fix: Reverse Charge booking logic and validation

erpnext/accounts/doctype/gst_account/gst_account.json

@@ -1,196 +1,82 @@
 {
- "allow_copy": 0, 
+ "actions": [],
- "allow_guest_to_view": 0, 
+ "creation": "2018-01-02 15:48:58.768352",
- "allow_import": 0, 
+ "doctype": "DocType",
- "allow_rename": 0, 
+ "editable_grid": 1,
- "beta": 0, 
+ "engine": "InnoDB",
- "creation": "2018-01-02 15:48:58.768352", 
+ "field_order": [
- "custom": 0, 
+  "company",
- "docstatus": 0, 
+  "cgst_account",
- "doctype": "DocType", 
+  "sgst_account",
- "document_type": "", 
+  "igst_account",
- "editable_grid": 1, 
+  "cess_account",
- "engine": "InnoDB", 
+  "is_reverse_charge_account"
+ ],
  "fields": [
   {
-   "allow_bulk_edit": 0, 
+   "columns": 1,
-   "allow_on_submit": 0, 
+   "fieldname": "company",
-   "bold": 0, 
+   "fieldtype": "Link",
-   "collapsible": 0, 
+   "in_list_view": 1,
-   "columns": 0, 
+   "label": "Company",
-   "fieldname": "company", 
+   "options": "Company",
-   "fieldtype": "Link", 
+   "reqd": 1
-   "hidden": 0, 
+  },
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 1, 
-   "in_standard_filter": 0, 
-   "label": "Company", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Company", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 1, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
   {
-   "allow_bulk_edit": 0, 
+   "columns": 2,
-   "allow_on_submit": 0, 
+   "fieldname": "cgst_account",
-   "bold": 0, 
+   "fieldtype": "Link",
-   "collapsible": 0, 
+   "in_list_view": 1,
-   "columns": 0, 
+   "label": "CGST Account",
-   "fieldname": "cgst_account", 
+   "options": "Account",
-   "fieldtype": "Link", 
+   "reqd": 1
-   "hidden": 0, 
+  },
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 1, 
-   "in_standard_filter": 0, 
-   "label": "CGST Account", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Account", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 1, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
   {
-   "allow_bulk_edit": 0, 
+   "columns": 2,
-   "allow_on_submit": 0, 
+   "fieldname": "sgst_account",
-   "bold": 0, 
+   "fieldtype": "Link",
-   "collapsible": 0, 
+   "in_list_view": 1,
-   "columns": 0, 
+   "label": "SGST Account",
-   "fieldname": "sgst_account", 
+   "options": "Account",
-   "fieldtype": "Link", 
+   "reqd": 1
-   "hidden": 0, 
+  },
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 1, 
-   "in_standard_filter": 0, 
-   "label": "SGST Account", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Account", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 1, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
   {
-   "allow_bulk_edit": 0, 
+   "columns": 2,
-   "allow_on_submit": 0, 
+   "fieldname": "igst_account",
-   "bold": 0, 
+   "fieldtype": "Link",
-   "collapsible": 0, 
+   "in_list_view": 1,
-   "columns": 0, 
+   "label": "IGST Account",
-   "fieldname": "igst_account", 
+   "options": "Account",
-   "fieldtype": "Link", 
+   "reqd": 1
-   "hidden": 0, 
+  },
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 1, 
-   "in_standard_filter": 0, 
-   "label": "IGST Account", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Account", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 1, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
   {
-   "allow_bulk_edit": 0, 
+   "columns": 2,
-   "allow_on_submit": 0, 
+   "fieldname": "cess_account",
-   "bold": 0, 
+   "fieldtype": "Link",
-   "collapsible": 0, 
+   "in_list_view": 1,
-   "columns": 0, 
+   "label": "CESS Account",
-   "fieldname": "cess_account", 
+   "options": "Account"
-   "fieldtype": "Link", 
+  },
-   "hidden": 0, 
+  {
-   "ignore_user_permissions": 0, 
+   "columns": 1,
-   "ignore_xss_filter": 0, 
+   "default": "0",
-   "in_filter": 0, 
+   "fieldname": "is_reverse_charge_account",
-   "in_global_search": 0, 
+   "fieldtype": "Check",
-   "in_list_view": 1, 
+   "in_list_view": 1,
-   "in_standard_filter": 0, 
+   "label": "Is Reverse Charge Account"
-   "label": "CESS Account", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Account", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
   }
- ], 
+ ],
- "has_web_view": 0, 
+ "index_web_pages_for_search": 1,
- "hide_heading": 0, 
+ "istable": 1,
- "hide_toolbar": 0, 
+ "links": [],
- "idx": 0, 
+ "modified": "2021-04-09 12:30:25.889993",
- "image_view": 0, 
+ "modified_by": "Administrator",
- "in_create": 0, 
+ "module": "Accounts",
- "is_submittable": 0, 
+ "name": "GST Account",
- "issingle": 0, 
+ "owner": "Administrator",
- "istable": 1, 
+ "permissions": [],
- "max_attachments": 0, 
+ "quick_entry": 1,
- "modified": "2018-01-02 15:52:22.335988", 
+ "sort_field": "modified",
- "modified_by": "Administrator", 
+ "sort_order": "DESC",
- "module": "Accounts", 
+ "track_changes": 1
- "name": "GST Account", 
- "name_case": "", 
- "owner": "Administrator", 
- "permissions": [], 
- "quick_entry": 1, 
- "read_only": 0, 
- "read_only_onload": 0, 
- "show_name_in_global_search": 0, 
- "sort_field": "modified", 
- "sort_order": "DESC", 
- "track_changes": 1, 
- "track_seen": 0
 }

