Electronic invoicing or e-invoicing is the process of uploading all your transactions in the invoicing registration portal (IRP) for authentication. For every invoice that is to be uploaded after the authentication, the IP issues a unique IRN (Invoice Reference Number). This IRN needs to be converted into QR Code along with the other invoice information and the invoice for it to be considered valid.
Under the GST legal framework, the concept of E-invoicing was created for a certain class of registered taxpayers. Tally is the official GST provider because it can communicate directly with the IRP to upload invoices in the actual time. Once it is authenticated, the tally receives the unique IRN as well as the QR code information from the IRP. The information is updated seamlessly. The authorised user then can print the required QR code as well as the IRN on the invoice as part of their standard invoice printing procedure. In addition to the e-invoicing, Tally Prime can also generate e-way bills if applicable. The Tally Prime e-invoice procedure profoundly changed this domain.
For a better understanding of the whole process it is important to understand a few terms before delving into further implementing e-invoicing:
Notified Registered Person
The government has made it mandatory for all registered businesses under the relevant provisions of the GST laws and regulations to issue e-invoices. Hence it is referred to as “Notified Registered Persons”. According to a recent update, e-invoicing will be available to businesses with a turnover of more than 10 crores beginning October 1, 2022.
- Invoice Registration portal (IRP)
This portal is maintained by the goods and services tax network (GSTN), on which the e-invoice needs to be reported. The invoice registration portal reverts by generating a unique reference number called Invoice Reference Number (IRN).
Steps to do e- Invoicing with Tally Prime
Follow these easy and simple three steps for configuring e-invoicing:
- Step 1: GSTN Registration with IRN
Register with the IRN. Choose “API integration with ERP” from the list of choices. Your GSTN registration to Tally (India) Private Limited. Due to security concerns, we advise you to choose a strong username and password.
- Step 2: Tally Prime configuration
A simple one-time configuration is required to configure Tally Prime for e-Invoicing.
- Step 3: Pass entries in Tally Prime
Since you enabled e-invoicing and e-way bills earlier, when you create a sales entry as usual, you will see an option to “Provide GST/ E-way Bill/ E-invoice data” near the bottom of the voucher entry screen.
- Step 4: Print E-Invoice
Click ‘Yes’. Now a screen asking for details regarding E-invoice will open fill it, save and proceed. Tally will ask for your username and password. Fill in the username and password you saved in step 1. The system will now generate your e-invoice with a QR code and IRN.
You can now take a printout of your invoice with IRN and QR codes.
Before implementing e-invoicing in Tally Prime, it is advisable to check with the GST portal or with a professional because the GST laws and regulations are subject to constant change. You can now start passing entries to start e-invoicing right away. You don’t need to change the way you handle invoices because Tally Prime has maintained the standard base for the entire process.
Your company is now prepared for e-invoicing! Speak with Nandini Infosys to learn more.