E-Invoice Integration
What is e-Invoicing?
Electronic Invoicing, or e-invoicing, is a cutting-edge digital solution transforming traditional paper-based invoicing into a streamlined and efficient electronic process. In Malaysia, this innovative approach is reshaping the way businesses manage their invoicing systems, offering a more cost-effective, secure, and environmentally friendly alternative. For more information, please visit Malaysia LHDN website.
The Main Features of Invoicing Software
Invoice Generation
Create invoices automatically with personalized templates for different clients according to IRBM standards.
Tax & Discount Management
Our e-Invoice software calculates taxes per Malaysian law and offers discounts on designated invoices.
Online Payment Management
Allow customers to make payments through an online payment gateway. Send receipts through the same portal.
Credit Limit Management
Our system makes it easier for you to set different credit limits for each client based on the price of your product/service.
Invoice Approval & Validation
The system allows you to process approvals and validate each invoice that is given a special price or discount.
Real-Time Invoice Reporting
Our robust e-Invoicing System lets you figure out the age of your invoices & quickly find unpaid invoices to find out your total income.
How E-Invoicing and SDK Works?
E-invoicing simplifies the exchange of billing information between businesses, eliminating the need for manual data entry and reducing the risk of errors. The process involves the creation, delivery, and processing of invoices in a secure digital format. This not only accelerates the invoicing cycle but also enhances accuracy, compliance, and overall business efficiency.
The e-Invoice Software Development Kit (SDK) comprises a comprehensive suite of tools, libraries, and resources designed to empower businesses in seamlessly integrating existing systems (such as SAP, Microsoft Dynamics 365, Odoo, Oracle, Syspro, Infor, or customize ERP etc) with the MyInvois System using robust Application Programming Interfaces (APIs). This SDK offers a set of functionalities and development guidelines, streamlining the process of connecting and enhancing overall interoperability.
e-Invoicing process in Malaysia
The implementation of e-Invoice will facilitate real-time or near-real-time validation and storage of transactions, catering to Business-to-Business (B2B), Business-to-Consumer (B2C), and Business-to-Government (B2G) transactions. Additionally, the scope of the initiative will encompass the following documents:
- Credit and Debit Notes
- Invoices
- Receipts
- Cancellations and Refund
e-Invoice APIs
Definition of the API that taxpayer systems can leverage to deal with the actual Invoice documents.
Overview
Validate Taxpayer’s TIN API is used to validate specific Tax Identification Number (TIN) before adding this number to an invoice and issuing the invoice.
Note!when you are logged in as intermediary, permissions that are granted by the taxpayer will be applied on your profile and this will control the functionalities that you’ll be able to executed on behalf of the taxpayer you are representing.
This is REST based API that validates TIN.
Signature: GET /api/v1.0/taxpayer/validate/{tin}?idType={idType}&idValue={idValue}
| Input parameter | Type | Description | Value example | Requirement |
|---|---|---|---|---|
| tin | Number | The Tax Identification Number to get the validity of the tin. | C25845632020 | Mandatory |
| idType | Query | NRIC, Passport number, Business registration number, army number | NRIC ID type example: NRIC Passport ID type example: PASSPORT BRN ID type example: BRN Army ID type example: ARMY | Mandatory |
| idValue | Query | The actual value of the ID Type selected. For example, if NRIC selected as ID Type, then pass the NRIC value here. | BRN example: 201901234567 NRIC example: 770625015324 Passport number example: A12345678 Army number example: 551587706543 | Mandatory |
Successful Response
This API returns HTTP status code 200.
#Error Response
This API returns HTTP status code 400 (BadArgument) if the TIN or any of the input parameters does not match the argument structure.
This API returns HTTP status code 404 (Not Found) if that TIN and ID combination cannot be found or are considered invalid.
Overview
Submit Documents API is the main API of the solution because it is used to submit one or more documents of different types to the system. Documents submitted are grouped into the submission. Then, each document that is part of the submission must be linked to and comply with data structure of the document type (see document type versions supported).
Document submission API supports documents submitted using JSON and XML format. Taxpayer ERP system or integration module is responsible for transforming the data into JSON or XML format as per the document type structure expected by API (see document type versions supported). Note that all documents within the submission and enclosing submission element itself needs to be in the same format. The format used should be provided through Content-type request header value.
When API is called, it performs minimal set of validations through validation rules to check that submission is of correct structure. Then, each document that is part of the submission is checked for the taxpayer issuing the documents. The structure of each document is checked that it matches the appropriate structure of the document type version used.
Overview
Document cancellation is a way to correct submission errors that were noticed right away. Ideally, cancellation is done even before the document is fully validated and recipient is notified. Therefore, cancellation can be done only within limited time period from the validation of the document. This time limit is specific to document type and is returned by calling Get Document Type API and checking workflow parameters.
Cancellation is permitted within the 72-hour window from the date and time the document was marked as valid. If cancellation time has passed, taxpayers can revert / adjust the previously issued incorrect invoice through submission of a credit note/debit note/refund note (as the case may be).
