dr. 1200
Sales a/c Cr. 1000
IGST Output a/c Cr. 200
STEP3: Output programs need to be modified along with the corresponding SMARTFORMS to consider
the new GST conditions.
10.8 Depot Returns
As- Is Process-
1. Process-
Depot return process with reference to depot invoice
Create order wrt invoice (VA01)  Return Delivery (VL01N)  Create invoice (VF01) 
Return Excise (J1IG)
When J1IG Completed RG23D Updated
2. Document type: ZIRE
3. Pricing Procedure : ZDEPOT

In case of Depot Returns following details need to be captured:
1. Condition records needs to be modified to capture place of supply, Customer region as per
GST reporting provision.
2. New Access sequence needs to be changed to determine tax as per GST.
3. When customer return the goods. In GST we have return GSTR1 is applicable.
10.9 Sample Sales

The Free of sales cycle (Internal Customer) is explained in the below flow chart.

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GST SOLUTION
The Free of sales cycle (External Customer) is explained in the below flow chart.
As Is Process-
1. Process:
Create Sales Order (VA01)  Create Outbound Delivery (VL01N)  Create Proforma Invoice
(VF01)
2. Document Type :
3. Pricing Procedure :
The sales order shall be created in SAP-SD. Outbound delivery shall be created with reference to the
replicated sales order in ERP. The outbound delivery shall contain the delivery items and delivery
quantity. After the stage of Billing and the posting to accounts will happen.
Accounting entries are as follows:
At the time of Post Goods Issue

Cost of goods sold a/c Dr. 1000
Inventory a/c Cr. 1000
At the time of Billing/Invoicing

Customer a/c Dr. 0
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GST SOLUTION
Sales a/c Cr. 0
STEP1: As per the standard SAP partner determination technique, the sales order line items will
be assigned an appropriate Ship-to party, which will be used for creating individual delivery
documents. These deliveries/orders can then be used for billing per region.
STEP2: New GST condition types/ Access sequence (IGST, CGST, and SGST) & Account Keys will
be configured and included in the Pricing procedure.
STEP3: Customer billing document type may be provided for these invoices. T code: VF01. Single
sequential invoice to be issued under GST.
STEP4: Since there was no billing document earlier, there were no taxes applicable and VAT credit was
not taken at receiving affair plant. However, going forward, it needs to be decided if credit would be
available at the receiving plant or should this be inventorized.
10.10 Stock Transfer process

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11 Business Processes- Financial Transactions
11.1 Invoicing (GL Expenses)

As- Is Process-
1. Process:
Following are the business scenarios where invoice is done directly in Finance without tax
details.
a) Electricity
b) Telephone Charges
c) Travel Expenses
d) Petty cash Postings etc.
Separate fields are available in Enjoy transaction FB50 for capturing the details. User needs to fill up the
details manually.
11.2 Direct FI Debit/Credit Memo

As- Is Process-
1. Process:
Currently Archroma India is not using direct Debit/Credit memo without purchase order or
sales order reference.
Process:
Field can be used in Invoice reference while posting the Credit memo / Debit memo in SAP. Transaction
Code- FB75 and FB65.

In case of Non SO /PO based invoicing GS partner (if Different from original Customer) then, place of
supply needs to be captured for tax determination. In addition to these details HSN Code / SAC code
also needs to be captured while posting of invoice.

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GST SOLUTION
11.3 Month end activities:

This activities done by passing JV and there is no impact of tax.
Current taxation scenario
Currently returns for excise duty, service tax, VAT and CST are being filed.
GST scenario
Going forward, GST returns will have to be filed. Information relating to GST will have to be captured in
purchases register, sales register and other reports by adding fields required for GST.
11.4 Vendor invoice

As- Is Process-
Vendor invoice which are without PO and without material using related tax code through fb01 or fb60
Process:
In post GST regime, in FB60 there would be additional fields like HSN/SAC code, place of supply (POS),
GST partner would be available and GST would be calculated based on Tax code.

