A year-end export reconciliation is a single exercise that ties every export invoice to three things: the EDF row that declared it, the FIRA or bank advice that proves payment, and its open-or-closed status in EDPMS. For FY 2026-27, the first year under the new export regulations, that means reconciling invoices from October 2026 to March 2027 before your books close on 31 March 2027. Do it once properly and every later question, from your auditor, your bank or a GST officer, has a ready answer.
Key takeaways
- Reconcile four records: invoice register, EDF filings, FIRAs/bank advices, and EDPMS status from your bank.
- Add GSTR-1 export reporting and your books to the comparison so all six agree.
- Most exceptions fall into a few types: unpaid invoices, short payments, unmatched credits, credit notes and wrong codes.
- Use the clean-up to close small invoices through the ₹10 lakh declaration and request extensions where needed.
- Start in February, not the last week of March.
The four core records and what each proves
| Record | Owner | What it proves |
|---|---|---|
| Invoice register | You | What you billed, to whom, when, in what currency |
| EDF filings | You, acknowledged by bank | That each invoice was declared on time |
| FIRA / bank advice | Bank | That money arrived, how much, with which purpose code |
| EDPMS status | Bank | Whether each export is closed or still open |
Two more records sit alongside: your GSTR-1 export entries (zero-rated supplies reported) and your accounting ledger (receivables and forex differences). A good reconciliation makes all six tell the same story.
Step-by-step process
Step 1: Freeze the invoice list
Pull every export invoice dated from 1 October 2026 to 31 March 2027. Include credit notes. Invoices raised before 1 October 2026 were widely reported as outside the new EDF regime; confirm your bank's view and keep them in a separate tab.
Step 2: Tick each invoice against an EDF row
For each invoice, note the EDF month it appeared in and the submission date. Flag any invoice that appears on no EDF, or on the wrong month's EDF. An EDF register makes this a matter of minutes.
Step 3: Match receipts
Take every foreign inward credit from your bank statements and match it to one or more invoices. Note the FIRA or advice reference, the amount received and the purpose code. Credits that do not match any invoice go to an exceptions list.
Step 4: Ask your bank for EDPMS status
Request a list of your open EDPMS entries. Compare it with your own view. An invoice you think is paid but the bank shows open usually means a matching instruction or a ₹10 lakh declaration was never given.
Step 5: Compare with GSTR-1 and books
Check that the export invoices reported in GSTR-1 match your register, and that receivables in your books equal unpaid invoices on your reconciliation, after forex adjustments.
Common exceptions and how to clear them
| Exception | Likely cause | How to clear it |
|---|---|---|
| Invoice not on any EDF | Missed during monthly filing | Inform bank, file correction or late EDF with explanation |
| Invoice paid, EDPMS open | No matching instruction or declaration | Send FIRA and matching instruction, or include in ₹10 lakh declaration |
| Short payment | Bank charges or client deduction | Document reason; update NRV records; explain to bank |
| Credit with no invoice | Advance payment or unidentified remitter | Identify client; link to future invoice or ask bank |
| Wrong purpose code | Coded at credit time | Request correction with invoice and contract |
| Invoice unpaid, nearing 9 months | Slow or disputed client | Request extension from AD bank with reasons |
| Credit note not reflected | Adjustment after EDF filed | Record against original invoice; inform bank if needed |
For coding errors, our purpose code correction letter saves time. For slow payers, the realisation extension request covers the formal ask.
A worked example
Saraswati Engineering Design LLP in Vadodara prepares CAD drawings for clients in the US, Germany and the UAE. Between October 2026 and March 2027 it raised 46 export invoices worth about ₹1.62 crore. Its February reconciliation found:
- 41 invoices fully matched, EDPMS closed or covered by quarterly declarations;
- 2 invoices paid but showing open in EDPMS, both above ₹10 lakh, because matching instructions were never sent;
- 1 German invoice short-paid by EUR 35 due to intermediary charges;
- 1 UAE credit of USD 3,000 with no matching invoice, which turned out to be an advance for April work;
- 1 US invoice from November with a disputed balance of USD 2,400.
Saraswati sent FIRAs and matching instructions for the two large invoices, documented the EUR 35 shortfall, recorded the USD 3,000 as an advance received, and wrote to its bank requesting an extension for the disputed balance before the nine-month mark in August 2027. By 25 March, its exceptions list had one item, with a clear plan.
Using the year-end to tidy up
Year-end is the natural moment to:
- give a ₹10 lakh declaration for all small invoices realised in the last quarter;
- confirm your AD code and authorised signatories are current with the bank;
- check your LUT for the next financial year is filed before April;
- archive the year's EDFs, FIRAs and correspondence in one folder per month.
A balance confirmation request to your bank can also help your auditors confirm year-end balances, including any EEFC account.
This article is general information, not legal or tax advice. Your CA may add steps specific to your audit or tax position.
Frequently asked questions
What does export reconciliation mean for a service exporter?
It means matching every export invoice to the EDF that declared it, the FIRA or bank advice that shows it was paid, and its status in EDPMS. A thorough version also compares those records with GSTR-1 and your books, so all of them agree.
Which period should my first reconciliation under the new rules cover?
For FY 2026-27, cover export invoices dated from 1 October 2026, when the new regulations came into force, to 31 March 2027. Keep invoices raised before 1 October 2026 in a separate list and confirm your bank's treatment of them.
How do I find out which of my exports are open in EDPMS?
Ask your AD bank for a list of your open EDPMS entries. Compare it with your own records; any invoice you believe is paid but shows open usually needs a matching instruction or inclusion in a ₹10 lakh declaration.
What should I do with an invoice that is still unpaid at year-end?
Check how close it is to the nine-month realisation deadline and chase the client. If payment will be late, request an extension from your AD bank with reasons before the deadline, and keep evidence of your recovery efforts.
Do credit notes affect the reconciliation?
Yes. A credit note reduces what you expect to receive against the original invoice, so record it against that invoice and adjust your expected realisation. Keep the credit note ready to explain any difference to your bank.
Bottom line
A February reconciliation turns year-end export compliance from a scramble into a short list of known exceptions. Keep each month's declaration consistent with your register by preparing it with our free EDF form generator.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.