Tax Technology

Vendor management

Evolving tax laws necessitate greater control over vendor compliances

A PwC India product

Buyer’s Goods and Service Tax (GST) credit contingent upon suppliers’ compliance – e-invoice, invoice reporting in GST returns, etc.
Limited time available for monthly reconciliation and issue resolution cumbersome process involving multiple stakeholders
Impact on business continuity if e-way bill status of vendors is blocked
Higher withholding implications if a vendor does not file corporate tax returns

Using technology to make vendor management more effective is essential in today’s tax environment.

Challenges

Do you have reasonable visibility into blocked credits for your organisation?

Are you tracking vendors who default?

How effective is your reconciliation issue resolution mechanism?

Do you perform vendor tax-risk profiling as part of the selection process?

Managing vendors effectively from the tax perspective – the PwC way

Layer 1: Master-level controls
Real-time/batch mode validation of GSTIN for accuracy and compliance status (optional backward integration with ERP)

Layer 2: Transaction-level controls

Tracking invoice validity for QR code
Validating invoices from e-invoice perspective
Leveraging information in ERP for invoice processing
Performing vendor reconciliation
Performing auto-reconciliation in Navigate GST for subsequent actions
Vendor communication
Two-way vendor communication (through Navigate GST) to resolve reconciliation issues
Automating actions based on reconciliation status
Retention/debit/release of payment in ERP
Credit transfer from interim to final account

Layer 3: Analytics and insights