AI Modules/Working Papers/AP Ageing

MSMED Act 2006· पत्र

AP Ageing

Payables ageing with MSME bifurcation per MSMED Act 2006.

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Schedule III amendment 2021 mandates ageing buckets for trade payables. The MSMED Act 2006 adds the requirement to split payables into MSME registered suppliers and other suppliers, with Section 15 interest disclosure for delays beyond 45 ଦିନ. CORAA composes both views: the standard Sch III buckets, and the MSME-vs-others split with interest accrual.

Five Sch III amendment 2021 buckets
MSME vs non-MSME split per MSMED Act 2006
Section 15 interest disclosure for delays beyond 45 ଦିନ
Party-wise at Tier II, bill-wise at Tier III
Feeds Note 23 Trade Payables and Note 8 disclosures
Form 3CD Clause 22 MSME disclosure auto-populated

Two paths, one ledger

The old way, and ours.

Two paths to the same audit conclusion. One leaves traces; the other doesn't.

Traditional

The old way

-AP ageing built from accounting system year-end ରିପୋର୍ଟ
-MSME identification by manually cross-checking Udyam certificates
-Section 15 interest accrual computed in Excel per supplier
-Form 3CD Clause 22 disclosure prepared separately

AP ageing build ସମୟ: 3-5 ଘଣ୍ଟା. MSME ଅନୁପାଳନ frequently incomplete.

CORAA

On the Ledger

ଲାଇଭ୍ AP ageing as of any reference date
MSME flag on Party Master drives the bifurcation
Section 15 interest auto-computed for MSME payables over 45 ଦିନ
Note 23 Trade Payables (MSME split) auto-populated
Form 3CD Clause 22 MSME disclosure flows from this WP

AP ageing instant. MSME ଅନୁପାଳନ complete by Tier II.

How it works

Three steps. Every trace logged.

Step 01

MSME identification at ଏଙ୍ଗେଜମେଣ୍ଟ୍ Setup

Party Master uploaded with MSME flag (Udyam Registration Number where available). CORAA flags MSME registered suppliers for Section 15 interest tracking.

Step 02

Ageing composition

Per-payable ଦିନ outstanding computed as of the BS date. Five Sch III buckets aggregate the totals. Per-supplier ageing renders at Tier II; per-ଚାଲାନ୍ at Tier III.

Step 03

Section 15 interest accrual

For MSME-registered suppliers, payables outstanding beyond 45 ଦିନ from the appointed date attract interest under Section 15 of the MSMED Act 2006. CORAA computes the interest accrual at 3 times the bank rate, flagged for management acknowledgement.

Inside the module

What you actually get.

MSMED Act 2006 MSME bifurcation

Supplier MSME registration status drives the bifurcation. MSME registered suppliers are tracked separately for the appointed date, principal payment, and any interest accrued under Section 15.

›MSME / non-MSME split per supplier
›Udyam Registration tracked
›Appointed date capture
›Principal vs interest disclosure

Section 15 interest computation

Section 15 of MSMED Act 2006 prescribes interest at 3 times the bank rate (currently around 13.5% effective rate) for delays beyond 45 ଦିନ. CORAA auto-computes this for every MSME payable with appropriate ageing.

›3x bank rate computation
›Per-supplier interest accrual
›Disclosure note pre-filled
›ଅଡିଟ୍ log captures the assumed bank rate

Note 23 Trade Payables auto-fill

Note 23 of Schedule III requires the MSME / non-MSME split with appointed dates and interest disclosure. CORAA auto-fills this from the AP ageing data; ଅଡିଟର୍ confirms accuracy.

›Note 23 ଟେମ୍ପ୍ଲେଟ୍
›MSME / non-MSME aggregate totals
›Appointed date capture
›Interest amount accrued and paid

Form 3CD Clause 22 integration

Form 3CD Clause 22 asks for the same MSME disclosure. CORAA reuses the AP ageing data; ନା re-keying required.

›Clause 22 auto-population
›Cross-tie to Note 23 enforced
›ଅଡିଟର୍ verifies and confirms

Frequently asked

Answers, up front.

Three signals: (1) the ଅଡିଟର୍ flags the supplier as MSME in the Party Master with Udyam Registration Number, (2) the GSTIN registration type indicates MSME, (3) the auditee provides an MSME declaration list. CORAA uses signal 1 as authoritative; signals 2 and 3 surface as suggestions for the ଅଡିଟର୍ to verify.

Under the MSMED Act 2006, the appointed date is the date when payment becomes due (15 ଦିନ from supply or as agreed in writing, capped at 45 ଦିନ). After this date, interest accrues at 3 times the bank rate. CORAA captures the appointed date per ଚାଲାନ୍ when bill register is loaded; otherwise uses 15 ଦିନ from ଚାଲାନ୍ date as default.

Disputed status is captured in the Party Master with an ଅଡିଟ୍ log entry. The disclosure note in Note 23 surfaces the dispute; the ଅଡିଟର୍ decides whether to provide for the interest or disclose the contingent liability per AS 29.

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