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GST SOLUTION
Accounting Entry: Intra State
Purchase A/C Dr
CGST Input A/C Dr
SGST Input A/C Dr
To Vendor A/C Cr
Accounting Entry: Inter State

Purchase A/C Dr
IGST Input A/C Dr
To Vendor A/C Cr
Note: Account Payables from MM module are mentioned in the above.
11.5 Customer invoice

As- Is Process-
Customer invoice related to LAB services etc. using related tax code through FB01 or FB70
Process:
In post GST regime, Only in FB70 there would be additional fields like GST partner, place of supply(POS),
HSN/SAC code would be available and GST would be calculated based on Tax code.

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GST SOLUTION
Accounting Entries: Intra state

Customer Dr
To Sales Cr
To CGST Output Cr
To SGST Output Cr
Accounting Entries : Inter state

Customer Ac Dr
To Sales acc Cr
To IGST Output Cr
Note: Account Receivable from SD module are mentioned in the above.
11.6 Scrap Sale:

For Scrap sale, SD module is to be used for capturing GST. There is no direct entry passed in FI.
11.7 COPA is using for group reporting purpose:

There is no Impact on GST.
11.8 Internal orders are used for capturing the income and settled to
COPA:
There is no Impact of GST with repect to the Internal orders settlement to COPA.
11.9 Down payment Process
11.8.1 Vendor Advance Payment – Capital Procurement
Process description:
A process for payment of advances to vendors for procurement of capital assets. Usually, in case of
procurement of goods and services, payments are made post the receipt of goods and services. In case
of procurement of capital assets, however, it is conventional to pay a portion of the amount as an
advance. The same is done against a bank guarantee.
The accounting entry passed for it is as under:

Dr / Cr Account Type Account
Dr Asset Advance to Vendor A/c
Cr Asset Bank A/c
Dr Asset Input Tax Credit A/c

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GST SOLUTION
In case of procurement of goods, no tax is currently levied on advance payment. However, in case of
services, tax is payable on advances as per point of taxation rules, and a tax invoice is issued for the
same.
Systems involved
SAP – Advance is booked using transaction F-47.
GST impact
Under GST regime, since payment of advances are covered under the ‘time of supply,’ tax liability
would arise on such payments. Vendor is required to issue a tax invoice for the same. GST Credit is
available, but at what level or phase we need clarity on it. Solution on this area is not yet available from
SAP and will be addressed based on solution availability.
System impact
SAP – Appropriate tax codes will have to be picked while passing an entry for payment for advances.
Entry of business place will be mandatory in vendor invoice processing document. This will determine
the place of business (GST registration) for tax returns filing
11.8.2 Vendor Advance Payment – Non-capital procurement
Process description
A process for payment of advances to vendors for procurement of goods and services.
The accounting entry passed for it is as under:

Dr / Cr Account Type Account
Dr Asset Advance to Vendor A/c
Cr Asset Bank A/c
Dr Asset Input Tax Credit A/c

No tax impact on advances for goods. For services, service tax is payable as per Point of Taxation Rules,
2011.
Systems involved
SAP – Advance is booked using transaction F-47.
GST scenario
As per Point of Taxation Rules for GST, CGST / IGST / SGST shall be applicable. Vendor is required to
issue a tax invoice for the same. GST Credit is available, but at what level or phase we need clarity on it.
Solution on this area is not yet available from SAP and will be addressed based on solution availability.
Entry of business place will be mandatory in vendor invoice processing document. This will determine
the place of business (GST registration) for tax returns filing. In cases where in the advances are
identifiable with respect to the materials and place of supply, GST will be applicable.
System impact

