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

With the applicability of e-invoice for business having turnover more then 10 cr and above, 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. 

Things may be seems to be difficult for businesses using manual methods but the scenario is quite opposite for those who are using some sort of system i.e any software, specially those who are using Tally Prime. They are dealing with this challenge 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.

For businesses who would be making e-invoice from Jan 1st 2023 and using Tally Prime as their accounting software, 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 will be discussing following aspects in this article.

• How to make your API id on e-invoice portal.
• How to make Tally Prime ready for e-invoicing
• How to make our Company ready for e-invoicing
• Things to take care while e-invoicing.
• Resolving errors 
• Cancelling e-invoice 

 Making your API id ready for e-invoicing

Before e-invoicing you have to make a separate API id first. This id is separate from your existing e-invoice portal. This 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.

Generate API id for Tally Prime

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.

Making your Tally ready for E-invoicing.

First of enable e-invoicing in company 

Go to F11 then go to 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 then put this option to yes and your e-way bill will be generated automatically.

Your e-invoicing in Tally Prime is ready. 

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

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 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. 

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.

Cancelling an IRN or e-invoice

e-invoice portal provides facility to cancel any invoice within 72 hrs of generation. To cancel a particular invoice for which e-invoice is being generated you have to go 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.

 

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