E-invoicing or generally termed as electronic invoicing is a system of invoice generation in which the business to business or B2B invoices are uploaded via any electronic media and are authenticated by any designated portal. One can simply define a e-invoicing system as the online or electronic invoicing system. After the successful authentication from the designed website, a unique and very confidential Invoice Reference Number (IRN) is generated as a form of E-invoicing for each invoice by ERP. This electronic number or IRN which is generated with each invoice by the IRP or invoice registration portal is digitally signed and it comes with a QR code which is very unique with reference to this specific IRN.
Enterprise Resource Planning or ERPs simply refers to the type of application or software that many organizations use to manage and monitor day-to-day business activities like procurement, accounting, project management, compliance and risk management thus ultimately monitoring the supply chain. The ERP serves as a purpose of easing the process of filing the returns through the IRP or Invoice Registration Portal thus generating the required IRN. These are mostly the management of every information and resources that are associated with a company’s operations by using integrated systems and computers. It basically collects all the information that’s related to the different divisions of the business, thus increasing the productivity. Now the question arises, how its related to the whole taxpayment under GST and the concept of e-invoicing. The whole idea is that when a vendor is going to file the e-invoice through the IRP, the standardisation process involved with the new protocols will create complicated and lengthy issues which may be tackled using the help of ERPs. They practically provide robust solutions to the businesses where they can simply go and create an e-invoice that can be generated from the IRP along the specific QR code as well as IRN.
E-Invoicing through Tally ERP
When using this Indian software from the Tally Solutions, the supplier has to simply access the gateway of the software interface, then they just need to enter the commodity or the service they are giving along with the other basic information and that’s it. What the Tally software does is, it automatically integrates this information from the vendor and inputs it into the Invoice Registration Portal thus making the job easier for them. After this, the IRN is generated at the IRP which gets made available to the supplier at the Tally Gateway itself. The introduction of B2B e-invoicing under the GST system has greater implications that authenticates the B2B invoices and returns electronically with the help of GSTN. E-invoicing in any enterprise business system is generally a business to business or B2B invoice that is generated electronically by GSTN for usage in the ERP in the future. The GST invoices are continuously created by the accounting software and invoices are generated by the ERP software like the Tally ERP.
So here is the whole process of invoicing through Tally ERP in the Invoice registration portal works. The Tally ERP helps the supplier to calculate and monitor the total transactions that has been made and the Tally ERP software does its job. What it does is, it sends the transaction details to the government portal where the server assigns a unique Invoice Reference Number and a QR code along with it to make it distinctive. This IRN Is then transferred to the sending servers which sends the IRN and the QR code to the supplier through any contacting means like email which they have provided. The Tally ERP ultimately reduces the total time and expenditure in the generation of e-invoice thus reducing cost and efforts associated with it making the return filing easier for tax purposes.