How can enterprises in the agriculture and agricultural products industry implement an input VAT invoice management system?

Connect invoice collection, authenticity verification, duplicate checking, certification, posting, and archiving into one online process, eliminating paper circulation and manual registration steps; establish compliance verification rules for all invoices, so abnormal invoices are blocked at the submission step and returned to the handler, rather than being discovered only at certification; connect with the voucher generation link of the financial system, automatically associating invoices with payables and expense vouchers, and allowing vouchers to trace back to original invoices.

What problems existed before Shandong Fengxiang launched input-output invoice management?

Upstream procurement is scattered across multiple lines including raw material purchasing, contract farming and trusteeship, packaging materials, cold-chain transportation, and energy power. Suppliers include both traders and a large number of individual operators and farmers, and invoice type standards themselves are not unified; after invoices arrive, business personnel print and paste them and submit them to finance on paper. Finance completes verification and registration centrally at the document receipt stage. The invoice management process and the reimbursement and payment processes each run separately, connected manually in between; the same transaction may simultaneously have a paper printout and a fully digitalized e-invoice source file, making duplicate booking difficult to eliminate at the process level.

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Agriculture and agricultural productsInput and Output Management

Shandong Fengxiang · Leader in the white-feather chicken full industry chain

Shandong Fengxiang | Financial Shared Service Center input VAT invoice management

Financial shared servicesBuild scenarios

Full industry chainEnterprise Attributes

Enterprise overview

Shandong Fengxiang Co., Ltd. is a modern large-scale food enterprise group integrating breeding stock and poultry breeding, feed processing, broiler breeding, slaughtering and cutting, and production and processing of cooked poultry meat products. It has a vertically integrated white-feather broiler full industry chain business model, covering feed production, breeding, slaughtering and processing, and distribution and sales of raw chicken products and further processed chicken products. The company has built 22 breeder farms, 3 hatcheries, 45 broiler farms, 7 slaughtering and processing plants, 2 feed processing plants, and 1 organic fertilizer plant. It is a leading fully integrated white-feather broiler producer in China, supplying well-known domestic and international catering and retail channels, with export business accounting for about 30% of revenue.

Business pain points

Upstream procurement is scattered across multiple lines including raw material purchasing, contract farming and trusteeship, packaging materials, cold-chain transportation, and energy power. Suppliers include both traders and a large number of individual operators and farmers, and invoice type standards themselves are not unified. After invoices arrive, business personnel print and paste them and submit them to finance on paper. Finance completes verification and registration centrally at the document receipt stage. The invoice management process and the reimbursement and payment processes each run separately, connected manually in between. The same transaction may simultaneously have a paper printout and a fully digitalized e-invoice source file, making duplicate booking difficult to eliminate at the process level
The correspondence between invoices and purchase orders and goods receipt notes relies on manual maintenance, and discrepancies must be traced back item by item, lengthening the reconciliation cycle. Manual entry itself is a source of errors; one wrong entry propagates through certification, deduction, and vouchers all the way down
Supplier invoicing status cannot be grasped in real time, and enterprises can only passively receive notifications after risks occur. After China Golden Tax Phase IV, tax comparison has become fully quantitative; once the authenticity and compliance of input VAT invoices have problems, they directly affect deduction and cost recognition, and the frequency of enterprises being questioned by tax authorities increases markedly

Solutions

Connect invoice collection, authenticity verification, duplicate checking, certification, posting, and archiving into one online process, eliminating paper circulation and manual registration steps
Establish compliance validation rules for all invoices; abnormal invoices are blocked and returned to the handler at the submission stage, no longer discovered only at certification
Connect with the financial system's voucher generation link, automatically associate documents with accounts payable and expense vouchers, and allow vouchers to trace back to original invoices
Ultimately shifts finance from processing invoices one by one to handling only exceptions, ensuring full input VAT deduction where applicable, with a fully compliant and traceable process
And enabling business, finance, and tax to work on the same set of data, so business initiation, financial review, and tax compliance no longer each use their own standards