E-Invoicing and E-Way Bill

WHAT IS E-INVOICING

Electronic invoicing, also known as E-Invoicing, is a form of electronic billing presented to the buyer in an electronic format. It involves creating and sending digital invoices in a structured format that enables automated invoice processing.

1.1 WHAT IS INVOICE REFERENCE NUMBER (IRN)

An Invoice Reference Number (IRN) is a unique number assigned to each Invoice. For every document such as an Invoice or Debit note or Credit note to be submitted on the e-invoice system, a unique 64-character invoice reference number shall be generated.

1.3 WHAT IS E-WAY BILL

E-Way Bill is an Electronic Waybill for movement of goods to be generated on the E-Way Bill Portal.

A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/delivery challan) without an e-way bill that is generated.

API AUTHENTICATION

API Authentication is the process of verifying the identity of a user who is making an API request.

Fig.1

Enter the Client ID in the Client ID Column. Client ID serves as a unique identifier for the client application accessing the system.
Enter the Client Secret in the Client Secret column. Client Secret is a confidential key shared between the client application and the server.

After entering the Client ID and Client Secret, the user clicks on API Authentication button, then all the other columns are updated automatically.

An “Authentication token” is a unique credential granted to a client after successful login.
"Authentication valid till" refers to the expiry time or duration of the authentication token issued to a client application. It signifies the period during which the token remains valid for making authenticated requests to the server.
A “Subscription ID” is a special code linked with a specific subscription plan. The Subscription ID ensures that the client adheres to its subscription terms and accesses only the features allowed by its subscription plan.
Valid checkbox indicates that API authentication is valid
API Counter refers to a mechanism that tracks the number of requests a client application makes to the API within a defined period.
API Authentication button will be the Process for API Authentication.

Then move to second tab of API Authentication

Fig.2

Click on New Record button
Select the API Type from the dropdown. API type refers to the various methods used to design and implement Application Programming Interfaces (APIs).
Enter the API URL Path. An API URL path is the specific address within the base URL of an API used to access a particular resource or endpoint.

PRE-REQUISITE FOR AR INVOICE

To record the AR Invoice as per the customer’s expectation there are some pre-requisites:

Customer and Location of Customer should be available in the system.
Payment Method and Payment Term should be available in the system.
Price List should be available in the system.
The Services/Product should be available with SAC/HSN Code in the system.

CONFIGURATION OF MASTER SCREEN

4.1 DOCUMENT TYPE

In Document Type of AR Screen, select the E-Invoice Type as Invoice or Debit Note or Credit Note.
Select “Invoice” to create the AR Invoice for the type Invoice
Select the “Debit Note” to create the AR Invoice for the type Debit Note
Select the E-Invoice Type as “Credit Note” to create the AR Credit memo for the type Credit Note

E-Invoicing can be generated for that document type for which E-Invoice type define as Invoice or Debit Note or Credit Note but E-Way Bill can be generated only for that document type for which E-Invoice Type define as “Invoice”.

Fig.3

4.2 ORGANIZATION

Select the GSTIN in “Tax ID” Column
Enter the valid GSTIN Of Organization
Select the Address in the “Location” Tab of Organization Screen
Select the Country, address 1, Address 2, City, Region/State and Zip Code and Click on OK button.

Fig.4

4.2.1 ORGANIZATION (E-INVOICE AUTHENTICATION)

Fig.5

Enter the Username in the Username Column. "Username" refers to the unique identifier associated with a user's account. It is used as one of the credentials during the authentication process to verify the identity of the user.
Enter the password in the Password column. “Password” field represents the secret string of characters provided by the client application.

After entering the Username and Password, the user clicks on E-Invoice Authentication button, then all the other columns are updated automatically.

“API Version" refers to the specific version of the application programming interface (API) being utilized for authentication with the e-invoicing system.
"Status" refers to the current condition of the authentication process.
“Description” refers to a textual or descriptive element that provides additional context or information about an authentication process
An “Authentication token” is a computer - generated code that verifies a user's identity.
The “Session encryption key” is a cryptographic key used to encrypt and decrypt data exchanged during a session.
“Token expiry” signifies the end of the validity period for an authentication token.
The “Error code” indicates a specific issue or discrepancy encountered during the authentication process.
“Error Details” provide specific information about errors encountered during the authentication process.
“E-Invoice Authentication button” will be the Process for API Authentication.

