Accounts Payable Tax Invoices for South Korea
Accounts Payable (AP) tax invoices need to be reconciled against the tax invoices that the South Korean tax authorities (NTS)
hold in their systems.
To be able to do the reconciliation, the tax invoices must be downloaded from NTS into M3.
This document explains how to:
Enter invoices into accounts payable.
Download and import tax invoices from NTS.
Manage and reconcile tax invoices in M3.
AP tax invoices entered in Accounts Payable are stopped from payment and additional information 470 is updated.
AP tax invoices are downloaded from NTS and imported to M3.
AP tax invoices are reconciled against Accounts Payable and released for payment. Additional information 472 is updated.
Common starting conditions
Settings must have been made in 'Tax Invoice. Open Settings' (TXS090) to define how the supplier invoices should be stopped for payment.
Select 'Payment stop'
Select 'Stopped by'
Select if all domestic invoices or if all domestic invoices including VAT should be stopped for payment.
User-defined payment stop code must have been defined in 'Supplier Payment Stop. Open' (APS080).
Limitation for AP tax invoice
The field 'Country version' in 'Division. Open' (MNS100) must be set to KR – 'South Korea'.
Follow these steps
Specify tax invoice in (APS100) or (APS450).
Specify supplier invoices or match invoices to purchase orders in 'Supplier Invoice. Record' (APS100). Invoices can also be received in 'Supplier Invoice Batch. Open (APS450). The invoices are automatically assigned the value of 'Payment stop', 'Stop date', and 'Stopped by' to prevent the invoices
from being paid before reconciling against the tax invoice file received from NTS. Additional information 470 is updated with
the tax invoice number.
Note: The supplier invoice number in M3 can consist of up to 24 characters. The tax invoice number in South Korea consists of 26
characters. Example: 20171231-41000001-000xxxxx. This means that the invoice number must be specified without the '-' sign
for it to fit into the invoice number field in M3 and also to enable the reconciliation against the tax invoice file downloaded
Download the tax invoice file from NTS.
The process starts when the user logs in to NTS and downloads the selected tax invoices into an Excel file.
Import tax invoice to TXS910.
The tax invoices are imported to M3 using the MI-program TXS910MI and the 'Add' transaction. Automatic reconciliation is performed
by the MI-program if a matching invoice exists in accounts payable. The invoices are reconciled if supplier, invoice number
(approval number without the "-"sign), gross amount, and VAT amount matches. When reconciled, payment stop code, stop date,
and stopped by are removed from the AP invoice record. The tax invoice receives status 4-'Reconciled' in (TXS910).
If no matching invoice is found in accounts payable, the tax invoice receives status 2-'Failed' and show an error code in
These are the possible error codes:
Manage tax invoices in (TXS910).
The AP tax invoices are displayed and managed in 'AP Tax Invoice. Open' (TXS910).
Use related option 7-'Reconcile' to manually reconcile tax invoices against accounts payable. This can be done when status
is 1-'New' or 2-'Failed'. Only invoices with a payment stop code can be selected. If the amounts match, the status is set
to 4-'Reconciled'. The payment stop information is removed from the AP invoice. If the amounts do not match, the status is
set to 3-'Matched with variances'.
Use related option 8-'Approve' to manually approve tax invoices in status 3-'Matched with variances'. This sets the status
to 4-'Reconciled' and the payment stop information is removed from the AP invoice.
Use related option 10-'Reset status' to reset status from 2 or 3. This can be done to rerun a reconciliation if something
failed or is incorrectly matched.
Use related option 11-'Dsp AP detailed' to drill down to 'Acc Payable. Display' (APS200). This displays accounts payable for the selected supplier.
Use related option 12-'Dsp invoice' to drill down to 'Supplier Invoice. Display in Number Seq' (APS205). This displays single invoices in accounts payable.
Use related option 13-'Supplier invoice' to drill down to 'Supplier Invoice. Record' (APS100). This facilitates the entry of any missing invoices in AP.
Use related option 14-'Supplier Invoice. Display Pmt Stopped' to drill down to 'Supplier Invoice. Display Pmt Stopped' (APS240). This displays the payment for stopped invoices by due date and payment stop code.
Use F17 to reconcile all invoices in status 1-'New' and 2-'Failed'.
Use F18 to approve all invoices in status 3-'Matched with variances'.
You can also delete a single tax invoice in any status. Use related option 4-'Delete' when status is 1-'New', 2-'Failed',
or 3-'Matched with variances' to import the deleted tax invoice and reconcile again if something went wrong with the first
import run. When deleting a tax invoice in status 4-'Reconciled', the invoice cannot be reconciled against the same AP invoice
again. Deleting tax invoices in status 'Reconciled' must only be done for cleanup in TXS910 for completed invoices.
Use F14 to delete tax invoices. A selection panel is displayed with the 'From' and 'To' values for 'Creation date', 'Supplier',
'Status', and 'File name'.
Note: Deleting tax invoices does not reverse any updates done in Accounts Payable. This is meant to be used for cleanup in TXS910
for completed invoices.