Smaac Net Solutions Pvt. ltd.

This document will help you in understanding what all steps are required to be taken in ERP during the change of the financial year. 
You must be knowing that there are many new things that are implemented by the GOI for this new financial year like 6 digit HSN codes, E invoices, and more. This document will help you out on how you can implement all these changes with Smaac ERP. 

Table of Contents: 

1. Creation of the new financial year

During login, you need to select the new financial year when logging in. To create the new financial year, please follow the following steps: 

1. Go to Admin > Advanced Settings

        2. Click on the button  “Add New Financial Year” as shown below: 

        3. Now close the ERP, and in the login form, first type your username and password and then select the appropriate Financial year start, and end.

           Now you will also see the new financial year. 

Note: To load the data of the previous financial year also, you can load two financial years in one go 

(Example: 01- Apr-2020 to 31-Mar-2022)

2. Change in the TCS percentage

The TCS percentage will be changing from the new financial year from 0.075% to 0.01%. To implement the same in your ERP, you can follow the steps mentioned below: 

1. Go to Master > List Master

2. From the list, select "Tax Collect at Source(TCS)".

3. Enter the details as shown below along with the correct Tax % and the effective date. 

Note: The List name will be printed on the Invoice so you can set it as per your requirements. 

3. E-Invoice Generation

From the 1st of April, the E-Invoice will be mandatory for the companies with a Turnover of more than 50 Crore. If you are under that criteria, you can easily create the E-Invoice with a single click from the Smaac ERP. Please follow the steps mentioned below:  

1.  Go to Dispatch > Tax Invoice

           Open the Invoice for which you want the E-invoice to be generated and then click on the button of E-Invoice as shown in the image:

Note: You can also create the E Invoice/ Eway bill directly by going to form Dispatch > E Invoice / Eway bill

2. Fill in all the data like distance etc if it is not auto-filled and then click on the Gen E-Invoice. 

Note: All the data will be prefilled if the details are properly filled in Invoice/DA. The distance will be coming automatically but needs to be mentioned only once for each new party.

Once E-Invoice is generated, the Invoice will be automatically printed with the QR Code, IRN, Ack no, and date. 
In the case of Sales, you can now directly generate the E-way bill by clicking "Generate E-Way bill from IRN". In the case of Job work, you need to select the Challan and then generate the Eway by clicking Generate E-way bill.

3. Please refer the below table to understand how invoices and Challan are used in the case of Jobwork and Sales. 

4. Custom HSN code configuration due to the new changes. 

For the Textile industry, the HSN code will be now 6 digits instead of 4 digit HSN code and will be dependent on the type of Fabric/yarn and the process executed on the fabric/yarn like Dyeing, Bleaching or printing. 

Depending on the type of fabrics/Yarn you have, you can follow the most appropriate steps. 

Please follow these steps to set up the HSN code properly: 

1. Set up the HSN list with the 5th digit of the fabric/Yarn. 

Go to Masters > List Master: 

Select "HSNCode" from the list: 

Now create new HSN codes based on the fifth digit of the fabric/yarn and also make sure to mention the correct GST percentage. 

Note: Do not edit the OLD HSN codes since it might affect the working of your old entries. Make sure to create new HSN codes and mark the old ones as Inactive.

Do not configure all the 6 digits of the HSN code via HSN master. The 6 digit is dynamic and is dependent on the process executed on the fabric. We will be telling how to configure the 6th digit in our next steps. 

As per the law, the fifth digit of the HSN code will be dependent on the composition of the fabric and so you need to select the appropriate HSN code in the Item master of that item. 

2. Go to Masters > Item Master : 

Set the HSN codes of all the Fabrics / Yarn as per the new HSN code you want to be configured. 

You can use the button indicated in the below image to change the HSN codes of all the items in Bulk. 

Note: Please be careful while updating the HSN codes of all the items in Bulk since the action is irreversible. 

Once all the items are set with correct HSN codes, you can move to the next step: 

3. Configuring the 6th digit of the HSN code

Open Masters > Process Route Config: 

Kindly select "Shade Category" under the Main Category and then click on refresh. 

The shade categories mentioned below are used in the Sales order shade grid. 

Now you need to configure the 6th digit in each category as per the rules. 

The 6 digit depends on the process like RFD, dyeing, printing etc. So as per the process, configure the Last digits and click on Update. 

In the same way update the Last digits of HSN code for all the Shade Categories. 

4. HSN code in the WCO

When you go to WCO Shade grid, you will see a new column of HSN code. The HSN code will be auto filled based on the Item HSN code and the Shade Category HSN code. 
The HSN code will be like (Item HSN Code + Process HSN Code)

So for example, if the HSN code of item is 60061 and then process HSN code is 1. The final HSN Code visible in WCO will be 600611.

If you want, you can directly also edit the HSN code in the WCO if the HSN code is not correct. The same HSN code will be used in the dispatch Challan, Invoices, Eway bill and further documents related to dispatch. 

5. Changes in Prefix/Suffix of Invoice

With the change of financial year, the Suffix/prefix of your Invoice number might change depending on your configuration. If your suffix/prefix is dependent on the financial year, please make sure to do the following changes before generating your new Invoice of the financial year. 

Note: Invoice number cannot be changed if created from wrong suffix/prefix. Make sure to do the required changes before making your first new financial year invoice.  

1. Go to Admin > Advanced Settings

    2. In the Voucher Type, select "Tax Invoice"

You will see a list of series used in the Tax Invoice. 

Select the Voucher Series which you want to set from the Dropdown box. 

Select the correct start that i.e. 01-Apr-2021

Then you can set your own prefix, suffix, digits, etc. Once set, click on the "Show Sample" to check the number generated. The same number will be generated when you will create the tax Invoice. 

Note: If you do not want a different configuration for different type of Tax Invoices, you can select "All" in the Voucher Series and then do the settings.

Once the setting is done, make sure to click the button "Update Voucher Series". Follow the same process to update the voucher series of all other Invoice types (If you're not using "All")

Make sure you follow all the steps properly so that you do face any issues during the transition of the financial year. 

Have a great day and enjoy. 

For any support, email us at support@smaac.in