Top E-Invoicing Integrators for Malaysian Businesses: A 2024 Guide

E-invoicing will be mandatory in Malaysia by January 1, 2025. The process began on August 1, 2024, and will be gradually rolled out to ensure businesses are fully prepared for compliance.

This makes it crucial for Malaysian businesses to adopt efficient invoicing to maintain financial accuracy and compliance. Integrating an effective e-invoicing system is not just a necessity but a strategic advantage to remain competitive.

An e-invoicing integrator is a service provider that ensures that your invoicing processes are seamlessly aligned with the latest regulations from the Inland Revenue Board (IRB) and that your data validation is robust.

Understanding your ERP system can help you better understand which providers offer the best integration options to help you streamline invoicing processes, reduce errors, and comply with local requirements.

In this article, we’ll explore some of the most effective integrators to consider in Malaysia and offer expert tips on choosing the right one.

1. Oracle

Oracle offers various tools to streamline e-invoicing operations, including Oracle Fusion Cloud ERP and Oracle NetSuite. These tools provide advanced functionalities to help Malaysian businesses enhance operations through e-invoicing.

Oracle Fusion Cloud utilizes the Collaboration Messaging Framework (CMK), which supports the transmission of electronic invoices in UBL 2.1 format. It can also automate various aspects of e-invoicing, including message formatting, transmission, and status tracking.

Key features of Oracle Fusion Cloud ERP include:

Automatic e-invoice reception: This feature receives and validates incoming invoices in UBL 2.1 (XML and JSON) format. It also automates the upload of electronic documents into Oracle Payables to enhance financial processes.
Collaboration Messaging Framework (CMK): This feature allows formatting, transmitting, and tracking the status of e-invoices. It is the main feature that allows communication between buyers and vendors. The CMK supports using a web-based program to issue documents directly or a third-party service provider like PEPPOL.

The Oracle NetSuite comprises the OracleSuite APP, which allows the generation of e-invoices in XML and JSON format. It uses data from NetSuite transactions and their subsequent transmission to customers, vendors, and tax authorities.

Key features of Oracle NetSuite include:

Global business management: For Malaysian businesses involved in international transactions, NetSuite OneWorld helps them manage various global operations, including taxation rules and reporting requirements, while providing real-time financial visibility.
Order management: The ERP can help you streamline order processing by preventing errors, eliminating manual bottlenecks, and creating a smooth flow from the sales quote to order fulfillment.
Enterprise performance management: This feature combines planning, forecasting, budgeting, and account reconciliation from processes all over the organization.

2. SAP Document and Reporting Compliance

This solution facilitates the transition to continuous transaction controls (CTC) and ensures consistency between real-time document submissions and statutory reports.

It also supports compliance with legal mandates, making it particularly beneficial for e-invoicing in Malaysia. The SAP Document and Reporting Compliance is a robust tool that helps business owners comply with e-invoicing regulations and requirements.

Its holistic dashboard accurately reflects all invoice information in the statutory reports and offers real-time insights into document processing and compliance status.

Key features of SAP Document and Reporting Compliance include:

Automated e-documents and smooth corrections: Efficiently generates and manages e-documents, allowing quick corrections and adjustments to ensure accuracy and compliance.
Holistic dashboard: Provides a comprehensive view of e-document processing and reporting, helping businesses monitor and manage their compliance status effectively.
Digitalized reporting: Streamlines the creation and submission of statutory reports, ensuring timely and accurate reporting in line with regulatory requirements.

You may also like: E-Invoicing in Malaysia: What Are the Compliance Standards and Tax Implications?

3. Microsoft Dynamics 365

Microsoft Dynamics 365 integrates seamlessly with various financial and operational systems, facilitating the automated creation, validation, and transmission of e-invoices.

It features a comprehensive solution integrated into its Finance and Operations that enhances financial management and ensures compliance with local e-invoicing regulations.

Key features of Microsoft Dynamics 365 include:

Integrated e-invoicing: Facilitates the creation, validation, and transmission of e-invoices directly within the Dynamics 365 environment, ensuring smooth integration with financial operations.
Real-time data and analytics: This feature provides real-time visibility into invoicing processes and financial data, allowing effective cash flow management.
Compliance management: Ensures adherence to local regulatory requirements for e-invoicing in Malaysia, including formatting and submission standards.

4. Zoho

Zoho is an ERP comprising various online business applications that simplify and enhance multiple business operations, including invoicing.

The company has integrated Zoho ERP with 40 other Zoho products and over 300 third-party applications. This robust solution is ideal for managing customer relationships and business operations.

Zoho's cloud-based infrastructure ensures business owners can leverage its advantages without requiring manual updates or complex installations.

