E-Invoice & PEPPOL Module

1. Module Overview

The E-Invoice & PEPPOL Module automates statutory electronic invoice submission and compliance with digital tax frameworks. In Malaysia, the module integrates directly with the Inland Revenue Board’s (LHDN) MyInvois platform for mandatory tax validation. Internationally, it supports the PEPPOL network for seamless cross-border electronic document exchange.

Business Value:

• Regulatory Penalties Avoided: Meet national e-invoicing compliance requirements automatically without manual portal uploads.
• Embedded Validation: Check validation results, rejection logs, and validation QR codes directly inside standard invoicing workflows.
• Global Interoperability: Send and receive B2B/B2G business documents worldwide through the PEPPOL Access Point.
• Improved Cash Flow: Instant electronic document delivery accelerates customer invoice approvals and payment cycles.

Compliance Frameworks

• LHDN MyInvois (Malaysia): Automatic QR code generation, real-time API schema validation (XML/JSON), buyer/supplier database checking, and statutory data field mapping (TIN, MSIC).
• PEPPOL International Standard: EN 16931 compliant cross-border messaging, UBL 2.1 document formatting, Access Point routing, and trading partner lookup directory.

2. Key Concepts & Terminology

3. Included Applets

E-Invoice Compliance Console

PEPPOL Access Point Management

Specialized Support Applets

4. Standard Business Workflows

Workflow 1: Malaysian MyInvois Validation

Sales Invoice Created ──▶ Pre-Validation ──▶ Digital Signature ──▶ MyInvois Submission ──▶ UUID & QR Code Mapped ──▶ Archive

Steps:

1. A billing invoice is finalized in the Internal Sales Invoice Applet.
2. Compliance Validation Engine runs a check to verify mandatory field compliance (TIN, address, email, MSIC).
3. The invoice is signed cryptographically using the organization’s certificate via the Signature Management Applet.
4. The signed document is sent to LHDN MyInvois APIs.
5. LHDN returns a UUID and validation status; the system updates the invoice status to “Validated” and generates the QR code.
6. The validated PDF is sent to the customer and saved in the Archive Management Applet.

Workflow 2: International PEPPOL Document Exchange

Sales Invoice Created ──▶ PEPPOL XML Format ──▶ Directory Lookup ──▶ Access Point Send ──▶ Receiver Acknowledges

Steps:

1. Invoice is created for an international buyer requiring PEPPOL.
2. System converts the document data to PEPPOL UBL XML format.
3. System queries the PEPPOL directory to find the receiver’s Access Point endpoint.
4. The document is routed via the PEPPOL Access Point Applet to the buyer’s network.
5. The receiving Access Point returns a delivery acknowledgment, and the invoice status updates.

Workflow 3: Compliance Reporting & Tax Reconciliation

Compile Period Sales ──▶ Reconcile UUID list ──▶ Run Reconciliation Check ──▶ Generate SST Report ──▶ Submit

Steps:

1. Period-end sales data is compiled.
2. The accountant opens the Tax Authority Reporting Applet to pull all validated UUIDs.
3. System runs a validation check comparing accounting ledger balances against MyInvois submissions.
4. Discrepancies (unsubmitted or rejected items) are flagged for corrective action.
5. Accountant exports the consolidated e-invoice ledger report for tax submission.

5. Roles & Permissions

6. Prerequisites / Initial Setup

Before going live with the E-Invoice & PEPPOL Module, ensure:

• Core Module — Organization registration details are completed, including valid Tax Identification Number (TIN)
• Financial Accounting — Sales invoice workflows are operational
• Registered client credentials (API keys) obtained from LHDN portal
• Mapped MSIC codes matching your business activities in organization settings
• Mapped tax codes matched to standard LHDN tax type codes (e.g., SST, Out-of-Scope)
• Installed digital signature certificates in the Digital Signature Management Applet
• Sandbox testing completed with verified sandbox validation returns

Implementation Phasing

• Phase 1: Configuration: Install PKI certificates, set LHDN/PEPPOL API credentials, and map customer TIN details.
• Phase 2: Operational Sandbox: Run test billing runs, trace validation error exceptions, and test cancellation windows.
• Phase 3: Production Go-Live: Connect live document generation to real-time e-invoicing pipelines, and set up archival rules.

7. FAQs & Troubleshooting

Q: A submission was rejected by MyInvois. How do I trace the error? A: Open the My E-Invoice Portal Applet and filter by “Rejected.” Scroll to the line item details to see LHDN’s exact error message (e.g., “Invalid Buyer TIN” or “MSIC code is mandatory”). Correct the source customer or invoice record, then select “Re-submit.”

Q: Can a validated e-invoice be changed? A: No. Once validated by LHDN, the e-invoice is legally locked. If you need to make changes, you must cancel the invoice (within the 72-hour regulatory window) or issue a Credit Note or Debit Note to adjust the balance.

Q: How does the system handle B2C walk-in customers who do not provide a TIN? A: You should configure the system to use LHDN’s default general TIN EI00000000020 for walk-in retail transactions where the customer does not request a personalized e-invoice.

Troubleshooting Common Issues

• TIN Verification Failures: Ensure customer profiles in Customer Maintenance are formatted correctly. Double-check individual and corporate registration formats against government databases.
• API Connection Timeout: Check the API logs in the My E-Invoice Admin Applet. If the LHDN server is down, transactions queue locally; the system will automatically re-submit them when the connection is restored.
• Certificate Expiration: Monitor the warnings in the Digital Signature Management Applet. Renew certificates before expiration to prevent submission failures.