Define Tax Accounts in SAP HANA – SAP GST Account Determination

GST Account Determination in SAP S4 Hana

The applicable GST tax amount must be posted to respective General Ledger (G/L) accounts in the SAP Hana system. To full fill this requirement, we need to configure the account determination for SAP GST.

• The automatic account determination is configured by linking the GST G/L accounts to GST account keys.
• The Account Determination for GST is maintained at the chart of accounts level
• The posting keys for debit and credit postings must be maintained for each transaction account key.

Configuration Steps

You can maintain the GST account determination in SAP S/4HANA by using the following navigation:

• SAP IMG Path: Financial Accounting > Financial Accounting Global Settings > Tax on Sales/Purchases > Postings > Define Tax Accounts
• Transaction Code: OB40.

Here, we are going to link the account keys to G/L Accounts

Step 1: Execute the transaction code “OB40” in the SAP command field and enter to continue.

Step 2: On the “Configuration Accounting Maintain: Automatic Posts – Procedures” screen, double click on the Transaction Key “AR1” (Input Central GST)

Step 3: Enter the chart of accounts key and press enter to continue

Step 4: On the “Configuration Accounting Maintain: Automatic Posts – Rules” screen, update the following details.

• First, click on the “Save” icon to save the data.
• Click on Posting Key, to maintain the debit & credit posting keys.

Step 5: Update the posting keys for Debit and Credit postings

Step 6: After you maintain the posting keys, click on “Accounts” to link the G/L account for the transaction AR1 (Input Central GST)

Step 6: Now update the G/L Account 180010 (Input Central GST) under the filed account assignment.

Note: In the previous configuration G/L accounts for GST tax, we have created G/L accounts for each GST tax type.

Successfully we have linked the G/L account to the transaction key in SAP.

Similarly, we need to assign the G/L accounts to the remaining transaction keys (AR2, AR3, AP1, AP2 & AP3).

Transaction key AR2 – Input State GST – G/L Assignment

Transaction key AR3 – Input Integrated GST – G/L Assignment

Transaction key AP1- Output Central GST – G/L Assignment

Transaction key AP2- Output State GST – G/L Assignment

Transaction key AP3- Output Integrated GST – G/L Assignment