Seamless ISD Distribution in Sage X3

With increasing GST scrutiny and complex multi-location operations, managing Input Service Distributor (ISD) compliance has become a challenge for organizations operating across multiple GST registrations. To address this, we are excited to introduce a new ISD Management module in Sage X3, designed to automate, control, and simplify site-wise ISD distribution—all within the ERP.

Who Should Use This Module?

This module is ideal for:

1. Organizations with multiple GST-registered sites
2. Shared service centers
3. Corporate offices distributing common service costs
4. Finance and tax teams looking to automate ISD compliance

To access the new ISD Management module in Sage X3, navigate to

INDIAS → Input Service Distributor → ISD Management

New Stuff: User-Wise Restriction for Reactivating Closed or Suspended Projects in Sage X3

[Fig 1. ISD Management screen path]

We will now review how this screen works in detail. Before proceeding, it is important to note that the tax code created specifically for ISD must be selected in the purchase invoice.

Only those purchase invoices that are created using the ISD tax code will appear in the Purchase Invoice Selection section of the ISD Management screen.

Below are the tax codes that have been created for ISD purposes in purchase invoices.

[Fig 2. ISD Tax codes in Purchase Invoice]

For demonstration, we have created two new purchase invoices—PINV-BOM-0126-000001 and PINV-BOM-0126-000002—using the tax code “ISCGS”.

As shown in the screenshot below, the same purchase invoices have been selected in the ISD Management screen.

[Fig 3. Purchase Invoice selection in ISD Management screen]

One more important point to note is that the total percentage of site-wise distribution must be 100%. Only when the total distribution equals 100% will the system allow the ISD entry to be created. If the total percentage is less than or more than 100%, the system will display an error message and prevent the entry from being saved.

[Fig 4. Total % error in ISD Management screen]

To enter the site-wise distribution percentage, the user needs to click on the three-dot (ellipsis) option for the respective invoice and then select Site-wise ISD Distribution, as shown in the screenshot below.

[Fig 5. Site-wise ISD Distribution option]

After this, a Site-wise ISD Distribution pop-up window will be displayed, as shown in the screenshot below. In this window, the default distribution percentage for each site is automatically populated.

We have added additional fields in the Site Master to maintain ISD-specific percentages and account numbers. If the percentage is already saved in the Site Master, it will automatically flow into this window. If no percentage is maintained for a site, the percentage field will remain blank.

Users can also manually edit the percentages in this window to ensure that the total distribution equals 100%. After making the necessary changes, click the OK button to save the data.

[Fig 6. Pop-up window of Site-wise ISD Distribution]

Save the site-wise percentages for both invoices and then click the “Create” button.

After creating the site-wise distribution, click on the “Site-wise ISD Allocation” button located at the top-right corner of the screen. This will populate the Site-wise ISD Allocation section, displaying the site-wise accounts.

The system automatically calculates the tax values based on the distribution. After reviewing the data, click the “Post” button. Once posted, Journal Voucher (JV) numbers will be generated for each invoice, as shown in the screenshot below.

[Fig 7. Site-wise ISD Allocation and JV generation]

You can refer to the image below to understand how the site-wise tax values are calculated for Journal Voucher (JV) creation.

[Fig 8. Site-wise ISD calculation for JV]

The ISD Management module in Sage X3 streamlines site-wise distribution, automates tax calculations, and ensures accurate GST compliance. By integrating this process directly into the ERP, organizations can save time, reduce errors, and maintain an audit-ready system.