Account Manager’s Guide to Effective E-invoice Generation

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Account Managers Guide to Effective E-invoice
Generation
E-INVOICE REGISTRATION PORTAL
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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.
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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.
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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.
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E-invoicing systems 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 systems
workflow is the generation of a 64-character
unique IRN, either through an offline tool or by
using an API through GSP integration.
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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

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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.
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Thank You
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-invoice-generation/