E-invoicing for B2B (business-to-business) refers to the process of electronically generating and sharing invoices between businesses. It is a system that facilitates the exchange of invoices between suppliers and buyers in a standardize digital format, allowing for more efficient and accurate invoicing processes.
Under the e-invoicing system, the invoice is generate on a supplier’s accounting or ERP system and then transmitted to the buyer’s accounting.
Or ERP system in a standardized format. This helps to eliminate manual data entry errors and ensures that invoices are process more quickly and accurately.
The e-invoicing system for B2B transactions was introduce by the Government of India in 2020 to bring more transparency and accountability to the invoicing process. The system is mandatory for businesses with an annual turnover of Rs. 50 crore or more.
Under this system, businesses must generate invoices in a specified format.
Which includes a unique Invoice Reference Number (IRN) generated by the Invoice Registration Portal (IRP). The IRP validates the invoice details and generates a QR code that is add to the invoice. This QR code can be used to verify the authenticity of the invoice.
Overall, e-invoicing for B2B transactions is a more efficient and accurate invoicing process that can help businesses save time and reduce errors.
To visit: https://www.gst.gov.in/
