Stock Transfer Order process with GST

There are number of STO process are available in the SAP Material Management. Here we are sharing the process of Stock Transfer Order with Delivery via Shipping after GST includes basic configuration settings.
For Intrastate STO transaction with same GST identification number, no GST is applicable. And for Intrastate with different GST identification number or Interstate STO transaction, GST is applicable.

STO Configuration for GST:

1. Define Shipping Data for Plants
2. Assign Delivery Type and Checking Rule
3. Assign Document Type,  One-Step Procedure, Underdelivery Tolerance
4. Define New Billing Type for Outbound Invoice
5. SD Pricing Procedure for STO Billing Document
6. Copy Control of Delivery to Billing
7. Classify SD Condition Type
8. Classify MM Condition Type
9. Maintenance of Business Place wise GL Determination

1. Define Shipping Data for Plants 
Path: SPRO -> Materials Management -> Purchasing -> Purchase Order -> Set up Stock Transport Order -> Define Shipping Data for Plants
Maintain Customer no-Plant, Sales Org, Dist. Channel, Division for Receiving Plant

2. Assign Delivery Type and Checking Rule
Path: SPRO -> Materials Management -> Purchasing -> Purchase Order -> Set up Stock Transport Order -> Assign Delivery Type and Checking Rule
Maintain PO Type – UB, Supplying Plant, Delivery Type – NL and checking rule for Availability Check.
Here we define the PO Type - UB and Delivery Type - NL (Replenishment delivery) is provided for intra-company-code stock transfers and PO Type - NB and Delivery Type - NLCC (Replenishment delivery cross company) for cross-company-code stock transfers.

3. Assign Document Type,  One-Step Procedure, Underdelivery Tolerance
Path: SPRO -> Materials Management -> Purchasing -> Purchase Order -> Set up Stock Transport Order -> Assign Document Type, One-Step Procedure, Underdelivery Tolerance
Here we define the Supplying Plant and Receiving Plant, PO Type UB or NB, Single Step - Blank

4. Define New Billing Type for Outbound Invoice
Go to Transaction – VOFA and copy Doc. Type F2 to ZGST (ZGST document type is for reference)

5. SD Pricing Procedure for STO Billing Document
Go to Transaction – V/08, define new pricing procedure ZINSTO for STO process for GST.
Define Price Condition and maintain Account key ZST and define STO G/L here, which will post the price in this G/L instead of sales revenue account. New Routine 900 is also define and assigned in the Pricing Procedure against GST Condition Type
Add GST Condition Type – JOCG, JOSG and JOIG, new Routine 900 and account key JIC, JIS and JII of it.

6. Copy Control of Delivery to Billing
Set the “Delivery to Billing” copy control, use the Transaction – VTFL and copy from Billing Type – F2 and Delivery – LF to ZGST

7. Classify SD Condition Type
SPRO > Logistics-General > Tax on Goods Movements > India > Basic Settings > Determination of Excise Duty > Condition-Based Excise Determination > Classify Condition Types (J_1IEXCDEFN table)
Define Pricing ZINSTO, Condition Type JOCG, JOSG, JOIG and Condition Name – CGSTAR, SGSTAR and IGSTAR.
And also do same with Tax Procedure TAXINN

8. Classify MM Condition Type
SPRO > Logistics-General > Tax on Goods Movements > India > Basic Settings > Determination of Excise Duty > Condition-Based Excise Determination > Classify Condition Types (J_1IEXCDEFN table)
Define Tax Procedure TAXINN, Condition Type JICG, JISG, JIIG and Condition Name – CGSTSOFFAP, SGSTOFFAP, IGSTOFFAF

9. Maintenance of Business Place wise GL Determination
Maintain the entries in the view J_1IT030K_V for all relevant business places and tax codes combinations needed for your business
Tax Code, Business Place 1000 and G/L Account
Maintain the entries of same dummy GL in OB40 for all the tax codes which has been used above.
Chart of Account 1000, Transaction JIC, JIS, JII, Tax Code and G/L Account.

STO Process step by step:

1. Create Customer Master for Receiving Plant(T. Code –XD01)
2. Create Vendor Master  for Supplying Plant (T. Code – XK01)
3. Extend Sales Views of Material Master in Receiving Plant (T. Code – MM01)
4. Create Info Record (T. Code – ME11)
5. Create Stock Transfer Order (T. Code - ME21N)
6. Create Outbound Delivery and Post Goods Issue (T. Code – VL10B and VL02N)
7. Create GST Outbound Invoice (T. Code – VF01)
8. Post Goods Receipt (T. Code – MIGO)
9. Create GST Inbound Invoice (T. Code – J_1IG_INV)

1. Create Customer Master through T. Code  – XD01 for a Receiving Plant, maintain GSTIN in Tax number 3 in Control Data view

2. Extend the Sales view of the Material Master through T. Code – MM01 to be transferred for the Supplying Plant

3. Create Vendor Master through T. Code – XK01 for a Receiving Plant, maintain GSTIN Number in Tax Number 3 in Control view and assign Supplying Plant in the Extra – Additional Purchasing Data

4. Create Info Record through T. Code – ME11 for Receiving Plant, vendor and Material and maintained the GST Tax code. This tax code is required during GST Inbound Invoice creation for posting G/L account

5. Create STO Purchase Order through T. Code - ME21N using PO Type UB, and Item Category “U – Stock Transfer”, maintain the supplying plant, material, receiving plant. In Shipping data tab check the Delivery Type – NL, Customer and Sales org. data automatically flow here. There is no Invoice Tab for Tax code to enter; it will refer from the Info Record.

6. Create Outbound Delivery through T. Code – VL10B or VL10D. Enter the STO PO and execute. Then select the items and click on Background, the system will automatically create the Outbound Delivery

7. Post Goods Issue; Go to Change Outbound Delivery T. Code – VL02N, enter the Outbound Delivery and  pick the quantity and then click on Post goods issue to Issue material from Supplying Plant
Accounting Entries:
Receiving Plant RM Stock A/C Dr.
Supplying Plant RM Stock A/C Cr.

8. Create GST Outbound Invoice with reference to Outbound Delivery through T. Code – VF01 using Billing Type ZGST.  GST STO pricing procedure will be same as we define in the Configuration Step. The tax value will be zero if it is Intra state with same GSTIN number and taxes value will be there in the case of Intrastate with different GSTIN number and Interstate. Save the Document.
Accounting Entries:
Inter Plant Sales A/C  Dr. (This is Inter Plant Customer (Receiving) A/c)
GST Control A/C Cr.( Our Assumption is it will be in the nature of Balance Sheet A/c)
IGST / CGST/ SGST Payable A/C       Cr.

9. Post Goods Receipt in the Receiving Plant with reference to Outbound Delivery through T. Code – MIGO. The system will automatically fetch all data from the Outbound Delivery.

10. Create GST Inbound Invoice through T. Code – J_1IG_INV by choosing any options GST Invoice or Stock Transfer Order. Provide the details as required and execute the transaction. Then select the desired items and click on Create to create Inbound Invoice (this is a FI Document). This will update the GST Inbound Invoice column and by double clicking on this will display the accounting entries.
Accounting Entries:
GST Control A/C        Dr. .( Our Assumption is it will be in the nature of Balance Sheet A/c)
IGST Input   A/C        Dr.
Inter Plant Sales A/C Cr.(This is Inter Plant vendor (Supplying) A/c)