e-invoice for business having turnover more then 10 cr and above is mandatory. e-invoice in Tally Prime is super easy. Accordingly the need for businesses going automated has increased. Ease of doing business for those who are doing it manually have become more and more difficult and even almost impossible.
Now this circle is going to be bigger as from January 1, 2023 the limit is going to be decreased from 10 cr to 5 cr. and more and more businesses need to make e-invoices, so we will discuss the whole process of how to generate e-invoice in Tally Prime in detail.
Snapshot of Process to make e-invoice in Tally Prime
The key steps involved are
Generating APi id on portal
Configuring Tally for e-invoice in F11 features
Entering the e-invoice info in sales entries
Sending the bill to portal
Things are becoming difficult for businesses using manual methods. But the scenario is quite opposite for those who are automating processes by using any software, specially those who are using Tally Prime. Tally Prime users are dealing with this challenge of e-invoicing with quite an ease as they have dealt with e-way bill challenge previously. Tally Prime 2.1Â the latest version has full compatibility for e-invoicing as well as for e-waybill.
Update for Tally Prime 3.0.1
Tally Prime 3.0.1 has eased the process a little bit more by introducing some e-invoice friendly features in it’s new version. Now e-invoice making process is more error free and easy in Tally Prime 3.0.1
For businesses who would be making e-invoice in Tally Prime from Jan 1st 2023 , here is the complete step by step guide on how to make e-invoice in Tally Prime. We would be discussing the whole process of how to make e-invoice in Tally Prime as well as few important points to keep in mind while doing e-invoicing with Tally Prime. We would also discuss on how to cancel e-invoice in Tally Prime. The time limit to cancel any e-invoice is 24 hrs. so It can be cancelled within seconds in Tally Prime.
The First Step in making e-invoice : Making your API id ready for e-invoicing
Before making e-invoice you have to make a API id first. This id is separate from your existing e-invoice portal login id. This API id would help you to deal with e-invoicing portal from a particular software. In this case you need an API id with your respective GSP (GST Suvidha Provider). Which would be Tally India Pvt. Ltd.
Go to your e-invoicing portal and after logging in just create an API user id from Create API user option on left hand side bar. See the pic below. Here point worth considering is that if you are already using API id of GSP id for generating e-way bill from Tally Prime, then you need not to generate another id. The same API id used in generating e-way bill from Tally Prime can be used for generating e-invoice.
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| Generate API id for Tally Prime |
This process would need OTP authentication. So you need to keep your phone registered with GST portal handy with you at the time if API id creation. After OTP authentication just select GSP option from top and select Tally India Pvt. Ltd. from drop down list. After that just generate your id.
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| Generate API id for Tally India as GSP |
Finish creating your api id on e-invoicing portal. just after finishing you should take a snapshot of the id so that later on you don’t forget the id . One smart thing can be done is that you can keep your password as same as your portal login password so that you need not to remember two passwords.
Step two : Making your Tally ready for E-invoicing.
First of enable e-invoicing in company.
Go to F11 and then go to enable GST option
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| Enable e-invoicing in TallyPrime |
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| Configuring e-invoice setting in Tally Prime |
Applicable from :Â This is the date from which your e-invoice would be applicable.
Bill from place : Mention your billing location.
Default period for the e-invoice report: This is the default period of e-invoice report which can be up to 30 days. But as default it is set as 3 days as you have to generate e-invoice within 72 hours.
Send e-Way Bill details with e-invoice : If you want to generate e-way bill along with this e-invoice in Tally Prime then put this option to yes and your e-way bill will be generated automatically.
Update for Tally Prime 3.0.1
In Tally Prime 3.0.1 this configuration process has some little changes. If you want to make e-way bill as well as e-invoice bill in a single click and want to print your e-way bill also then these setting are shifted to another place which is just below the GST option. You have to set to yes and make those options to yes.
Check out this small one minute video on how to make e-invoice as well as e-way bill in a single click.
Your e-invoicing in Tally Prime is ready to be made.
Make an invoice as usual
Now you are ready to make e-invoicing automatically. One thing additionally required would be the information of billed to and shipped to place.
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| Mandatory information for e-invoicing |
Three Things to take care while preparing e-invoice.
- Make sure that you have generated API id with Tally India as your GSP and you have the password.
- Mention complete party address and the PIN code of all the parties.
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| Making parties ready for e-invoicing |
3. Make sure that all the products have proper HSN code .
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| Making all products ready for e-invoicing |
How to resolve e-invoice errors.
There are high chances that you may not get all the things right in first attempt. After accepting the voucher you may get this error message in the right bottom screen .
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| Error message when mandatory information missing |
What Mandatory information for e-invoice/e-way bill is required?
Few mandatory information is required for e-invoice.
- The first one is party GSTIN.
- Second is HSN/SAC code of items and services to be properly described.
- Mention of Item as supply or service.
- Bill to and Ship to Place. if you mention Pincodes also then it is fine.
How to solve mandatory information for e invoice is not specified/invalid error
As you would press ok to generate bill, Tally would ask the question to send the bill for e-invoicing. But if the mandatory information for e invoice is not specified/invalid error message flashes then certainly some information is missing.
You should accept the invoice at this stage and you can resolve the errors later on. There are two way to reach e-invoice details. You can go to Display More reports > Statutory Reports > e-invoice or You can resolve that by pressing Alt + Z and then F5 e-invoice.
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| Finding errors in e-invoices |
Check how many invoices are having errors.
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| Finding errors in e-invoice |
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| Resolving errors in e-invoice |
Also read A Comprehensive Guide to Voucher Numbering Options in TallyPrime 3.0
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| List of invoices ready for e-invoice |
How to cancle e-invoice in Tally Prime
Cancelling an IRN or e-invoice is also as simple as making in Tally Prime
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| Cancelling e-invoice |
After cancelling the invoices you have to again send them to portal from Alt+Z screen. On successful cancellation you would get following screen
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| e-invoice cancellation confirmation |
