SAP Knowledge Base Article - Public

2657531 - How to Create Self-Invoice for an Unregistered Vendor (GST India)

Symptom

You have procured goods and services from an unregistered vendor and you want to know how to create self invoice for these unregistered vendors

Environment

1805

Resolution

In India, under the Goods and Services Tax (GST) regime, you need to create a self-invoice for all the goods and services procured from an unregistered vendor. This is handled through the Evaluated Receipt Settlements (ERS) invoice. You create an ERS invoice with relevant Reverse Charge Mechanism (RCM) tax codes. For these documents, an Official Document Number (ODN) is generated, based on the GST registration number and the annual year. You can follow the below steps to create self- invoices

  1. Go to the Business Configuration work center
  2. Go to the Implementation Projects view
  3. Select Open Activity List and navigate to Fine Tuning tab 
  4. Select Document Numbering Formats for Supplier Invoicing activity and click on Insert Row
  5. Enter Company ID belongs to India and Document Type as Supplier Invoice
  6. Fill the Tax Registration Number details from the list and press enter so that Self Invoice column will be marked as Yes
  7. Define the Prefix Value and Separator
  8. You can also define Calendar Year as Suffix, Year Suffix Selection Date & Start Document ID
  9. Select Save

Now you can create Evaluated Receipt Settlements (ERS) invoice from the below steps;

  1. Go to the Supplier Invoicing work center
  2. Go to the Common Tasks and select New ERS Invoice
  3. Enter the Company ID that belongs to India
  4. Enter Supplier, Invoice Date and the External Document ID, and make sure that this ID is unique as it will help you locate the invoice
  5. Navigate to Items tab and enter the Product ID
  6. Enter the Tax code that is associated with GST RCM tax codes
  7. Save or Post the Evaluated Receipt Settlements (ERS) invoice

System creates the self-invoice and generates an Official Document Number (ODN) that adheres to the rules maintained in the business configuration

Note:

1. Currently, the tax codes associated with the GST RCM are as follows:

Tax Code     Tax Code Description
86               Import of Service (Reverse Charge – IGST)
89               Domestic Purchase Interstate (IGST) - Reverse Charge
90               Domestic Purchase Interstate (CGST & SGST) Reverse Charge
91               Domestic Purchase UT (CGST & UTGST) - Reverse Charge

2. When you copy a self-invoice, the document numbering rules will not be applicable, as this invoice is treated as a supplier invoice

Keywords

Self Invoice, Invoice for unregistered vendors , KBA , invoice for unregistered vendors , self invoice, , AP-SIP-SIV-GLO , Cross-Country Extensions , Problem

Product

SAP BUSINESS BYDESIGN 1802 ; SAP BUSINESS BYDESIGN 1808 ; SAP Business ByDesign 1805