OEM Settlement Variance Analyser (Invoice → Payment → Reason → Recovery)

Settlement variance is the gap between invoiced value and paid value on an OEM payment cycle. Tier-1 and tier-2 auto component suppliers routinely see 3-8% of dispatched value held back as short-pay, driven by RMPV deferral, debit notes for FOMP and warranty, quantity short-receipt, line-stop penalties, sorting charges, freight rebates, and cash discounts. The analyser decomposes each invoice's short-pay into a reason code so the supplier can pursue recovery, raise the right GST document, and feed the QBR with the OEM.

Each reason code has a different recovery path, GST treatment, and ownership inside the supplier. RMPV-pending recovers when the OEM approves the escalation claim (supplementary invoice). Quantity-mismatch recovers via GST credit note within the Section 34 deadline. Quality-debit recovers when contested through the OEM commercial team. Line-stop is typically written off after escalation. Freight rebate is a contractual adjustment. Booking the deduction as a single 'OEM short-pay' line destroys the actionable signal — the analyser preserves it.

Quantity-mismatch and quality-debit normally require a GST credit note under Section 34 because the value of the original supply is being reduced. RMPV-pending requires a supplementary tax invoice when the OEM approves the price escalation. FOMP and warranty typically require a credit note if the supply value is being reduced. Line-stop and sorting are usually compensation charges with no original-supply impact (no GST action). Cash discount and freight rebate are contractual adjustments, usually handled via credit note for accounting clarity. The gst_action_required column captures the call per row; the GST team validates against the original tax invoice.

Filter for rows where recovery_status is not closed and short_pay_amount is significant — the sum is the working capital locked in unresolved OEM disputes. Most tier-1 auto component suppliers track this as 'OEM disputed receivables' separately from gross trade receivables, age it by reason code, and report it to the credit committee monthly. CARO 2020 disclosures and statutory audit also examine the disputed-receivables ageing. The days_to_resolution column anchors the ageing buckets.

Yes — most OEM payment advices (Maruti, Tata, Mahindra, Bosch payment notification PDFs and Excel statements) list invoice number, invoice amount, deductions by category, and net paid. The analyser columns mirror that structure, so a row per invoice can be populated directly from the payment advice. Multi-OEM suppliers normalise their reason-code taxonomy across OEMs (e.g., OEM A's 'sorting charges' = OEM B's 'rework deduction' = the analyser's sorting code) so the consolidated short-pay Pareto is comparable across customers.