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GST SOLUTION
SAP – Appropriate tax codes will have to be picked while booking the invoice. Entry of business place
will be mandatory in vendor invoice processing document. This will determine the place of business
(GST registration) for tax returns filing.
11.10 Document Numbering
GST IN: Line item wise tax calculation for sales invoices:
As per GST requirements item wise tax calculation is required, the GST Billing documents must post
taxes per line item into their corresponding accounting document.
Below is the proposed SAP note to achieve tax calculation for line item wise.
2410917_E_GST IN
Line item wise tax calculation for sales.pdf
Unique sequential numbering may be required for outgoing GST invoices

The below process is proposed
· Criteria for legal numbering may be specified by Govt.
• Registration level
• Plant level
• Document type (Invoice / Credit Memo)
• A combination of above
• Any other criteria
• The above can be achieved by using the existing ODN (Official document Numbering)
functionality.
• Document numbering criteria yet to be released and finalized by Government.
Need to check impact on document number on specific ledger (in particular Z2 TH Ledger used for the
parallel local fiscal year Apr to Mar
Awaiting for the final Gazette notification from the Government of India and also solution from SAP AG
Outgoing Document numbering proposed solution:
Maintain Document Class:

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GST SOLUTION
Assign Document class to document types:
Assign Number range to Business place

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GST SOLUTION
12 Utilization
As is process:
• CENVAT credit taken on inputs
• CENVAT credit taken on Capital goods 50% previous year /50% current year
• CENVAT credit taken on input services
• CENVAT credit is being utilized for the payment of:
• Excise duty payable on any final product
• Service tax payable on any output service
• Credit taken on inputs to be in form of SGST, CGST and IGST.
• Credit taken on input services to be in form of SGST, CGST and IGST.
Cross Utilization Utilization of GST tax credit would be as under
• Input CGST to be utilized against output CGST and IGST
• Input SGST to be utilized against output SGST and IGST
• Input IGST to be utilized against output IGST, CGST and SGST
• ITC credit of SGST is not available for CGST or Vice –a- versa

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GST SOLUTION
New Utilization program will be made available to handle GST credit utilization

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GST SOLUTION
13 Custom Developments
There are two custom reports developed by Archroma.

There is no hardcoded tax code for the two custom reports.
The reports are executed based on document type i.e. 1B for import, KR for local material purchase, Y4 for
non-material suppliers(Non store material)
There are two custom reports in the system and should be re-designed as per the GST compliance Total
number of Reports to be listed down for GST impact
Custom reports need to be modified according to the GST rules
Custom Developments AS-IS TO-BE
There are numbers of custom Yes There are numbers of custom forms in the system and
reports in the system from FI should be re-designed as per the GST compliance Total
number of Forms are listed down for GST impact
Custom Reports.xls
13.1 GST Related Reports

 Tax Register- CGST, SGST, and IGST registration level segregation.

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GST SOLUTION
 Reporting for GST comprises of several GSTR Reports (from GSTR 1 till GSTR 12). These
reports are supposed to be generated by GSTN system based on data submitted by Tax
Payers and their business partners
 Reports for GSTR-1 to GSTR-12 to be provided by SAP as part of the GST package
Note:- Based on the Standard reports for the GSTR from SAP, the final notes will be delivered with GST
package.

69
GST SOLUTION
14 Cutover and Transition Impact

Here below the draft of Cutover and Transition impact as per Best Practice. During the
Realization phase this part will be analyzed in detail and updated if necessary.
Area Possible Impact
Registration Existing VAT/Excise registration automatically carried

over to GST (no central registration like service tax,
individual state level is needed)
Final registration after submitting relevant
documents
Existing credits Existing credits (VAT/CENVAT) carry forward to GST

