Calculating GST Reverse Charge Amounts for Advance Payments
To calculate reverse charges for advance payments:
From the India Localization module (G75I), click GST Module, GST Daily Processing, and then Reverse Charge on Advance Payment for Purchase (P75I838)
On the Work with Reverse Charge on Advance Payment P2P form, complete the header fields, and then click Search.
Review the payment information of the prepayment vouchers that are subject to GST.
Select the payment record for which you want to apply the reverse charge, and click OK.
In the header of the Reverse Charge on Advance Payment P2P form (P75I838|W75I383B), complete the Business Unit field.
You can override the Place of Supply field value that is used by the system to update the Transaction Category value.
The system populates other fields with the details you provided in the P0413M program.
In the grid, complete the following fields and click OK:
HSN or SAC value
Note: Use the visual assist to search for the HSN or SAC value based on the item or the category.Gross Amount
GST Rule
The system calculates the receiver and provider GST amounts for each item based on the HSN or SAC value and the provider and receiver percentages set up in the GST Rule Setup program (P75I802).
The system stores this information in the Reverse Charge Advance Payment Header File table (F75I838) and Reverse Charge Advance Payment Details File table (F75I839).
The system updates the GST cash ledger with receiver's reverse charge amount on the advance payment and stores the information in the GST Ledgers Setup table (F75I804) and GST Ledgers table (F75I823).
If the processing option for R75I801 is set to display an error if the GST cash ledger does not have sufficient balance, then an error is displayed if sufficient balance is not available in the GST cash ledger.
The system stores the self-invoice number in the Reverse Charge Advance Payment Header File table (F75I838) and GST Self Invoice Header File table (F75I848).
The system updates the following accounts:
GST Cash Ledger
Credits the permanent GST cash ledger account with the recoverable and nonrecoverable receiver amount in the current period.
Debits the intermediate ITC account with the GST recoverable receiver amount in the current period.
Debits the nonrecoverable account with the nonrecoverable receiver amount in the current period.
ITC Claim Accounts
Credits the intermediate ITC account with the recoverable reverse charge receiver amount in the next period.
Debits the permanent ITC account with the recoverable reverse charge receiver amount in the next period.
When the cash ledger accounts are updated, the G/L date is the date specified in the processing options of the R75I801. If a date is not provided in the processing options of R75I801, the system date is used as the G/L date. When the ITC claim accounts are updated, the G/L date is the first day of the next period setup in the GST Ledgers Setup program (P75I804).