E-invoicing Process

E-invoicing Process

During the e-invoicing process, the information of the buyer and seller are included in the invoice issued. This invoice contains information such as the recipient’s address, state, and product price. For the reference number related to the invoice, it is important that it is a unique reference number used for each invoice. It should not be the same as other reference numbers. Finally, the QR code is mandatory. In invoices prepared in electronic media, signature transactions are transmitted with the QR code. All information about the invoice is in the QR code, making it is possible to reach that information quickly.

Step – By – Step Process to Generate An E-Invoice

Companies can manage their business processes instantly and effectively through B2B software solutions. Thanks to e-invoicing, they can continue their trade with all other businesses in their eco-system through the website. In recent years, these systems have created satisfaction among many companies and customers. In order for these invoices to be valid in electronic media, there is information that needs to be included:

  • Document type must be specified (such as INV – CRN – DBN)
  • Supplier’s legal name must be determined according to the PAN card
  • Supplier that issues the e-invoice must have a GSTIN
  • Address of the supplier issuing the e-invoice must be specified
  • Location of the supplier such as city, town, village should be specified
  • Supplier’s state code
  • Supplier’s pin code
  • In order for the invoice to be unique, only the document number belonging to the invoice is required.
  • Indication of the current date and time when issuing the invoice
  • Recipient’s legal name
  • Buyer’s GSTIN
  • Buyer’s address
  • Recipient’s State Code
  • IRN- Invoice Reference Number
  • Submission To_State, Pincode and State code
  • Supply Type Code
  • Product description
  • Valid HSN code must be entered for certain goods/services
  • Product price
  • Total invoice value

The supplier and the buyer can forward these documents to their accountant. Thanks to the archive, this document is not lost in any way. You can view the document with one click whenever you want. The second step is to set the unique invoice reference number.

Invoice Reference Number Determination

  • Using the offline tool
  • API Usage (with GSP integration)
  • API Usage (via Direct integration)
  • Using API (via GSTIN of an activated sibling concern)
  • Taxpayers with E-way Bill API enabled

In the third step, the QR code is created. After creating the reference number in the e-invoice system, the invoice will be signed thanks to the QR code. QR code enables quick viewing, verification and access of invoices from handheld devices.

Information to be Obtained When QR Code is Read:

  • GSTIN of supplier and buyer
  • Invoice number issued by the supplier
  • Invoice creation date
  • Invoice value
  • Number of line items
  • HSN code of main items
  • Unique IRN

E-Invoice Advantages

Thanks to the e-invoice system, any invoice costs such as printing, mailing and archives, is reduced. After switching to corporate e-invoicing, invoicing processes require less labor.  The advantages of e-invoice for suppliers and buyers include:

The Advantages of E-Invoice to Suppliers

  • Faster payment and cash flow
  • Faster calculation
  • Lower cost
  • Less errors
  • Improved customer satisfaction

The Advantages of E-Invoice to Buyers

  • Increased productivity and automation
  • Cost reduction
  • Early payment discounts
  • Improved supplier relationships

At 4A Labs, we continue our services specializing in e-invoicing. We offer custom solutions for the e-invoice needs of the brands we partner with. To date, we have references in different e-invoice applications for many international brands . In order to take advantage of these opportunities, contact us for more detailed information.