GST Prepayment Process in navision

amandeep

Hi Friends,

kindly let me know how the prepayment process is working in GST..
and the payment is adjusted...what are the financial entries passed into the system in case of gst.
In case of registered vendor & unregistered vendor...

Regards,
A.D Singh

MPandey

GST on Advance Payment -

GST on Advance Payment field needs to be activated in General Journal Line for computation of GST on Advance Payment. In addition, GST Group code, GST Place of Supply and HSN/SAC Codes are to be entered for computation of GST.


GST on Advance Payment is calculated in the following scenarios:

• Import of Services

• Purchase of goods and services from an unregistered person

GST on Advance Payment is not calculated in the following scenarios. In other words, system shall not allow you to check GST on Advance Payment in the following scenarios:

• Normal purchases

• Import of goods

For the above scenarios, no GST liability is created at the time of advance payment and hence no GST related accounting entries are generated.

Create Advance Payment entry in a normal way, new changes are; Place check mark on GST on Advance Payment, Select GST Group code, HSN Code, Location code, GST Place of Supply (you have to activate these fields on Bank/Cash Payment voucher screen).

System will auto update GST Base amount.


Then click on Preview Posting button & check G/L Entries.