Invoicing – e-invoicing & Digital Invoicing – How Smart Admin Helps in e-invoicing Process
Electronic invoice, e-invoice, and digital invoice are terms associated with digitization of invoicing process. Generating an invoicing using a spreadsheet or using software will not mandate the same to be known as e-invoicing. Such invoices are digital invoices. Both E-invoicing and digital invoicing are processed electronically from creation to payment but there are a few fundamental differences. E-invoicing is the next level of digitization in the invoicing process.
The fundamental difference is that the e-invoice files come as structured data. It allows interoperability of invoicing software. There are options to send e-invoices directly to the buyer’s software if both parties use an e-invoicing system and also define their e-invoicing address. Thus, the e-invoice can be processed by both buyer and sellers’ software using the defined methodology of e-invoicing.
Also, e-invoicing is another process defined under the regulatory laws of each country. In India, the GST rules define the e-invoice process. After the 35th GST Council meeting, the country implemented e-invoicing, starting with large enterprises. Now the annual turnover limit has been defined as INR 10 crores in the previous financial year for a company to fall under the e-invoicing option.
e-Invoicing helps the GST portal to do validation of each invoice generated. Under e-invoicing, a taxpayer has to report the invoices just once, and get it authenticated by the Invoice Registration Portal (IRP). The portal which validates the invoices, thereafter, issues the Invoice Reference Number (IRN). Upon authentication, the system will auto-populate the data to the GSTR-1 return.
This reduces the manual reporting process and improves accuracy. Thus, with e-invoicing automates multi-purpose reporting with a one-time input of invoice details. Further, e-invoicing reduces multiple manual data entry, and it does accuracy checks. E-invoicing helps to get accurate tax credit in time to the buyer. Thus, e-invoicing can contribute to increased productivity. Invoicing used to be a tedious task and consumes more time if error occurs in transactions. With the introduction of e-invoicing, such incidents will not happen and thus both parties can save time.
The e-invoicing is applicable to B2B invoices only and is not applicable to B2C transactions. Also, certain set of businesses are exempted like Banks, Insurance Financial institutions as defined under GST rules. We cannot cancel e-invoice partially, but we can cancel wholly. On cancellation, it needs to report to the IRN within 24 hours. No option to cancel thereafter it needs to be cancelled on the GST portal before the returns are filed.
If you are falling under e-invoicing limits then you can opt for Smart Admin cloud-based, project management and, and invoicing software. The invoicing feature can be accessed from a browser, and you can create your invoice directly. You need to register with your business details and select the invoice option during the registration process. There are options to link a project and generate invoice as well as to generate invoice for goods / services delivered. By subscribing to Smart Admin, you can keep all your business-related data on one platform. It generates automatic payment tracking.
SMART ADMIN is a cloud-based software for Office Automation. Smart Admin Tools are designed for Payroll management, Timesheet, and Project Tracking – visit SMART ADMIN for FREE Trial and Registration.
For more information visit https://www.smartadmin.co.in/
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