This chapter discusses these topics:
Section 42.2, "Calculating GST for Advance Payments for Goods"
Section 42.3, "Calculating GST for Advance Payments for Services"
Section 42.4, "Resetting the GST Applied on Advance Payment Receipts for Goods and Services"
Section 42.5, "Matching Advance Payment Receipts with Sales Invoices for GST"
Section 42.6, "Matching Advance Payment Receipts with AR Invoices for GST"
When a customer makes an advance payment to the supplier for procuring goods and services, GST is liable to be paid on such an advance payment. This is the advance amount remitted by a customer prior to a transaction.
You, as the supplier, must calculate the GST for the advance payment received from the customer. For interstate (where the ship-from state and sold-to state are different) and export (where the ship-from country and sold-to country are different) transactions, you calculate the IGST and GST Cess. For intrastate transactions (where the ship-from state and sold-to state are the same), you calculate the CGST, SGST, and GST Cess. When you create the sales invoice, you must offset the advance GST paid with the GST of the sales invoice.
In the JD Edwards EnterpriseOne system, you complete these tasks to process advance payments for goods and services in the GST regime:
Create unapplied receipts for advance payments using the Standard Receipts Entry program (P03B102).
The unapplied receipts are standard receipts created for advance payments received, and do not have matching invoices.
Calculate GST for the advance amounts received.
You use the GST Advance Payment for Goods program (P75I827) to calculate GST for advance payment of goods, and GST Advance Payment for Services program (P75I829) to calculate GST for advance payment of services.
Match and offset the receipts against the invoices using the Matching Advance Payment With Sales Invoice program (P75I828) for goods and GST Matching Advance Payment With AR Invoice program (P75I840) for services.
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Note: When you calculate GST for advance payment transactions by applying a 0 (zero) GST rate, the process of matching and offsetting the receipts against the invoices is not applicable. |
You use the GST Advance Payment for Goods program (P75I827) to calculate the GST liability for the advance payment received from the customer. The P75I827 program calculates the GST for unapplied receipts using the HSN and SAC tax rates for IGST, CGST, SGST, and GST Cess from the GST Tax Rate Setup table (F75I809).
When you commit the receipts for advance payments in the P75I827 program, the system:
Stores the advance payment information in the Advance Payment GST Transaction table (F75I827)
Creates ledger entries in the GST Ledgers table (F75I823) with the batch number and the GST amounts for each applicable GST type (IGST, SGST, CGST, and Cess)
Updates the TL (Tax Liability) ledger in the GST Ledgers Setup table (F75I804) with the confirmed liability amounts
Creates journal entries for the liability accounts and updates the Account Ledger table (F0911)
The system credits the permanent liability accounts that you have set up in the GST Account Master Setup program (P75I805). The system debits the accounts retrieved by concatenating the AAI item entered in the processing option for the P75I827 program with the G/L offset from the GST GL Offset Setup table (F75I835). If the AAI processing option and the G/L offset codes are not specified, the system uses the default trade account associated with the AAI item RC.
Before you complete the tasks in this section:
Verify that the HSN tax rates are set up in the GST Tax Rate Setup program (P75I809).
Create unapplied receipts for the advance payments in the Standard Receipts Entry program (P03B102).
Set up the processing option for the P75I827 program. In the processing option, you enter the AAI item (prefix for the AAI) that you want to use to retrieve the intermediate credit account for the company. If you do not specify the AAI item to use, the system uses the default value of RC.
Verify that:
The GST state codes are set up for domestic invoices in the Work With GST State Code program (P75I845).
The state and country of supplier business units and payor address numbers are set up in the Address Book Revision program (P01012).
To enter GST advance payment details:
From the GST Module, click GST Daily Processing (G75IGST3H), and then GST Advance Payment.
On the Work With GST Prepayment Receipts form, enter the document company number. The system displays the required company records.
Review the unapplied receipts for GST advance payments. To view unapplied receipts that are not linked with items and hence has no GST information, click the Receipts Without GST option.
The system displays all the unapplied receipts that you can link with items. The system does not display unapplied receipts for which GST has been calculated using the HSN rate for goods in the P75I827 program and using SAC rate for services in the GST Advance Payment for Services program (P75I829).
Select the receipt that you want to commit and click Select.
On the GST Advance Payment form, review the values in the header fields, and update the Business Unit field if required.
Complete the following fields in the grid:
Item Number
When you enter the item number, the system populates the HSN field with the HSN value that is associated with the item.
