In India, under the Goods and Services Tax (GST) regime, you need to create a self-invoice for all the goods and services procured from an unregistered vendor. In India, under the Goods and Services Tax (GST) regime, you need to create a self-invoice for all the goods and services procured from an unregistered vendor.
This is handled through the Evaluated Receipt Settlements (ERS) invoice. You create an ERS invoice with relevant Reverse Charge Mechanism (RCM) tax codes. For these documents, an Official Document Number (ODN) is generated, based on the GST registration number and the annual year.
Note: Before creating the document numbering rules for self-invoices, all existing ERS invoices should be posted. This will avoid mismatch in the document numbering format.
Prerequisites: The below Prerequisites have to be maintained in your system to determine the right document numbering format.
A. Define Tax Registration Number under Tax Management work center.
Go to Tax Management work center.
Go to Tax Authorities view
Go to Company Tax Arrangements
You have maintained the GST Identification Number of the company.
B. Define Document numbering format for supplier invoice
Go to Business Configuration work center
Go to Fine Tuning activity
Select the Activity - Document Numbering Formats for Supplier Invoicing
Select Indian Company code & assign a unique Prefix value against the Tax Registration Number.
Note: The below screen shots are taken from the Internal system for the reference.
C. Configure Supplier Master Data
Go to Supplier Base work center
Go to Suppliers view
Make sure business partner is Unregistered Vendor while creating supplier invoices meaning, supplier master tax data should not contain the GST number.
D. Configure Deferred Taxes in Business Configuration work center.
Go to Business Configuration work center
Go to Implementation Projects view
Go to Fine Tune tab
Select the activity Charts of Accounts, Financial Reporting Structures, Account Determination
Select Account Determination and Tax
Find Charts of accounts for India
Select Input Tax tab
Select Country India
Define Tax Type with Deferred Input Tax.
Self-Invoice creation procedure:
Go to Supplier Invoicing work center.
Common Tasks.
Create New Manual ERS Invoice for Indian Company and Unregistered Vendor.
Select the Product details and make sure that, Tax Code selected is associated with the GST RCM tax codes.
86 Import of Service (Reverse Charge – IGST)
89 Domestic Purchase Interstate (IGST) - Reverse Charge
Domestic Purchase Interstate (CGST & SGST) Reverse Charge
Domestic Purchase UT (CGST & UTGST) - Reverse Charge
As you see below, system has selected the Check Box for - Tax Payment Deferred.
Check the consistency of ERS Invoice
Go to Actions
Simulate Journal Entry
Now system hits the ERS Invoice to deferred GL account as below.
(70004043 - State GST Deferred + 70004041 - Central GST Deferred)
Save and Post the ERS invoice.
System creates the self-invoice and generates an ODN that adheres to the rules maintained in the business configuration.
Note: When you copy a self-invoice, the document numbering rules will not be applicable, as this invoice is treated as a supplier invoice.
End of the documentation.
Best Regards,
Arun ML
This is handled through the Evaluated Receipt Settlements (ERS) invoice. You create an ERS invoice with relevant Reverse Charge Mechanism (RCM) tax codes. For these documents, an Official Document Number (ODN) is generated, based on the GST registration number and the annual year.
Note: Before creating the document numbering rules for self-invoices, all existing ERS invoices should be posted. This will avoid mismatch in the document numbering format.
Prerequisites: The below Prerequisites have to be maintained in your system to determine the right document numbering format.
A. Define Tax Registration Number under Tax Management work center.
Go to Tax Management work center.
Go to Tax Authorities view
Go to Company Tax Arrangements
You have maintained the GST Identification Number of the company.
B. Define Document numbering format for supplier invoice
Go to Business Configuration work center
Go to Fine Tuning activity
Select the Activity - Document Numbering Formats for Supplier Invoicing
Select Indian Company code & assign a unique Prefix value against the Tax Registration Number.
Note: The below screen shots are taken from the Internal system for the reference.
C. Configure Supplier Master Data
Go to Supplier Base work center
Go to Suppliers view
Make sure business partner is Unregistered Vendor while creating supplier invoices meaning, supplier master tax data should not contain the GST number.
D. Configure Deferred Taxes in Business Configuration work center.
Go to Business Configuration work center
Go to Implementation Projects view
Go to Fine Tune tab
Select the activity Charts of Accounts, Financial Reporting Structures, Account Determination
Select Account Determination and Tax
Find Charts of accounts for India
Select Input Tax tab
Select Country India
Define Tax Type with Deferred Input Tax.
Self-Invoice creation procedure:
Go to Supplier Invoicing work center.
Common Tasks.
Create New Manual ERS Invoice for Indian Company and Unregistered Vendor.
Select the Product details and make sure that, Tax Code selected is associated with the GST RCM tax codes.
86 Import of Service (Reverse Charge – IGST)
89 Domestic Purchase Interstate (IGST) - Reverse Charge
Domestic Purchase Interstate (CGST & SGST) Reverse Charge
Domestic Purchase UT (CGST & UTGST) - Reverse Charge
As you see below, system has selected the Check Box for - Tax Payment Deferred.
Check the consistency of ERS Invoice
Go to Actions
Simulate Journal Entry
Now system hits the ERS Invoice to deferred GL account as below.
(70004043 - State GST Deferred + 70004041 - Central GST Deferred)
Save and Post the ERS invoice.
System creates the self-invoice and generates an ODN that adheres to the rules maintained in the business configuration.
Note: When you copy a self-invoice, the document numbering rules will not be applicable, as this invoice is treated as a supplier invoice.
End of the documentation.
Best Regards,
Arun ML
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