E-Invoice Transaction Creation – Overview

Introduction

This chapter provides a structured guide on how to create and process e-invoice transactions within the system. Whether a business is issuing a sales transaction to a customer or processing a purchase transaction from a supplier, the overall workflow remains similar. Proper transaction creation ensures that invoices are accurately documented, validated, and compliant with regulatory requirements.

An e-invoice is more than just a digital document—it is a structured data exchange between businesses and tax authorities that requires precise formatting, validated tax details, and seamless integration with LHDN’s MyInvois Portal and Peppol standards.

Understanding E-Invoice Transactions

Sales Transactions (Issued to Customers)

A sales transaction represents an invoice issued by your company to a customer for goods or services. The process involves selecting the appropriate document type, inputting customer details, specifying itemized charges, and validating tax information before submission.

Once your company and customer profiles are configured, you can issue the following types of sales transactions:

• POS General – Used for point-of-sale transactions in retail environments.

• Internal Sales Order – Represents an internal order for goods or services.

• Internal Sales Return – Used when a customer returns goods previously purchased.

• Internal Sales Debit Note – Issued when a customer owes additional amounts due to pricing errors, adjustments, or additional charges.

• Internal Sales Credit Note – Used when the company provides a refund or discount after an invoice has been issued.

• Internal Sales Refund Note – Formalizes the refund of a customer’s payment.

Each document type serves a unique function within the sales transaction process. The system ensures that all relevant data—including customer details, product or service descriptions, and applicable tax information—is validated before the invoice is processed.

To learn more about issuing a sales transaction, refer to Sales Transaction Guide

Purchase Transactions (Issued to Suppliers)

A purchase transaction represents an invoice issued to your company by a supplier for goods or services received. This process mirrors the sales transaction workflow but positions your business as the buyer instead of the seller.

Once your company and supplier profiles are configured, you can issue the following types of purchase transactions:

• Internal Purchase Invoice – Issued when your business receives goods or services from a supplier.

• Internal Purchase Return – Used when returning previously purchased goods.

• Internal Purchase Debit Note – Issued when additional costs or adjustments are required, increasing the amount payable to the supplier.

• Internal Purchase Credit Note – Used when a supplier grants a discount or refund, reducing the amount owed.

• Purchase Refund Note – Documents the return of a supplier’s payment to your company.

Proper purchase transaction creation ensures that all supplier information, item details, and tax values are accurately recorded and validated before submission to MyInvois.

To learn more about issuing a purchase transaction, refer to Purchase Transaction Guide

Why is Transaction Creation Important?

A well-defined e-invoice transaction workflow is essential for businesses to maintain regulatory compliance, financial accuracy, and operational efficiency. The system provides structured fields and validations to ensure that:

• All transactions adhere to LHDN requirements and MyInvois submission formats.

• E-invoices are linked to the correct customer or supplier profiles.

• Tax calculations, item details, and payment terms are accurately reflected in invoices.

• Peppol-enabled transactions follow cross-border compliance standards.

• Real-time validation reduces the risk of rejection or errors.

By understanding and following the correct transaction workflow, businesses can optimize their invoicing process, reduce manual data entry errors, and ensure a seamless integration with LHDN and Peppol networks.

Next Step: Issuing a Sales Transaction

The next section will provide a detailed step-by-step guide on creating a sales transaction, including document selection, data entry, validation, and submission

➡ Proceed to Issuing a Sales Transaction