New Business Functions in ECC 6.0 – China Global Tax System

Author                : Ravikumar D.

Designation       : SAP Senior Consultant

Company           : Infosys Limited.

CHINA Global Tax System:

China Global Tax system (GTS) is one of the country specific requirements for China especially in the areas of Sales and Distribution & Financial Accounting.

The process is to send all the required list of invoices to be sent to government owned Golden Tax System. The data received by GTS will be validated by Chinese Government officials and once it is done, an official invoice numbers will be issued by GTS against all the successfully validated invoices. As of now, this process of downloading Invoice list from SAP system and uploading the same into GTS system is done thro a Third-Party Software. However, now this functionality becomes one of the new business functions in Version SAP ECC 6.0. This function helps the Chinese suppliers (who are using SAP for their business) to manage their Invoicing functionalities. This function will not be available as a part of ECC 6.0 Version upgrade and we need to activate / enable the Business Function – FIN_LOC_CI_1 using transaction code – SFW5.

Before Business Function Activation :

Before activation of Business Function there is no any node available under Country Specific Function for China in SAP Easy Access Screen as shown in the above screenshot.

After Business Function Activation:

 

After activation of Business Function there are two new nodes available under Country Specific Function for China in SAP Easy Access Screen as shown in the above screenshot.

After activating this Business Function, we can use the following reports to transfer and receive Invoice Lists files from GTS to SAP and Vice Versa:

Creation of Outbound File for GTS Interface (China) from SAP:

This report enables you to send invoice list details to the GTS for invoice number creation or cancellations.

Upload of Inbound File from GTS Interface (China) to SAP:

This report enables you to retrieve invoice numbers that are issued by the GTS after validation of received Invoice lists.

Invoice Creation:

You can use the below process to create VAT invoices in SAP system, send the same to GTS, and also to update the SAP system with the invoice details received from GTS.

Process to be followed:

You can create an invoice following the standard procedure.

Go to Transaction – GT_ULN (Creation of Outbound File for GTS Interface (China) report) and create the file with invoice lists that can be sent to GTS interface for invoice number creation. This file will be stored in the specified directory in local computer.

You can then upload this file from the local computer to GTS by logging into GTS and you can also perform the following process:

            You generate VAT invoice numbers and other details for the invoices included in the file.

            You print the invoices.

 

            You create an inbound file to transfer the invoice details from GTS to SAP system.

 

            You upload the inbound file from GTS into the SAP system.

 

Using Transaction Code – GT_DLN, we can upload the invoice details received from GTS into SAP system.

Invoice Cancellation:

 

Similar to Invoice creation, we can also use this process for Invoice Cancellations in SAP system, transfer the same to GTS, and also update SAP system with canceled invoice details received from GTS.

 

Before carrying out Invoice Cancellation process, we must ensure that we have sent the original invoice to GTS and the GTS
issued invoice number must have been updated in the SAP system database.

Process to be followed:

You can cancel the invoice in the SAP system following the standard procedure.

 

Go to Transaction GT_ULN to create a file that can be sent to GTS Interface (China) report. We can select the relevant invoices and generate the file containing invoice details that can be sent to GTS for invoice cancellation. This file will be stored in the specified directory in your local computer.

 

The same file can be uploaded from the local computer to GTS. Log on to GTS and perform the following steps:

 

     You cancel the invoices.

     You create an inbound file to transfer the canceled invoice details back to the SAP system.

 

     You store the inbound file from GTS on your local computer.

 

Using Transaction Code – GT_DLN (Inbound File from Golden Tax Interface (China) report), we can upload the invoice details received from GTS into SAP system.  The SAP system updates its database with those invoice details.

Creation of Outbound File for GTS Interface:

You can also access this report thro SAP Easy Access screen by choosing Accounting –> Financial Accounting –>Accounts  Receivable –> Periodic Processing –> Country-Specific Functions –> China Golden Tax –> Create Outbound File for GT.

This report can be used to create a file containing invoice details to be sent to GTS, in the format defined by Chinese law. Based on your selection criteria, the report can generate an outbound file that contains details for one of the following:

      Generating required invoice numbers

     Canceling invoice numbers

We must ensure that the appropriate settings are done in Customizing for GTI Tax Invoices.

From the following screen, we can see the Invoice document value:

Creation of Outbound File for Golden Tax Interface thro Transaction Code – GT_ULN:

Provide above required entries before downloading the Invoice List which can be sent to GTS Interface.

Upload of Inbound File from Golden Tax Interface (China)

 

1. You can also access this report thro SAP Easy Access screen by choosing Accounting –> Financial Accounting –>Accounts  Receivable –> Periodic Processing –> Country-Specific Functions –> China Golden Tax –> Upload Inbound File from GT.

 

This report can be used to upload the file created by the GTS which contains the details of invoices that were either numbered or canceled in GTS. This report also converts the file into a format that the SAP system can read and updates those invoice information into the database.

You must specify the location of the file on the presentation server, including the path and file name, so that the file will get downloaded in the specified file directory. This file can be used to update the SAP system database with the invoice details in the inbound file.