Are you tired of the traditional invoicing process that involves tons of paperwork and manual data inputs?
Say goodbye to tedious paper-based invoicing and hello to a faster, more efficient way of doing things. With SAP Business One, you can generate, send, receive, and process invoices electronically, saving you time and money. Not to mention, it reduces the risk of manual errors, which can be costly for any business.
Keep reading to learn more about the benefits of E-Invoicing in SAP Business One and how it’s being implemented in Singapore and Malaysia.
What is PEPPOL and e-invoice
PEPPOL (Pan-European Public Procurement Online) is a standardized framework that enables the seamless exchange of electronic documents, including e-invoices, between businesses and public sector organizations across Europe and beyond.
E-invoices, or electronic invoices, are digital versions of traditional paper invoices that are generated, transmitted, received, and processed electronically, offering efficiency, cost savings, and improved accuracy in financial transactions.
PEPPOL facilitates the adoption of e-invoicing by providing a secure and interoperable infrastructure, ensuring the smooth flow of electronic documents throughout the procurement process.
In Singapore and Malaysia, PEPPOL is implemented as part of the national e-invoicing networks in each country. While they are based on the PEPPOL framework, there are some country-specific adaptations and implementations.
E-Invoicing in Malaysia & Singapore
Malaysia is set to introduce mandatory e-invoicing from 2024, which will improve tax administration and reduce compliance costs. The Inland Revenue Board (Lembaga Hasil Dalam Negeri, LHDN) will lead the implementation and conduct pilot projects with selected taxpayers.
Meanwhile, Singapore has already launched its nationwide E-invoicing network (InvoiceNow) in 2019 to help businesses improve efficiency, reduce costs, and promote sustainability. As the Peppol Authority in Singapore, the IMDA plays a key role in accrediting access points and solution providers, specifying country-specific rules and technical standards, and promoting Peppol adoption.
So, if you’re doing business in Malaysia or Singapore, it’s time to jump on the e-invoicing bandwagon for a smoother invoicing experience!
E-Invoicing In Malaysia
Malaysia’s Ministry of Finance plans to implement electronic invoicing to strengthen recovery and facilitate reforms toward sustainable socio-economic resilience.
The government is committed to prioritizing digital transformation to impact society and the economy, focusing on improving service quality and productivity. E-Invoicing will be part of Malaysia’s digital transformation and will impart the following benefits to its economy.
- Enhance efficiency in tax administration management and increase tax revenue.
- Reduce compliance costs, improve service quality, and support the use of TIN to expand the income tax net.
The implementation dates shared by Inland Revenue Board are as follows:
1 August 2024 : Businesses with an annual turnover or revenue of more than RM100 million
1 January 2025 : Businesses with an annual turnover or revenue of more than RM25 million and up to RM100 million
1 July 2025 : All businesses
Download e-invoicing guideline issued by IRB.
Workflow of E-invoice in Malaysia:
Source: KPMG
Also Read: Malaysia E-Invoice System
E-Invoicing in Singapore
In Singapore, the nationwide E-invoicing network was implemented in 2019 to help businesses improve efficiency, reduce costs, enjoy faster payment, and stay environmentally friendly. The network is an extension of the International Peppol E-Delivery Network, which allows businesses to transact with other linked companies internationally.
Here are some key highlights and benefits of E-invoicing in Singapore:
- PEPPOL generates structured data for automatic invoice processing
- The invoice arrives in EDI format, ready for payment processing
- Nationwide e-invoicing initiative eliminates paper invoices
- Reduces business expenses and helps with faster payment cycles
Why Choose SAP Business One for E-invoicing – Benefits And Features
SAP Business One offers a comprehensive solution for electronic invoicing that allows businesses to exchange invoices and credit notes with authorities, generate and process electronic invoices, reduce accounting costs, and adapt electronic invoices to individual requirements.
Here are some advantages and features of SAP Business One for e-invoicing:
1. Exchange Invoices and Credit Notes with Authorities
To comply with this regulation, SAP Business One allows businesses to create invoices in various formats, such as ZUGFeRD, XREchnung, or Factur-X. With cks.eINVOICE, businesses can generate and send invoices in any required format, making it easier to comply with regulations.
2. Save Time with Electronic Submission
Electronic transmission of invoices and credit notes makes them immediately available to the recipient. This automated processing ensures that invoices are recorded and booked immediately. Delays due to the transmission are eliminated, saving valuable time for the business.
