Electronic invoice
India has made substantial strides in adopting electronic invoicing, commonly referred to as e-invoicing, along with the e-way bill system. These initiatives aim to standardize and enhance the efficiency of digital business transactions, fostering transparency and facilitating tax compliance in the increasingly digitalized realm of commerce.
Odoo stands out as a leading ERP system capable of fulfilling these requirements. This blog post will explore how Odoo simplifies the implementation of Indian e-invoicing and e-way bills, enabling seamless and compliant business operations.
Advantages of Electronic Invoicing
The Indian e-invoicing system, launched by the Government of India in 2020 as part of the Goods and Services Tax (GST) framework, represents a transformative initiative. Its objective is to establish a consistent and standardized electronic invoicing format, eliminating manual procedures and fostering transparency across the entire supply chain.
- E-invoicing eradicates the necessity for manual data input, thereby decreasing errors and processing duration. Consequently, this leads to expedited invoice generation and payment cycles.
- Real-time reporting entails swift and precise data transmission to the GST Network (GSTN), bolstering tax compliance and reducing discrepancies.
- The Invoice Reference Number (IRN), generated uniquely within the e-invoicing process, guarantees the authenticity of the invoice, thereby mitigating the risk of fraud.
Integrating E-Invoicing within Odoo
As a flexible ERP solution, Odoo provides an integrated e-invoicing module that aligns with Indian regulatory standards.
Registration for e-Invoices
Upon registration on the NIC e-Invoice Portal, you will receive an API Credential necessary for configuring the Odoo Accounting App.
- Access the NIC e-Invoice portal by selecting "Login" and entering your username and password.
2. Navigate from the dashboard to API Registration, then proceed to User Credentials and create a new API User.
3. Subsequently, you will receive an OTP code on your registered mobile number. Input the OTP code and click on Verify OTP.
4. Choose "Through GSP" for the API interface, designate Tera Software Limited as the GSP, and enter the required information.
Create a username and password for your API. Once completed, click on "Submit."
Setup within Odoo
To activate the e-Invoice service in Odoo, navigate to
Accounting -> Configuration -> Settings -> Indian Electronic Invoicing, then input the Username
and the previously set API Password.
Setting up the Journal
To enable automatic sending of e-Invoices to the NIC e-Invoice portal, start by configuring your sales journal. Navigate to Accounting -> Configuration -> Journals, open your sales journal, and within the Advanced Settings tab, under Electronic Data Interchange, activate E-Invoice (IN).
Process
Create an invoice either through a sale order or via accounting in the regular process. Once the
Once the invoice is posted, a confirmation message will appear at the top.
By the end of the day, Odoo automatically uploads the JSON-signed file of validated invoices to the NIC e-Invoice portal. If you prefer to process the invoice immediately, click on "Process now."
Upon validation and submission of an invoice, you can print the PDF report. This report contains essential details such as the IRN, Acknowledgment Number (Ack. No.), Acknowledgment Date (Ack. Date), and QR code, all serving as certification of the invoice's validity as a fiscal document.
Cancellation of E-Invoices
To cancel an e-Invoice, navigate to the "Other Info" tab of the invoice and complete the "Cancel Reason" and "Cancel Remarks" fields. Subsequently, click on "Request EDI Cancellation." This action will update the status of the "Electronic Invoicing" field to "To Cancel."
Verification of GST e-Invoices
Following the submission of an e-Invoice, you can ascertain its signature directly from the GST e-Invoice system website.
- Retrieve the JSON file from the attached documents. You can locate it in the chatter of the associated invoice.
- Access the NIC e-Invoice portal and navigate to Search -> Verify Signed Invoice.
- Choose the JSON file and proceed with submission.
When the file is signed, a confirmation message will appear.
Electronic Way Bill
An e-way bill is a necessary document for transporting goods exceeding a set value between Indian states or within a state. It is electronically generated on the government portal, commonly referred to as the E-way Bill Portal. Tax authorities utilize it to monitor goods movement and ensure tax regulation compliance.
Advantages of E-Way Billing
- Streamlined Goods Transportation: The e-way bill system enhances the efficiency of transporting goods by minimizing delays at checkpoints, resulting in faster and more seamless goods movement.
- Improved Oversight and Surveillance: Authorities can monitor goods movement in real-time, reducing instances of tax evasion and ensuring correct utilization of input tax credits.
- Minimized Documentation: The digitization of the e-way bill procedure eliminates the requirement for physical paperwork, promoting eco-friendliness and reducing the likelihood of manual errors.
Integrating E-Way Billing within Odoo
Enable the e-way billing module to adhere to Indian regulatory standards.
Registration for NIC e-Way Bill
Upon registration on the NIC e-Way Bill Portal, you will receive an API Credential necessary for configuring the Odoo Accounting App.
- After completing registration on the NIC e-Way Bill Portal, you'll obtain an API Credential essential for setting up the Odoo Accounting App.
- Navigate from your dashboard to Registration -> For GSP.
- Select "Send OTP". After receiving the code on your registered mobile number, input it and click "Verify OTP".
- Verify if Tera Software Limited is already listed as a registered GSP/ERP. If it is, utilize the same username and password used for logging into the NIC portal. Otherwise, proceed to the next steps.
- Choose "Add/New", opt for Tera Software Limited as your GSP Name, generate a Username and password for your API, then click on "Add".
Setup in Odoo
To configure the E-Way bill service, navigate to Accounting -> Configuration -> Settings -> Indian Electronic WayBill -> Setup E-Way bill, and input your Username and Password.
Setting up the Journal
For automatic transmission of e-Way bills to the NIC e-Way bill portal, begin by configuring your sales journal. Go to Accounting -> Configuration -> Journals, then open your sales journal.
Within the Advanced Settings tab, under Electronic Data Interchange, activate E-waybill (IN).
Process
Create an invoice either through a sale order or via accounting as usual. After the invoice is posted, you'll notice an additional tab labeled SEND E-WAYBILL.
Upon issuance and transmission of an invoice through Send E-Way bill, a confirmation message will appear.
By the end of the day, Odoo automatically uploads the JSON-signed file of validated invoices to the NIC E-Way bill portal. Alternatively, if immediate processing is desired, click "Process now."
PDF invoice report
Once the E-Way bill has been submitted, you can print the invoice PDF report.
contains the E-Way bill number and its validity date.
Cancellation of E-Way bill
To cancel an E-Way bill, navigate to the E-Way bill tab of the associated invoice. Complete the Cancel reason and Cancel remarks fields, then click on Request EDI Cancellation.
The introduction of Indian e-invoicing and e-way bill systems marks significant advancements in the nation's transition to a digital economy. Odoo's integrated modules for e-invoicing and e-way bill not only streamline compliance but also boost business efficiency and tax reporting. By embracing Odoo, businesses can proactively address evolving regulatory demands while prioritizing growth and productivity. Seize the potential of Odoo's e-invoicing and e-way bill solutions today to unlock fresh opportunities for your business!