The Inland Revenue Board of Malaysia (IRBM) mandates all businesses registered in the country to generate e-invoices (e-invoices) for B2B, B2G, and B2C transactions. This mandate begins its phased implementation from August 1, 2024, for businesses with a turnover exceeding RM 100 million.
To assist businesses in adapting to e-invoicing Malaysia, IRBM offers two primary models: MyInvois Portal and API integration. The MyInvois Portal is a manual web-based platform, whereas API integration enables automated e-invoicing directly through a business’s existing e-invoicing system. Below is a breakdown of these models:
What is an e-Invoicing Model?
An e-invoicing model defines how businesses generate, submit, and process e-invoices under a regulatory framework. In Malaysia, IRBM provides two main models:
- MyInvois Portal: A user-friendly, manual e-invoicing platform.
- API Integration: An automated e-invoicing process linked directly to a business’s ERP system.
What is MyInvois Portal?
How It Works:
The MyInvois Portal allows businesses to manually generate and submit e-invoices. Users can upload individual invoices or submit batches using preformatted spreadsheets. This is ideal for businesses without advanced e-invoicing systems.
- Submission: Log in and manually enter or upload invoice details in bulk.
- Validation: The portal validates the invoice against IRBM standards, converting it into a PDF with a Unique Identification Number (UIN) and QR code.
- Acceptance: Notifications are sent to both the supplier and buyer via email. The validated e-invoice is shared with the buyer.
- Rejection/Cancellation: Buyers can request a rejection within a 72-hour window. The supplier can cancel or amend the invoice using the portal.
- Reporting & Storage: Built-in reporting tools and dashboards allow businesses to track e-invoices. While all invoices are stored in IRBM’s database, businesses should keep additional records.
What is API Integration?
How It Works:
API integration automates the e-invoicing process, allowing businesses to link their ERP systems with the IRBM e-invoicing system. This method is suitable for businesses with high transaction volumes.
- Integration: Business systems connect to IRBM via API, using a Software Development Kit (SDK) for integration.
- Submission: Invoices are generated in real time by the ERP system and sent directly to IRBM, reducing manual entry.
- Validation: Real-time validation provides instant feedback, issuing a UIN and QR code if valid.
- Acceptance: Notifications are handled internally, and validated invoices are integrated into both the supplier’s and buyer’s systems.
- Rejection/Cancellation: Invoices can be automatically rejected or canceled within the 72-hour window, with adjustments processed swiftly.
- Reporting & Storage: Businesses can customize reports within their ERP systems, with e-invoices stored in IRBM’s database.
MyInvois Portal vs. API Integration: Comparison Table
| Feature | MyInvois Portal | API Integration |
| Creation & Submission | Manual creation (individual or batch) | Automatic via ERP, ideal for high-volume transactions |
| Validation | Requires manual resubmission for errors | Real-time with instant feedback |
| Notification | Sent via portal and email | Integrated within business systems |
| Sharing | Manual sharing with QR code | Buyers access directly through integrated systems |
| Rejection/Cancellation | Processed manually, requires new invoices beyond 72 hours | Automated handling within 72 hours |
| Reporting & Dashboard | Built-in reporting tools | Customizable within ERP systems |
| Storage | Stored in IRBM’s database | Accessible via ERP systems |
Pros and Cons of MyInvois Portal
Pros:
- Simple and accessible for businesses with limited technical resources.
- No upfront e-invoicing software costs; straightforward manual entry process.
- Built-in reporting tools and dashboards.
Cons:
- Time-consuming for businesses with high transaction volumes.
- Lacks integration with existing ERP systems, limiting automation.
- Entire process depends on portal access.
Cost Comparison: MyInvois Portal vs API Integration
MyInvois Portal:
- Cost: Free. The portal is provided by the Inland Revenue Board of Malaysia (IRBM) at no cost, making it accessible for small and medium-sized enterprises (SMEs). There are no upfront expenses related to software, integration, or technical infrastructure.
- Ongoing Costs: Since it’s a manual system, businesses might incur indirect costs related to labor, as manual data entry and report generation can be time-consuming, especially for higher transaction volumes.
API Integration:
- Cost: Involves upfront costs for integration with a business’s ERP or accounting system. This includes the purchase or customization of ERP software, developer fees for API setup, and potentially third-party services like Peppol (a common third-party integration service). Costs may vary based on the complexity of the system and the number of transactions handled.
- Ongoing Costs: Businesses must factor in the costs for system maintenance, updates, and possibly third-party support services. There may also be additional costs if a company uses third-party technology providers, particularly if they integrate through non-government platforms (e.g., Peppol network).
Summary of e-invoicing Model Costs:
| Feature | MyInvois Portal | API Integration |
| Upfront Cost | Free | Costs for ERP integration and API setup |
| Ongoing Maintenance | Low (manual operation) | System maintenance, updates, and support |
| Labor Costs | Potentially higher (manual) | Lower (automated processes) |
| Third-Party Costs | None | Potential costs for third-party providers |
Which e-invoicing Model to Choose: API or MyInvois Portal?
When to Choose MyInvois Portal:
- Lower transaction volume: Businesses that generate fewer e-invoices.
- Limited technical resources: No need for advanced systems or in-house IT teams.
When to Choose API Integration:
- Large transaction volumes: Ideal for businesses that need to process many invoices daily.
- Decentralized billing systems: Automated invoice generation across multiple branches or departments.
- B2C businesses: Seamlessly integrates with point-of-sale (POS) systems for frequent transactions.
