E invoicing in Tally Prime – A Simple 4 Step Guide

Electronic invoicing or e-invoicing is the process of uploading all your B2B transactions (sales invoices, credit and debit notes made to companies, including exports) in the IRP (invoice registration portal) for authentication. For every invoice uploaded and after authentication, IRP issues a unique IRN (invoice reference number). This IRN has to be converted into a QR code along with other invoice information and printed on the face of the invoice for it to be considered valid. An e-invoice is a digital document that is exchanged between a supplier and a buyer and is validated by the government’s fiscal portal. Tally Prime Release 1.1 provides an end-to-end connected e-invoicing capability in a very simplified and easy use manner.
Tally is an official GST Suvidha Provider (GSP) due to which it can communicate directly with the IRP to upload invoices in real-time. Once authenticated, Tally receives the unique IRN (Invoice Reference Number) as well as QR code information from IRP. This information is updated in the invoice seamlessly. The authenticated user can then print the required QR code as well as IRN on the invoice as part of their normal invoice printing procedure. In addition to the e-invoice, Tally Prime can also generate e-waybills if applicable.
Tally Prime users get a holistic view of the status of transactions and manage exceptions with the help of an exclusive e-invoice report and IRN register. Tally India Pvt Ltd (GSP) has followed all the information security policies as per international standards and has also been awarded the coveted ISO27001:2013 certification.

Steps to do e-Invoicing with Tally Prime

You can configure Tally Prime for E-Invoicing in a simple three-step process as follows

Step 1 – GSP Registration with IRP – Login into the IRP. Select ‘API Integration with ERP’ from various options. Set ‘Tally (India) Private Limited’ as your GSP. We recommend that you set a complex username and password due to security reasons.

Step 2 – Tally Prime configuration – An easy one-time configuration is required to configure Tally Prime for e-Invoicing.

Step 3 – Pass entries in Tally Prime – Create a sales entry as you normally do. Since you enabled e-invoicing and e-way bill earlier, you will get an option towards the end of the voucher entry screen to ‘Provide GST/ E-way Bill/ E-invoice details’. Click ‘Yes’. Now a screen asking details regarding E-invoice will open fill it, save and proceed. Tally will ask you for a username and password. Fill the username and password you saved in step 1. The system will now generate your e-invoice with QR code and IRN. You can now take a print out of your invoice with IRN and QR code.

How to register Tally as your GSP in IRP?

It is a very easy and simple process to register Tally as your GSP in the IRP. The following screenshots give an idea of the process.

How to configure e-invoicing in Tally Prime

Configuring e-Invoicing in Tally Prime is a very easy onetime process that can be done in under a minute.

Press F11 from any screen in Tally Prime and go to Step 1 or Select Alter under Masters in Gateway of Tally and select GST Details and go to Step 3.
On the screen which opens up, on the right side, under Taxation, you will see ‘Enable Goods and Services Tax (GST)‘. Since you have already configured GST, it will be showing ‘Yes‘. Double click on the same ‘Yes’ twice or click once and press Enter.
The GST configuration screen will now open. On the right-hand side, you will see two options; e-Way Bill applicable and below that e-Invoicing applicable. You can set both to Yes or only e-Invoicing depending upon the applicability to your company. Once you set it to Yes, you have to fill in the required information such as Bill from place etc. Press Ctrl+A to save and exit. The screenshot below shows the relevant details.

That is it. Your Tally Prime is now e-invoicing ready!
Now you can immediately begin passing entries to begin e-Invoicing. You do not have to alter the way you did your invoicing till today as Tally Prime has kept the entire process same as earlier – super simple and straightforward. At the end of the voucher entry screen, you will be asked to provide e-Invoice details and also e-Waybill details if e-Waybill is applicable for the particular transaction.
After you select Yes, and enter the required details, Tally will ask you to enter your login credentials. Tally Prime will automatically update the IRP with the invoice information. You simply can now take a print of your invoice showing all the required information including IRN, QR code and e-Waybill number too if generated.

Salient Features of e-Invoicing with Tally Prime

You can either generate an e-invoice during voucher entry for a particular transaction or in bulk for multiple invoices together. Tally Prime provides both options as per your requirements or preference
Tally Prime helps you by exporting e-invoice related data in the form of a JSON file in the unfortunate situation that the system you use for e-invoice generation gets disconnected from the internet. You can upload this JSON to the IRP from another computer having an active internet connection. After the connection is restored, you can continue from where you had left.
In case the IRP rejects your invoice, Tally Prime will intimate you with the reasons so that you can make necessary corrections and try again.
Tally Prime also includes a report giving a nearly 360-degree view of your transactions with respect to e-invoicing.
Know the status of an e-invoice (generated / pending / cancelled)
Option to generate or cancel the IRN for applicable invoices
You can also manually override the status of invoices (generated/cancelled/update IRN etc.)
There is also the option to delete the stored IRN information including QR code and start afresh if needed.

Tally Prime gives timely alerts to help you stay in control of the e-Invoicing process
These alerts are especially important in multi-user scenarios, preventing redundancy. Importantly, this makes sure that only the latest data is shared with the IRP.
Tally Prime e-Invoice related alerts also help prevent accidental modification/deletion/cancellation of IRN generated for a particular transaction

Bulk e-Invoicing with Tally Prime

One last thing. Sometimes, companies require to generate e-invoices in bulk rather than generating one by one. Tally Prime takes care of this too. A Tally Prime user can directly send invoices in bulk to IRP for e-invoice generation and automatically fetch and print the QR code on all the invoices. It just takes a couple of clicks. The software includes the flexibility to send all pending invoices in a single click or select only those for which you want to generate an e-invoice.
The steps to generate e-invoices in bulk in Tally Prime are as follows.

From any screen, press Alt+Z or click on ‘Exchange’ in the top menu.
Next, the user has to select ‘Send for e-Invoicing’
After you select ‘Send for e-Invoicing’, a list of all invoices pending for e-invoice generation will be displayed
Next, you have to click ‘Send’ to generate e-invoice for all the pending vouchers or select the ones that you wish to upload
Tally Prime will now show the count of invoices being sent for e-invoice generation. You have to press ‘Y’ to confirm
Tally Prime will in an instant generate all the e-invoices and update the IRN and QR code details in the selected vouchers
You can now, print or mail these e-invoices with IRN and QR code

Conclusion

Congratulations! Your business is now e-invoicing ready! This is a small and simple process that should not take more than a few minutes for most users. Do let us know your experience with e-invoicing in Tally Prime in the comments below. You can also contact us in case you require any more information or send us a message via WhatsApp by clicking here.
In case for some reason, you are unable to upgrade to Tally Prime and require to continue using Tally ERP 9 and still require a simple e-invoicing solution for Tally ERP 9, we have a ready customized module which will help you do so.