Processing the ISD invoice

To process the ISD invoice and distribute the input tax credit amount, execute these steps:

Note: This process is applicable for the ISD invoices related to cost items and service items.
  1. Select Procurement > Orders > Order Intake Workbench. The Purchase Order Intake Workbench (tdpur4601m200) session is displayed.
  2. Click New. The Purchase Order (tdpur4100m900) session is displayed.
  3. Select the business partner in the Business Partner field and press Tab.
    Note: Infor LN populates the data related to the selected business partner in the order header.
  4. Click New on the Order Lines tab to create the purchase order line.
  5. Select the service item in the second segment of the Item field.
    Note: Ensure that the warehouse is not linked to the item.
  6. Click Go to Details for the purchase order line. The Purchase Order Lines (tdpur4101m000) session is displayed.
  7. Select the ISD tax code in the Tax Code field of the Tax tab.
    Note: Verify that the tax code applicable for ISD is updated based on the selected tax classification. If Tax Exceptions by country are maintained and for a tax classification code a ISD tax code is maintained, on the purchase order line tax classification code form business partner is defaulted and user can select the ISD tax classification which defaults the ISD tax code.
  8. Click Save changes and exit in the Purchase Order Lines (tdpur4101m000) session.
    Note: The warehouse receipt procedure is not applicable for the ISD process as only services are distributed not the goods.
  9. Verify that the purchase order line is selected in the Purchase Order (tdpur4100m900) session.
  10. Select References > Recipient Identification Data. The Recipient Identification Data (lpind0115m000) session is displayed.
  11. Select Actions > Insert Defaults to add the registration numbers of the states that use the service, and the input tax credit is distributed.
    All Recipient GSTIN’s are defaulted, and user can validate the defaulted GSTIN’s and the GSTIN’s for which ISD tax amount is not required to be distributed, user can manually select and delete the recipient GSTIN’s.
  12. Click Save changes and exit in the Recipient Identification Data (lpind0115m000) session.
  13. Click Approve in the Purchase Order (tdpur4100m900) session.
  14. Select References > Status. The Purchase Order Line Status (tdpur4534m000) session is displayed.
  15. Click Execute to confirm the receipt. The Purchase Receipts (tdpur4106m000) session is displayed.
  16. Click Confirm Receipt to receive the service.
  17. Click OK to close the Purchase Receipts (tdpur4106m000) session.
  18. Click Save changes and exit in the Purchase Order Line Status (tdpur4534m000) session.
  19. Select Financials > General Ledger > Journal Voucher Entry > Transactions. The Transactions (tfgld1101m000) session is displayed.
  20. Specify the required details in the header section and click New on the Transaction Types tab.
  21. Select APE in the Transaction Type field and click Go to Details button. The Purchase Invoice Entry (tfacp2600m000) session is displayed.
  22. Select Invoice Related to Purchase Orders in the Invoice Type field.
  23. Specify the order number in the Order field and press Tab. The order related data is updated on the invoice header.
  24. Specify the supplier invoice number in the Supplier Invoice field, if required.
  25. Click Save.
  26. Specify the amount to be distributed in the Amount field on the invoice header.
  27. Verify that the registration numbers are updated based on the specified master data.
  28. Click Match Receipt. The Match Purchase Receipt Lines (tfacp2544m000) session is displayed.
  29. Select the purchase line and click Match Selected Receipts.
  30. Select Actions > Cost Items. The Matched Purchase Invoice/Statement Line Transactions (tfacp1133s000) session is displayed.
  31. Specify the ledger account for the cost in the Ledger Account field and click Save changes and exit.
  32. Click Save changes and exit in the Match Purchase Receipt Lines (tfacp2544m000) session.
  33. Verify that the matched receipt line is displayed on the Matched Lines tab in the Purchase Invoice Entry (tfacp2600m000) session.
  34. Select Actions > Check Tax Consistency. The Tax Consistent field is set to Yes.
  35. Select Actions > Generate Tax Transactions to generate the tax transactions.
  36. Verify that the generated tax transactions are displayed on the Tax Lines tab.
  37. Click Approve to approve the purchase invoice.
  38. Click Save changes and exit in the Purchase Invoice Entry (tfacp2600m000) session. The Transactions (tfgld1101m000) session is displayed.
  39. Click Finalize in the Transactions (tfgld1101m000) session.
  40. Click Continue in the Select Device window.
  41. Review and close the Finalization Status, Journal Report (sorted by Company/Document), and Journal Report (Total by Ledger Account) reports.
  42. Click Save changes and exit in the Transactions (tfgld1101m000) session.
  43. Select Localization > India > Tax Reporting > GST Register 360. The GST Register 360 (lpind5630m000) session is displayed.
    Note: You can also generate the purchase data from the Generate Purchase Data (lpind5230m100) session.
  44. Select Actions > Generate Purchase Data. The Generate Purchase Data (lpind5230m100) session is displayed.
  45. Click Generate.
  46. Verify that the process is completed.
  47. Click Close in the Generate Purchase Data (lpind5230m100) session.
  48. Select Localization > India > Tax Reporting > Process ISD Invoices. The Process ISD Invoices (lpind5650m000) session is displayed.
  49. Click Go to Details for the generated ISD invoice in the ISD Invoices section. The ISD Invoices (lpind5150m000) session is displayed.
  50. Review the base amount and the tax amount on the Amounts tab.
  51. Click Save changes and exit in the ISD Invoices (lpind5150m000) session.
  52. Verify that the ISD invoice is selected in the Process ISD Invoices (lpind5650m000) session.
  53. Select References > Recipient Identification Data. The Bill of Entry (lpind1115m000) session is displayed.
  54. Review the recipients for whom the input tax credit can be distributed.
  55. Click Save changes and exit in the Bill of Entry (lpind1115m000) session.
  56. Select the recipients in the ISD Invoices - Distribution Details section of the Process ISD Invoices (lpind5650m000) session for whom distribution is not required and click Delete, if required.
  57. Select Actions > Distribute by Turnover. The tax amount is distributed based on the turnover automatically. However, you user can modify this data manually up to the approval of the distribution amount.
  58. Verify that the ISD invoice is selected in the ISD Invoice section.
  59. Select Actions > Approve/Unapprove to approve or reject the distribution amounts.
  60. Specify the journal voucher (JV) in the Transaction Type field of the header section before processing the distribution amounts.
  61. Select Actions > Process to process the distribution amounts.
  62. Click Continue in the Select Device window.
  63. Review and close the Distributed ISD Invoice report that displays the distributed invoice amount.
  64. Select References > Document History for each recipient line in the ISD Invoices - Distribution Details section of the Process ISD Invoices (lpind5650m000) session. The Document History - Transaction Lines (tfgld0618m200) session is displayed.
  65. Review the distributed tax amounts and the related transactions on the Non-Finalized Transaction Lines tab.
  66. Click Save changes and exit in the Document History - Transaction Lines (tfgld0618m200) session.
  67. Continue with the finalization procedure for the documents.
  68. Verify that the ISD invoice is selected in the ISD Invoices section.
  69. Select Actions > Correction.
  70. Verify that three invoices are created (Actual invoice, Reversal invoice, and Correction invoice).
  71. Verify that you can modify the distribution details only for the Correction invoice.
    Note: To process the correction invoice, the reversal invoice must be processed.