Cutover Strategy Document ARASCO

FI, SD & MM
 Contents
1 FI/CO Cutover Strategy.................................................................................................................. 3

1.2 General Ledger Master

1.3

2.1 Master Data.

2.2

2.3

2.4

3.1 Master Data.

3.2

3.3

3.4

4.1 Upload Open Purchase orders.

4.2
 1 FI/CO Cutover Strategy

1.1 Master data

The following steps clear the concept of Master data need to be create into the
SAP System.

 General Ledger Masters - (FI)

 Tax codes

1.2 General Ledger Master

The following new GL accounts are required to create into SAP system.

11506010 VAT  Input - Goods

11506020 VAT  Input - Services
11506030 VAT  Reverse Input Charge - Goods
11506040 VAT  Reverse Input Charge - Services
11506050 VAT  Deposit Account (Adv. from Customer)
21506010 VAT  Output - Goods
21506020 VAT  Output - Services
21506030 VAT  Reverse Output Charge - Goods
21506040 VAT  Reverse Output Charge - Services
21506050 VAT  Payment Account (Adv. to Supplier)
21506060 VAT  Control Account

The following new Tax codes are required to create into SAP system

1.3 Tax codes

2 Material Management Cutover Strategy
2.1 Master Data

 Vendor Master
 Material Master
 Tax code determination condition record

2.2 Vendor Master

The VAT Tax number (15 digits for the GCC states) will be captured in the
“VAT No.” field in Vendor Master.

2.3 Material Master

If material is applicable for No tax/Full tax/Half tax will capture the Tax
applicability in field Tax Indicator for material in purchasing view of
material master

2.4 Tax code determination condition record

Condition record need to be created determined tax code automatically in
Purchase order
3. Sales and Distribution Cutover Strategy
3.1 Customer Master Data

3.1.1 Customer Tax Classification

Customer tax classification to be updated in customer master. The customer tax

classification, along with other criterion, will in-turn determine tax condition and value in
sales orders.

 0 – No Tax
 1 – Full Tax

3.1.2 Customer VAT Reg. No. and DZIT No.

 VAT Reg. No. of the customer, wherever applicable to be updated in the
filed VAT Reg. No. in customer master.

 DZIT No. to be updated in customer master wherever applicable in filed

Tax number 4 (this filed needs to be activated)
3.2 Material Master Data

Material tax classification to be updated in material master. The material tax classification,
along with other criterion, will in-turn determine tax condition and value in sales orders.

 0 – Tax Exempt for Goods

 1 – No Tax for Goods
 2 – Full Tax for Goods
 3 – Tax Exempt for Services
 4 – No Tax for Services
 5 - Full tax for Services
3.3 Condition records for Output Tax condition type

Condition records to be maintained for output tax condition with validity date and amount
for respective tax codes. Below is the snapshot for VK11 screen.
4. Cutover Transaction Data for SD into the SAP System.

4.1 Open Sales Orders

For open sales orders after 31st dec’17, following activities need to be
performed for activation tax condition:

 Change pricing date to current date in sales order (VA02)

 Update tax classification for customer (VA02: Header data) and material
(VA02: Item data)
  Update pricing at sales order header level with G: Copy pricing elements
unchanged and re-determine taxes to see the effect of tax condition in sales
order pricing.

4.2 Open Sales Orders: Partially delivered

For open sales orders: partially delivered, after 31st dec’17, following activities
need to be performed for activation tax condition:

 Change pricing date to current date in sales order (VA02)

 Update tax classification for customer (VA02: Header data) and material
(VA02: Item data)
 Update pricing at sales order header level with G: Copy pricing elements
unchanged and re-determine taxes to see the effect of tax condition in sales
order pricing.
 The delivery created, when billed will have tax condition in billing.

4.3 Open Sales orders: Fully delivered but not billed

 For open sales orders: Fully delivered but not billed, after 31st dec’17,
following activities need to be performed for activation tax condition:

 Change pricing date to current date in sales order (VA02)

 Update tax classification for customer (VA02: Header data) and material
(VA02: Item data)
 Update pricing at sales order header level with G: Copy pricing elements
unchanged and re-determine taxes to see the effect of tax condition in sales
order pricing.
 The delivery created, when billed it will have tax condition in billing.

4.4 Open Sales orders: Partially delivered and billed

For open sales orders: partially delivered and billed, after 31st dec’17,
following activities need to be performed for activation tax condition:

 Change pricing date to current date in sales order (VA02)

 Update tax classification for customer (VA02: Header data) and material
(VA02: Item data)
 Copy the non-billed quantity/item to new line in existing sales order.
 Update pricing at sales order header level with G: Copy pricing elements
unchanged and re-determine taxes to see the effect of tax condition in sales
order pricing.
 Create delivery w.r.t. sales order, when billed it will have tax condition in
billing.