E-Invoice – How to Issue & Submit Consolidated E-Invoice

E-Invoice – How to Issue & Submit Consolidated E-Invoice

Introduction

i-Account’s e-Invoice module enables e-Invoice submission through direct LHDN API integration. Once enabled, you can assign TimeTec as an intermediary to handle the submission of e-Invoices to LHDN on behalf of the entity.
Alert
Important Note:
Only Admin users that are assigned with i-Account system role as either a ‘System Administrator’, 'Accounts Receivable & Accounts Payable' or 'Accounts Receivable' have access to the E-Invoice pages in i-Account listed below.
 

1. What is Consolidated E-Invoice

1.1 Description
For certain B2C transactions (e.g. retail and F&B) where e-Invoices are not required by the end consumers to support the said transactions for tax purposes, suppliers will be allowed to issue a standard invoice (existing practice).

Supplier will be allowed to aggregate transactions with Buyers who do not require an e-Invoice on a monthly basis and submit a consolidated e-Invoice to LHDN, within seven (7) calendar days after the month end.

Prior to the above, supplier has to seek confirmation from Buyer if an e-Invoice is required. If the Buyer confirmed that he/ she requires an e-Invoice, the Buyer is required to furnish the Supplier with the required information to facilitate the issuance of e-Invoice.
 
1.2 LHDN E-Invoice Guidelines
 
Section 3 - Extracted From e-Invoice Specific Guideline Version 4.1

3. TRANSACTIONS WITH BUYERS
  1. Currently, businesses (Suppliers) will issue a receipt / bill / invoice in hardcopy and/or softcopy (e.g., via e-mail) to customers (Buyers) to record a transaction (e.g., sale of products or provision of services to Buyers for personal consumption).
  2. Upon implementation of e-Invoice, Suppliers are required to issue e-Invoice for all of its transactions. However, certain Buyers, particularly customers and certain businesses, may not require an e-Invoice as proof of expense.
  3. To assist the Suppliers in complying with e-Invoice requirements and to reduce the burden to both Suppliers and Buyers, the IRBM allows the Suppliers to consolidate the transactions with Buyers (who do not require an e-Invoice) into a consolidated e-Invoice on a monthly basis.
 
1.3 Overview
Refer to Scenario 2 in the diagram below (extracted from LHDN’s e-Invoice Specific Guideline Version 4.1) for an overview of the invoicing process:

Extracted from LHDN’s e-Invoice Illustration Guide


2. Generate & Submit Consolidated E-Invoice

2.1   E-Invoice Process Flow

·        Users must issue the standard sales invoice at the Sales module before E-Invoice creation.
·        All standard sales invoices will be transferred to E-Invoice module.
·        If individual e-Invoice is set as required by buyer, system will create a draft e-Invoice based on the sales invoice.
·        If individual e-Invoice is set as not required by buyer, the sales invoice will be inserted as an invoice entry when you generate a consolidated e-Invoice.
·        All e-Invoice in the system must go through the E-Invoice Approval process.
 

2.2 Consolidated E-Invoice Creation, Validation, Cancellation

a. Manage Consolidated E-Invoice Listing

1. Go to Property > E-Invoice > Manage Consolidated.
2. At the ‘Manage Consolidated E-Invoice’ page, users can view and manage all consolidated e-Invoices in the system.
 


b. Manage Consolidated E-Invoice – Generate Function

1. Consolidated e-Invoice is not immediately auto created when sales invoices are issued in the Accounting/ Sales module.
2. When you are ready to submit a consolidated e-Invoice, go to ‘Manage Consolidated E-Invoice’ page.
3. Click the 'Generate' button and select the applicable transaction Date range and Document type (e.g. Sales Invoice, Credit Note, Debit Note) to generate the consolidated e-Invoice.






Important Note & Guideline on Consolidated E-Invoice:

  1. Consolidated e-Invoice is issued only where Buyers do not require e-Invoice.
  2. Consolidated e-Invoices are to be submitted to LHDN, within seven (7) calendar days after the month end.
  3. Taxpayers are allowed to submit multiple consolidated invoices for each month.
  4. Any transaction already submitted to LHDN through a standard individual e-Invoice must be excluded from consolidated e-Invoice to ensure no double reporting/ overstatement.