Pros and Cons of API Integration
Pros:
- Fully automated, ideal for businesses handling large volumes of invoices.
- Real-time validation reduces human error and speeds up the invoicing process.
- Integrated notifications and storage enhance operational efficiency.
Cons:
- Requires an initial investment for integration with ERP systems.
- Complex setup requiring technical expertise.
- May involve additional costs for third-party providers (e.g., Peppol network integration).
Our Recommendation: Jomeinvoice – Malaysia Top 3 e-invoicing Middleware Solution
Jomeinvoice: Best e-invoicing Software Malaysia
JomeInvoice is a middleware e-invoicing solution specifically designed to help businesses in Malaysia comply with the Inland Revenue Board’s (IRBM) e-invoicing mandate. This solution acts as a bridge between a company’s existing accounting or ERP systems and IRBM’s MyInvois system, facilitating a seamless transition to e-invoicing without requiring significant changes to current operations.
Jomeinvoice: e-invoicing Model Category
JomeInvoice falls under the e-invoicing middleware category, meaning it serves as an intermediary solution that connects businesses’ internal systems (like ERP or accounting software) with the MyInvois e-invoicing portal. It is designed to provide flexibility and reduce the complexity of integration, making it suitable for businesses of all sizes, from small and medium-sized enterprises (SMEs) to large enterprises Malaysia.
JomeInvoice addresses the key cons associated with both the MyInvois Portal and API integration models by providing a flexible, middleware solution that merges the advantages of both, while minimizing their respective limitations.
Solving MyInvois Portal Cons
- Manual Data Entry:
- Problem: The MyInvois Portal requires businesses to manually enter invoices or upload batches, which can be time-consuming for larger businesses.
- Solution: JomeInvoice automates the process by integrating directly with existing accounting systems, eliminating the need for manual entry and ensuring real-time submission of invoices.
- Limited Integration with ERP Systems:
- Problem: The MyInvois Portal does not offer integration with ERP or accounting systems, limiting automation.
- Solution: JomeInvoice seamlessly integrates with popular ERP and accounting software (e.g., SAP, Oracle, Xero), allowing businesses to continue using their current systems while complying with e-invoicing requirements.
- Time-Consuming for High Transaction Volumes:
- Problem: The portal’s manual nature is inefficient for businesses with large transaction volumes.
- Solution: JomeInvoice supports high-volume transactions through automation, making it ideal for both SMEs and large enterprises with significant invoicing needs(BusinessToday).
Solving API Integration Cons
- High Initial Setup Costs:
- Problem: API integration requires substantial upfront investment for system integration and development.
- Solution: JomeInvoice serves as a middleware solution, which requires less customization and technical adjustments compared to direct API integration. This reduces the initial setup costs while still automating the process.
- Complex Implementation:
- Problem: API integration is technically complex, requiring expertise and system adjustments.
- Solution: JomeInvoice offers a no-code or low-code integration, simplifying the process by connecting to existing systems without requiring significant technical expertise.
- Ongoing Maintenance:
- Problem: Businesses using API integration need to regularly maintain and update their systems.
- Solution: JomeInvoice handles compliance updates automatically, ensuring that businesses remain up-to-date with evolving regulations without needing ongoing technical intervention(BusinessToday).
How e-invoicing Middleware Works Better
Jomeinvoice: e-invoicing Middleware Structure
- System Integration: JomeInvoice integrates with a wide range of ERP systems, such as SAP, Oracle, Xero, and Netsuite, allowing businesses to generate invoices in their usual systems. Once generated, JomeInvoice captures the invoice details, converts them into the format required by IRBM, and submits them for validation.
- Compliance: It ensures that the invoices comply with Malaysia’s e-invoicing standards, including the generation of QR codes and the inclusion of unique identification numbers, as mandated by IRBM. The system is continuously updated to stay compliant with evolving regulations.
- Automation: JomeInvoice automates the submission and validation of invoices, significantly reducing the need for manual input. This makes it especially useful for businesses handling large volumes of invoices, as the system ensures real-time submission and compliance checks.
Handling MyInvois Portal Shutdowns
JomeInvoice’s ability to act as a buffer during such downtime protects businesses from operational delays, allowing them to keep generating and processing invoices while waiting for the MyInvois Portal to resume normal operations.
Why Our e-invoicing Software Fits Both SMEs and Large Enterprises
- For SMEs: JomeInvoice provides a cost-effective solution with minimal IT setup required. It offers a user-friendly interface, free trials, and low-impact integration, making it a practical choice for smaller businesses with limited technical resources.
- For Large Enterprises: The solution’s compatibility with complex ERP systems and its ability to handle high transaction volumes make it ideal for large businesses. It supports end-to-end automation, ensuring that large-scale operations can maintain efficiency and compliance without disruption.
In short, JomeInvoice offers a flexible, scalable, and compliant solution that suits both SMEs looking for simplicity and larger enterprise Malaysia requiring advanced integration and automation capabilities.
Ready to streamline your Malaysia e-invoicing processes?
Contact JomeInvoice today and take advantage of the 3-month free subscription! Our dedicated team is ready to help your business stay ahead with compliance and efficiency.
Contact JomeInvoice Sdn Bhd:
- Address:
Level 38, MYEG Tower, Empire City Damansara, Jalan PJU 8, Damansara Perdana, 47820 Petaling Jaya, Selangor
D-04-07, Plaza Bukit Jalil (Aurora Place), No. 1, Persiaran Jalil 1, Bandar Bukit Jalil, 57000 Kuala Lumpur - Phone: +6016-732 0163
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