Customize E-invoice Format
Vyapar can help you manage and issue e-invoices seamlessly. Over 5 million small business owners trust Vyapar in India. Using the app to create e-invoice formats is effortless. The best part is that using the e-invoice formats by Vyapar requires no technical knowledge.
What Is an E-invoice Format?
Electronic invoicing, also known as e-invoicing or e-invoice, is a model
of electronic billing. E-invoicing methods are mainly used by trading partners, such as customers and
It is used to generate unique transactional documents between one another and ensure the terms of their trading agreements are being met. These documents include invoices, debit notes, credit notes, payment terms, payment instructions, purchase orders, and remittance slips.
E-invoicing encompasses different technologies and entry options and is used as an umbrella term to describe any method by which an invoice is electronically presented to a customer for payment.
What Is The Purpose Of Using The E-invoice Format?
The primary liability of the accounts payable department is to ensure all outstanding invoices from its
suppliers are approved, processed, and paid. Processing an invoice is not an armchair job as it includes
recording relevant data from the invoice and feeding it into the company's financial or bookkeeping
system. The feed is accomplished, and the invoice is ready to go through the company's business process
to be paid.
An e-invoice can be known as structured invoice data issued in Electronic data interchange (EDI) or XML formats, possibly using Internet-based web forms. The documents are exchanged in numerous ways, including EDI, XML, or CSV files. They can be uploaded by utilizing web applications, emails, virtual printers, or FTP sites.
The company may use imaging software to capture data from PDF or paper invoices and input it into their invoicing system. It helps streamline the filing process while positively impacting sustainability efforts. Some companies may have their in-house e-invoicing process. However, companies hire a third-party company to implement and support e-invoicing processes.
The different sorts of formats and delivery channels complicate the use of e-invoices. To simplify this operation, the file extension.INV could be used, which would make.INV files easily accessible in accounting software. The INV file can be used in standards-compliant XML format.
What Are The Benefits of Using The E-invoice Format?
Streamlined & efficient processes:
Using e-Invoice format, organizations can accept invoices in any format from many suppliers,
including image-based invoices. Electronic invoicing helps you to provide a single platform for
managing all accounts payable information and processes.
Further, it helps make room for strategic tasks that add value. However, overall efficiencies result in more significant savings for the organization in terms of optimal utilization of resources and increased productivity.
Sync Data Seamlessly:
Business users can quickly and easily sync and aggregate information between various systems. They
can operate multiple devices without duplication of content.
Executing it ultimately results in a much faster turnaround time. It enables the team to leave behind tasks that are often repetitive and time-consuming by nature.
Better Visibility and Transparency:
Electronic invoicing improves visibility into the invoices, supporting documentation, purchase
orders, and contracts. It keeps track of the invoices and provides detailed audit trails. The
functionality is available through an end-to-end native mobile e-invoicing application.
E-invoicing is essential as it assists organizations in streamlining their invoice processing cycles. It helps in reducing the person-hours needed for invoice processing, approving, tracking, and chasing invoices and human errors.
You can ensure accuracy due to improved visibility and end-to-end tracking. You can keep track of
your invoice validation, approvals, and payment in real-time. It remarkably reduces the errors and
So, it helps avoid delayed payments or duplicate payment requests. E-Invoice is thus an essential factor for enabling a closed audit trail to simplify tracking and settlement.
Better compliance and green invoicing:
An e-Invoice system is much greater than just a platform for filing digital invoices. E-Invoices
leads you to a higher level of compliance with ease. It is essential to regulatory compliance.
By switching to e-Invoice, you can drastically eliminate the requirement of paper-based invoices. In addition to being energy-efficient and eco-friendly, you can reduce the waste and costs associated with paper-based processes used within your supply chain.
Reduced risk with insights:
Greater visibility into trade and transactions also reduces the risk of human error, duplication,
invoice fraud, oversight, etc. Organizations can save countless hours and resources for the time
taken to cross-check the verification and due diligence when an efficient system is in place that
does not leave much scope for such risks to enter the processing cycle.
E-invoice helps you with every last dollar spent and saved. It allows the leadership and procurement teams to keep track, gather strategic insights on cost centers, and identify opportunities to save more, like early payment discounts. The data available in front of you helps in better and more informed decision-making, saving time and resources.
How Many Types Of E-invoice Format are There?
There are two types of 'true' e-Invoice format that you must understand with or without compliance.
E-Invoicing without compliance
The process for electronic invoicing without compliance is:
- When the buyer and supplier agree on the format that the e-Invoice will take and the data to be included
- The data will be correctly into the design (X12, Edifact, XML) using modern technology such as EDI or simple web forms for web invoicing.
- As the supplier here creates and sends an electronic invoice either directly from their Accounts Receivable (AR) system or via a web-based form.
