What is E-Invoicing?
E-Invoicing is a system in which GST taxpayers can upload their B2B invoices electronically to the Invoice Registration Portal of the GSTN. After successful authentication, the portal generates a unique identification number known as Invoice Reference Number (IRN). Moreover, it digitally signs the e-invoices and generates a QR Code on the invoice. Besides, apart from the IRN number, the QR code comprises of GST Registration number of the supplier, GST Registration number of the Recipient,Date of invoice generation, invoice Value and the invoice number.
Why is E-Invoicing in News?
E-invoicing, also known as Electronic Invoicing for B2B transactions, was first introduced in October 2020 for businesses with over Rs 500 crore turnover. From 2021, it was extended for companies with a turnover of more than 100 crores and 50 crores.
However, as per the latest government notification, from 1st April 2022, E-invoicing is mandatory for businesses with a turnover of over 20 crores. Therefore, now for B2B Companies, it is highly crucial to generate e-invoices if they want to avail of Input Tax Credit benefits. Moreover, failure to do so would also lead to penalties.
E-Invoicing: Driver of Digitalization
With the advancement of technology, we are already transitioning towards the “Digital Age.” Digital Transformation has increasingly become the need of the hour. Hence, it is now essential for businesses, particularly small & midsize businesses (SMBs), to incorporate digitalization in their day-to-day business processes. Doing so would help them in modernizing their business processes and optimize costs. Moreover, it would also allow them to build a resilient future for themselves.
One such initiative that accelerates the journey of Digital Transformation is E-Invoicing. But to capitalize on the digitalization process through E-Invoicing, businesses require a suitable ERP Solution. Without an appropriate ERP Solution, businesses will encounter several challenges such as manual data entry errors, accounting errors, delays in invoice approvals, duplicate invoices, missing information, etc. It is where Dhyey Consultingcan help you by providing you with an intelligent solution in the form of Microsoft Dynamics NAV & Microsoft Dynamics 365 Business Central.
E-Invoicing Feature in Dynamics Nav & Business Central
With Microsoft Dynamics Nav & Microsoft Dynamics Business Central, businesses can streamline their e-invoicing process through the following features.
- Provision of exporting invoice details in JSON.
- Provision of Generating e-invoice from the Posted Sales Invoice Section.
- Generation of e-invoice form Posted Sales Credit Memos section.
- Provision of Importing JSON file from the posted sales invoice & Posted sales credit memo. Businesses can do so with updated details in the system regarding Acknowledgement no, Acknowledgement date, IRN Hash, QR Code.
- Automatic creation of Json file on posting of sales transaction by enabling. They can do so by creating a new field in the General Ledger Setup.
- Provision of recording E-Way Bill no. on the Tax Information tab in Posted Sales Invoice.
- Ability to export e-invoice with e-way bill details
- Provision of Json File for cancellation of e-invoice.
As a result, businesses can seamlessly generate the initial JSON file. Moreover, they can integrate details from the relevant documents before uploading them to the IRP. For instance, invoice, credit note and debit note by the supplier, tax invoice (B2B & B2G), SEZ developer invoice, Export Invoice (if applicable).
Key Benefits of E-Invoicing
Following are some of the key benefits of e-invoicing
- It promotes corporate transparency, increases business accountability, and curbs fraud.
- E-invoicing streamlines the processes revolving around invoice management and lowers the scope of audit risks.
- It reduces the challenges associated with manual processes such as data entry errors, duplication, transcription errors, false accounting, and tax returns filing.
- E-Invoicing encourages process automation and allows businesses to unlock the productivity of their employees.
- It facilitates the real-time tracking of data concerning the order-to-cash cycle.
- By reducing manual entry errors, it expedites payments. Moreover, it also streamlines the data reconciliation process under GST.
- Businesses can avail of loans easily based on e-invoices
- It ensures compliance and allows companies to avail themselves of input tax credit benefits.
As a Top ERP & CRM Provider in Vadodara, Gujarat, we are well versed with all the latest government legislations & can help you in embracing features like e-invoicing for ensuring better compliance. Our team works round the clock to assist businesses in their growth journey. So if your company is looking for ERP services in Vadodara or anywhere in India or around the globe, drop us an email at email@example.com. Our team will be glad to set up a free demo for your brand.