Self billing - AP

Australia specifics

Tax invoices are usually issued by the supplier. In special cases, the purchaser or recipient of the goods or services can issue a tax invoice for purchases. This is known as a recipient-created tax invoice (RCTI).

This list shows the conditions in which an RCTI can be issued:

• The purchaser and the supplier are both registered for GST.
• The purchaser and the supplier agree in writing to issue an RCTI. The supplier agrees not to issue a tax invoice.
• The agreement is current and effective when purchaser issues the RCTI.
• The goods or services that are sold under the agreement are of the type that can be invoiced using an RCTI.

Your written agreement can be a separate document in which you specify the supplies. You can also embed this information or the specific terms in the tax invoice.

To be valid, an RCTI must contain sufficient information to clearly determine the standard requirements. Except that it must show that the document is intended as recipient-created tax invoice, and not a standard tax invoice.

Details of the purchaser's identity or ABN are required. If GST is applicable, then the RCTI must show that GST is payable by the supplier.

As the recipient, you must follow these steps:

1. Issue the original or a copy of your RCTI to the supplier within 28 days of one of these dates:
   • The date of the sale
   • The date the value of the sale is determined
2. Retain the original or copy of the RCTI.
3. Reasonably comply with your obligations under the tax laws.

Do not issue a document that would otherwise be an RCTI on or after the recipient or the supplier has failed to comply with the requirements of RCTIs.

How Infor meets the requirement

For setup information, see Financials Setup and Administration Guide.

For ERS invoice creation, see Match User Guide.