4.3 CUSTOMER MASTER

Select the GSTIN in “Tax ID” Column
- Enter the valid GSTIN Of Customer

Fig.6

Select the Supply Type as B2B, SEZWP, SEZWOP, EXPWP, EXPWOP and DEXP
- B2B for Business to Business
- B2C for Business to Consumer (E-Invoicing doesn’t apply in B2C transactions)
- SEZWP for Special Economic Zone with Payment if the payment is done
- SEZWP for Special Economic Zone without Payment if the payment is not done
- EXPWP for Export with Payment if the payment is done
- EXPWOP for Export without Payment if the payment is not done
- DEXP for Deemed Export

If Customer location is out of the country, then select URP in Tax ID Column and EXPWP or

EXPWOP in Supply Type

Fig.7

Select the Address in the “Location” Tab of Customer Master Screen
Select the Country, Address 1, Address 2, City, Region/State and Zip Code and Click on OK button.

Fig.8

4.4 PRODUCT

For Product, user select the product type as Item
For Service, user select the product type as Service
Enter the HSN/SAC Code for the Product or Service

Fig.9

4.5 TAX RATE

Enter the name of the tax, Valid from, Rate
Select the GST Tax Type as CGST or SGST/UTGST or IGST

GST Tax Type defines the type of GST Tax as define in fig.10

Fig.10

CREATION OF E-INVOICING
5.1 SEARCH AR INVOICE

To open the AR Invoice screen in the system, the user opens the AR Invoice screen from the menu. To open the AR Invoice screen user can search the screen in the menu search utility or open the screen using the following path:

Menu Path: - Menu > Financial Management > Accounts Receivables > AR Invoice

Find below the screenshot to open the AR Invoice screen from the menu as per given path:

Fig.11

5.2 AR INVOICE

After clicking on the AR Invoice from the menu, the system opens the screen below. Need to click on the ‘New Record’ button for creating a record.

Fig.12

Select the Organization, Invoice Type for which E-Invoice type should be defined
Select the Business Partner for which Tax ID and Supply Type should be defined
On Invoice line, select the Product or Service for which HSN/SAC Code should be define
Select the Tax rate as GST (CGST + SGST/UTGST) if address of both Organization and Customer are of same state
Select the Tax rate as IGST if address of both Organization and Customer are of different state or outside the country
Then move on to the header tab and complete the AR Invoice.
After completing the AR Invoice, Generate E-Invoice button should be visible
After clicking on Generate E-Invoice button, Pop will display. Then click on OK button

Fig.13

Then E-Invoice IRN Number is generated and message of “E-Invoice generated successfully” shown at below

Fig.14

After generation of E-Invoice IRN Number, “Cancel E-Invoice" button should be visible for cancelling the E-Invoice.
After click on Cancel E-Invoice button. Pop up will display. Then the user clicks on OK button.

Fig.15

After clicking on the OK button, select the Cancel Reason and Cancel Remarks and click on OK button.
After cancellation of E-Invoice, message of “IRN Cancelled successfully” shown at below.

Fig.16

The E-Invoice can be cancelled within 24 hours. Any cancellation after 24 hours could not be Possible through IRN.

E-Invoice cannot be partially cancelled, it has to be fully cancelled.

5.3 SEARCH E-INVOICING RESPONSE

To open the E-Invoicing Response screen in the system, the user opens the E-Invoicing screen from the menu. To open the AR Invoice screen user can search the screen in the menu search utility or open the screen using the following path:

Menu Path: - Menu > E-Invoicing India > E-Invoice Authentication Response

Find below the screenshot to open the E-Invoice Authentication Response screen from the menu as per given path:

Fig.17

5.4 E-INVOICING RESPONSE

E-Invoicing Response screen is a read only screen which shows the response after the generation of IRN Number.

