E-invoicing: What is it, and how can you manage it with ERP System?

What is an invoice?

Different industries use different accounting software to create digital invoices and capture data. They decide it according to the business usability criteria and budget. E-invoice is the electronic verification and authentication of electronically generated invoices by GSTN (Goods and Service Tax Network). It allows further usage, such as return preparation, e-way bill generation, and so on.

This does not refer to the creation of invoices via the tax department or central portal. It is tedious and restricts trade freedom to the point of frustration. This is simply the submission of invoices already generated to the GST portal for authentication.

Why E-Invoice?

Different accounting software generates invoices in other formats and with different procedures. These formats are not compatible with the GST system, and it was impossible to transfer the data from accounting software to the GST. E-Invoice was introduced because of the need to standardize the preparation of invoices that the GST system could understand.

What is the difference between what was done before?

It doesn't matter. There are no changes required for the electronic or printed creation of invoices. All accounting and billing software must use a standard schema to create JSON (JavaScript Object Notation) invoices uploaded to the GST Portal for approval and authentication.

E-Invoice is designed to achieve the following objectives

To address all stakeholders' expectations and concerns (private and public business entities), an e-invoice was introduced. It leverages the ITC (Input tax credit) to meet these needs. There are also other benefits:

• Universal machine reading of E-Invoices created by different accounting software.
• To remove the cumbersome task of verifying that the invoice complies with the end.
• It is essential to establish a standard procedure, scheme, or theme for the preparation of invoices. This will make it easy to use by all accounting software.
• To reduce discrepancies in invoice filing and increase transparency.

Who should submit the E-Invoice

This is to be used by the principal stakeholders of the electronic invoice system, registered taxpayers under GST. Companies that have an annual turnover exceeding $13.5 million (100cr Indian rupees) must submit their invoices to the government (GST Panel) for authentication.

When is E-Invoice required?

The law applies to companies earning less than $13.5million per annum. For companies making more, it took effect in Oct. 2020.

The E-Invoice system has many benefits.

If the e-invoice system is implemented correctly, it will allow tax compliance authorities to target dishonest taxpayers. This will reduce the number of fraud cases.

There are other benefits:

Digitalize also increases transparency and reduces discrepancies.

How does RetailGraph integrate e-invoices into its construction ERP software?

In collaboration with one of its customers, RetailGraph has recently integrated the invoicing platform with the GST portal to allow instant data transmission between the customer base and the GST panel. It is easy to grasp the scenario. The ERP then feeds the data into it, which is transmitted to the GST portal automatically.

Both the registered data and the transmitted data can be checked. Because the data transmission and preparation of invoices follow government standards, it is easy for any software that has access to the data to interpret and read the data.

This allows for a quick response to any changes or legal standards made by the government. Good customer feedback emphasizes reliable data transmission and zero errors in registered data sent to the GST panel. There is also the possibility to cross-verify the data from both ends.

Safety protocols are considered. No data can be entered without the approval of the stakeholders. The date, time, and other details are also recorded for future reference. The entire process of e-invoicing is transparent, unlike traditional methods that sent the invoice without a standard. This led to errors and omissions being rejected later by the GST panel.

RetailGraph offers web- and mobile-based ERP systems that can be configured to meet customers' ever-changing needs. It was designed to allow end-users the flexibility to incorporate all types of government policies and other legal compliances to ensure smooth operations.

Check out our website to get a free DEMO of RetailGraph ERP that demonstrates the uniqueness and effectiveness of the RetailGraph when dealing with government norms, policies, or other legal compliances.