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

E-Invoice – How to Issue & Submit Individual 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. General Information

1.1 What is e-Invoice?
Information below is extracted from e-Invoice Guideline Version 4.3 (Section 1.1)
An e-Invoice is a digital representation of a transaction between a supplier and a buyer. E-Invoice replaces paper or electronic documents such as invoices, credit notes, debit notes and refunds. It is a file created either in the Extensible Markup Language (XML) or JavaScript Object Notation (JSON) formats that can be automatically processed by relevant systems. It is not invoice data in PDF or Word formats, or images of the invoice as JPG or TIFF, or HTML on a webpage. Generally, an e-Invoice contains the same essential details as traditional invoices, including information about the supplier and buyer, item descriptions, quantities, pre-tax prices, tax amounts, and total costs.

 
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 Individual E-Invoice
Upon the implementation of e-Invoice, suppliers are supposed to issue e-Invoices to all their buyers individually. This is referred to as an "individual e-Invoice". However, certain buyers, particularly end consumers and certain businesses, may not require an e-Invoice as proof of their expense.

As such, whenever a sale or transaction is made, a supplier has to confirm with each buyer whether a standard or individual e-Invoice is actually required by the buyer. If the answer is yes, the buyer has to request an e-Invoice by informing the supplier accordingly and providing the necessary buyer details for the issuance of the individual e-Invoice.

Refer to Scenario 1 in the diagram below (extracted from LHDN’s e-Invoice Specific Guideline Version 4.1) for an overview of the individual e-Invoice issuance:


2. Generate & Submit Individual E-Invoice

2.1   E-Invoice Process Flow

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

2.2 Individual E-Invoice Creation, Validation, Cancellation

a. Manage E-Invoice Listing

  1. Go to Property > E-Invoice > Manage E-Invoice.
  2. At the ‘Manage E-Invoice’ page, users can view and manage all individual e-Invoices in the system.
  3. This page will display a listing of all e-Invoice documents created in the system, with multiple tabs for users to select and view e-Invoices with different status.
 
 

b. Individual E-Invoice – Update Buyer Settings

Prior to the issuance of an e-Invoice, the customer’s request for individual e-Invoice has to be configured at Customer settings.

Buyer’s Details Setup
  1. If the debtor has requested for an individual e-Invoice and provided the relevant buyer details, Admin can update this e-Invoice requirement in i-Account.
  2. Go to Accounting > Sales > Maintenance > Customers.
  3. Select the applicable debtor at ‘Customer’ dropdown, then select the ‘E-Invoice’ tab.
 
  1. Click the ‘Individual E-Invoice Setting’ button. Set this option as ‘Enable’ to generate individual e-Invoice for this debtor and click ‘Save’.
Note: By default, the value for ‘Individual E-Invoice Setting’ is set as ‘Disable’ which means sales invoice issued for the customer will be included in the consolidated e-Invoice.

 
  1. Next, back at the ‘E-Invoice’ tab, click ‘Add new’ under the ‘Buyer’s Details’ table.

  1. Fill in the buyer’s details and click ‘Add’ to save the changes. 
AlertNote: ‘TIN’ and ‘ID No’ must be a valid combination.
 
Possible TIN & ID for Malaysian individuals:
TIN
ID Type & No
Valid TIN,
e.g. “IGXXXXXXXXXXX”
ID Type: “MyKad”
ID No: “000000000000” (12 zeros)
General Public TIN
“EI00000000010”
ID Type: “MyKad”
ID No: Valid MyKad identification number

 

c. Individual E-Invoice – Issue Invoice

1. Individual e-Invoice is created when sales invoices are issued in the Property (Invoice) & Accounting (Sales) module.
2. Go to Accounting > Sales > Transactions > Invoice page to issue a direct invoice to a single customer. 
3. The relevant E-Invoice settings and buyer dropdown will be displayed when the Customer is selected.


4. Issue the sales invoice according to the usual process. The standard sales invoice will be uploaded to the i-Neighbour app and emailed to the unit owner.

Once the sales invoice is issued, i-Account creates a draft e-Invoice based on the sales invoice.


d. Draft E-Invoice

1. Next, at the ‘Manage E-Invoice’ page, select the ‘Draft/ Rejected’ tab to view the new ‘Draft’ status individual e-Invoice that was just created.

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


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

E-Invoice Structure

Fields

Buyer Details

  1. Name: Buyer Name
  2. TIN: Buyer TIN
  3. ID No: NRIC/ Passport number/ Business registration number/ army number
  4. Other fields: Buyer contact details

Line Item

  1. Classification code: Category of products or services being billed because of a commercial transaction (e.g., general expenses, medical expenses, donations, self-billed e-Invoice, etc.)
  2. Other fields: Description, quantity, unit of measurement (UoM), unit price, discount rate, discount amount, tax type, tax rate, and tax amount and etc.

Possible classification code for property management services:

Code

Description

022

Others

030       

Repair and maintenance




4. Click ‘Submit for Approval’.




e. Individual E-Invoice – Batch Invoice

1. For the following batch invoice functions, draft e-Invoices will also be auto-created (and displayed in the same listing below) during batch invoice generation: 
  1. Property > Invoice > Batch Invoice
  2. Property > Invoice > SCI Batch Invoice
  3. Property > Overdue > Late Payment Interest 
2. Next, at the ‘Manage E-Invoice’ page, select the ‘Draft/ Rejected’ tab to view the list of ‘Draft’ status individual e-Invoices that were created from the batch.

3. Tick the checkboxes at the left column to select all individual e-Invoices, then click the ‘Submit for Approval’ button. Draft e-Invoice has to be approved before it will be submitted for LHDN validation.


f. For Approvers - Pending Approval E-Invoice

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

Alert
Note: Approved e-Invoice will be auto submitted for LHDN validation.







4. System will auto email validated e-Invoice to the buyer’s email address once validation is successful. Admin is not required to manually click the send email icon.

5. Additionally, for batch invoices, you can select multiple invoices to be approved at once. Tick the checkboxes at the left column to select all individual e-Invoices, then click the ‘Approve’ button. 


g. Validated E-Invoice

1. Go to ‘Manage E-Invoice’ page, select the ‘Approved’ tab.
2. Click the print icon at the column on the right to view the validated e-invoice PDF.



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


h. Cancel Validated 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 E-Invoice’ page, select the ‘Approved’ tab.
3. The ‘Cancel’ column indicates either ‘Open’ status or ‘Closed. Exceed 72 h’. Click the view 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.




i. For Approvers – Approve Cancellation of Validated E-Invoice

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


2. Click the edit (pencil) icon to view the Pending Cancellation e-invoice.

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




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


Other E-Invoice Guides

E-Invoice Setup

How to Issue & Submit Consolidated E-Invoice


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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