Separate Ledger for RCM (Reverse Charge) GST
1. Overview
On a Reverse Charge (RCM) expense bill (General Expense with Reverse Charge = Y), the ERP posts two GST legs:
- Input side – Dr IGST / CGST / SGST RECEIVABLE A/C (ITC to be claimed)
- Output side – Cr GST payable on reverse charge
By default the output side is credited to the normal IGST / CGST / SGST PAYABLE A/C, mixed with the GST payable on your sales. If you want RCM tax payable in its own ledgers, the ERP can post it separately.
2. How to switch it on (one-time setup per company)
Create all three ledgers in Masters > Account Master for the company and year, exactly with these names:
| Account Name | Type |
|---|---|
| IGST RCM PAYABLE A/C | PL.EXPENSE (same group as IGST PAYABLE A/C) |
| CGST RCM PAYABLE A/C | PL.EXPENSE (same group as CGST PAYABLE A/C) |
| SGST RCM PAYABLE A/C | PL.EXPENSE (same group as SGST PAYABLE A/C) |
All three must exist. If even one is missing, the ERP keeps posting RCM tax to the normal PAYABLE ledgers (no change).
From then on, every RCM bill that is saved credits its IGST / CGST / SGST to the RCM PAYABLE ledgers. The input (RECEIVABLE) side and all other legs stay the same, and bill totals are unchanged.
3. Bills saved before the setup
Older RCM bills keep their old posting until re-posted. A system administrator can use the Repost option in the system menu for the period, or simply open and re-save the bill. You can also ask Merciglobal support to re-post them.
4. How to check
Open Reports > Ledger, tick IGST/CGST/SGST RCM PAYABLE A/C and run. Each RCM bill appears with its Serial / Invoice no. The same amounts no longer appear in the normal PAYABLE ledgers.