Account Manager’s Guide to Effective E-invoice Generation

1. Account Manager’s Guide to Effective E-invoice Generation E-INVOICE REGISTRATION PORTAL

2. The new GST regime has made life simpler and more organized for taxpayers in many ways. At the same time, the new administration has made the task of accountants or account managers challenging. As they are the ones responsible for overseeing all accounting processes on a daily basis. The new tax rules require a slew of chores and a multitude of tasks, including bookkeeping, GST returns, e-invoice generation, GST reconciliation etc. All these may appear burdensome to account managers, but there are some specific, reliable, and effective solutions that can not only complete all the necessary groundwork but are also entirely GST-compliant to make their lives easier accountants. 02

3. Account management solutions to ease the burden Account managers are responsible for ensuring that all GST returns are submitted accurately, and they must verify all information before submitting. To give clients correct advice and remain clear of any legal entanglements or penalties, they must keep up with the most recent GST rules and regulations and maintain proper documentation. All these tasks can easily be managed by modern accounting solutions which maintain all the records of purchases, sales, and inventories, and can simply handle all these jobs with ease. These technologies, which offer real-time information and produce customizable bills, can be used by accountants to lessen their workload. These programs can manage purchases and sales and handle all bank-related transactions. 12

4. E-invoicing and unique IRN Many of the basic GST complexities that an account manager must deal with include e-invoicing and the creation of invoice reference numbers (IRN). According to the e-invoicing mandate, all companies with yearly revenue of more than Rs 10 crore are required to create electronic invoices, which must then be electronically transmitted to a GST Authorized Invoice Registration Portal like IRIS IRP. The threshold for generating an e-invoice for B2B transactions is further going to be reduced from Rs 10 crores to Rs 5 crores, starting August 1, 2023. That means the task of the GST account manager would increase further, as after successful authentication, a unique invoice reference number is generated for each invoice by the IRP (Invoice Registration Portal). All these tasks are performed by the account managers, who oversee the process to maintain compliance.

5. E-invoicing system’s workflow E-invoicing under GST facilitates standardization and interoperability. Let us first understand the basics of e-invoice generation. This process must be adhered to by all applicable GST-registered businesses as per the standard format notified by the Central Board of Indirect Taxes and Customs (CBIC). Their reporting must be done per the e-invoice schema and mandatory parameters. Sellers’ accounting software must be capable of creating a JSON file, be connected to a utility, and be used to interact with the accounting/billing system, or ERP. Also, there must be an offline tool to generate e-invoices by keying-in invoice data. The second step of the e-invoicing system’s workflow is the generation of a 64-character unique IRN, either through an offline tool or by using an API through GSP integration.

6. The next step is the generation of QR codes. The IRP system, after the generation of the IRN, digitally signs the e-invoice and generates the QR code. The QR codes, which include all the vital information of the supplier and the recipient, make the validation of e-invoices easier through any handheld device. IRP and IRN • IRP (Invoice Registration Portal) validates the authenticity of the invoices used in the GST ecosystem. The portal acts as a registrar and helps in generating invoices by allotting invoice reference numbers (IRN) and QR codes. The key functions of the portal include: • Generation of hash algorithm unique code • Verification and digital signature of the approved invoices • QR code generation and e-mailing of invoices • Integration of GST and E-way bill framework

7. The IRP generates the IRN. It is basically a hash computed by IRP, which is a must for every invoice issued by the supplier to its recipient. It needs to be digitally signed, as a GST invoice will be valid only with a valid IRN. The tax officers can verify the genuineness of the transaction using IRN through the GST portal as well as through the offline app. Common errors to avoid There are certain pitfalls that an account manager should avoid while generating an e-invoice and reporting to IRP, as there are significant chances of errors. The government has listed out the common error messages that taxpayers may receive if an erroneous entry is made and has also suggested resolutions for them. An account manager should be prepared to deal with all these issues promptly.

8. Thank You Source Of This Article :- https://einvoice6.gst.gov.in/content/account-managers-guide-to-effective-e-invoice-generation/