impact on closing activities and payroll when FYV as K4(Jan-Dec) for indian company codes

[former_member330379]

Dear Experts, If FYV K4 - Calander year (Jan-Dec) is adopted in leading ledger for indian company codes then what is the impact on year end reporting and closing activities and payroll process as we have to submit the financials and do the closing as per the fiscal year Apr-mar.

Thanks & Regards

Shailesh

[sanilbhandari · Accepted solution]

Hi

If you are on S/4HANA and your non leading ledger has April to March calender and leading ledger has the calender from Jan to Dec, someof the impact I can think of from Indian reporting perspective:

1. Income Tax Depreciation: If you are using Asset Accounting and calculating income tax depreciation in SAP, than you might have to develop a custom report for income tax depreciation. The reporting essentially works on Jan - Dec cycle.

2. Pay roll - Your posting will happen through success factor, so your tax calculation for income tax will happen there. There is no impact on posting in each period. The posting in finance will happen based on the fiscal year variant of your ledger. Any kind of reporting for payroll should come from successfactors.

3.Closing in Finance - From a finance closing perspective, you will need to do the following:

(a) Have separate FSV for leading and non leading ledger, so that you can prepare financial statements for both the GAAP

(b) In each of the account grouping like AP, AR, Fixed Asset and other heads, where you can pass manual adjustments if required. These will all be ledger specific posting

(c) You should create valuation variants for FX Valuation for each GAAP

(d) The tax reporting like GST should ideally be integrated through an ASP. This will help you simplify the close.

(e) If you are using actual costing along with ML, than adjustment posting for inventory will anyways happen end of period, so it should help you report financials.

These are some of the things I can think of for now

Regards

Sanil Bhandari

[former_member330379]

Hi Sir,

thanks a lot for your inputs.

Yes, we are in SAP S4 Hana 1610

We have Calendar Year (Jan-Dec) in Leading Ledger for all of my five company codes (2 from USA and 3 from India) and Fiscal year(Apr-Mar) in Non-leading ledger , also i am included only 3 company codes in Nonleading ledger which is belongs to india.

Since Group company is based on US so group currency will be USD and currency type will be 30-group currency in controling area as we have single controlling area across company codes.

I also activated New asset accounting.

I have following dout about closing activities & Payroll :

1. For US based company code , i have to do the closing in December , is it correct? is there any requirement to do the closing for india based company codes in leading ledger.

I think we can do the closing based on ledger specific

2. For India based company code, i have to do the closing in March, is it correct ?

3. how we can generate Form 16 and other reports for india based company codes as we have to follow fiscal year (Apr-Mar) to generate the Form 16 and other forms , is it possible to generate the Form 16 from non-leading ledger or we can generate it through Leading ledger.

One more area is that how we can setup 1099 vendor in SAP S4 hana 1610 , which fields should be updated in vendor master for USA to generate the 1099-MISC report from SAP.

kindly suggest.

Thanks

Shailesh