RCTI

A tax document issued against the direction of the purchase flow.

Definition

Under RCTI / self-billing the buyer creates and transmits the tax invoice to the supplier, subject to a prior written agreement. Reconciliation is reversed: the buyer is authoritative on price and quantity from its own receipt data, and the supplier validates. This removes supplier-side keying mismatches and streamlines the buyer's internal three-way match.

Origin

A term from Australian tax law (the ATO GST Ruling on Recipient Created Tax Invoices); the European equivalent, self-billing, is authorised by Article 224 of the VAT Directive 2006/112/EC.

Example in context

A carmaker issues a monthly RCTI to its parts supplier listing the delivered quantities it has received; the supplier issues no invoice and simply reconciles the document received.

Related terms

• ERS — a variant where no invoice is issued at all.