Deqing Minxin Metal | Private deployment of renewable resource recycling management system

Enterprise overview

Deqing Minxin Metal Technology Co., Ltd. is an enterprise engaged in recycled metal recycling and processing, with business covering the recycling, sorting, processing, and resale of scrap metal, and its upstream suppliers are mainly individual recyclers.

Business pain points

• The upstream of the purchasing process is mainly individual recyclers and small and micro operators. Transactions normally involve weighbridge pricing and on-site settlement, and documents are mainly handwritten and temporary records. Enterprise finance needs to repeatedly contact and urge suppliers, who then go to the tax authorities themselves to handle issuance on their behalf, which is time-consuming and costly in communication. Expenditures without invoices can neither be listed as costs nor align fund flow, invoice flow, and business flow
• Inaccurate financial accounting often results from inadequate communication, and once required to prove business authenticity, there is no verifiable complete chain. Costs cannot be fully deducted, directly pushing up the overall tax burden
• Manually re-entered documents easily fail to match actual transactions, and account-reality discrepancies must be traced back one by one. This industry is a key tax focus area; abnormal invoices and inconsistency among the three flows directly trigger audit risk, and the industry as a whole is transitioning toward standardization and transparency.

Solutions

• The purchaser issues invoices to natural-person sellers in accordance with the national reverse invoicing policy; sellers complete real-name and face verification by scanning with their ID cards, with no need to visit the tax bureau in person throughout the process
• Before invoicing, automatically compare weighbridge tickets, purchase orders, and payment records. Only when the three documents match is invoicing allowed, ensuring transaction authenticity by mechanism
• Invoices are automatically linked and archived with weighing data, settlement statements, and bank transaction records, forming a transaction evidence chain that can be retrieved at any time
• Ultimately achieving the integration of the three flows—fund flow, invoice flow, and business flow—so that procurement expenditures can be properly expensed and industry tax-related risks are significantly reduced
• At the same time, seller profiles and transaction history are accumulated, providing data support for long-term cooperative relationships and supply stability