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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