Invoice Management System

With the Invoice Management System (IMS), you can transform how you handle transactions in your business. This feature allows taxpayers to easily accept, reject, or mark transactions as pending for later review, simplifying the reconciliation process and improving accuracy in accounting.

IMS Inward Supplies

When a business purchases goods or services, it pays GST on those purchases. It can then claim Input Tax Credit (ITC) for the sales made from those goods or services. However, the buyer can only claim ITC if the supplier has filed the sale in their GSTR-1/1A/IFF. If the supplier fails to file GSTR-1 or reports incorrect information, the buyer may not be able to claim the credit.

An Invoice Management System (IMS) simplifies this process by ensuring that only accurate and valid transactions are considered for ITC claims. The transactions that do not have reverse charges and are eligible for ITC, reported by your supplier in GSTR-1/1A/IFF, will be displayed on the IMS inward supplies dashboard. You can then accept, reject, or mark these transactions as pending.

Only transactions filed by the supplier will be included in the ITC calculation.

If no action is taken on a transaction, it will automatically be deemed accepted, and a draft GSTR-2B will be generated including only the accepted or no action taken invoices on the 14th of the following month.

This flow between GSTR-1/1A/IFF and GSTR-2B through the IMS helps streamline the process of claiming ITC while ensuring that all transactions are accurate.

Taxpayers can modify their actions on transactions until they file Form GSTR-3B for the month.

Pull Transactions from GSTN

To take action on transactions filed by your supplier, you first need to pull those transactions from GSTN. Here’s how:

• Go to GST Filing on the left sidebar.
• Click View Returns.
• Navigate to the IMS Dashboard in the new page that appears.
• Click View Summary next to IMS Inward Supplies.
• Click Pull From GSTN in the IMS Inward Supplies page.

Now, the transactions will be pulled from GSTN. A summary of Inward Supplies will be displayed on the screen in the Overall Summary section of the Overview tab.

Action	Description
Accepted	The invoices that are accepted will be included when generating GSTR-2B.
Rejected	These invoices that will not be included when generating GSTR-2B.
Pending	The transactions that are marked as pending will remain in the IMS and will not be included when generating GSTR-2B.
No Action	These invoices will be deemed accepted at the time of generating GSTR-2B.

Review Transactions

After the transactions reported by your supplier are pulled from GSTN, they will be categorized under the Matched, Partially Matched, and Missing in Zoho Books tabs. You can either accept, reject, or mark the transactions as pending after verifying them with the Purchase transactions in your Zoho Books organization. Here’s how:

• Navigate to the Review Transactions tab.

Here, you can view the Matched, Partially Matched, and the transactions that are Missing in Zoho Books. To take action on any transaction in these tabs, click the Actions dropdown and select an option.

Tab	Description
Matched	You can view the pulled transactions that match with your Purchases transactions under the Matched tab. Note: The transactions under this tab can only be accepted or marked as pending.
Partially Matched	You can view the pulled transactions that partially match with your purchase transactions under the Partially Matched tab. Note: The transactions under this tab can be accepted, rejected or marked as pending.
Missing in Zoho Books	If the pulled transactions don’t match any purchase transactions, they will be displayed under the Missing in Zoho Books tab. Note: The transactions under this tab can only be rejected or marked as pending.

You can view the latest action taken on a record under the Reviewed tab.

Push to GSTN

The actions taken on the pulled transactions need to be updated on the GSTN. Here’s how you can do it:

• Navigate to the Push to GSTN tab.

You can view all the transactions, the action taken on them, and those that need to be updated in GSTN under the Ready to be Pushed tab.

• Click Push to GSTN in the top right.

Now, the transactions will be scheduled to be pushed to GSTN, and you will be notified once the push is completed. Once the transactions are pushed to GSTN, you can view them under the Pushed tab.

If you have transactions that failed to be pushed to GSTN, you can view them by clicking Failed Transactions on top of the Push To GSTN section.

Revert Action Taken on a Transaction

You can revert the action taken on a transaction. When you do this, the Action Taken on the transaction will be reset to No Action. Here’s how you can do it:

• Under Review transactions, navigate to the Reviewed tab.
• Click the Actions dropdown for the transaction you want to change, and select Reset Reconciliation.

If you reset the action taken on a transaction, the transaction’s Push Status will be changed to Yet to Reset in Portal in Zoho Books and you will need to update this change by pushing it to GSTN again.

However, if you do the same to an unpushed transaction, its Action Taken will be changed to No Action and it will be removed from the Reviewed tab. It will then be moved to other tabs within the Review Transactions section.