erpnext/hooks.py

@@ -260,7 +260,7 @@ doc_events = {
 	},
 	"Purchase Invoice": {
 		"validate": [
-			"erpnext.regional.india.utils.update_grand_total_for_rcm",
+			"erpnext.regional.india.utils.validate_reverse_charge_transaction",
 			"erpnext.regional.united_arab_emirates.utils.update_grand_total_for_rcm",
 			"erpnext.regional.united_arab_emirates.utils.validate_returns"
 			]
@@ -406,7 +406,6 @@ regional_overrides = {
 		'erpnext.controllers.taxes_and_totals.get_regional_round_off_accounts': 'erpnext.regional.india.utils.get_regional_round_off_accounts',
 		'erpnext.hr.utils.calculate_annual_eligible_hra_exemption': 'erpnext.regional.india.utils.calculate_annual_eligible_hra_exemption',
 		'erpnext.hr.utils.calculate_hra_exemption_for_period': 'erpnext.regional.india.utils.calculate_hra_exemption_for_period',
-		'erpnext.accounts.doctype.purchase_invoice.purchase_invoice.make_regional_gl_entries': 'erpnext.regional.india.utils.make_regional_gl_entries',
 		'erpnext.controllers.accounts_controller.validate_einvoice_fields': 'erpnext.regional.india.e_invoice.utils.validate_einvoice_fields'
 	},
 	'United Arab Emirates': {

erpnext/patches.txt

@@ -758,4 +758,4 @@ erpnext.patches.v13_0.rename_membership_settings_to_non_profit_settings
 erpnext.patches.v12_0.create_taxable_value_field
 erpnext.patches.v12_0.add_company_link_to_einvoice_settings
 erpnext.patches.v13_0.update_payment_terms_outstanding
-erpnext.patches.v12_0.create_itc_reversal_custom_fields #1
+erpnext.patches.v12_0.create_itc_reversal_custom_fields #1

erpnext/patches/v12_0/create_itc_reversal_custom_fields.py

@@ -27,6 +27,11 @@ def execute():
 				fetch_from='company_address.gstin',
 				depends_on="eval:doc.voucher_type=='Reversal Of ITC'",
 				mandatory_depends_on="eval:doc.voucher_type=='Reversal Of ITC'")
+		],
+		'Purchase Invoice': [
+			dict(fieldname='eligibility_for_itc', label='Eligibility For ITC',
+				fieldtype='Select', insert_after='reason_for_issuing_document', print_hide=1,
+				options='Input Service Distributor\nImport Of Service\nImport Of Capital Goods\nITC on Reverse Charge\nIneligible\nAll Other ITC', default="All Other ITC")
 		]
 	}
 

