A technique facilitates efficient punching and cutting of a tubing with a single trip downhole. A cutter and a puncher are combined and conveyed together downhole into a borehole, e.g. a wellbore. The cutter and puncher may be conveyed downhole via a suitable well string. A communications line may be routed to both the cutter and the puncher to enable selective actuation of the cutter and the puncher. For example, the puncher may initially be actuated by detonating a shaped charge to perforate through the tubing in the borehole. Subsequently, the cutter may be operated to sever the tubing. In some applications, the cutter may be replaced with another tool operatively coupled with the communications line.