SAP Knowledge Base Article - Public

3038705 - GST India: How to configure Tax Collected at Source in Procurement for S/4HANA Cloud

Symptom

How to configure TCS on Procurement side in S/4HANA Cloud

"Image/data in this KBA is from SAP internal systems, sample data, or demo systems. Any resemblance to real data is purely coincidental."

Environment

  • SAP S/4HANA Cloud
  • This is relevant for India Localization or Country India Version (CIN) component

Cause

Steps to configure in Cloud to calculate TCS on Vendor side

Resolution

Below are the configurations to be maintained:

  1. Maintain Company PAN
  • Go to "Maintain Additional Parameters" or SSCUI : 102739
  • Choose company code and click on additional data.
  • Maintain Company PAN in parameter J_1I02 as shown in the below screenshot

    pic1.png
  1. Maintain Supplier PAN
  • App Name: Maintain Business Partner
  • Role Name: Supplier – FLVN00 Supplier (Fin.Accounting)
  • For the created Business Partner in the app Maintain Business Partner, maintain the Supplier PAN in the "PAN" field as highlighted in the below screenshot:

    pic2.png
  1. Maintain the combination of Company code PAN and Seller PAN to enable TCS with the relevance checkbox
  • App name: Maintain TCS Relevance for Procurement - India
  • Role name: SAP_BR_PURCHASER_IN

    pic4.png

General Instructions:

  1. TCS relevant check must be manually ticked in the App "Maintain TCS Relevance for Procurement" against the Supplier PAN and Company Code PAN combination. Accumulation concept to check the threshold/limit is not handled automatically, the reason being the order in which the seller accumulates the threshold and the seller invoice captured during the procurement may not be same.
  2. Routine is provided which checks the Company Code PAN, Supplier PAN and the TCS relevant check to trigger the TCS calculation

PROCESS

  • As per the routine logic, the TCS condition value will become statistical, in case if the TCS relevant check is not checked in the App "Maintain TCS Relevance for Procurement".
  • User should maintain the TCS relevant check manually for the supplier invoices exceeding the threshold.
  • You will see the TCS calculation in the Purchase Order and Vendor invoice capturing, based on the above relevance check maintained.

TCS will not be calculated in the below cases:

  1. Company PAN is not maintained in the master data.
  2. Supplier PAN is not maintained in the master data.
  3. Company PAN and Supplier not maintained in the App "Maintain TCS Relevance for Procurement".
  4. TCS Relevance check is not maintained in the App "Maintain TCS Relevance for Procurement".
  5. The posting date is not within the validity dates in App "Maintain TCS Relevance for Procurement".

See Also

2940148 - GST IN: Freight value not added to base value in Purchase order 

Keywords

TCS, Procurement, scope id, tax procedure, purchase, vendor, supplier PAN, Company PAN, J_1I02 , KBA , XX-CSC-IN-MM , Materials Management , Problem

Product

SAP S/4HANA Cloud 2102