Fig.18

Invoice reference for which E-Invoice is generated.
Status indicates the current state of the invoice transaction.
IRN stands for Invoice Reference Number, a unique number generated for authenticated invoices
The Acknowledgement Number is a unique number assigned to an E-Invoice after it has been successfully generated.
The Acknowledgement Date in E-Invoicing refers to the date when the e-invoice was generated or issued.
Signed invoice denotes an electronically authenticated invoice with a digital signature. This signature ensures the invoice's integrity, and authenticity in the invoicing process.
The Signed QR-Code is a digitally signed Quick Response (QR) code containing essential invoice information.
When E-Invoicing is generated, the IRN (Invoice Reference Number) generated checkbox will be marked as true.
Error Code refers to a standardized identifier assigned to specific issues or discrepancies encountered during the generation or processing of an E-way bill.
The Error message accompanies the error code, providing a detailed description of the encountered error.
When E-Invoicing is cancelled, the IRN (Invoice Reference Number) cancelled checkbox will be marked as true.
Cancel Date/Time shows the cancellation date of and Time of E-Invoice

CREATION OF E-WAY BILL WITH IRN NUMBER

For creation of E-Way bill with IRN Number, create Sale order, Shipment and AR Invoice.

6.1 SEARCH SALE ORDER

To open the Sale order screen in the system, the user opens the Sale Order screen from the menu. To open the Sale order screen user can search the screen in the menu search utility or open the screen using the following path:

Menu Path: - Menu > Order Management > Sales Order

Find below the screenshot to open the Sale Order screen from the menu as per given path:

Fig.19

6.2 SALES ORDER

After clicking on the Sales order from the menu, the system opens the screen below. Need to click on the ‘New Record’ button for creating a record.

Fig.20

Select the Organization and Target document Type.
Select the Customer for which Tax ID and Supply Type should be defined
On Order line, select the Product or Service for which HSN/SAC Code should be define
Select the Tax rate as GST (CGST + SGST/UTGST) if address of both Organization and Customer are of same state
Select the Tax rate as IGST if address of both Organization and Customer are of different state or outside the country
Then move on to the header tab and complete the Sale Order

After completing the Sale order, open the Delivery order screen to create the record on delivery order with reference of Sale Order.

6.3 SEARCH DELIVERY ORDER

To open the Delivery order screen in the system, the user opens the Delivery screen from the menu. To open the Delivery Order screen user can search the screen in the menu search utility or open the screen using the following path:

Menu Path: - Menu > Material Management > Delivery Order

Find below the screenshot to open the AR Invoice screen from the menu as per given path:

Fig.21

6.4 DELIVERY ORDER

After clicking on the Delivery Order from the menu, the system opens the screen below. Need to click on the ‘New Record’ button for creating a record.

Fig.22

Enter the Sale order document no. in Order column, all the other columns are updated automatically as shown in fig. 23
Location on Delivery Order is the Delivery Location of Customer.

If the Location of Customer is outside the Country (Supply Type -EXPWP, Tax ID - URP), On delivery order, select the location of customer which is within India (Port in India).

Fig.23

Select the shipping method as Delivery, Pickup or Shipper.
If Pickup or Delivery is selected as shipping method, then select the Freight category, Enter the Transport document no., Vehicle name and Vehicle registration number manually.

Transportation document no. column is mandatory in case of Transportation Mode is Air or Rail. Vehicle Name and Vehicle Registration number is mandatory in case of Transportation mode is Road or Ship.

On Freight category screen users define the Transportation mode as shown in fig. 24

Fig.24

If Shipper is selected as shipping method, then select the Freight category and Freight Carrier. After selecting the Freight category, Shipping Business Partner, Transportation ID Updates automatically. Then select the Vehicle name, Vehicle Registration number updates automatically. Enter the transportation document no. Manually

On Shipper, selects the Freight category as shown in the fig. 25

Fig.25

On Fleet Detail tab, define the Vehicle name, Registration no., Driver name, Gross weight and Tare weight as shown in fig. 26

Fig.26

Then move to Delivery Order line and click on new record button. Select the order line, Locator and other field update automatically
Then move to the header tab and complete the Delivery order.

