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5 Essential Key Points to select in an e-Invoice Solution

E-Invoice solution with key features like instantly generating e-invoice, bulk uploading, generation of e-way bill, e-invoice cancellation and flexibility to use offline mode.

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5 Essential Key Points to Select in an E-Invoice Solution

January 1st 2021, businesses whose turnover is 100 Cr and over will be required to issue e-invoice for all business to business (B2B) and business to government (B2G) transactions. E-Invoicing is a new norm needs businesses to upload and get the invoices authenticated by invoice registration portal (IRP) with an IRN and QR code.

With the implementation of e-invoicing, the businesses are required 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 out you to adapt to the new system easily without needing to change the invoicing process that you are currently following.

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

Five Essential Key Points to consider while selecting an e-invoice solution

  1. Instantly generate e-invoice
    • With e-invoicing concept, 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, first you need to upload an e-invoice details in the specified format (JSON) to IRP. Then, 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.

      Imagine the impact that would have on the invoicing process, a right e-invoicing solution with a capability to generate e-invoice instantly without any need for manual intervention will make it easier and simple. The need of software is to handle the complexities by directly sending the details in prescribed format to IRP, download the authenticated details and automatically print QR code, IRN etc on the invoices instantly. Business management softwares that are designed to directly integrate with IRP portal will make this possible so that the invoicing process remains as always.

  2. Bulk uploading of e-invoice
    • In certain business cases, you may require to generate bulk e-invoices instead of generating all one by one. For example, some businesses follow ‘Maker’ and ‘Checker’ system of invoicing in which invoices are first generated by a “Maker” and then 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.
  3. Generate e-way bill together with e-invoice
    • By design, the e-invoice system (IRP) integrates with GSTN and e-way bill system. This means, when you will upload an invoice, the IRP portal will automatically share the details of invoice to GSTN system for return purpose and e-way bill system for generating e-way bills. The e-invoice software must leverage on this facility and generate e-way bills togther with generating e-invoice for those invoices that require e-way bill. Using thus way, your time and efforts will be saved.
  4.  E-Invoice cancellation
    • In some cases, the invoices for which IRN is already generated requires to be cancelled. It could be for several reasons such as duplicate entry, data entry mistake or order cancelled etc. The software should be able to allow you to cancel such invoices and more importantly it should automatically send the details to IRP for cancellation of IRN. In case you have initiated the process of cancellation of IRN from the portal, the software should be able to fetch details from the portal and update the status of IRN in the books.
  5. Flexibility to use other modes of e-invoice
    • In urgency cases like unavailability of internet services on a system or any other reason, if you wish to use other modes of e-invoicing then software should be flexible to provide offline utility such as direct entry in the portal etc. Also, it should fetch the QR Code, IRN etc. from the portal and update the books accordingly.

For further queries contact Inspire Ms Tax Consultancy on: 

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