B&M SOP 8 - TAX Change

B&M SOP 8 - TAX Change

TAX Maintainance


TAX Maintenance (Trade)





Table of Contents

1. TAX Maintenance (Trade)    

1.1. Approach    

1.2. Impact on downstream system    

2. Sign-off    





  1. TAX Maintenance (Trade)


The Harmonized System Nomenclature (HSN) code is the 8 digit uniform code used for taxation purposes in identifying the rate of tax applicable (i.e. input and output tax rate) to a product in a country. 


Input taxes are taxes that you would have paid/have to pay when you purchase materials (i.e. input for production). Output taxes are taxes that you would be charging to the customer while selling materials (i.e. output of your production).


In SAP system HSN is named as Control Code, in case if HSN is associated with multiple TAX rate then user need to maintain HSN Container (i.e. TAX Category) along with TAX % in SAP system.


How and when to use the HSN container. 

  • If any HSN has a multiple tax rate (not tax rates by value) then only the HSN container column has to be used.



TAX category

(Container)

TAX Percentage

11

0%

12

3%

13

5%

14

12%

15

18%

16

28%



Note: If Tax % is changing due to value – This column (SAP TAX category in article master) will be blank. e.g. Apparels where 5% and 12% GST rates is applicable depending on the value of the product. 




  1. Approach


Objective:

Define TAX maintenance for trading HSN and articles in S4

Approval:

Indirect TAX Team (i.e. IDT)- Ishwar Chamudia or Arnab Sur 

Initiator:

MDM Team or IDT Team

Owner:

IDT team need to get the HSN map with correct GST rate in System

Process:
  1. B&M team need to highlight TAX change with IDT Team in below format.

  1. IDT team need to analyze the details provided by B&M Team.
  2. In case of any correction/update, IDT team need to upload TAX detail in below format in MDM portal (i.e. spandhan)

  1. In case of NO correction, IDT team need to reject/inform B&M request via an email

Note:

Any change in HSN TAX has an implication on associated article. Hence MDM team need to ensure that associated articles should be updated along with HSN. 

Rule:

TAX correction on HSN and its respective article maintenance should be done on same day (i.e. before program scheduled)



Process:
  1. Download articles mapped with respective HSN 
  2. Share articles with respective B&M power user (based on L5)
  3. Ask B&M to upload Article detail in Article Change format in MDM portal (i.e. spandhan) 

  1. Before performing TAX change activity, make sure that ALL articles associated with required HSNs were provided by B&M



Executer:

MDM Team

Action:
  1. Maintain TAX against HSN in TAX Master
  2. Maintain HSN & Container against impacted Article

Post:

MDM team need to confirm IDT Team and B&M Team post TAX maintenance



Impact:
  • OLD GST rate will appear in open PO’s, so B&M team need to cancel open PO’s in system
  • OLD GST rate will appear in historical transaction & New GST rate will appear from effective date on S4 transition i.e. sale, return, PO and RPO
  • TAX rate & article detail will re-flow to downstream system (i.e. POS, hybris, WMS…) with New HSN#



  1. Impact on downstream system


Sn

System

Impact

Comment

1

POS

Yes

TAX Header and Article detail data will flow

2

CRM

No

No impact

3

eScheme

No

No impact

4

eVRF

No

No impact

5

Hybris

Yes

TAX Header and Article detail data will flow

6

WMS

Yes

TAX Header and Article detail data will flow

7

B2B

Yes

On future transaction

8

Loyalty

No

No impact

9

BW

Yes

On future transaction

10

Vistex

No

No impact

11

DIAL + MIAL

Yes

TAX Header and Article detail data will flow






  1. Sign-off

SSL Business Approval


Sr. No.

Date

Name

Signature

1

21-07-2020

Planning Head - Archish Raghunathan <Archish.Raghunathan@shoppersstop.com>


2

21-07-2020

Project Head - Krishnan Parameswaran <Krishnan.Param@shoppersstop.com>


3

21-07-2020

Project Head - Mandavi Singh <Mandavi.Singh@shoppersstop.com>


4

21-07-2020

IDT (Tax) - Ishwar Chamudia <Ishwar.Chamudia@shoppersstop.com>


5

21-07-2020

IDT (Tax) - Arnab Sur <Arnab.Sur@shoppersstop.com>


6

21-07-2020

Finance - Bhavesh Shroff <bhavesh.Shroff@shoppersstop.com>


7

21-07-2020

Governance & Compliance - Ramnath Kamath <ramnath.kamath@shoppersstop.com>




NAME

DATE

Author

Vishal Varlyani <Vishal.Varlyani@shoppersstop.com>

21-07-2020

Reviewer

Uttam Rawat <Uttam.Rawat@shoppersstop.com>

21-07-2020

Reviewer

IDT (Tax) - Ishwar Chamudia <Ishwar.Chamudia@shoppersstop.com>

21-07-2020

Reviewer

Finance - Bhavesh Shroff <bhavesh.Shroff@shoppersstop.com>

21-07-2020


TEAMS Path

DISHA Collaboration : General -> 03 Realize -> 3.8 Draft SOPs for B&M -> 3.8.1 To be release for DocuSign




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