E-Invoicing with SAP
After GST now it’s time for e-Invoicing for Indian B2B customers. E-Invoicing is introduced with the idea to simplify the GST invoicing process. As per the website of the Good and Service Network `e-invoicing` has many advantages for businesses such as standardization, interoperability, auto-population of invoice details into GST return and other forms (like e-way bill), reduction in processing costs, reduction in disputes, improvement in payment cycles and thereby improving overall business efficiency.
It’s basically a GST system, where all B2B Invoices, Debit and Credit notes are reported to GSTN, and are verified. Where validation is done by GSTN Network (IRP-Invoice Registration Portal), its then digitally signed and IRN (Invoice reference number) is generated, along the provision of QR code. The Invoice details will automatically flow into GSTR1 and E-Way bill portal.
SAP Business ByDesign also has the capability of e-Invoicing. With the help of JSON file which can be fetched from SAP ByD system later the same file is transmitted to IRP (www.einvoice1.gst.gov.in) portal. This portal will validate and generate IRN number, digitally signed this invoice and it then remitted back to supplier and as well as the recipients of goods and services.
IRP going to transmit the data on real time basis to GSTN common portal for capturing outward supplies for the supplier of goods and services and for ITC (Input Tax Credit) for the recipients of goods and services.
How E-Invoice make compliance easier and benefit my business?
Businesses will reap the major benefits by using e-invoice generated by GSTN :
- E-invoice mitigates and remediates the major loopholes in data reconciliation under GST and reduces the possibility of mismatch errors and flaws.
- E-invoices, when generated can be read by another, allowing transparency and help mitigate any potential errors.
- Real-time tracking of e-invoices
- When you automate the tax return filing process, you can seamlessly generate the part-A of e-way bills.
- The relevant details of invoices would be auto-populated in filing other returns which saves time and efforts
- Reliability of genuine input tax credit.
- Lesser interventions of tax authority since the information is scanned at the transaction level.
- Scoping Business ByDesign Configuration
To enable the legal approval for invoices, select the checkbox In Scope against the question Do you want to enable legal approval process for customer invoices using Invoice Reference Number? from the path Compliance Invoice Processing Invoice Reference Number for India Legal Approval for Invoices – India.
To automatically release the customer invoices after the approval process, select the checkbox In Scope against the question Do you want to release the customer invoices automatically on submission of the approval details? from the path Compliance Invoice Processing Invoice Reference Number for India Automatically release the customer invoice after approval process – India.
- Work center view Business Configuration – Overview:
- Open view Common Master Data Configuration
- Edit entry having Configuration Type Code as Transformation Repository
- Maintain transformation files for Customer Invoice having Transformation Type as XSL Transformation Customer Invoice for different countries along with validity periods.
Process Flow for Customer Invoices:
- Create a manual customer invoice in SAP ByD system.
- Once you have completed steps 1-3, you can proceed as follows:
- Click Release if you want to immediately trigger the external process to request the approval for this invoice by the tax
- Click Save if you want to save this document as an invoice
- Click Save as Invoice if you want to create a new invoicing document in the Invoice Documents
The invoicing document has the Not Released status. To open the invoice from the list in this view, click the appropriate invoice ID link. You can now either skip the legal approval process or manually request for an approval.
For more information, see Update Customer Invoice Legal Approval Data – India.
Save the invoicing document. The system updates the approval status to Approved. If the system is scoped to automatically release the customer invoices on submission of the approval details, then the invoice gets the status of Released.
How to cancel e-Invoice after posting:
To cancel a reported electronic invoice document, the JSON file available in the Attachments tab of the canceled invoice must be uploaded to the IRP through the authorized service provider. You must enter the reason for cancellation in the Cancellation Remark field of the canceled invoice.
Process Flow for Supplier Invoices:
- Your supplier sends you an invoice with the invoice reference.
- In the Supplier Invoicing work center, in the Invoice Entry view, create a supplier.
- Enter the Invoice Reference Number field.
- Proceed as in the normal Supplier Invoicing.
Download Output XML format:
Open an existing Invoice document
- Open the Business Partner Master Data
- Go to: View All
- Go to: Output History
- Select the existing output file
- Select View Data XML and download the file structure.