erpnext/regional/doctype/gstr_3b_report/gstr_3b_report.py

@@ -183,6 +183,7 @@ class GSTR3BReport(Document):
 		itc_type_map = {
 			'IMPG': 'Import Of Capital Goods',
 			'IMPS': 'Import Of Service',
+			'ISRC': 'ITC on Reverse Charge',
 			'ISD': 'Input Service Distributor',
 			'OTH': 'All Other ITC'
 		}
@@ -198,7 +199,7 @@ class GSTR3BReport(Document):
 				itc_type = 'All Other ITC'
 				gst_category = ['Unregistered', 'Overseas']
 			else:
-				gst_category = ['Unregistered', 'Overseas', 'Registered Regular']
+				gst_category = ['Overseas', 'Registered Regular']
 				reverse_charge = ["N", "Y"]
 
 			for account_head in self.account_heads:

erpnext/regional/india/setup.py

@@ -190,7 +190,7 @@ def make_custom_fields(update=True):
 	purchase_invoice_itc_fields = [
 			dict(fieldname='eligibility_for_itc', label='Eligibility For ITC',
 				fieldtype='Select', insert_after='reason_for_issuing_document', print_hide=1,
-				options='Input Service Distributor\nImport Of Service\nImport Of Capital Goods\nIneligible\nAll Other ITC', default="All Other ITC"),
+				options='Input Service Distributor\nImport Of Service\nImport Of Capital Goods\nITC on Reverse Charge\nIneligible\nAll Other ITC', default="All Other ITC"),
 			dict(fieldname='itc_integrated_tax', label='Availed ITC Integrated Tax',
 				fieldtype='Data', insert_after='eligibility_for_itc', print_hide=1),
 			dict(fieldname='itc_central_tax', label='Availed ITC Central Tax',

erpnext/regional/india/utils.py

@@ -674,10 +674,17 @@ def validate_state_code(state_code, address):
 		return int(state_code)
 
 @frappe.whitelist()
-def get_gst_accounts(company, account_wise=False):
+def get_gst_accounts(company, account_wise=False, only_reverse_charge=0, only_non_reverse_charge=0):
+	filters={"parent": "GST Settings", "company": company}
+
+	if only_reverse_charge:
+		filters.update({'is_reverse_charge_account': 1})
+	elif only_non_reverse_charge:
+		filters.update({'is_reverse_charge_account': 0})
+
 	gst_accounts = frappe._dict()
 	gst_settings_accounts = frappe.get_all("GST Account",
-		filters={"parent": "GST Settings", "company": company},
+		filters=filters,
 		fields=["cgst_account", "sgst_account", "igst_account", "cess_account"])
 
 	if not gst_settings_accounts and not frappe.flags.in_test:
@@ -692,105 +699,37 @@ def get_gst_accounts(company, account_wise=False):
 
 	return gst_accounts
 
-def update_grand_total_for_rcm(doc, method):
+def validate_reverse_charge_transaction(doc, method):
 	country = frappe.get_cached_value('Company', doc.company, 'country')
 
 	if country != 'India':
 		return
 
-	gst_tax, base_gst_tax = get_gst_tax_amount(doc)
+	base_gst_tax = 0
-
+	base_reverse_charge_booked = 0
-	if not base_gst_tax:
-		return
 
 	if doc.reverse_charge == 'Y':
-		doc.taxes_and_charges_added -= gst_tax
+		gst_accounts = get_gst_accounts(doc.company, only_reverse_charge=1)
-		doc.total_taxes_and_charges -= gst_tax
+		reverse_charge_accounts = gst_accounts.get('cgst_account') + gst_accounts.get('sgst_account') \
-		doc.base_taxes_and_charges_added -= base_gst_tax
+			+ gst_accounts.get('igst_account')
-		doc.base_total_taxes_and_charges -= base_gst_tax
 
