Matching Advance Payments with Sales Invoices for GST
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.
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
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.