- When the buyer receives the e-invoice format ready to be processed by the Accounts Payable (AP) system
In these circumstances, the e-Invoice confirms only the data formats that the trading partners. It does not contain the regulatory obligations of the country where the electronic invoice is issued or received. However, it's better for businesses to choose to incorporate compliance methods in e-invoicing.
E-Invoicing with compliance
The process for electronic invoicing with compliance is very similar to the operation of e-invoicing without compliance except for:
- The format of the e-Invoice data is here, mainly determined by the legislation and regulations of the territories in which both parties are trading.
- The e-Invoices are mainly regulated to government-specified guidelines or by a government portal for e-Invoice content validation, security, non-repudiation, and archiving.
- The invoices for audit and VAT purposes are very readily available.
- The use of paper is entirely removed from the process.
It ultimately makes sense for an organization to accept this approach as it will facilitate their VAT obligations. However, there are no standards available for regulating the governing e-Invoicing.
What Is The Process Of Getting An E-invoice Format?
The following are the steps involved in generating or raising an e-invoice.
The taxpayer must use the reconfigured ERP system as per PEPPOL standards. He can also coordinate with the GST software service provider to assimilate the standard set for e-invoicing, i.e., e-invoice scheme, and should have the mandatory parameters notified by the CBIC at least.
Any taxpayer has got mainly two options for IRN generation:
- Your PC's IP address is listed on the e-invoice portal for a direct API integration or integration via GST Suvidha Provider (GSP) such as ClearTax.
- You should download the bulk generation tool to bulk upload invoices. It will prepare the JSON file that can be uploaded to the e-invoice portal to generate IRNs in size.
The taxpayer should, after that, raise a proper regular invoice on that GST software. It will give all the
essential details like billing name and address, GSTN of the supplier, transaction value, item rate, GST
rate applicable, tax amount, etc.
Once all the above options are chosen, you should raise the invoice on the respective ERP GST software or billing software. After that, you can upload the invoice details, especially for the compulsory fields, onto the IRP using the JSON file, via an application service provider (app or GSP), or through a direct API.
The IRP shall act as the central registrar for e-invoicing and its authentication. There are a variety of other modes of interacting with IRP, such as SMS-based and mobile app-based.
IRP will also help validate the critical details of the B2B invoice. You can check for duplicates and generate an invoice reference number (hash) for reference. There are mainly the four types of parameters based on which IRN is generated: Seller GSTIN, invoice number, FY in YYYY-YY, and document type (INV/DN/CN).
IRP assists you in generating a unique invoice reference number (IRN), which helps you to digitally sign the invoice and creates a QR code in Output JSON for the supplier. On the other side, the supply seller will get informed of the e-invoice generation through email if it is provided in the invoice.
IRP will send the authenticated payload to the GST portal for GST returns. In addition, details will be forwarded to the e-way bill portal, if applicable. The GSTR-1 of the seller gets the option to be auto-filled for the relevant tax period, which regulates the tax liability.
A taxpayer can also continue to print his invoice as it is being done presently with a logo. The e-invoicing system can only mandate all taxpayers to report invoices on IRP in electronic format.
How To Create An E-invoice Format By Using The Vyapar App?
Here are a few simple ways to create an e-invoice format in the Vyapar app. You can follow the points given below to make a perfect e-invoice format for you:
- Go into the Vyapar app, and click on the add sale button. The sale form will be opened. You can also use the shortcut key (Alt+S).
- Over here, the first thing you need to do is to select a cash or credit sale. For now, we are creating a credit sale. Once it is done, you can choose the customer name from the list. The customer details would get filled over here automatically.
- If you create an invoice for any customer for the first time, type out the name or you will get the “Add Party” option when you click the “customer'' tab and update the party details. It will create a new party, and later on, you can edit the party details.
- On the right side, you will find the invoice number, date, and place of supply, which can be changed if needed.
- Then, for now, you need to add items to the invoice. You need to go to the item line and select the item; along with this, you can see the item quantity price per unit, discount, tax and amount, these can be changed if needed, and similarly, you need to add the other items too.
- After this, you can select the payment type. If you need to ensure, enter any additional details in the invoice, and you can use the description box for additional information. You will get an image option below the “description'' tab, with the help of which you can add any invoice-related image.
- If you want to add any additional field option then go to settings>transaction settings>Additional Charges>enable charges as per your requirement like shipping, packaging or any additional charges. The additional charges will then reflect before the total amount.
- If you need, you can round off the invoice amount if required using the round-off option. This option, too, has to be turned on beforehand from the transaction set.
- Now, you can note it down in the received amount column. Then click on the Save button.
Your e-invoice is ready, and now you can easily share in all three formats (PDF, Word, and Excel) with your clients.