Impact of GST on Customer Claim process

When registering a customer claim, you must specify whether the claim is settled by a credit note (sent to the customer) or by an invoice (received from the customer) using the Claim Invoice Procedure option in the Customer Claim (tscmm1600m000) session.

You can also specify if the claim line must be reimbursed in cash or material. You must set the Claim Method field to Reimburse Costs or Reimburse Materials in the Customer Claim Lines (tscmm1110m000) session.

  • If the GST applicable check box is selected in the India Localization Parameters (tccom9136m00l) session, the Tax Code must be destination (location) based tax.
  • GST tax details are applicable only if the Claim Method is set to Reimburse Costs in the Customer Claim Lines (tscmm1110m000) session.
  • LN defaults GSTIN (GST India) numbers as the Registration Number Own and Registration Number of Business Partner.
For returning/receiving a defective part from a customer

The Approval Action field in the Customer Claim Lines (tscmm1110m000) session indicates the status of the items received from the customer.

If this Approval Action field is set to Keep and Take Ownership, during warehouse receipt in the Customer Claim Receipts (tscmm1113m000) session:

  • The Goods Pass Out Document (GPD) must be populated.
  • Input Tax Credit must be available after the receipt is created.

If this Approval Action field is set to Return to Customer, during warehouse receipt in the Customer Claim Receipts (tscmm1113m000) session:

  • GPD must be populated and D3 intimation must be generated.
  • The Ownership field must be set to Customer Owned and the Input Tax Credit must not be available.

If this Approval Action field is set to Scrap, during warehouse receipt in the Customer Claim Receipts (tscmm1113m000) session:

  • D3 intimation number must be generated along with GPD.
  • The Ownership field must be set to Customer Owned and the Input Tax Credit must not be available.
For returning item to customer

If the item is returned to the customer, a claim delivery line is created in the Customer Claim Deliveries (tscmm1112m000) session. The Material Type field is set to Return Material, to indicate that the delivery line is used to return the claim item to the customer.

The GST details such as Assessable Value for GST, ASV Origin for GST and Taxable ASV for GST must be specified in the Customer Claim Deliveries (tscmm1112m000) session. Infor LN also defaults the tax data on the outbound order line.

For receipt of the invoices

When the claim is approved and the Claim Invoice Procedure field is set to Invoice Based in the Customer Claims (tscmm1100m000) session, an invoice must be received from the customer. To link the invoice received in the Accounts Payable to the claim line, you must select the Approve for Invoice Linking option in the Customer Claim Lines (tscmm1110m000) session. Infor LN defaults the taxes specified on the claim line as invoice tax lines in Accounts payable after the claim line status is changed to Approve for Invoice Linking.

For credit notes

When the claim is approved and the Claim Invoice Procedure field is set to Credit Note Based in the Customer Claims (tscmm1100m000) session, a credit note sales invoice is created in Invoicing. Infor LN defaults the tax data specified on the claim line when the claim billable lines are created.

For reimbursement of material

When the claim is approved and the Claim Method field is set to Reimburse Materials in the Customer Claim Approval (tscmm1110m100) session, a delivery line is created in the Customer Claim Deliveries (tscmm1112m000) session and new material is issued for reimbursement to the customer.

  • If the delivery line is processed using the warehouse, tax details specified on the sales order must be same as the tax details specified in the Customer Claim Deliveries (tscmm1112m000) session. Infor LN defaults these tax details on the outbound order line.

For claim line settlement

After the claim is approved, the claim Line Status is set to Settled only if the Claim Method is set to Reimburse Costs in Customer Claim Approval (tscmm1110m100) session.

  • If the Claim Invoice Procedure field is set to Invoice Based in the Customer Claims (tscmm1100m000) session and the Claim Method is set to Reimburse Costs in the Customer Claim Lines (tscmm1110m000) session, the purchase invoice lines can be linked to the claim line using a ledger account with the customer claim integration set. The purchase invoices related to the orders must be approved in Accounts Payable. Infor LN defaults the Tax code specified on the claim line as Invoice Tax lines in Accounts Payable.
  • When the Claim Invoice Procedure field is set to Credit Note Based in Customer Claim Invoice Lines (tscmm1115m000) session, the sales credit note is created in central invoicing. LN creates customer claim invoice line in Customer Claim Invoice Lines (tscmm1115m000) session and set the status of the claim invoice line to Settled. Infor LN defaults the tax details from the claim line to the billable lines.

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