| # Installment Invoice Processing For sales orders with Direct or Indirect settlements ( Installments), the GST tax invoice considers the installments that are already processed and calculates the taxes only on the net amount, that is ( Goods amount + Taxes – already invoiced Installments). You can settle the invoice in two ways: Direct settlement: The application allows you to create installments for the sales order value after deducting advance and Installment types. The advance installments must be collected and processed before goods can be delivered and invoice is processed. Note It is not mandatory to invoice all the installments before processing the goods invoice. Indirect settlement: The application ensures that all the installments are processed (invoiced) and closed, before the goods can be invoiced. GST Form 3 Report The installment invoices and the goods invoiced are displayed in the GST Form 3 report for the period in which the invoices are processed. The tax is calculated on these invoices. The value for the goods invoiced is the total of all installments processed and tax is applicable on these installments. Generate Audit File (GAF) Report The GAF Audit report must display the installment and Goods invoice. The GAF must display the invoice details for the period in which the installments are invoiced. The report includes an exception which is related to the description of the item. The description of item is displayed as 'Advance Installment Invoice' while the invoices are processed only for the specified period and not in advance. The reason being, the sales order can have multiple lines and the advance is payable for the complete sales order and not for a specific invoice. The GAF report must include all the invoiced lines and respective item details with total value ( without deducting settled amount). An additional line must be displayed with the installment amounts that are already adjusted with this invoice. The description for this line is displayed as 'Advances / Installments Adjusted'. The base amount to calculate tax and the tax amount must be displayed as negative value. The base amount to calculate tax for this line must be total value of the installments that are adjusted ( based on the tax code) and the tax amount on the adjusted installment. If the guarantee installments are available, the amount of this installment must be adjusted against the Goods invoice irrespective of the invoicing of the guarantee installment. |