Compute GST
Specify N for export transactions that are associated with a bond or LOU. The system does not calculate GST for these transactions.
Remark
This field is enabled for the transactions for which you have specified N in the Compute GST field. You can specify a remark for these transactions, for example, bond or LOU number.
Gross Amount
The system calculates the GST on the taxable amount for each applicable GST type (CGST, IGST, SGST, and Cess) based on the HSN tax rate of each GST type. The system populates the calculated GST amounts in the IGST Amount, CGST Amount, SGST Amount, and CESS Amount fields.
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Note: From the Form menu on the Work With GST Prepayment Receipts for Goods form, you can click Ledger Details to launch the GST Ledger Details program (P75I814). You use this program to review and post batches of GST journal entries. |
You use the GST Advance Payment for Services program (P75I829) to calculate the GST liability for the advance payment received from the customer. The P75I829 program calculates the GST for posted, unapplied receipts using the SAC tax rates for IGST, CGST, SGST, and GST Cess from the GST Tax Rate Setup table (F75I809).
When you commit the receipts for advance payments in the P75I829 program, the system:
Stores the advance payment information in the Advance Payment GST Transaction Services table (F75I831)
Creates ledger entries in the GST Ledgers table (F75I823) with the batch number and the GST amounts for each applicable GST type (IGST, SGST, CGST, and Cess)
Updates the TL (Tax Liability) ledger in the GST Ledgers Setup table (F75I804) with the confirmed liability amounts
Creates journal entries for the liability accounts and updates the Account Ledger table (F0911)
The system credits the permanent liability accounts that you have set up in the GST Account Master Setup program (P75I805). The system debits the accounts retrieved by concatenating the AAI item entered in the processing option for the P75I829 program with the G/L offset from the GST GL Offset Setup table (F75I835). If the AAI processing option and the G/L offset codes are not specified, the system uses the default trade account associated with the AAI item RC.
Before you complete the tasks in this section:
Verify that the SAC tax rates are set up in the GST Tax Rate Setup program (P75I809).
Create unapplied receipts for the advance payments in the Standard Receipts Entry program (P03B102).
Set up the processing option for the P75I829 program.
In the processing option, you enter the AAI item (prefix for the AAI) that you want to use to retrieve the intermediate credit account for the company. If you do not specify the AAI item, the system uses the default value of RC.
Verify that:
The GST state codes are set up for domestic invoices in the Work With GST State Code program (P75I845).
The state and country of supplier business units and payor address numbers are set up in the Address Book Revision program (P01012).
To enter GST advance payment details:
From the GST Module, click GST Daily Processing (G75IGST3H), and then GST Advance Payment Services.
On the Work With GST Prepayment Receipts for Services form, review the unapplied receipts for GST advance payments. To view unapplied receipts for which GST has not been calculated, click the Receipts Without GST option.
The system does not display unapplied receipts for which GST has been calculated using the HSN rate for goods in the GST Advance Payment for Goods program (P75I827) and using SAC rate for services in P75I829.
Select the receipt for which you want to calculate GST and click Select.
On the GST Advance Payment for Services form, review the values in the header fields, and update the Business Unit field if required.
Complete the following fields in the grid:
SAC Value
Compute GST
Specify N for export transactions that are associated with a bond or LOU. The system does not calculate GST for these transactions.
Remark
This field is enabled for the transactions for which you have specified N in the Compute GST field. You can specify a remark for these transactions, for example, bond or LOU number.
Gross Amount
The system calculates the GST on the taxable amount for each applicable GST type (CGST, IGST, SGST, and Cess) based on the SAC tax rate of each GST type. The system populates the calculated GST amounts in the IGST Amount, CGST Amount, SGST Amount, and CESS Amount fields.
The system does not allow you to edit the GST advance payment details after GST is calculated. However, you can reset and reenter advance payment information in the receipts. For posted receipts, you can reset the GST applied and the system creates reversing journal entries in the F0911 table for the receipt.
When you reset the GST applied on receipts, the system:
Deletes the advance payment record for goods from the Advance Payment GST Transaction table (F75I827) and the advance payment record for services from the Advance Payment GST Transaction Services table (F75I831)
Deletes the ledger entries for the record in the GST Ledgers table (F75I823)
Reverses the TL (Tax Liability) ledger entry in the GST Ledgers Setup table (F75I804)
Deletes the associated journal entries in the Account Ledger table (F0911) for unposted receipts
Creates reversing journal entries in the Account Ledger table (F0911) with a new batch number for posted receipts
Reversing journal entries have the same values as the original, but with a reversed amount.