-		update_totals(gst_tax, base_gst_tax, doc)
+		gst_accounts = get_gst_accounts(doc.company, only_non_reverse_charge=1)
-
+		non_reverse_charge_accounts = gst_accounts.get('cgst_account') + gst_accounts.get('sgst_account') \
-def update_totals(gst_tax, base_gst_tax, doc):
-	doc.base_grand_total -= base_gst_tax
-	doc.grand_total -= gst_tax
-
-	if doc.meta.get_field("rounded_total"):
-		if doc.is_rounded_total_disabled():
-			doc.outstanding_amount = doc.grand_total
-		else:
-			doc.rounded_total = round_based_on_smallest_currency_fraction(doc.grand_total,
-				doc.currency, doc.precision("rounded_total"))
-
-			doc.rounding_adjustment += flt(doc.rounded_total - doc.grand_total,
-				doc.precision("rounding_adjustment"))
-
-			doc.outstanding_amount = doc.rounded_total or doc.grand_total
-
-	doc.in_words = money_in_words(doc.grand_total, doc.currency)
-	doc.base_in_words = money_in_words(doc.base_grand_total, erpnext.get_company_currency(doc.company))
-	doc.set_payment_schedule()
-
-def make_regional_gl_entries(gl_entries, doc):
-	country = frappe.get_cached_value('Company', doc.company, 'country')
-
-	if country != 'India':
-		return gl_entries
-
-	gst_tax, base_gst_tax = get_gst_tax_amount(doc)
-
-	if not base_gst_tax:
-		return gl_entries
-
-	if doc.reverse_charge == 'Y':
-		gst_accounts = get_gst_accounts(doc.company)
-		gst_account_list = gst_accounts.get('cgst_account') + gst_accounts.get('sgst_account') \
 			+ gst_accounts.get('igst_account')
 
 		for tax in doc.get('taxes'):
-			if tax.category not in ("Total", "Valuation and Total"):
+			if tax.account_head in non_reverse_charge_accounts and tax.add_deduct_tax == 'Add':
-				continue
-
-			dr_or_cr = "credit" if tax.add_deduct_tax == "Add" else "debit"
-			if flt(tax.base_tax_amount_after_discount_amount) and tax.account_head in gst_account_list:
-				account_currency = get_account_currency(tax.account_head)
-
-				gl_entries.append(doc.get_gl_dict(
-					{
-						"account": tax.account_head,
-						"cost_center": tax.cost_center,
-						"posting_date": doc.posting_date,
-						"against": doc.supplier,
-						dr_or_cr: tax.base_tax_amount_after_discount_amount,
-						dr_or_cr + "_in_account_currency": tax.base_tax_amount_after_discount_amount \
-							if account_currency==doc.company_currency \
-							else tax.tax_amount_after_discount_amount
-					}, account_currency, item=tax)
-				)
-
-	return gl_entries
-
-def get_gst_tax_amount(doc):
-	gst_accounts = get_gst_accounts(doc.company)
-	gst_account_list = gst_accounts.get('cgst_account', []) + gst_accounts.get('sgst_account', []) \
-		+ gst_accounts.get('igst_account', [])
-
-	base_gst_tax = 0
-	gst_tax = 0
-
-	for tax in doc.get('taxes'):
-		if tax.category not in ("Total", "Valuation and Total"):
-			continue
-
-		if flt(tax.base_tax_amount_after_discount_amount) and tax.account_head in gst_account_list:
-			if tax.add_deduct_tax == "Add":
 				base_gst_tax += tax.base_tax_amount_after_discount_amount
-				gst_tax += tax.tax_amount_after_discount_amount
+			elif tax.account_head in reverse_charge_accounts and tax.add_deduct_tax == 'Deduct':
-			else:
+				base_reverse_charge_booked += tax.base_tax_amount_after_discount_amount
-				base_gst_tax -= tax.base_tax_amount_after_discount_amount
-				gst_tax -= tax.tax_amount_after_discount_amount
 
-	return gst_tax, base_gst_tax
+		if base_gst_tax != base_reverse_charge_booked:
+			msg = _("Booked reverse charge is not equal to applied tax amount")
+			msg += "<br>"
+			msg += _("Please refer {gst_document_link} to learn more about how to setup and create reverse charge invoice").format(
+				gst_document_link='<a href="https://docs.erpnext.com/docs/user/manual/en/regional/india/gst-setup">GST Documentation</a>')
+
+			frappe.throw(msg)
 
 @frappe.whitelist()
 def get_regional_round_off_accounts(company, account_list):