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India e-invoicing requirement - Accounts Payable

Hello - I wanted to check with regards to e-Invoicing law of India from Procurement perspective.

Currently before the law kicks in on Oct - 2020, we have 3 systems relating to procurement - SAP Ariba, SAP S4 and OpenText. We have a Reference Field where we will input invoice number to trigger processing of payments.

However, once the e-invoicing law kicks in from Oct - 2020;

1) Are we supposed to use IRN# instead of Invoice# to trigger processing of payment?

2) Or we need both IRN# and Invoice#?

3) How about vendors that does not cross the e-invoicing thresholds and not subjected to generate IRN#? We continue to use Invoice# to trigger processing of payments?

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  • Best Answer
    Posted on Jul 02 at 12:17 PM

    Hello Da-Wei Au

    I am not aware of your specific scenarios, but based on my understanding, the responses are as below:

    1) The IRN No and Invoice No will continue to be two seperate fields. You will need to capture both. The payment will be triggered as well through the SAP Internal document no for the company code using the normal payment transactions. Nothing changes there.

    2) You need to capture both IRN and Invoice No from Vendor since the same needs to be reported by your tax colleagues as part of GSTR 2 and ensuing reconcilliation with the information loaded by Supplier on GSTN. In case, you use self invoicing as well you will need the info as well to be sent as an e Invoice and get IRN No

    3) In case, the supplier is not relevant for e Invoicing, than still you need to record the invoice no provided by supplier. The payment will still be with reference to SAP Internal document no using transactions like F110 or F-53.

    A follow up note could be on the payment advise to the supplier. I would suggest to speak to your tax colleagues and purchasing buyers on what should be contained on the payment advise output. I would suggest to show both IRN No and Supplier Invoice No to avoid confusion.

    Hope this should be able to help.

    Thanks & Regards,

    Sanil Bhandari

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