To reset the GST that is applied to an advance payment receipt:
Access the Work With GST Prepayment Receipts for Goods form for goods receipts, or the Work With GST Prepayment Receipts for Goods form for services receipts.
On the Work With GST Prepayment Receipts for Goods form or the Work With GST Prepayment Receipts for Services form, deselect the Receipts Without GST option.
The system displays all unapplied receipts. The system does not display unapplied receipts for which GST has been calculated using the HSN rate for goods in the GST Advance Payment for Goods program (P75I827) and using SAC rate for services in P75I829.
Select the receipt for which you want to reset the GST and click Reset GST on the Row menu.
Click Yes on the confirmation window.
The system performs the reset and updates the tables based on whether the receipt is posted or unposted.
To calculate the GST for a receipt after the reset, access the GST Advance Payment form for goods or the GST Advance Payment for Services form for services.
The Item Number and the Gross Amount fields are enabled for goods, and the SAC Value and the Gross Amount fields are enabled for services. When you complete these fields, the system calculates the GST amounts.
If the customer has made advance payment before receiving the goods, the supplier must offset the advance amounts with the invoice amounts to decrease the GST liability.
You use the Matching Advance Payment With Sales Invoice program (P75I828) to match the advance payment with the sales invoice and to offset the amounts. You must perform the matching process only after generating the tax invoice for the sales orders and after completing the sales update.
Only receipts that are not void, not matched, and have open GST amounts greater than 0 (zero) are available for matching. Only those sales order lines that are not void, not mapped, and for which you have generated the tax invoice and completed the sales update are eligible for matching.
When you offset the advance payments with the sales invoice, the system:
Stores the matched sales order lines and advance payment receipts in the GST Offset Advance Payment table (F75I828)
Creates journal entries in the Account Ledger table (F0911)
The system debits the permanent liability accounts in the GST Account Master Setup program (P75I805). The system credits the trade accounts for the tax authority that are retrieved using the AAI item from the processing option and the G/L offset from the GST GL Offset Setup table (F75I835). If the AAI item processing option and the G/L offset codes are not specified, the system uses the default debit trade account associated with the AAI item PC.
Decreases the open receipt amounts in the Advance Payment GST Transaction table (F75I827)
Updates the TL (Tax Liability) ledger in the GST Ledgers Setup table (F75I804) with the decreased liability amounts
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Note: The system offsets sales invoice line amounts (for CGST, SGST, IGST, and GST Cess) against multiple advance payment receipts.For example, sales invoice 1 can be offset against receipt R1 for CGST amount and receipt R2 for SGST amount. |
Before you complete the tasks in this section:
Generate the tax invoice using the Invoice Print program (R42565).
Run the Sales Update program (R42800) to update the sales order information.
Set up the processing options for the P75I828 program. In the processing options, you enter the:
G/L date that the system uses to retrieve the credit account for the company
AAI item (prefix for the AAI) that you want to use to retrieve the credit account for the company
If you do not specify the AAI item to use, the system uses the default value of PC.
Verify that the GST amounts are calculated for the advance payments received, and the GST amounts exist in the F75I827 table.
To match advance payments with the sales invoice:
From the GST Module, click GST Daily Processing (G75IGST3H), and then GST Matching Advance Payment With Sales Invoice.
On the Work With GST Advance Payment Receipts form, enter values in the following required fields to search for advance payment receipts:
Document Company
Payor Number
This is the address number of the entity who pays the supplier.
GST Unit
GST Rate Type
You must enter values in the above fields to select records and to proceed to the next form. Optionally, you can also enter values in the Receipt Date From and Date Thru fields to narrow your search.
Review the advance payment receipts that the system populates based on your search values.
Select the receipts that you want to match with the invoice, and then click Select.
The system displays the Work With GST Sales Invoice form with prepopulated data in the header fields.
To retrieve sales order lines for the selected receipts, enter values in the Invoice Date From and Date Thru fields in the header.
When you enter the dates in these fields, the system populates the first grid in the form with the sales order lines that are eligible to be matched with the advance payment receipts that you have selected.
The sales order lines in the grid are selected by default with a green tick mark. Standard check boxes are available for each record that you can use to select the records.
To deselect records, click Reset Selection. To select a record, click Select Invoice.
Click Confirm Selection to match and offset the selected sales order lines with the advance payment receipts.
