iDCP e-Invoice Software System

E-invoicing is being rolled out in phases and is now compulsory for a significant segment of businesses.

By July 2025, companies with annual revenue exceeding RM 25 million are already required to issue e-invoices in B2B, B2G, and B2C transactions.

Beginning 1 July 2025, the mandate will expand to include businesses whose annual turnover exceeds RM 5 million.

The rollout will proceed in stages until it covers all companies — with the exception of those whose annual turnover is under RM 500,000.

iDCP  automates the entire e-invoicing process:

• Integration: Connects to your ERP or business systems.
• Data Capture: Extracts invoice information.
• Formatting: Converts data into UBL 2.1 (XML/JSON).
• Validation: Submits for real-time verification with IRBM’s MyInvois system.
• UIN & QR Code: Receives and attaches the Unique Identification Number and QR code.
• Delivery & Storage: Sends e-invoices to buyers and archives them for compliance.

There are two ways to submit e-Invoices:

MyInvois Portal – Manual entry or bulk spreadsheet upload, ideal for MSMEs or low-volume transactions.

API Integration – Direct ERP or accounting system connection for real-time, automated submissions, supported by LHDN’s SDK.

E-invoicing helps businesses streamline operations and maintain compliance:

• Streamlined Operations: Automates invoicing, reducing manual errors.
• Faster Payments: Improves cash flow and minimizes billing disputes.
• Better Tax Compliance: Simplifies and ensures accurate reporting.
• Lower Costs: Cuts paper and administrative expenses.
• Supports Global Trade: Facilitates cross-border transactions.

To begin with e-Invoicing in Malaysia, start by assessing your company’s readiness. Identify whether e-Invoicing is mandatory for your business or if you plan to adopt it voluntarily. Review your existing ERP or accounting system to confirm its compatibility and integration capability. Lastly, make sure your employees are properly trained to manage e-Invoicing processes efficiently.

iDCP provides a comprehensive, MDEC-accredited e-invoicing solution designed for Malaysian businesses:

• Seamless Integration: Connects easily with ERPs and business systems.
• Multi-Channel Support: Consolidates B2B and B2C sales into compliant e-invoices.
• Client Portal: Enables buyers to generate e-invoices independently through a web or mobile platform.
• Real-Time Validation: Ensures compliance with IRBM’s MyInvois system.

An e-Invoice (electronic invoice) is a digital document that records the details of a transaction between a seller and a buyer. Unlike traditional paper invoices, it is created, validated, and stored electronically through the LHDN MyInvois system.

Example: When a wholesaler sells goods to a retailer, instead of issuing a paper invoice, they generate an e-Invoice through their ERP /accounting system, which is then sent to LHDN for validation before being shared with the buyer.

A credit note is issued by a seller to correct a previously issued e-Invoice, usually to reduce the original invoice’s value without returning money to the buyer. It is commonly used to fix errors, apply discounts, or account for returned items.

Example: A retailer returns 20 defective shoes from an order of 200 pairs. The supplier issues a credit note to reduce the invoice value accordingly.

A debit note is issued to record additional charges or costs related to a previously issued e-Invoice.

Example: A supplier realizes that delivery charges were left out of the original invoice. They issue a debit note to add the extra cost.

A refund note (refund e-Invoice) is issued by a seller to record a refund given to the buyer.

Example: A buyer cancels an order and requests a refund. The seller issues a refund note to document the repayment. 

Remark: According to LHDN rules and regulations, any cancellation of an e-Invoice must be done within 72 hours from the time of issuance.

A self-billed e-Invoice is created by the buyer instead of the seller. It applies in situations like transactions with unregistered suppliers or cross-border dealings.

Example: A Malaysian retailer purchases raw materials from a foreign supplier not registered with LHDN. The retailer issues a self-billed e-Invoice to record the transaction.