What is E-Invoicing All About?
An e-Invoice represents a digital transaction between a supplier and a buyer, formatted in a structured, machine-readable XML or JSON format as specified by the IRBM. Let’s dive into the latest updates in IRBM e-Invoice Specific Guideline Version 3.0 to help you manage e-invoicing transactions efficiently.
How E-Invoicing Transactions with Buyers Work
E-invoicing transactions involve several key steps, from invoice issuance to payment reconciliation. Traditionally, businesses used paper or digital receipts to record transactions. With the new e-Invoicing system, suppliers must issue e-Invoices for all transactions. However, certain buyers, such as end consumers and certain businesses, may not require an e-Invoice as proof of expense. In these cases, the IRBM allows suppliers to consolidate transactions with such buyers into a consolidated e-invoice on a monthly basis.
Your Easy Guide to E-Invoicing Transactions
Step 1: E-Invoice Issuance
Generate invoices with all required details, including the buyer’s information, itemized list of goods/services, total amount, and due date.
Step 2: Delivery of Invoices
Deliver invoices to buyers through various methods, such as email or e-invoice systems, ensuring timely receipt.
Step 3: E-Invoice Acknowledgment
Buyers confirm receipt of the invoice, which is crucial for tracking and reconciliation.
Step 4: Payment Terms and Conditions
Outline clear payment terms and conditions, complying with legal requirements.
Step 5: E-Invoice Payment Processing
Process payments using secure methods and accurately record them.
Step 6: Reconciliation of E-Invoices
Reconcile payments with issued invoices, ensuring all transactions are accounted for.
Common Case Scenarios in E-Invoicing
#First Scenario: Where the Buyer Requires an e-Invoice
- Include the name, TIN, ID, address, telephone, and SST registration number of the individual buyer.
- Include the name, address, TIN, and ID of the individual shipping recipient.
#Second Scenario: Where the Buyer Does Not Require an e-Invoice
- Input “General Public” for the buyer’s name and “EI00000000010” for the buyer’s TIN in the e-Invoice.
- Input “NA” for the buyer’s ID, address, telephone, and SST registration number.
#Third Scenario: When it comes to consolidated self-billed e-Invoices
- Input “General Public” for the supplier’s name, “EI00000000010” for the supllier’s TIN, “00000” for the MSIC code of the supplier in the consolidated self-billed e-Invoice.
- Input “NA” for the supplier’s ID, address, telephone, SST registration number, and business activity description.
- Choose one or a combination of methods for the description of Product/Services
- (a) Summary of each receipt as separate line items
- (b) List of receipts (in continuous receipt number) as line items
- (c) Branch(es) or location(s) using either (a) or (b) for their receipts. Remember to include receipt reference numbers for each transaction.
Best Practices for Smooth E-Invoicing Transactions
- Minimize delays in sending requests to the MyInvois System to acquire buyer’s details. With validated e-Invoice, the API responds to the POS within 2 seconds.
- Utilize near real-time validation of e-Invoices on the MyInvois Mobile App or via email, allowing buyers to use validated e-Invoices as proof of expense for tax purposes.
- Ensure accessibility of validated e-Invoices on the retailer’s web portal or mobile app, allowing buyers to download or email the e-Invoice to their inbox.
Wrapping Up
Understanding e-invoice transactions is crucial for compliance and efficient transaction management. Businesses can now navigate their invoicing process with ease by following the IRBM guidelines and ensuring all necessary details are included.
Looking for more tips on IRBM e-Invoice compliance? Subscribe to our blog or reach out to our friendly support team for assistance!