How to Define Account keys for GST in SAP S/4Hana
The account keys enable the determination of the G/L accounts to post the GST tax amounts to the respective G/L accounts in the SAP system.
In order to meet the business requirements, we need to define the following account keys for GST implementation in SAP S4Hana.
A/R Input Condition Types
| Condition Type | Condition Name | Account key |
| A1 | Input Central GST | AR1 |
| A2 | Input State GST | AR2 |
| A3 | Input Integrated GST | AR3 |
A/P Output Condition Types
| Condition Type | Condition Name | Account Key |
| B1 | Output Central GST | AP1 |
| B2 | Output State GST | AP2 |
| B3 | Output Integrated GST | AP3 |
Configuration Steps:
- IMG Path: SPRO > IMG > Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Check and change settings for tax processing.
- Transaction Code: OBCN.
Step 1: Follow the IMG menu path and execute the IMG activity “Check and Change Settings for Tax Processing” or execute the transaction code “OBCN” on the command field.
Step 2: On the change view “Tax Processing in Accounting” overview screen, click on the “New Entries“ button
Step 3: On the new entries screen, update the following details
- Process: Enter a new account key
- Description: Enter the description of the account key
- Tax Type: Update the tax type ( 1 – Output Tax or 2 – Input tax)
- Posting Indicator: 2 (Separate line item)
After updating all the required details, click on the save icon and save the details.
Now create the remaining account keys accordingly.
Account Key AR2 – Input State GST
Account Key AR3 – Input Integrated GST
Account Key AP1 – OutPut Central GST
Account Key AP1 – Output State GST
Account Key AP1 – Output Integrated GST
