5 Key Things to Choose an e-Invoice Solution

Yarab A |Updated on: July 27, 2023

From 1st August 2023, all the registered businesses whose aggregate turnover (based on PAN) in any prior fiscal year from 2017-18 onwards exceeds 5 crores  will be required to issue e-invoices for all business to business (B2B) and business to government (B2G) transactions. e-Invoicing is a new norm that requires businesses to upload and get the invoices authenticated by the invoice registration portal (IRP) with an IRN and QR code.

Know how e-invoice system works and how to generate e-invoice.

With the implementation of e-invoicing, the businesses need to print QR code which is embedded with an IRN on every B2B invoice before issuing it to the buyer. With the new mandate of e-invoicing, using the right e-invoicing solution will help you to adapt to the new system easily without needing to change the invoicing process that you currently follow.

Today, businesses use different accounting/business management software and invoicing utilities to generate an invoice. Now, it’s time again for businesses to evaluate if the software or utilities that they use is equipped with the right technology. With that in focus, we are listing 5 things that you need to consider while evaluating an e-invoice solution.

5 Things to consider while choosing an e-invoice solution

Generate e-invoice instantly

With the concept of e-invoicing, an invoice remains valid only if it is authenticated by IRP and printed with QR code which is embedded with an IRN number. For this to happen, first, you need to upload the e-invoice details in the prescribed format (JSON) to IRP. Secondly, download the output file (JSON) that is authenticated by IRP with IRN and QR code. Later, you need to print QR code and IRN on the invoices before issuing it to the buyer.

Guess, you can imagine the impact that would have on the invoicing process. A right software for e-invoicing with the capability to generate e-invoices instantly without the need for manual intervention will make it easier and simple. The need is that the software should be able to absorb the complexities by directly sending the details in prescribed format to IRP, downloading the authenticated details and automatically printing QR code, IRN etc. on the invoices instantly. Business management software that is designed to directly integrate with the IRP portal will make this possible so that the invoicing process remains as always.

Bulk uploading of e-invoice

In certain business situations, you may require to generate bulk e-invoices instead of generating one by one. For example, some businesses follow the ‘Maker’ and ‘Checker’ system of invoicing in which invoices are generated by a "Maker" and later verified by a "Checker". In such scenarios, you should be able to send bulk invoices for generating e-invoices and automatically the software should fetch and print the QR code on the invoices.

Generate e-way bill along with e-invoice

By design, the e-invoice system (IRP) integrates with GSTN and e-way bill system. This means, when you upload an invoice, the IRP portal automatically shares the details of invoice to the GSTN system for return purpose and the e-way bill system for generating e-way bills. The e-invoice software should leverage this facility and generate e-way bills alongside generating e-invoices for those invoices that require e-way bills. This way, your efforts and time will be saved.

Cancellation of e-invoice

In some situations, the invoices for which IRN is already generated requires to be cancelled. It could be for various reasons such as duplicate entry/data entry mistake/order cancelled etc. The software should allow you to cancel such invoices and more importantly, automatically send the details to IRP for cancellation of IRN. Also, in case you have initiated the cancellation of IRN from the portal, the software should be able to fetch such details from the portal and update the status of IRN in the books.

Flexibility to use other modes of e-invoice

In case of exigency cases like unavailability of internet services on a system or due to any other reason, if you wish to use other modes of e-invoicing such as offline utility, direct entry on the portal etc. the software should be flexible to allow this. Also, it should fetch the QR Code, IRN etc from the portal and update the books accordingly.

Video on e-invoicing in TallyPrime

Know more about e-invoices in GST