Balance of credits (VAT/CENVAT) on capital goods
carry forward to GST
Previously exempted, Within 6 months from appointed date, no impact in

chargeable under GST GST. If more than, 6 months, GST rules become
returned after appointed applicable
date:
Duty and taxes paid goods Within 6 months from appointed date no impact in
returned after appointed GST, credit of earlier paid duty and taxes allowed. If
date: returned after 6 months from appointed date, then,
GST is applicable
Job work (inputs, semi- Returned within 6 months from appointed date, no
finished/finished goods) impact on GST. After 6 months from appointed date,
returned after appointed GST liability to be discharged both by Principal /
date: Sub-contractor
Goods sent on approval basis Within 6 months from appointed date, no impact in
returned after appointed date GST. If more than, 6 months, GST rules become
applicable
–If not returned within 6 months from appointed
date, GST to be discharged by supplier
Payments Payments no impact in GST provided transactions

have been charged with VAT/EXICSE as applicable
CR/DR notes CR/DR notes chargeable under GST

69
GST SOLUTION
Outbound
 Billing document tax calculation based on billing date (no need to close and open new
documents)
 Customer return of previous period sales, after appointed date -GST transition rule
 Customer return of outbound after appointed date, GST applicable, customer to issue GST
invoice
 CR/DR note for previous period sales, issued after appointed date -GST transition rule (GST
applicable)
 CR/DR not for outbound after appointed date, GST applicable
 Advances received prior to appointed date (without taxes/duties) adjusted in invoice after
appointed date, GST applicable on full invoice value
 Advances received after appointed date, GST applicable on advances
Inbound
 Invoice document tax calculation based on document date (no need to close and open new
documents)
 Vendor return of previous period purchase, after appointed date -GST transition rule
 Vendor return of inbound after appointed date, GST applicable, GST invoice to be raised
 CR/DR note for previous period purchase, after appointed date -GST transition rule (GST
applicable)
 CR/DR note of inbound after appointed date, GST applicable
Steps to be taken to minimize number of open orders in the system, open documents like
Open Purchase order line items, Open Sales orders are to be minimized during GST
implementation
Items GST Remarks

Impact?
Open Purchase Orders Yes It is assumed that SAP will provide a migration
program for cutover from old pricing/tax procedure to
GST
Partially Delivered Yes All the subsequent deliveries will be done as per GST
Material rates
Partially Invoiced Yes All the subsequent invoices will be done as per GST
material rates
Open Sales Orders Yes Pricing needs to be updated for all open sales orders.
Taxation GL account Yes The credit balances of Central Taxes like Service Tax,
balances Excise etc. Will be in CGST and State VATs will be in
respective SGST GLs.
Closing stock Maybe Clarity Awaited

69
GST SOLUTION
15 Returns and GSTN interface
Here below the list of the documentation & interfaces that are required for GST at the moment of the
analysis. To be confirmed the usage of automatic interface with GSTN by Archroma India.
Return Particulars Return Remarks

GSTR1 Outward Supply Tax Payer’s system to By10th of succeeding month At a
Invoices Submitted by GST system GSTIN + Tax Period Level. To be
Tax Payer as GSTR1 at a submitted by the Tax Payer. Covers
GSTIN both Inter
+ HSN/ SAC+ line item & Intra state Outward Supplies
level
GSTR1A Modified Outward GST System to Vendor
Supplies GSTR1A
GSTR2 Validated Inward Tax Payer’s system to By15th of succeeding month. At a
Supplies through GST system GSTIN + Tax Period Level
GSTR2 Provides Available Input Tax Credits
Auto-Populated from Outward
Supplies, Return of ISD
GSTR2A Inward Supplies GST system to Tax
through GSTR2A Payers system
GSTR3 Monthly Return, Most Tax Payer’s system to 20th of the subsequent Month
of the information auto GST system
populated based on the
GSTR-1 and GSTR-2
 Reporting for GST comprises of several GSTR Reports (from GSTR 1 till GSTR 12). These
reports are supposed to be generated by GSTN system based on data submitted by Tax
Payers and their business partners.
 Standard Tax Registers are available in SAP system to view the summary of GST Input and
output taxes via Advance Return for Tax on Sales/ Purchases
 Consolidation across multiple landscapes & systems for reporting at GSTIN level
 Input Tax Credit Reconciliation between Inward Supplies and Data in ERP System
 Input Tax Credit utilization against Tax Payable based on GST System reporting

