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How to generate e-invoice in Tally Prime – A comprehensive step by step guide

Shailendra
Step by step guide to make e invoice

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 2.1  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.

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.

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.

Watch this video to see the registration process explained in Hindi

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

Enable e-invoicing in TallyPrime
Now go to e-invoicing setting on right hand side and enable it to Yes
Configuring e-invoice setting in Tally Prime

Applicable from :  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.

Mandatory information for e-invoicing

Three Things to take care while preparing e-invoice.

  1. Make sure that you have generated API id with Tally India as your GSP and you have the password.
  2. Mention complete party address and the PIN code of all the parties.
Making parties ready for e-invoicing

3. Make sure that all the products have proper HSN code .

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 .

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.

  1. The first one is party GSTIN.
  2. Second is HSN/SAC code of items and services to be properly described.
  3. Mention of Item as supply or service.
  4. 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.

Finding errors in e-invoices

Check how many invoices are having errors.

Finding errors in e-invoice
Press enter and see the error message on the right hand side.
Resolving errors in e-invoice
You can resolve the errors here itself by pressing enter. You should also take care that errors which are repetitive in nature i.e. related to parties and items should be resolved by going back to the root cause of the errors. e.g. if you are getting the message that party pin code is not mentioned then you can resolve it by putting the ping code by pressing the enter right there and then putting the right pin code.

Also read A Comprehensive Guide to Voucher Numbering Options in TallyPrime 3.0

But I would suggest that you should go to the alter mode in transaction in ledger and permanently put pin code there. So that this error doesn’t come while you are making next invoice to that party.
Same should be done with items also. You can enter into the invoice by pressing Ctrl+ Enter on the respective entry.
When you resolve all the errors then you would see this screen at Alt + Z  where you can send all the ready invoices for e-invoicing at one go or you can send them one by one. Just press Send.
List of invoices ready for e-invoice
You would get this screen to send the e-invoice portal.
Enter the username and the password of the API login generated by you.
If you receive any error message then again you have to check the errors at Alt +Z  and then F5 page and resolve all the remaining errors. If every thing goes fine then you would get the success message and you can take the print out of the e-invoice with QRCode and IRN.

How to cancle e-invoice in Tally Prime

Cancelling an IRN or e-invoice is also as simple as making in Tally Prime

e-invoice portal provides facility to cancel any invoice within 24 hrs of generation. To cancel a particular invoice for which e-invoice is being generated you have to go  to IRN register. Again at Alt + Z and the F5 screen there get the IRN register and select the particular invoice which you want to cancel by pressing spacebar. Now press F10 to cancel that invoice. You can cancel single invoice or multiple invoice in one go.
You have to provide the reason for cancellation as well as remarks and accept the screen.
Be sure to fill both the fields i.e. Reason for cancellation and Remarks fields. If remark field is left blank then it would throw error
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

e-invoice cancellation confirmation
If you are sure that particular e-invoice is cancelled then you have to cancel it from Tally also so that that particular invoice not get repeated. This can be achieved by selecting the desired voucher and then pressing Alt+X
Further read : Consider checking my Tally tutorial List for more such tutorials on Tally.
Also check out this one minute video list on various tips on Tally.
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