Note!When you are logged in as intermediary, permissions that are granted by the taxpayer will be applied on your profile and this will control the functionalities that you’ll be able to executed on behalf of the taxpayer you are representing.
Overview
Document rejection is a way to quickly notify the supplier that there are some problems with the document they have issued, so that correction can be done as soon as possible. Rejection is allowed for recipient of the document only within limited time period from the time of validation of the document. This time limit is specific to document type and is returned by calling Get Document Type API and checking workflow parameters.
If allowed rejection time since validation has passed but the document is still considered incorrect, buyer need to notify issuers and they need to revert previously issued incorrect invoice through submission of a credit note/debit note/refund note (as the case may be).
Rejection is permitted within the 72-hour window from the date and time that the document was marked valid to be able to reject a document.
Overview
Get recent documents API allows users to query the system and return list of documents that have been recently received or issued .
System limits the number of the documents that can be received in one request by implementing paging mechanism for this API and also by not allowing to request documents that are issued more than 30 days ago.
List is ordered based on registration date of the submission descending.
This is REST based API that takes optional URL parameters to enable paging.
Signature: GET /api/v1.0/documents/recent?pageNo={pageNo}&pageSize={pageSize}&submissionDateFrom={submissionDateFrom}&submissionDateTo={submissionDateTo}&issueDateFrom={issueDateFrom}&issueDateTo={IssueDateTo}&direction={direction}&status={status}&documentType={documentType}&receiverIdType={receiverIdType}&receiverId={receiverId}&issuerIdType={issuerIdType}&issuerId={issuerId}&receiverTin={receiverTin}&issuerTin={issuerTin}
Overview
This API allows caller to get details of a single submission to check its processing status after initially submitting it and getting back unique submission identifier.
This API is available to submitter only as it might contain documents issued to multiple receivers.
#Signature
This is REST based API that takes unique ID of the submission as URL parameter and returns details of the submission and summary information of the documents part of the submission.
In view that one submission might contains large number of documents, list of the documents returned by this API is paged.
Signature: GET /api/v1.0/documentsubmissions/{submissionUid}?pageNo={pageNo}&pageSize={pageSize}
Overview
This API allows caller to get full details of the document when requested by unique ID assigned to document by MyInvois System.
Details include original XML or JSON submission and additional tax authority metadata i.e., additional ID, and current status. As the document is submitted in XML or JSON, this API returns document information also in either XML or JSON.
Document with invalid status will not be returned. Details of the invalid document can be fetched by Get Document Details API.
Overview
This API allows caller to get full details of the document when requested by unique ID assigned to document by MyInvois System including the detailed validation results
#Signature
This is REST based API that takes unique ID of the document as URL parameter and returns document details that were received from the issuer and additional details added after registration and validation of the document in the tax authority.
Signature: GET /api/v1.0/documents/{uuid}/details
Invoicing Software Integration
Accounting System
Integrate IRBM e-Invoicing with your accounting system to automate payables, receivables, and accurate income estimation.
Accounting System
Integrate IRBM e-Invoicing with your accounting system to automate payables, receivables, and accurate income estimation.
e-Invoicing
CRM-Sales
Connect your CRM with the e-Invoicing system to make it easier for the sales team to generate invoices immediately after receiving customer orders.
Frequently Asked Questions
Why do companies need e-invoicing?
E-invoicing is crucial in assisting company businesses with streamlining their invoice processing cycles, lowering the amount of time needed for processing, approving, tracking, and chasing invoices, as well as reducing human error. Ultimately, implementing it leads to significantly quicker processing times.
E-invoicing can help many company businesses to reduce the risk of invoice fraud, human mistake, duplication, and supervision is another benefit of increased trade and transaction visibility for organizations.
A company can automate the processing of invoices. As a result, there are several operational and strategic advantages for buyers, suppliers, and other management. The ability to automate the invoicing process and interact with other company systems offers corporate efficiency and prospects for revenue generation, in addition to cost savings.
What is meant by e-invoicing?
E-invoicing, commonly known as electronic invoicing, simplifies the administration of invoices and compliance papers. E-invoicing reduces the risk of invoice errors and exceptions by digitizing invoice data and cross-referencing it with contracts, purchase orders, service entry sheets, and goods receipts.
An electronic invoice is delivered electronically and follows a predetermined format. E-invoices can be automatically loaded into the purchasing organization’s accounts payable system because they contain invoice data in a structured format.
E-invoicing is to replace the issuance of paper invoices and notes with an electronic process that enables the exchange and processing of invoices, credit notes, and debit notes in an organized electronic format between the buyer and seller through an integrated electronic solution.
What are the features of the invoicing software?
Another feature on invoicing software especially in Peppol e-invoicing is:
– Standardized data format: peppol e-invoicing uses the Universal Business Language (UBL) as a common data format, ensuring that invoices are structured consistently across different countries and systems.
– Secure data transmission: peppol e-invoicing uses secure communication protocols, such as HTTPS and AS2, to ensure data is securely transmitted between business systems.