 

c. Draft Consolidated E-Invoice

1. Next, at the ‘Manage Consolidated E-Invoice’ page, select the ‘Draft/ Rejected’ tab to view the new ‘Draft’ status consolidated e-Invoice that you have just generated.

2. Click the edit (pencil) icon to view and check the draft consolidated e-Invoice, then submit for approval. Draft e-Invoice has to be approved before it will be submitted for LHDN validation.


3. Invoices that have not been issued as a standard e-Invoice (and have not been consolidated in another existing consolidated invoice) will be included in the consolidated e-Invoice.

4. You can click the ‘Document Listing’ button to view the details of the individual documents contained in this consolidated invoice.





5. You can check the appropriate values for Buyer details and E-Invoice fields are inserted for the consolidated e-Invoice prior to submission.
 

E-Invoice Structure

Fields

Buyer Details

  1. Name: General Public
  2. TIN: EI00000000010
  3. Other fields: NA

Line Item

  1. Classification code: 004
  2. All applicable sales invoices/ customer debit notes/ customer credit notes within the selected transaction date range are consolidated.
  3. List of sales invoices (in a continuous invoice number) is presented as line items (i.e., where there is a break of the invoice number chain, the next chain shall be included as a new line item).



6. Click ‘Submit for Approval’.



d. Delete Non-Validated Consolidated E-Invoice

1. Consolidated e-Invoice can be deleted, only if the e-Invoice has not been validated by LHDN (or validated but cancelled within 72 hours).      



e. For Approvers - Pending Approval Consolidated E-Invoice

1. Following the consolidated e-Invoice generation, the Draft e-Invoice has to be approved before it will be submitted for LHDN validation. 
2. Approvers can go to ‘Manage Consolidated E-Invoice’ page, select the ‘Pending Approval’ tab. 
3. Click the edit (pencil) icon to view the consolidated e-invoice. Next, click ‘Approve’ button to approve and click ‘Confirm’ to proceed with the approval.
AlertNote: Approved e-Invoice will be auto submitted for LHDN validation.






f. Validated Consolidated E-Invoice

1. Go to ‘Manage Consolidated E-Invoice’ page, select the ‘Approved’ tab.


2. Click the print icon at the column on the right to view the consolidated e-invoice PDF.



3. You can scan the QR code (validation link) on the e-Invoice PDF file.


g. Cancel Validated Consolidated E-Invoice (Within 72 Hours)

1. Non-approvers and Approvers can cancel the e-Invoice within 72 hours from the time of the validation.
2. Go to ‘Manage Consolidated E-Invoice’ page, select the ‘Approved’ tab.
3. The ‘Cancel’ column indicates either ‘Open’ status or ‘Closed. Exceed 72 h’. Click the view consolidated e-Invoice icon at the column on the right. 

4. Next, scroll down to the ‘Cancellation Remark’ box and key in a reason for cancellation (compulsory). Click the ‘Request Cancellation’ button and ‘Confirm’ to proceed with the request. Cancellation must also be approved before it will be submitted to LHDN.



h. For Approvers - Approve Cancellation of Validated Consolidated E-Invoice

1. To view the pending cancellation invoice, go to ‘Manage Consolidated E-Invoice’ page, select the ‘Pending Approval’ tab. 

2. Click the edit (pencil) icon to view the Pending Cancellation e-invoice. Next, click ‘Approve’ button to approve and click ‘Confirm’ to proceed with the approval.

3. Next, click ‘Approve Cancellation’ button and click ‘Confirm’ to proceed with the cancellation.




4. At the ‘Manage Consolidated E-Invoice’ page, select the ‘Voided’ tab.


5. Before you can generate a new consolidated e-Invoice for the same transaction period and insert the same sales invoices, you have to delete the cancelled e-Invoice. Tick the checkbox on the left column to select the relevant e-Invoice. Next, click the ‘Delete’ button and click ‘Confirm’ to proceed with the deletion.


i. Other E-Invoice User Guides


Note: If some of the screenshots or steps viewed here are different from the ones in the current system, this is due to our continuous effort to improve our system from time to time. Please notify us at info@timeteccloud.com, we will update it as soon as possible.

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