It integrates seamlessly with its applications, offering a unified electronic invoicing approach. This allows you to maintain accurate records, streamline billing processes, and comply with local regulations.

Key features of Zoho include:

Automated payment reminders: You can easily keep up with due payments, which reminds you when you should make or expect a payment. This helps enhance cash flow and increase the chance of investment and growth.
Configure multiple payment gateways: Zoho allows users to integrate over 10 payment methods, including Stripe, PayPal, Forte, and more. These provide secure transactions for businesses worldwide.
Detailed payment reports: Zoho’s holistic dashboard allows you to customize and view reports to get insights into customers’ payment patterns.

5. Bukku Accounting

Bukku Accounting is a specialized cloud-based accounting software tailored for SMEs in Malaysia. Developed by Nukleus Ventures Sdn Bhd, Bukku offers a robust platform that simplifies and automates accounting and invoicing tasks.

Bukku provides a seamless solution for managing financial operations with its user-friendly interface and secure cloud-based infrastructure.

Bukku stands out with its robust e-invoicing features, which align with local regulatory requirements for Malaysian businesses. The software supports automated e-document generation and submission, ensuring compliance with the IRB Malaysia’s e-invoicing guidelines.

Bukku has prepared for integration with government e-invoicing systems with its PEPPOL accreditation.

Key features of Bukku include:

Digital shoebox: Enables users to upload and automatically record receipts, reducing manual entry and improving accuracy.
Auto bank reconciliation: This software automates the reconciliation of bank statements with specific integration features for major Malaysian banks like Maybank.

How to choose the right e-Invoicing integrator for your business in Malaysia

Choosing the right e-invoicing integrator for your business in Malaysia is crucial for enhancing efficiency and ensuring compliance with local regulations.

To help you navigate this decision, here are five expert tips to consider when selecting an e-invoicing integrator:

Assess compatibility with your existing systems

You must evaluate how well an e-invoicing integrator integrates with your existing systems, such as ERPs and accounting software. Seamless integration ensures data flows smoothly between systems, reducing manual entry and minimizing errors.

Find solutions that offer robust APIs or built-in connectors for your existing software. This can streamline the e-invoicing process and enhance overall efficiency.

Assessing compatibility also involves considering how the e-invoicing software aligns with your business processes and needs.

Ensure compliance with local regulations

Malaysian businesses should choose an e-invoicing integrator that enhances compliance with the Inland Revenue Board (IRB) requirements. The software must also support e-invoice formats mandated by local regulations.

A solution that supports automated compliance features, such as e-invoice generation in the correct format and submission to the IRB, helps streamline the invoicing process.

This can prevent potential issues with tax reporting and reduce the risk of penalties. Ensure the e-invoicing provider offers regular updates and support to keep your system compliant with evolving regulations.

Evaluate automation capabilities

Automation is a significant feature for tasks that require repetition when done manually, like invoicing. When choosing an e-invoicing integrator, assess the extent of automation the software offers.

Look for features like automated invoice generation, digital invoicing, and auto reconciliation of bank statements.

These capabilities can significantly streamline your invoicing process, reduce errors, and save time.

Consider cost and return on investment

Understanding the cost structure of the e-invoicing integrator is essential for making an informed decision. Assess the pricing models of different providers, including implementation costs, subscription fees, and any additional charges for upgrades or support.

Consider the initial investment and the long-term costs of maintaining and scaling the system.

In addition to cost, you must assess the potential return on investment (ROI) the integrator can deliver. This includes time savings from automation, reduced errors and associated costs, and improved efficiency in invoice processing.

Review support and training options

Adequate support and training are essential for successful e-invoicing implementation. Ensure the e-invoicing integrator offers comprehensive support options, including technical assistance, customer service, and training resources.

Seek providers that offer onboarding assistance and ongoing support to help your team adapt to the new system.

Training is particularly vital for Malaysian businesses transitioning from traditional paper-based invoicing to digital solutions. Evaluate the availability of training programs, such as online tutorials, workshops, and customer support channels.

Takeaway: Optimize your e-invoicing strategy for success

As Malaysia moves towards mandatory e-invoicing, understanding the best integrators is essential for compliance and operational efficiency. Selecting the right e-invoicing integrator can ensure adherence to Inland Revenue Board requirements.

Investing time in choosing an e-invoicing integrator that aligns with your existing systems, meets regulatory standards, and offers automation and support will pay off in terms of efficiency and cost savings.

You must evaluate the capabilities and features of different e-invoicing solution providers to find the best fit for your business needs.

Storecove can help you navigate these choices effectively and implement a solution that best fits your requirements. Schedule an appointment with our leading e-invoicing expert in Malaysia for guidance today!

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