Cygnet TaxTech launches Vendor Postbox, a root cause fix to maximize Input tax credits
Ahmedabad, 5th October 2022: Cygnet TaxTech, part of Cygnet Infotech has launched Vendor Postbox. A vendor Invoice digitization solution to extend its TaxTech suite beyond tax compliances, creating synergies across tax and account payable teams. The platform enables posting only government authenticated purchase invoices directly into ERP systems to ensure the taxpayer claims maximum Input tax credits (ITC) with minimum reconciliation efforts.
Cygnet Vendor Postbox is a solution created with and customized for businesses operating across industries, keeping in mind the accounting and tax functions and their specific challenges. The procurement process typically goes through multiple stages starting with pre-onboarding checks for vendors, recording of the purchase invoices, multiple validations, and reconciliation such as those with the purchase orders (PO), goods receipt notes (GRN), invoice documents and finally processing payments based on invoice availability in GSTR-2B.
The solution addresses the concerns of overlapping manual processes in recording of invoices, validating with PO and GRN, GSTR-2B reconciliations and making payment based on it. The Vendor Postbox workflow digitalizes the invoices with Intelligent Document Processing (IDP), or AI based OCR capabilities and streamlines every step of the workflow from recording of the invoices to vendor reconciliation, thereby eliminating the scope or errors or delay in recording of invoices. It also addresses the challenges such as shortage in working capital due to blockage of input tax credits by linking the payment to vendors by the availability of the invoices in GSTR-2B, while allowing rule-based exceptions, to minimize exposure to blocked credits.
Niraj Hutheesing, the founder, and MD of Cygnet Infotech said “Cygnet’s Vendor Postbox is designed to capture the synergies in the Invoice posting, thereby reducing the cost overheads, and increasing efficiencies. Industry leaders tell us repeatedly that they absolutely relate to these challenges and see tangible benefits associated with implementing a solution to streamline this process.”
Commenting on the launch, Kevin Permenter, Research Director at International Data Corporation said, “The role of tax compliance is shifting closer to the center of the rapidly evolving technology footprint within the office of the CFO. This is especially so regarding constantly shifting global complexities for invoicing compliance. The Cygnet Postbox technology is an impactful step toward addressing the current technology gap around global invoicing compliance. IDC believes this product enhancement from Cygnet will be welcomed addition to their rapidly growing tax compliance product portfolio.”
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