69
GST SOLUTION
16 Key SAP Impact Areas

Following is the Summary of key SAP impact areas
Impact Area GST Related Changes
SAP Note Implement SAP Notes
Enterprise Structure Business Place Creation
Enterprise Structure Business Place Assignment to Plant
FI/MM Tax Procedure
MM Pricing Procedure
FI/MM Condition types
FI Account Keys
FI/MM Access Sequence
FI GL Account Determination
FI CIN/Utilization/Reporting etc.
FI/SD Outgoing Invoice Number Ranges
SD Sales Pricing Procedure
SD Sales Tax Conditions
SD Re-determining Access Sequence
SD Outgoing Invoices
SD VKOA Account Determination
Master Data Tax Codes Creation
General Ledger Creation for GST Credit & Payables
Vendor Master Tax Classification
Vendor master GSTN registration number
Customer Master Tax Classification
Customer master GSTN registration number
Material Master HSN Updation
Material Master Tax Classification
Condition Records for Procurement
Condition Records for Sales

69
GST SOLUTION
17 Open Issues
Below list for open issues awaiting final notification from Govt and SAP final Note solution on GST with
Archroma India Ltd.
Use the template to list down all open issues for Archroma India.
DNI_GST_Gap
List_2017-04-26_v1.0.xlsx

69
GST SOLUTION
18 Authorization Requirements
To be decided

69
GST SOLUTION
19 File Conversion / Interface Considerations

To be decided

69

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ARCHROMA Business Blueprint

Business Blue Print

Capgemini India Ltd 1

Document review and approval Revision history

This document has been reviewed by

This document has been approved by

Name Signature Date reviewed

Capgemini India Ltd Page 1 of 69

2 Support Package (SP) level 7

5 Tax pricing Procedure Configuration 23

6 Pricing Procedure for MM 25

7 Pricing Procedures for Sales: 26

8 Business Process (AS IS - TO BE) 27

9 Business Processes- Procurement 28

Capgemini India Ltd Page 2 of 69

10 Business Processes- Sales 39

11 Business Processes- Financial Transactions 53

14 Cutover and Transition Impact 61

15 Returns and GSTN interface 63

16 Key SAP Impact Areas 64

19 File Conversion / Interface Considerations 67

Capgemini India Ltd Page 3 of 69

Products enhanced, colors enhanced, performance enhanced – “Life enhanced”.

Heritage… and ambition

Commitment to sustainability, as demonstrated by a strong support and focus on compliance to

Capgemini India Ltd Page 4 of 69

responsible company and employer.

We touch and color people’s lives every day, everywhere.

A member of a team focusing on customer success

Capgemini India Ltd Page 5 of 69

1.1 Business Blueprint Overview

Capgemini India Ltd Page 6 of 69

2 Support Package (SP) level

SAP_APPL Release Support Pack

2.1 Tax Procedure

Capgemini India Ltd Page 7 of 69

3.1 Company Code

Company Code Name of Company code City

INX1 Archroma India Pvt. Ltd THANE

Impact /Changes due to GST -

ARCHROMA INDIA GST Registration details:

3.2 Operating Concern

Operating Concern Name of Operating Concern

OPCO Operating Concern Archroma

Impact /Changes due to GST:-

Business Place Name of Business Place

Capgemini India Ltd Page 8 of 69

APH Andhra Pradesh

Impact /Changes due to GST: -

Company Plant Plant Name Status (Active/

INX1 3501 Archroma Plant Active

Capgemini India Ltd Page 9 of 69

3507 HO and virtual Export / Imports Active

Restructuring of organization structure:

Impact /Changes due to GST -

3.5 Sales Organization

Company Code Sales Organization Name of Sales Organization

INX1 INX1 Archroma India

Impact /Changes due to GST -

Capgemini India Ltd Page 10 of

3.6 Distribution Channel

Distribution Channel Name of Distribution Channel

Impact /Changes due to GST -