3. Reduce Accounting Costs by Processing Electronic Invoices
The exchange of electronic invoices and credit notes reduces the effort in accounting as invoices no longer have to be entered manually. SAP documents are completed and available immediately after processing, thus reducing accounting costs.
4. Generate and Process Electronic Invoices
SAP Business One enables businesses to generate and process invoices in various standard formats such as XRechnung, ZUGFeRD, and Factur-X. Regular updates ensure that businesses always have the current version of the standard format.
5. Define The Format and Transmission Route for Each Business Partner
For each business partner, businesses can define the format they request and how the transmission should take place. If something changes, businesses can also make the necessary adjustments themselves.
6. Archive Electronic Invoices Automatically
SAP Business One automatically archives electronic invoices and credit notes behind the respective SAP document. The receipt is available as a PDF and XML file.
7. Adapt Electronic Invoices to Individual Requirements
In some cases, electronic invoices may need additional information, such as the recipient’s article number, which is not defined in the standard format. SAP Business One allows businesses to store individual adjustments and apply them to the desired business partner.
8. Plans and Pricing
SAP Business One offers various plans that include features such as sending and receiving invoices and credit notes in different formats like ZUGFeRD 2.1, Xinvoice 2.0, and ZUGFeRD 1.2 Xinvoice.
Businesses can specify the format for each business partner while choosing the plan that best suits their needs.
How To Add E-Invoicing in SAP Business One?
Adding e-Invoicing in SAP Business One is a useful feature that enables businesses to create electronic invoices and submit them electronically to the portal.
To get started with e-Invoicing in SAP Business One, small and medium enterprises (SMEs) can follow these steps:
1. Check if your finance or accounting solution, in this case, SAP Business One is Peppol-ready and listed in IMDA’s pre-approved solution provider list.
2. Get your Peppol-ready solution, ie. SAP Business One to activate the InvoiceNow feature on your existing solution. Alternatively, approach an Access Point Provider to integrate InvoiceNow into your in-house system.
3. Once the InvoiceNow feature is activated, you can start sending and receiving invoices directly through your finance or accounting system.
Large enterprises can get in touch with an IMDA pre-approved Access Point provider to help them get connected to the Peppol Network.
Axxis Consulting- Certified For Peppol E-Invoicing @ InvoiceNow
Axxis Consulting is certified for Peppol e-invoicing and InvoiceNow, allowing them to offer hassle-free services to their clients. This certification ensures that they can provide secure and reliable e-invoicing solutions to businesses looking to implement e-invoicing in Singapore.
Click on this link to Register for InvoiceNow
FAQs: E-Invoicing & SAP Business One
1. What is e-invoicing in SAP Business One?
E-invoicing in SAP Business One is the process of generating and submitting electronic invoices directly to the tax authorities in real time. This process helps to simplify the invoicing process, improve efficiency and reduce errors.
2. Is e-invoicing mandatory in Singapore and Malaysia?
Yes, e-invoicing is mandatory for businesses in Singapore and Malaysia. The tax authorities in both countries have introduced regulations to require businesses to adopt e-invoicing.
3. How do I get started with e-invoicing in SAP Business One?
To get started with e-invoicing in SAP Business One, you need to check if your solution is Peppol-ready and listed in IMDA’s pre-approved solution provider list. If not, you need to approach an access point provider to integrate InvoiceNow into your in-house system.
4. How does e-invoicing help my business?
E-invoicing can help your business by improving efficiency, reducing errors, and saving time. It can also help you to comply with tax regulations and improve cash flow management.
5. Can I use e-invoicing for both domestic and international transactions?
Yes, e-invoicing can be used for both domestic and international transactions. It is a universal system that is widely adopted by many countries around the world.
6. Is it safe to use e-invoicing?
Yes, e-invoicing is a safe and secure method of invoicing. The electronic invoices are encrypted and transmitted securely, and the system is designed to comply with data privacy regulations.
7. How do I know if my e-invoice has been received by the recipient?
When you send an e-invoice, you will receive a notification once the recipient has received the invoice. You can also track the status of your invoices through your accounting system.
Final Thoughts
E-invoicing is a game-changer for businesses in Singapore and Malaysia that can save time, reduce errors, and improve cash flow. SAP Business One offers robust features to enable electronic invoicing and integrates with Peppol, the standard for e-invoicing in these countries.
As governments in the region continue to mandate e-invoicing, it is essential for businesses to stay up-to-date with the latest regulations and adopt the technology to remain competitive.
With the help of certified partners like Axxis Consulting, businesses can easily implement e-invoicing in SAP Business One and streamline their invoicing processes.
