TCS Process documentation

Configuration
1. Maintain condition record for JTCB condition via VK11 to derive at the base value for the TCS.
This will be a statistical condition and will not be posted to accounting.
2. Maintain condition record for JTC1 condition via VK11 for the buyer/customer with 0.075% rate
valid till 31.03.2021 if PAN/Aadhaar is available
3. From 01.04.2021 onwards the rate will be 0.1% for point 2.
4. If PAN/Aadhar is not available, then maintain condition record with 1% rate
5. This example is shown with 0.075% case. That is buyer is provided with PAN/Aadhaar and the
threshold amount is maintained 20,000 instead of 50,00,000
Transaction Code: VK13

View: J_1IG_THLDV

6. The date maintained in the threshold table must be fiscal year-wise. If the valid from and valid to
date is changed in the middle of the year for Threshold category TCS, then the tax will not be
calculated as per the legal requirement.

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Posting Billing documents
1. Considering the table J_1IG_ACCUMHDR and J_1IG_ACUMDTL has no data now.
2. VA01- Sale order is created with 206c(1H) goods
Sales order is created with 3 material lines with material price 10,000 each and the pricing
condition is as shown below. In Sales order, TCS will always be calculated as per the rate. The
threshold check is only considered at the time of billing documents.

3. VL01N- Delivery document is created with PGI

The example document will cover the below 3 cases,
Case 1: The sale amount has not crossed threshold amount 20000
Case 2: The sale amount has crossed the threshold amount 20000 partially
Case 3: The sale amount has crossed the threshold amount 20000 completely
4. VF01- Billing document is created as shown below
5. For line item 1 - Since the total invoice amount inclusive of GST has not crossed threshold limit
of 20,000 no TCS has been computed

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6. For item 2, Since the total invoice amount inclusive of GST has crossed the threshold limit of
20000 partially, TCS has been computed only for the amount above the threshold value

7. For item 3, since the total invoice amount inclusive of GST has crossed the threshold limit of
20000 completely, TCS has been computed for the whole amount.

8. The accounting document will be as shown below

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9. After posting of the above billing document, J_1IG_ACCUMHDR and J_1IG_ACCUMDTL table
will be updated as shown below
Table: J_1IG_ACCUMHDR

Table: J_1IG_ACCUMDTL

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Cancellation of Billing document
1. Consider two billing documents are posed with accounting entries as shown below
Billing document 1 – accounting document

Billing document 2 – Accounting document

2. J_1IG_ACCUMHDR and J_1IG_ACCUMDTL table will be as shown below

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3. Now, cancel billing document 1. The accounting entry will be as shown below

4. The J_1IG_ACCUMHDR and J_1IG_ACCUMDTL table will be updated as shown below.

TCS amount that is to be adjusted will be updated in the Adjustment Amount Field in
J_1IG_ACCUMDTL table.

Table: J_1IG_ACCUMHDR

Table: J_1IG_ACCUMDTL

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Posting billing document considering previous sale value
(from 1st April 2020 to 30th September 2020 – Total sale value for 206C(1H) goods)
Note: In this case, the BAdI BADI_1IG_TCS must be implemented with methods GET_SALE_AMOUNT
The sale value should be a fixed value for a combination of buyer-seller and it should not be changed
after 1st October 2020 till March 31st 2021.
This BADI implementation will not be in use after 1st April 2021 and can be deactivated.
1. Considering the table J_1IG_ACCUMHDR and J_1IG_ACUMDTL has no data now.
2. VA01- Sale order is created with 206c(1H) goods
Sales order is created with 2 material lines with material price of 10,000 and the pricing condition
is as shown below. In Sales order, TCS will always be calculated as per the rate and the
threshold check is only considered at the time of billing documents.

3. VL01N- Delivery document is created with PGI

4. Consider the BADI implementation for method GET_SALE_AMOUNT is providing 23,000 for
buyer-seller combination.
This is the sample debugging screenshot for better understanding on passing 23,000 to
ACCUM_AMT field of structure CH_ACCUMHDR

5. VF01- Billing document is created as shown below for both the line items

6. For item 1 and 2, since the total invoice amount inclusive of GST has crossed the threshold limit
of 20000 completely (due to the previous sale value of 23,000), TCS has been computed for the
whole amount in both the line items.

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7. The accounting document will be as shown below

8. The table J_1IG_ACCUMHDR and J_1IG_ACCUMDTL will be as shown below

Table J_1IG_ACCUMHDR

Table J_1IG_ACCUMDTL

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Cancellation of billing document that was posted between 1st April 2020 to 30th
September 2020
When the billing documents that did not calculate TCS for Materials under 206C(1H) sections prior to 1 st
October 2020 are getting reversed after 1st Oct 2020, then the sale value is required to be reduced from
J_1IG_ACCUMHDR table.
For handling this case, the method SET_ACCUMULATION_FLAG is required to be implemented in BAdI
BADI_J1IG_TCS.
1. Consider the billing document that does not have TCS tax calculated for 206C(1H) material
posted prior to 1st October 2020

And the accounting document is as shown below

2. Before cancelling the above billing document, consider the J_1IG_ACUCMHDR table is
holding value as shwwn below
Table: J_1IG_ACCUMHDR

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 Table: J_1IG_ACCUMDTL

3. Cancel the billing document via transaction code VF11, the sale value will be reduced from
the table J_1IG_ACCUMHDR and J_1IG_ACCUMDTL
BAdI method implementation should be as shown below
Method GET_SALE_AMOUNT
• GET_SALE_AMOUNT is used to identify for a buyer and seller, there are sale
transactions done for 206C(1H) materials

Method SET_ACCUMULATION_FLAG
• SET_ACCUMULATION_FLAG is used to identify if the material is under 206C(1H)
so that the sale value will be reduced in the respective tables

4. Cancelled billing document accounting entry is as shown below

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5. The J_1IG_ACCUMHDR and J_1IG_ACCUMDTL is updated as shown below
Table: J_1IG_ACCUMHDR

Table: J_1IG_ACCUMDTL

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