Chunong Chain | Agricultural Product Purchase Reverse Invoicing System

Enterprise overview

Hubei Chunonglian Technology Co., Ltd. is a platform-based enterprise serving the agricultural industry chain, providing digital services around agricultural product procurement, warehousing, circulation, and supply chain finance.

Business pain points

• Procurement along the business chain involves equipment, engineering construction, operation and maintenance services, energy and power, and professional outsourcing, with both large engineering contracts and high-frequency small operation and maintenance and consumables procurement, and invoice amounts and frequencies span widely. Sellers in the acquisition stage are mainly natural persons and individual businesses, who neither have invoicing qualifications nor are willing to go to the tax bureau for invoice issuance, and procurement expenditures have long been completed via cash or private account transfers. Costs cannot be fully deducted, directly pushing up the comprehensive tax burden
• Manually re-entered documents easily fail to match actual transactions, and account-reality discrepancies must be traced back one by one. Expenses without invoices can neither be listed as costs nor align the three flows of funds, invoices, and business.
• Inaccurate financial accounting often results from inadequate communication, and once required to prove business authenticity, there is no verifiable complete chain. After the state introduced the reverse invoicing policy, the industry gained a compliant solution, but implementation requires a system to link identity verification, transaction vouchers, and invoicing actions

Solutions

• Embed reverse invoicing into the acquisition business process; invoicing can be initiated as soon as on-site weighing and settlement are completed, with no need for later supplementary entry and repeated communication
• Establish seller files and invoicing quota control, automatically verifying invoicing eligibility and frequency according to policy standards
• Achieve automatic correspondence between invoices, documents, and payments, with business authenticity verifiable at any time
• Ultimately drives standardization and transparency in acquisition operations, reducing compliance costs for both enterprises and sellers
• And solidifying this approach into a replicable process, which can be directly applied when subsequently expanding into new categories and new regions