Reconciliation
Reconciliation under Goods & Services Tax (GST) is about matching the data filed by the supplier with those of the recipients and recording all the mismatches between them, to ensure error-less bookkeeping as well as to increase transparency.
Types of Reconciliations Available
We have different types of reconciliation:
GSTR-1 vs Sales Register
GSTR-2A vs Purchase Register
GSTR-2B vs Purchase Register
GSTR-9(8A) vs Purchase Register
Outward E-way bill vs GSTR-1
GSTR-6A vs Purchase Register
E-Invoice vs Sales Register
IMS vs Purchase Register Reconciliation
Listing Screen and Reconciliation Actions
On the Listing screen, we can see different options for the configured reconciliation as described below
Summary View
In this, users can view and download the overall summary details of the reconciliation.
Ledger View
In this, the user can use the send mail option for the mismatched entries to the respective suppliers. Here user can also take reco actions on the mismatched entries.
Ledger View Features
Users can send mail to respective suppliers as a notification for the mismatched entries' status.
Users can send emails to multiple suppliers at once or one by one.
Users can see mail status in view mail logs and can download it.
Users can take actions such as accept/reject/force-match and delink for the respective mismatched entries if required.
Document View
The user can view the participation of invoices, there are matched, mismatched entries after reco execution in different buckets accordingly.
Reconciliation Actions
Execute: To "Execute" reconciliation, the user needs to use this button present in the Action column.
Delete: The user can use the "Delete" button present to clear and delete the reconciliation data. Since it is a very critical option so, it has OTP-based authentication which can only be executed by the Admin user. (Refer to the "Manage User" sub-module in "Configuration" module)
Edit: The user can edit the job through the "Edit" button in the Actions column.
View: The user can view the configured job through the "View" button in the Actions column.
Reconciliation Buckets/ Tabs:
While carrying out reconciliation you may find invoices in the below buckets namely:
Matched
This occurs when your register and GST report show that your vendor entered the same invoice. The system matches the entries in both documents based on the Supplier GSTIN and Invoice Number. The system verifies that the Supplier GSTIN and Invoice Number match before checking if the other fields align.
Mismatched
When your vendor (via GST reports) and you both enter the invoice, but there are certain mismatches in the content/values/data of the same invoice, the system will move such invoices to this bucket. However, there are sub-buckets as well, which a user can view in this bucket.
Invoice Date Mismatch: If the Invoice Number is the same for the Financial Year and the date is different for the same invoice.
Note Date Mismatch: When the Note Number is the same for the Financial Year and the date is different for the same note.
Place of Supply Mismatch: It determines that if the nature of the transaction is wrong then the user may face this mismatch.
Invoice Value Mismatch: If there is a mismatch in the Invoice Value between the Vendor and your Invoice, the system will move the invoice to this bucket.
Taxable Value Mismatch: If there is a mismatch in the Taxable Value of the Vendor’s and your invoice, the system will move the invoice to this bucket.
CGST Mismatch: If there is a mismatch in the Intra-State Tax in Vendor and your Invoice.
SGST Mismatch: If there is a mismatch in the Intra-State Tax in Vendor and your Invoice.
IGST Mismatch: If there is a mismatch in the Inter-State Tax in Vendor and your Invoice.
Cess Mismatch: If there is a mismatch in the Cess Value in Vendor and your Invoice.
Not Present in "Report"
As per the naming convention, this bucket contains all those invoices which are present in your registers but are missing in the counterparty filed GST Report.
Not Present in "Register"
As per the naming convention, this bucket contains all those invoices which are present in your registers but are missing in the counterparty filed GST Report.
Invoice Number and Date Mismatch
It is a very special column or bracket which contains all those invoices where the rest of the details are matching i.e. Supplier GSTIN, Taxable Value, Tax Value etc: but the Invoice Number is not matching.
Accepted Records
We have provided an option to the user where they can accept the records from different buckets for their known match/mismatch bucket, this will help them to reconcile the rest of the data.
Non-Reconcile
This bucket consists of multiple types of invoices which include amendment Invoices uploaded by the supplier due to which B2B and B2BA both are coming in the same Financial Year, therefore, we have implemented a logic where B2BA will be reconciled with invoices present in the Purchase Register & B2B will be sent to Non - Reconcile bucket. Also, this bucket contains those invoices where "Return Submit Status" is coming for an invoice as "Y" & "N".
Probable Matched
The user can find the Invoices that are Probable matches. Either one or a few of the details match and the rest details do not match. It gives the flexibility to the user to take action on such invoices
Linked Invoice
It is noticed that sometimes a few invoices appear in the “Not Present in Reports” & “Not Present in Register” buckets due to multiple mismatch reasons. Now to reduce the mismatches in both buckets Masters India has provided a functionality to the user where they can force match those invoices according to their convenience and can also preview the required details on the screen before force matching of invoices.
Rejected Records
Users can reject the mismatch/accept/missing invoices per their reconciliation requirement. All such rejected invoices are then listed under the "Rejected Records" Bucket.
Reversed Records
A taxpayer needs to reverse the ITC amount in the GSTR-3B return if the same payment was not made to the vendor within 180 days. So, Masters India will identify the invoice where payment is held to the vendor even if their reconciliation status is matched, mismatched or missing.
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