The system populates the details of the sales order lines that are offset against the associated advance payment receipts in the Offset Advance Payment Receipts With Sales Invoice Details grid.
Click Confirm and Update Ledgers to process the records.
The system updates the ledgers after confirmation and displays the batch number for the transaction.
The system updates the ledgers and creates journal entries. If there are errors while updating the ledger and creating the journal entries, the system does not save the transaction and reports the errors.
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Note: From the Form menu on the Work With GST Advance Payment Receipts form, you can click Ledger Details to launch the GST Ledger Details program (P75I814). You use this program to review and post batches of GST journal entries. |
You use the GST Matching Advance Payment With AR Invoice program (P75I840) to match the advance payments for services with the accounts receivable invoice and to offset the amounts. You must perform the matching process only after generating the tax invoice for the service transaction.
Only receipts that are not voided, not matched, and have open GST amounts greater than 0 (zero) are available for matching. Only those invoice lines that are approved, not voided, not mapped, and for which you have generated the tax invoice are eligible for matching. An invoice line can be matched only once.
When you offset the advance payments with the accounts receivable invoice, the system:
Stores the matched invoice lines and advance payment receipts in the GST Offset AR Advance Payment table (F75I841)
Creates journal entries in the Account Ledger table (F0911)
The system debits the permanent liability accounts in the GST Account Master Setup program (P75I805). The system credits the trade accounts for the tax authority that are retrieved using the AAI item from the processing option and the G/L offset from the GST GL Offset Setup table (F75I835). If the AAI item processing option and the G/L offset codes are not specified, the system uses the default debit trade account associated with the AAI item PC.
Decreases the open receipt amounts in the Advance Payment GST Transaction Services table (F75I831)
Updates the TL (Tax Liability) ledger in the GST Ledgers Setup table (F75I804) with the decreased liability amounts
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Note: The system offsets invoice line amounts (for CGST, SGST, IGST, and GST Cess) against multiple advance payment receipts. However, open receipt amount for a particular GST type (for example, CGST) can be offset only against the invoice amount for that GST type (CGST). |
Before you complete the tasks in this section:
Generate the tax invoice using the Legal Document Print Process program (R7430030).
Set up the processing options for the P75I840 program. In the processing options, you enter the:
G/L date that the system uses to retrieve the credit account for the company
AAI item (prefix for the AAI) that you want to use to retrieve the credit account for the company
If you do not specify the AAI item to use, the system uses the default value of RC.
Verify that the GST amounts are calculated for the advance payments received and that the GST amounts exist in the F75I831 table.
To match advance payments with the accounts receivable invoice:
From the GST Module, click GST Daily Processing (G75IGST3H), and then GST Matching Advance Payment With AR Invoice.
On the Work With GST Advance Payment Receipts for Services form, enter values in the following required fields to search for advance payment receipts:
Document Company
Payor Number
GST Unit
GST Rate Type
You must enter values in the above fields to select records and to proceed to the next form. Optionally, you can also enter values in the Receipt Date From and Date Thru fields to narrow your search.
Review the advance payment receipts that the system populates based on your search values.
Select the receipts that you want to match with the invoice, and then click Select.
The system displays the Work With GST AR Invoice for Services form with prepopulated data in the header fields.
To retrieve the invoice lines for the selected receipts, enter values in the Invoice Date From and Date Thru fields in the header.
When you enter the dates in these fields, the system populates the first grid in the form with the invoice lines that are eligible to be matched with the advance payment receipts that you have selected.
The invoice lines in the grid are selected by default with a green tick mark. Standard check boxes are available for each record that you can use to select the records.
To deselect records, click Reset Selection. To select a record, click Select Invoice.
Click Confirm Selection to match and offset the selected invoice lines with the advance payment receipts.
The system updates the ledgers after confirmation and displays the batch number for the transaction.
The system populates the details of the invoice lines that are offset against the associated advance payment receipts in the Offset Advance Payment Receipts With AR Invoice Details grid. This grid contains the offset amounts for each GST type for each invoice and receipt that are matched.
Click Confirm and Update Ledgers to process the records.
The system updates the ledgers and creates journal entries. If there are errors while updating the ledger and creating the journal entries, the system does not save the transaction and reports the errors.
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Note: From the Form menu on the Work With GST Advance Payment Receipts for Services form, you can click Ledger Details to launch the GST Ledger Details program (P75I814). You use this program to review and post batches of GST journal entries. |