- Manual monthly reconciliation of PAN India purchase register (PR) vs GSTN GSTR2B for 10,000+ invoices across multiple states
- Loss of working capital due to GST input credit disallowance in case of non-compliance by vendor
- GST Input tax credit disallowance in respect of the invoices/debit notes not matched with GSTR-2B
- Non availability of report containing near/probable matches for unmatched items (viz clerical/posting errors)
- Lack of control over reconciliation status due to decentralised/multistate purchase reconciliation activity and non availability of dashboards.
Challenges of tax/finance function
How our customised ERP automation addressed the challenges?
- Automated daily extraction and push of PAN India purchase transactions from ERP to Cloud based GST Compliance Platform for 2B reconciliation
- Regular and fuzzy logics based 2B reconciliation results for each purchase transaction updated in ERP
- Automated vendor payment hold/release in ERP basis the reconciliation report from GST compliance platform (viz Matched-Release Payment, Unmatched-Hold)
- GST validations applied to purchase transactions before 2B reconciliation to get meaningful results (e.g. invalid supplier GSTN, etc.).
Outcomes
- Improved governance due to GST reconciliation status updated in ERP for each purchase document, thereby enabling business in 2B based ITC claim
- Efficient working capital management by non release of payment to non-compliant vendors (i.e. purchase invoices/debit notes not matched with GSTR2B)
- PAN India purchase dashboards with 2B reconciliation result status updated for each purchase document within ERP for multistate operations.
