PDD PROCESS DETAILS

Tax on Purchase/Sale

SAP FICO
PDD
(Process Description Document)

FICO TEAM
Shibashish Bhattacharjee (9606221871)
Email ID: shibsap07@gmail.com

MZSAP Solution, 97/2C 1st Main,1st Cross, Ramanjaneya Layout, Marathahalli, Bengaluru -
560037 Mob: +91-9513344512

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 PDD PROCESS DETAILS

Tax on Purchase/Sale

ENTERPRISE STRUCTURE

DOCUMENT HISTORY

Version Document Name Date Consultant Project Delivery

Manager Manager

PDD
1.0 Document for 15/11/2017 FICO TEAM Suresh Dhanush ST
Enterprise Structure

MZSAP Solution, 97/2C 1st Main,1st Cross, Ramanjaneya Layout, Marathahalli, Bengaluru -
560037 Mob: +91-9513344512

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Tax on Purchase/Sale

CONTENTS

S.NO TABLE OF CONTENTS PAGE

NO
1 INTRODUCTION
1.1 PURPOSE OF THIS DOCUMENT 4
1.2 WHO SHOULD READ THIS DOCUMENT 4
1.3 DOCUMENT DERIVATION 4
2 PROCESS DESCRIPTION
2.1 OBJECTIVES 4
2.2 WHO CREATED IT 4
2.3 WHERE IS IT USED 5
3 TAX ON PURCHASE / SALE 5
4 LIST OF PROCESS 6
5 TRANSACTION / ACTIVITY CHART 6
6 GAP ANALYSIS 6
7 ENHANCEMENT 6
8 REPORTS 6
9 CONVERSION 6
10 AUTHORISATION 6

MZSAP Solution, 97/2C 1st Main,1st Cross, Ramanjaneya Layout, Marathahalli, Bengaluru -
560037 Mob: +91-9513344512

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Tax on Purchase/Sale

1. INTRODUCTION:

1.1 Purpose of this document

This document is the Business Blueprint for delivering the SAP R/3 project at BALAJI METAL
TECH. It outlines the business requirements, AS-IS analysis, TO-BE processes and design
considerations for the project.
This document describes the detail processes involved in Tax on Purchase/Sale necessary for
enabling in BALAJI METAL TECH various business processes defined under Business Blue print
for Managing procurement

1.2 Who should read this document

This document is meant for Managers, Team leads and Key User champions who will have to
have a good understanding of SAP system. This document explains all the specifications that are broadly
captured for successfully delivering the SAP R/3 project.

1.3 Document Derivation

This document is derived based on the following activities conducted at BALAJI METAL
TECH
key user discussions
Requirement discussions with Process owners
It is the intent of this document to capture the entire design to support the requirements specified
in the requirement document.

2. PROCESS DESCRIPTION

2.1 Objectives
The objective of this Process Definition document is to define how to process Tax on
Purchase/Sale in the system.

2.2 Who created it?

The FICO team is responsible for creating these processes:

MZSAP Solution, 97/2C 1st Main,1st Cross, Ramanjaneya Layout, Marathahalli, Bengaluru -
560037 Mob: +91-9513344512

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Tax on Purchase/Sale

2.3 Where is it used?

Whenever invoice create

3. Tax On Purchase / Sale

SAP System Provides Tax Version in country level. VAT is the indirect tax on
the consumption of the goods, paid by its original producers upon the change in goods
or upon the transfer of the goods to its ultimate consumers. It is based on the value of
the goods, added by the transferor. It is the tax in relation to the difference of the value
added by the transferor and not just a profit.

All over the world, VAT is payable on the goods and services as they form a part of
national GDP. It means every seller of goods and service provider charges the tax after
availing the input tax credit. It is the form of collecting sales tax under which tax is
collected in each stage on the value added of the goods. In practice, the dealer charges
the tax on the full price of the goods, sold to the consumer and at every end of the tax
period reduces the tax collected on sale and tax charged to him by the dealers from
whom he purchased the goods and deposits such amount of tax in government treasury.

Method of Collection

There are two methods for collection of VAT in India. In the first method, tax is
charged separately on the basis of the tax which is paid on purchase, and the tax that is
payable on the sale (shown separately in the invoice). Therefore, the difference between
the tax paid on purchase and the tax payable on sale as per the invoice is the VAT.

In the second method, tax is collected and charged on the aggregate value of the tax
payable on sale and purchase, by applying the rate of tax applicable to the goods.
Therefore, the difference between the sale price and purchase price would be VAT. It
means VAT is the tax which consumers ultimately face, which is collected at each
stage.

MZSAP Solution, 97/2C 1st Main,1st Cross, Ramanjaneya Layout, Marathahalli, Bengaluru -
560037 Mob: +91-9513344512

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Tax on Purchase/Sale

4. List of process
Define Tax Procedure
Assign country to calculation procedure
Define Condition types
Assign Tax codes for non taxable transaction
Calculate tax code for Purchase/Sale

5. To-Be Process:
Master data required to support the process:

G/L Master Data : IN liabilities :

6. Transaction/ Activity Chart General data

S. No. Transaction Description Transaction Code

Define Tax Procedure

1 OBYZ

Assign country to calculation procedure

2 OBBG
Define Condition types
3 OBCN
Assign Tax codes for non taxable transaction
4 OBCL
Calculate tax code for Purchase/Sale
5 FTXP

7.GAP Analysis:
There is no scope of GAP Analysis.

8. Enhancement
There is no enhancement in this process.

9. Reports
There are No Customized Report for Contract.

10. Conversion
No Conversion process takes place.

MZSAP Solution, 97/2C 1st Main,1st Cross, Ramanjaneya Layout, Marathahalli, Bengaluru -
560037 Mob: +91-9513344512

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11. Authorization

SAP FICO Project Manager Delivery Manager Client Manager

Consultant

Shibashish Mr. Suresh Mr. Dhanush Mis. Pavithra

Bhattacharjee

Sign. Sign. Sign. Sign.

____________ _____________ _________________ _________________

MZSAP Solution, 97/2C 1st Main,1st Cross, Ramanjaneya Layout, Marathahalli, Bengaluru -
560037 Mob: +91-9513344512

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