Thought Leadership

Must-Have Features for e-Invoicing in Malaysia (2024 Guide)

May 22, 2024

Must-Have Features for e-Invoicing in Malaysia (2024 Guide)

The Malaysian government is looking to change the way businesses handle invoices. The upcoming e-Invoicing mandate will mean all invoices will be sent digitally. This is a targeted shift away from paper or PDF based invoices. To help businesses with this transition there are many different e-Invoicing software providers. With so many to choose from it’s difficult for businesses to know what they really need. This guide will help Malaysian businesses break down the key features to look for.

Challenges of Manual Invoicing Businesses

For many organisations, manual invoicing (paper or PDF) is a significant burden. They would have all felt some or all these challenges:

  • Time-consuming processes. Data entry, manual approvals, and physical mailing all contribute to delays.
  • Error-prone: Manual data entry can lead to errors in invoices. These errors can cause delays in payments and potential disputes.
  • Lack of transparency: Tracking invoice status and payment history can be time consuming.
  • Resource Intensive: Manual processes become increasingly difficult to manage as a business grows.

E-invoicing software not only offers a pathway to become compliant. It’s also a way for businesses to ease the burden of invoicing for their teams. When done right, e-Invoicing can streamline workflows and improve efficiency. It’s important that businesses understand the features that can drive value with e-Invoicing.

Key Features of E-Invoicing Software That Drive Value

Compliance

Your software provider needs to meet the latest e-invoice formats and protocols. The latest guidelines can be downloaded on the IRBM guidelines page. Your software provider should be able to show how they meet the IRBM specifications. This ensures that your e-invoices are compliant and you can avoid possible penalties.

Automatic error detection

One of the key benefits of e-invoicing is that the data entered can be validated in real time. Your software provider needs to provide features that verify data integrity and quality. These checks can include things like:

  • Format Check: Checks data follows the mandated Malaysian e-invoice format. This includes field lengths, data types, and mandatory fields as per IRBM specifications.
  • Business Rule Validations: Checks data against pre-defined business rules. This can include checking tax IDs, product codes, prices and accurate tax calculations.
  • Logical Consistency Checks: Checks illogical data within the invoice itself. This can include things such as negative values, inconsistent dates, etc.

These checks reduce the risk of errors causing delays or compliance issues.

Secure data storage and audit trails:

E-invoicing software should provide secure, cloud-based data storage that meets regulatory requirements. Robust audit trails are essential for demonstrating compliance and facilitating future investigations. Ask your provider about how your e-Invoice data is processed, stored and archived. Ensure that their system meets your security and data storage needs.

Integration with existing Enterprise Resource Planning (ERP) systems

After compliance and validation, integration is an important feature an e-invoicing solution needs. Integration eliminates the need for manual data entry, saving time and minimising errors. It also creates a more unified system for managing invoices and financial data. e-Invoicing service providers typically handle integration in one of three ways:

  1. You integrate with their platform. Your IT team would be responsible for integration with the e-invoicing platform. This can be time and resource consuming and requires some specialist expertise.
  2. They have pre-built connectors. Some providers have pre-built connectors to some commonly used ERP platforms. This can save lots of time and money in getting started with e-invoicing. But, they are only helpful if they have a pre-built connector to your ERP, if not you are back to square one.
  3. They have pre-built connectors and custom integrations. Other providers, like Valtatech, offer a full integration service. This is where regardless of the platform you use they will do the hard work of integration. This makes the e-invoice activation process easy as your provider is doing most of the work.

The integration should drive automated invoice generation and submitting invoices in bulk. This allows for faster processing and eliminates delays associated with manual tasks.

Visibility Through an Invoice Portal

E-invoicing gives the confidence that your invoices are compliant and been delivered successfully. Your provider should give you access to an invoice portal so you can track the status of your invoices. The invoice portal should provide you with real-time tracking, reporting and dashboards. Additionally, they should offer robust user access controls to ensure data security.

Scalability and Support

Your provider needs to be able to scale their solution to meet the needs of your organisation. This could be significant future growth, changes in e-invoicing regulations or new acquisitions. Check how the provider’s solution and services can adapt as business needs change. To ensure a smooth transition and beyond, you need reliable and responsive support. Your provider needs a clear overview of their support processes to resolve issues.

Total Cost of Ownership (TCO)

While not a feature, TCO is vitally important with any technology implementation. Your provider should help you to understand the total cost of ownership of the solution. This includes initial cost, implementation fees, subscription and training fees. Ensure that the TCO is in line with the expected value of the service.

E-Invoicing Software Change Management

Selecting an e-invoicing provider that offers these features gets you off to a good start. But technology is only one side of the equation. Maximising the value you get from e-invoicing requires processes to change as well. Not all businesses have the capacity or expertise to reengineer their processes. 

Valtatech has a lot of experience with invoice process optimisation. We work with our clients to help them adapt their processes and procedures to maximise value. Change management should not be underestimated and can be a barrier to success. Make sure your chosen e-invoice provider can help with the change management process.

Summary of Key Features of E-invoicing software

FeatureValue Delivered
ComplianceEnsures your e-invoices meet IRBM guidelines and avoids penalties.
Automated validation and error checkingReduces errors and delays caused by manual data entry.
Secure data storage and audit trailsProtects your data and simplifies future investigations.
Integration with existing ERP systemsEliminates manual data entry, saves time, and creates a unified system.
Visibility Through an Invoice PortalTracks invoice status, provides reporting, and ensures data security.
Scalability and SupportAdapts to your business growth and offers reliable support.

The e-invoicing mandate presents an opportunity for organisations to modernise their invoicing processes. By choosing e-invoicing software with the right features businesses can drive real value. From compliance, improving efficiency, and gaining a competitive edge. Armed with this information you can make a confident decision about e-invoice implementations. 

To learn more about how we can transition to e-invoicing, see our e-invoicing solution page.

Banner Ornamnet Desktop.svg

Book In a Consultation with Our Experts

Speak To An Expert