Impacts of Goods & Service TAx (GST) on Manufacturing ERP

Introduction and implementation of the GST in India has brought not only tax reforms but also the set of major changes in the entire business process and its management. To deal with it, you should go for customization and reconfiguration of your Enterprise Resource Planning System(ERP).

To adapt according to GST implementation, the manufacturing industry should have to ensure that all necessary reforms and amendments in the tax evaluation system. GST related various elements involved must be integrated and implemented into the manufacturing ERP software. Now some of the taxes to be subsumed into GST includes VAT, Service Tax, Excise, Entertainment Tax, Entry Tax.

You should try that when you ask for GST implementationfor ERP service provider that it should consider your appropriate terms and mention all the details as per your industry or organization guideline given by government into the GST notifications.

Some GST impacts on ERP system are:

1. Adaptability: Upgrade the ERP version and make the system compliant to GST, making all necessary changes.

2. Business Process Refinement: Review all the GST related terms and all tax related to inward and outward process. Apply only the appropriate rules or tax calculation guidelines relevant to your business.

3. Tax Configuration and Compilation: Configure all the GST related modifications in the system making it more accountable and compliant to GST.

4. Document Numbering: Unique number of the each business transactions should be monitored and calculated as per fresh guideline of GST.

5. Master Data Amendments:Amend all the necessary changes in the master data record so that the system calculate the exact and appropriate tax calculation according to each transaction and requirement.

6. Reporting & printing requirements: GST compliant reporting is ensured after making all changes in the ERP system with respect to GST. All essential modifications in GST format such reforms in sections handling purchase orders,quotation invoices & so on should be done.

Consequently, generally speaking, the GST will require businesses to revisit the following areas in their ERP:

* Procurement or Materials Modules: Module handles all the procurement of the materials and obtaining the relevant records about the materials purchased.

* Sales or Supply Chain Modules: This module deals and handles the supply chain of the different raw materials and the finished product supply.

* Financial Management Modules:This module handles the financial management modules regulating all the financial processes and financial management issues.