After completing the Delivery Order, opens the AR Invoice screen to create the record on AR Invoice screen.

6.5 AR INVOICE

Fig.27

Then click on the create lines from button and select Order no. or Shipment no. and click on OK button.

Fig.28

Invoice line updates the product, Price, Tax from the Sale order screen.
Then complete the AR Invoice.
After completing the AR Invoice, “Generate E-Invoice" button should be visible
After clicking on Generate E-Invoice button, Pop will display. Then click on OK button

Fig.29

Then E-Invoice IRN Number is generated and message of “E-Invoice generated successfully” shown at below

Fig.30

After generation of E-Invoice IRN Number, “Cancel E-Invoice" button and “Generate E-Way bill” button should be visible.
“Cancel E-Invoice" button is used for cancelling the E-Invoice.
“Generate E-Way Bill” button is used to Generate the E-Way bill Number.
Click on Generate E-Way Bill button, Pop will display. Then click on OK button

Fig.31

Then E-Way Bill Number is generated and message of “E-Way generated successfully” shown at below

Fig.32

After generation of E-Way Bill No., “Cancel E-Way Bill” button should be visible.
“Cancel E-Way Bill” button is used for cancelling the E-Way bill
Click on cancel E-Way Bill button, Pop will display. Then click on OK button

Fig.33

After clicking on OK button, select the “Cancel Remarks” and click on OK button.
After cancellation of E-Way Bill, message of “E-Way Bill Cancelled successfully” shown at below.

The E-Way Bill can be cancelled within 24 hours. Any cancellation after 24 hours could not be Possible through E-Way bill.

E-Way Bill cannot be generated for cancelled IRN.

Invoice cannot be reversed until E-Way bill and E-Invoice can be cancelled.

6.6 SEARCH E-WAY BILL RESPONSE

To open the E-Way Bill Response screen in the system, the user opens the E-Way Bill Response screen from the menu. To open the E-Way Bill Response screen user can search the screen in the menu search utility or open the screen using the following path:

Menu Path: - Menu > E-Invoicing India > E-Way Bill Response

Find below the screenshot to open the E-Way Bill Response screen from the menu as per given path:

Fig.34

6.7 E-WAY BILL RESPONSE

E-Way Bill Response screen is a read only screen which shows the response after the generation of E-Way bill.

Fig.35

Invoice reference for which E-way bill is generated.
Delivery Order reference for which E-way bill is generated.
Material Transfer reference for which E-way bill is generated
E-Way Bill No. is a unique number assigned during the generation of an e-Way Bill.
E-Way Date is the date on which E-Way bill has been generated.
E-Way Valid Till date shows the validity of E-Way
Cancel E-Way Bill date shows the cancellation date of E-Way
The E-Way Bill Generated checkbox is true when the E-Way bill is generated
The E-Way Bill Cancelled checkbox is true when the E-Way bill is Cancelled
Info Details offers supplementary information regarding the transportation process.
The error message accompanies the error code, providing a detailed description of the encountered error.
Error Code refers to a standardized identifier assigned to specific issues or discrepancies encountered during the generation or processing of an E-way bill.

7.1 PRINT FORMAT OF TAX INVOICE

After generating the E-Invoice No. and E-Way Bill No., click on the right action panel button i.e. Print Option as shown in fig. 36

Fig.36

Click on Print Option. Pop will display.

Fig.37

Select the Original for Recipient or Duplicate for Transporter or Triplicate for Supplier for copies of Print. Also select two copies or three copies at same time. Then click on the OK button.
Tax Invoice Print Format as shown in fig. 38

Fig.38

7.1 QR CODE

E-invoice system will generate a unique 64-character length Invoice Reference Number (IRN) and digitally sign the e-invoice and the QR code (Quick response Code). The QR code will enable quick view, validation and access of the invoices. The QR code will consist of the following e-invoice parameters:

GSTIN of supplier
GSTIN of Recipient
Invoice number as given by Supplier
Date of generation of invoice
Invoice value
Number of line items
HSN Code of main item
Unique Invoice Reference Number