– Automated processes:peppol e-invoicing allows businesses to automate their invoicing processes, reducing errors and increasing efficiency.
– Integration with other systems: peppol e-invoicing can be integrated with other business systems, such as accounting software and enterprise resource planning (ERP) systems, to further streamline business processes.
– Compliance with regulations: peppol e-invoicing is compliant with European Union regulations, making it a trusted and reliable solution for businesses operating in the EU.
What are the benefits of invoice software?
With invoicing software, you can quickly determine the clients that paid you on time and which ones are lagging, etc. You won’t have to examine files and printed reports to compare and evaluate.
Invoicing software can automatically fill in dates and fit layouts, among other features, it can increase the accuracy of invoicing. They enable you to focus more on the invoices’ content, which will raise the quality of the invoices you produce.
With the invoicing software, your invoice and billing information will remain in the system, it makes simple to retrieve and validate. For the reference of the auditor, there is no need to search through multiple files and data. The necessary tax processing needs will be simple and quick because the program can create the necessary reports.
What are the important factors in choosing an invoicing software?
If you want to use peppol here are some important factors to consider when deciding to use Peppol e-invoicing:
– Cross-border invoicing: If your business operates across multiple countries, Peppol e invoicing can simplify cross-border invoicing and help you avoid the complexities and costs associated with different invoicing standards and languages.
– Cost-effectiveness: Peppol e invoicing can be a cost-effective solution for businesses of all sizes as it can help to reduce the time and resources required for manual invoicing processes, as well as eliminate the need for paper-based invoices and associated costs.
– Streamlined invoicing: Peppol e invoicing can streamline your invoicing process by providing a common data format that ensures consistency and accuracy across different countries and systems. This can help to reduce errors and processing time, improve cash flow management, and provide greater transparency in the invoicing process.
By considering these factors, businesses can make an informed decision about whether Peppol e-invoicing is the right solution for their invoicing needs.
Which software is best for invoicing?
There are many invoicing software options available, and the best one for you will depend on your specific needs and preferences. Here are some of the most popular invoicing software options:
1. HashMicro Invoice software by HashMicro automates invoicing and automate customer billing processes with an easy-to-use e-invoicing system. Complete with an invoice template that can be adjusted to your business needs.
2. Xero: This is a cloud-based accounting software that offers a range of features including invoicing, inventory tracking, and financial reporting.
3. QuickBooks: Another popular cloud-based accounting software that offers invoicing, payment processing, expense tracking, and more.
4. FreshBooks: A user-friendly invoicing and accounting software that offers time tracking, project management, and expense tracking features.
5. Zoho Invoice: A cloud-based invoicing software that offers recurring invoicing, project management, and time-tracking features.
How does invoicing software work?
Invoicing software works by automating many of the processes involved in creating and sending invoices to customers. Here’s a more detailed explanation of how invoicing software typically works:
1. Set up your account: The first step is to sign up for an invoicing software provider and set up your account. This typically involves creating a username and password and entering basic information about your business, such as your name, address, and contact details.
2. Create an invoice: Once your account is set up, you can start creating invoices. Most invoicing software offers templates that you can customize to include your business logo, contact information, and payment terms. You can also add details about the products or services sold, the quantity, and the price.
3. Send the invoice: Once you’ve created an invoice, you can send it to your customer. Many invoicing software options allow you to send invoices directly through the platform via email or other methods. You can also set up automatic reminders for customers who haven’t paid yet.
4. Track payments: After sending an invoice, you can use the invoicing software to track payments and send reminders to customers who haven’t paid yet. Many invoicing software options integrate with payment processing platforms to make it easy for customers to pay their invoices online.
5. Generate reports: Invoicing software can also generate reports to help you keep track of your finances and gain insights into your business’s financial health. You can typically generate reports such as sales reports, accounts receivable reports, and aging reports.
6. Integrate with other tools: Some invoicing software options can integrate with other tools and services, such as accounting software, project management software, or CRM systems, to streamline your invoicing process even further.
What is the difference between an invoice and tax invoice Malaysia?
In Malaysia, an invoice and a tax invoice serve different purposes and have different requirements.
An invoice is a document that outlines the details of a transaction between a buyer and a seller. It typically includes information such as the names and addresses of both parties, a description of the goods or services sold, the quantity and price of the goods or services, and the total amount due. An invoice is often used as a billing statement to request payment from the buyer.
A tax invoice, on the other hand, is a specific type of invoice that includes additional information related to the Goods and Services Tax (GST) in Malaysia. A tax invoice is required for transactions involving the sale of taxable goods or services, and must include the GST registration number of the seller, the GST amount charged, and other specific details required by the Inland Revenue Authority of Malaysia (IRAS).
In summary, while an invoice is a general document used to request payment for goods or services sold, a tax invoice is a specific type of invoice that is required for GST-registered businesses in Malaysia for taxable transactions and must meet certain additional requirements set by the IRAS.
