Within the Payment Period
Invoices that remain within the applicable agreed or statutory timeline.
MSME Payables
Pay MSME Suppliers on Time. Protect Your Tax Deductions.
Track amounts payable to Micro and Small Enterprise suppliers in FACT ERP.NG. See upcoming deadlines, identify overdue invoices and manage MSME compliance without relying on separate spreadsheets.
Every MSME Payable, Clearly Tracked
FACT ERP.NG connects each supplier’s MSME status with its invoices, agreed payment terms and outstanding balance—giving finance teams a clear view of what is due and when.
- Record supplier MSME and Udyam Registration details
- Track invoice-wise payment deadlines
- Identify outstanding and overdue invoices
- View MSME payables separately from other creditors
- Monitor amounts approaching the statutory deadline
- Analyse supplier-wise and invoice-wise ageing
- Support reporting and year-end compliance
- Drill down from summaries to original transactions
Know What Needs to Be Paid—Before It Becomes Overdue
MSME Payment Timeline
Identify MSME Suppliers
Record the supplier’s enterprise classification and Udyam Registration details in the supplier master.
Record the Purchase
FACT connects every purchase invoice with the supplier’s MSME status and transaction date.
Calculate the Payment Timeline
Track the due date based on the applicable payment terms and MSMED Act requirements.
Prioritise Payments
View invoices approaching or exceeding the permitted payment period before releasing payments.
Review Your Exposure
Generate a clear picture of outstanding MSME dues for management, audit and tax review.
Turn Payables Into Actionable Priorities
Due Soon
Payments approaching their deadline and requiring action.
Overdue
Invoices that have crossed the applicable payment period.
Partially Paid
Invoices with a remaining MSME balance still outstanding.
Paid
Transactions settled within or after the applicable timeline, with payment details connected to the original invoice.
Built for India’s MSME Payment Requirements
Under the Micro, Small and Medium Enterprises Development Act, 2006, buyers must pay eligible Micro and Small Enterprise suppliers by the agreed date. Where there is a written agreement, the payment period cannot exceed 45 days from acceptance or deemed acceptance of the goods or services.
Delayed payments may attract statutory interest. Under Section 43B(h) of the Income-tax Act, certain amounts payable to Micro and Small Enterprises may also be deductible only when actually paid if they are not settled within the timeline specified under the MSMED Act.
FACT ERP.NG helps finance teams identify these amounts before they become a compliance or tax concern.
One View of Your MSME Exposure
- Total outstanding MSME payables
- Amounts due within the applicable period
- Payments approaching 15 or 45 days
- Overdue invoice values
- Supplier-wise outstanding balances
- Partially paid invoices
- Payments made after the applicable deadline
- Potential Section 43B(h) exposure
FAQ
Frequently Asked Questions
What are MSME payables?
MSME payables are amounts owed to suppliers registered as Micro, Small or Medium Enterprises. However, the delayed-payment provisions of the MSMED Act and Section 43B(h) specifically concern eligible Micro and Small Enterprises, not Medium Enterprises.
What is the MSME payment deadline?
Where there is no written agreement, payment is generally required within 15 days from acceptance or deemed acceptance. Where a written agreement exists, the agreed payment period cannot exceed 45 days.
What is Section 43B(h)?
Section 43B(h) of the Income-tax Act applies to certain amounts payable to Micro and Small Enterprises. If payment is not made within the timeline allowed under the MSMED Act, the expense may be deductible only in the financial year in which it is actually paid.
How does FACT identify MSME suppliers?
The supplier master can record information such as enterprise classification, Udyam Registration Number and relevant registration details. Transactions with that supplier can then be included in MSME payable tracking.
Can FACT show invoices approaching 45 days?
Yes. Invoice ageing allows the finance team to identify transactions approaching or exceeding the applicable payment deadline.
Can MSME payables be reviewed supplier-wise?
Yes. Outstanding amounts can be analysed by supplier, invoice, due date and ageing period.
Does the feature calculate delayed-payment interest?
Where configured and applicable, FACT can help identify overdue amounts and provide the transaction information required to calculate or review interest. The final treatment should be confirmed by the company’s accounting or tax adviser.
Does this replace professional compliance advice?
No. FACT provides the records, visibility and reports needed to support compliance. The legal and tax treatment of a specific payment depends on the supplier’s eligibility, documentation and individual transaction.
Why Manage MSME Payables in FACT?
Avoid Missed Deadlines
See MSME invoices approaching their payment deadline before they become overdue.
Protect Tax Deductions
Identify payments that may require attention under Section 43B(h).
Reduce Manual Tracking
Replace separate Excel sheets with invoice-level information already available in your ERP.
Improve Cash-Flow Planning
See upcoming MSME obligations alongside the company’s wider payable position.
Simplify Audit Reviews
Provide supplier classification, invoice details, ageing and payment history from one connected system.
Maintain a Clear Audit Trail
Drill down from the MSME payable summary to the supplier, purchase invoice and payment voucher.
READY TO SEE FACT IN ACTION?
Never Lose Sight of an MSME Deadline
Track Micro and Small Enterprise invoices, prioritise payments and understand your exposure through one connected ERP system.
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