2514143 - Wrong Tax Rate Determined While Creating Purchase Order (GST Tax for India)

SAP Knowledge Base Article - Public

2514143 - Wrong Tax Rate Determined While Creating Purchase Order (GST Tax for India)

Symptom

You have created intrastate purchase order and system has defaulted 9% tax rate for both the tax types CGST and SGST at the item level of purchase order. However you want to create purchase order for a product which has tax rate 28%.

Reproducing the Issue

  1. Go to the Purchase Requests and Orders work center.
  2. Go to the Purchase Order view.
  3. Select the relevant Purchase Order.
  4. Navigate to Items tab & select sub tab Taxes.
  5. Here you see that system has defaulted 18% tax rate. (9% CGST + 9% SGST)

Cause

Wrong tax rate type has been mapped for the corresponding tax code. Hence system defaults the standard tax rate type with 18% (9% CGST + 9% SGST) instead of 28%. (14% CGST + 14% SGST)

Resolution

You can use tax rate type Special 3 & this contains 14% tax rate. When you create a purchase order, system defaults to Standard tax rate at 18% based on configuration settings. If you need 28%, you can change the Tax Rate Type manually to Special 3 and system will pick 14% CGST+ 14% SGST = 28% GST rate. Please follow the below steps to maintain 28% GST tax rate.

    1. Go to the Purchase Requests and Orders work center.
    2. Go to the Purchase Order view.
    3. Select the relevant Purchase Order.
    4. Navigate to Items tab & select sub tab Taxes.
    5. Go to Tax Details section and change the Tax Rate Type to Special 3.
    6. Select Check button and now 28% tax rate has been selected.
    7. You can Order the Purchase Order document.

Keywords

KBA , AP-PRP , Purchase Request Processing , How To

Product

SAP BUSINESS BYDESIGN 1705 ; SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1711