A Guide for Enterprises to Quickly Integrate and Apply Fully Digitalized E-invoices

All 36 provinces, autonomous regions, and municipalities nationwide have entered the pilot scope for fully digitalized e-invoice issuance, and fully digitalized e-invoices are being rapidly promoted and implemented.

For enterprises in pilot regions, how can they connect with the system as soon as possible to meet the full lifecycle management needs of fully digitalized e-invoice issuance, circulation, and storage?

For enterprises with a comprehensive digital system layout, how can fully digitalized e-invoice upgrades be organically combined with electronic voucher upgrades, electronic archives upgrades, supply chain collaboration, and digital system upgrades?

For enterprises that value data and expect to grow their data assets, how can they build a solid digital transaction infrastructure at the source to achieve data-driven business, better decision-making, and accelerated growth?

01 Key changes brought by fully digitalized e-invoices

A fully digitalized e-invoice is a digital electronic invoice. It relies on a trusted identity authentication system and a new type of electronic invoice voucher, features tagging, elementization, format-free design, credit-based issuance, and code assignment, and operates on a model of full-domain, full-process, full-element digitalization.

The invoice face information of fully digitalized e-invoices also has changes at three levels.

Four removals:For example, the password area was canceled, information such as the invoice code and machine number was canceled, the special invoice seal was canceled, and the payee and reviewer information was canceled.

Two additions:Add specific labels: when invoicing involves specific industries, special goods and services, or specific application scenarios, specific labels are displayed; add invoice number: the invoice number is 20 digits, of which the 1st-2nd digits represent the last two digits of the Gregorian calendar year, the 3rd-4th digits represent the administrative division code, the 5th digit represents information such as the issuance channel of the fully digitalized e-invoice, and the 6th-12th digits represent the sequential code.

Four changes:Change the positions of the buyer and seller (in addition to position changes, information such as address, bank, account number, and phone number are no longer displayed); change "goods or taxable labor, service name" to "project name"; change "levy rate" to "tax rate/levy rate"; in addition, the remarks section is expanded from the bottom right to directly below, allowing more information to be recorded.

So if the invoice you receive has no special invoice seal, no reviewer information, or no merchant address, phone number, etc.information, don't worry, this does not mean you have received a fake invoice.

02 Several core issues enterprises need to solve when launching fully digitalized e-invoices

With the continuous nationwide promotion of fully digitalized e-invoices, in fact, the tax bureau's approach to enterprise control has also changed.

In terms of digital and intelligent tax administration,Enterprise management shifts from post-event tracing to pre-event compliance, and from experience-based governance to data-based governance, requiring enterprises to build a digital tax compliance system.

In terms of digital and intelligent processes,Enterprises need to focus on building their own digital invoice and document system, and based on the digital invoice and document system, advance enterprise process transformation and achieve digitalization of enterprise transaction collaboration.

In the digital and intelligent operations stage,Then it is necessary to shift from internal management to ecosystem empowerment. On the basis of good digital-intelligent process transformation, enterprises may use big data to guide their own transaction decisions and also to guide supply chain optimization; enterprises with the right conditions can also use big data to empower supply chain credit enhancement. Because this step involves multi-party collaboration, it is often easily overlooked by enterprises, but in fact, in the era of big data, this is an important measure for enterprises to build thicker asset value.

Building fully digitalized e-invoice capabilities is a systemic undertaking. To quickly connect to the fully digitalized e-invoice system and achieve full-process applications including invoicing, collection, verification, input VAT deduction selection, export tax refund selection, agency selection, and booking, enterprises need to solve several core issues.

On one hand, enterprises need strong IT implementation capabilities,Able to connect the fully digitalized e-invoice system with enterprises' business, finance, and tax systems, achieving full-chain integration of business-finance-tax.

On the other hand, enterprises need a global understanding and long-term planning of tax work,Able to consider fully digitalized e-invoice services and enterprise digital construction as a unified goal, and comprehensively consider organizational upgrading and process reengineering.

Finally, continuous operation and upgrade capabilities are needed,The connection and use of fully digitalized e-invoices is not a one-time task; there will be continuous iterative updates afterward, requiring enterprises to have dedicated personnel and a dedicated team responsible for it to ensure daily operations.

It can be seen that for enterprises, the promotion of fully digitalized e-invoices not only changes the channels for issuing and using invoices, but also requires building a complete digital transaction infrastructure through the fully digitalized e-invoice upgrade, providing driving force for the digital transformation of enterprise business-finance-tax and allowing everyone to fully enjoy the digital dividends of fully digitalized e-invoices.

03 Digital upgrading requires a comprehensive fully digitalized e-invoice solution

Kailing TechnologyBased on the Digital Open Platform of the State Taxation Administration, launch an integrated fully digitalized e-invoice solution to achieve full-process digital management of fully digitalized e-invoice issuance, collection, reimbursement, accounting, and archiving, comply with national laws and regulations on invoice reimbursement, accounting, and archiving, safeguard enterprise compliance operations, reduce financial costs, and help enterprises improve management efficiency.

Fully digitalized e-invoice issuance:KailingThe output VAT invoice management solution supports the issuance and delivery of fully digitalized e-invoices and the full process of tax-controlled invoice acquisition, issuance, delivery, and reporting/write-back, providing complete output data for enterprise tax management systems, data support for tax burden balancing across group subsidiaries, and a feasible technology platform for building financial shared service center systems.

Fully digitalized e-invoice collection:Collect and manage fully digitalized e-invoices via multiple methods such as batch upload and scan code; automatic recognition, verification, parsing, compliance validation, and format processing of fully digitalized e-invoice XML files; quickly aggregate enterprise invoice data, divide data by institution for group users, and support centralized batch selection.

Reimbursement of fully digitalized e-invoices:Automatically generate reimbursement forms based on prior applications and link the corresponding fully digitalized e-invoices, with no need to print reimbursement forms,PasteInvoices; automatically routed to business-finance leaders for review; connected toVariousBanks: documents directly enable corporate and private payments, bank receipts are linked, funds are traceable, and reconciliation is easier; supports multi-dimensional combined settings by expense account, period, and cost center to achieve full-process budget execution management from pre-budget to in-process control to post-analysis.

Booking fully digitalized e-invoices:Supports intelligent collection and classification of fully digitalized e-invoices, automatic voucher generation, automatic reconciliation, automatic carry-forward, and closing risk monitoring, helping finance staff save over 90% of bookkeeping time and greatly improving work efficiency.

Fully digitalized e-invoice archiving:Batch upload of original fully digitalized e-invoice files, automatic parsing, automatic acquisition, and online archiving; XML original file storage + visual invoice online preview, meeting the requirements of regulatory documents for electronic invoice archiving; automatic invoice verification and duplicate checking, effectively preventing the risks of fraudulent and duplicate reimbursement.

Beijing Kailing Technology Co., Ltd.——an enterprise business-finance-tax digitalization solution service provider.

Kailing Technology provides solutions for sales management systems, procurement management systems, output invoicing systems, input invoice collection systems, imaging management systems, financial posting systems, electronic accounting archives, fully digitalized e-invoice and Leqi interfaces and other businesses according to enterprise needs, professionally and efficiently helping enterprises transform and upgrade their business-finance-tax digital management.

If you have any business-finance-tax digital transformation needs, welcome to contact us. Beijing Kailing Technology will serve you wholeheartedly.