The IRBM has implemented e-invoicing in Malaysia as part of its digital economy initiative, which has been in effect since August 1, 2024. All businesses are required to generate and submit e-invoices to the IRBM’s MyInvois system for every transaction.
For businesses with ongoing e-invoicing needs, API integration is essential to automate the generation, submission, and validation of e-invoices directly from their business systems. However, businesses using Oracle Fusion or similar ERP platforms do not have a ready-made module for e-invoicing, requiring a custom integration with the IRBM's MyInvois system.
This blog offers a comprehensive guide to integrating Oracle Fusion with the IRBM's MyInvois system.
What is the API Integration Model for e-Invoicing, and Why is it Required?
Among the two models of e-invoice generation, the MyInvois portal is ideal for smaller businesses that manage invoices manually or in bulk using Excel sheets.
Meanwhile, the API Integration Model is designed to automate the entire process of generating, submitting, and validating e-invoices directly from a business's existing ERP or financial system. API integration is essential for businesses where manual processing is inefficient or impossible. It is particularly crucial for companies with high transaction volumes, such as those with continuous invoicing needs, multiple sales terminals, B2C invoicing, or online stores.
For businesses handling many transactions, API integration is not merely advantageous—ensuring operational efficiency and accuracy is necessary.
Steps to Integrate Oracle with MyInvois System
To integrate Oracle ERP with the MyInvois system, some coding and technical configuration are required to enable seamless data exchange. To support this process, IRBM has released an SDK containing essential tools, APIs, validation rules, and documentation needed to automate e-invoicing and ensure compliance with Malaysia's regulations.
- Obtain the LHDN Software Development Kit (SDK): The SDK includes essential tools, APIs, and documentation needed for integration, such as the e-invoice API, platform API, validation rules, and code tables.
- Review API Documentation: Understand the API functions, including e-invoicing and platform APIs for submission, validation, and data retrieval.
- Configure Oracle ERP: Set up Oracle ERP to connect with MyInvois APIs for automated e-invoicing processes.
- Map Document Types: Align Oracle ERP’s data structures with MyInvois document types and schemas.
- Implement Validation Rules: Apply the SDK's validation rules to ensure all e-invoices meet MyInvois standards.
- Test API Integration: Develop and test API calls within Oracle ERP to ensure proper data exchange with MyInvois.
- Ensure Secure Authentication: Use platform APIs for secure access and authentication between Oracle ERP and MyInvois.
- Standardize Codes: Use SDK-provided code tables to maintain consistent data formatting.
- Conduct End-to-End Testing: Test the integration thoroughly to ensure all processes work correctly.
Role of Middleware in MyInvois Integration
Integrating Oracle Fusion directly with the MyInvois system can present several challenges due to the complexity of certain tasks and the extensive backend coding required. Middleware can significantly simplify this process by acting as an intermediary layer that bridges the two systems. Here's how middleware helps:
- Status Checking and Document Generation: Middleware streamlines the process of checking the status of invoices and automates the generation of required documents, reducing manual effort and complexity.
- Bulk Invoice Extraction: Efficiently handles the extraction of bulk invoices from Oracle Fusion, which would otherwise require complex backend coding.
- Multi-Channel Sales Transaction Consolidation: Aggregates and consolidates sales transactions from various POS terminals, making it easier to manage B2C transactions and data from multiple sources.
- Advanced Search and Filtering Capabilities: Enhances the ability to search documents, apply filters, and manage large data sets, which is challenging to achieve with direct integration.
- Automated Communication in Multiple Formats: Facilitates the automatic generation and communication of documents in various formats (such as PDF), reducing manual intervention.
Middleware like ClearTax simplifies and smoothens the MyInvois system integration of Oracle Fusion with the MyInvois system, reducing complexity, improving efficiency, and ensuring a seamless e-invoicing process.
How ClearTax Can Help
ClearTax, a global e-invoicing solution provider, specializes in integrating Oracle Fusion with the MyInvois portal, leveraging its dedicated in-house team of experts in ERP integration and government reporting. Acting as a middleware, ClearTax offers several key benefits:
- Web-Based Portal: Provides a user-friendly platform for digital profile management, document management, draft management, notifications, and alerts, simplifying the e-invoicing process for businesses.
- Invoice Retrieval and Validation: Allows for easy retrieval and validation of invoices, ensuring compliance with e-invoicing regulations.
- Efficient Data Ingestion: Supports bulk data ingestion through CSV and Excel formats, significantly reducing manual data entry time and enabling faster handling of large volumes of invoices.
- Data Enrichment: Automatically enhances data from customer systems before submission to LHDN, including converting issue dates to UTC and adjusting dates for compliance with LHDN regulations.
- Advanced Error Tracking and Root Cause Analysis (RCA): Offers comprehensive error tracking with detailed failure messages, performing over 150+ data validations to ensure accuracy and compliance with the Inland Revenue Board of Malaysia (LHDN) standards.
- B2C Self E-Invoice Portal: Provides a customer module for generating e-invoices, allowing customers to log in, input details, and create invoices themselves—ideal for e-commerce sites and POS systems in supermarkets.
- Customizable E-Invoice Generation: Supports custom e-invoice templates with additional data fields, company logos, and branding elements, enhancing the professional appearance of invoices.
- Advanced User Access Control: Offers six distinct user roles with customized access rights to ensure secure and efficient management of e-invoicing operations.
- Smart Reports and Dashboards: Features customizable dashboards that display e-invoice statuses, historical data, and daily reports, keeping stakeholders informed and supporting decision-making.
Simplify Your E-Invoicing Integration Today!
Contact ClearTax to seamlessly integrate Oracle Fusion with the MyInvois system and stay compliant with Malaysia's e-invoicing requirements.
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Conclusion
Integrating Oracle Fusion with IRBM’s MyInvois system for e-invoicing involves complex engineering and a deep understanding of both systems, leveraging the SDK released by IRBM. This process demands significant resources and expertise due to challenges such as handling bulk data, ensuring compliance, and managing document generation and validation.
Given these complexities and limitations, partnering with a solution provider that offers middleware can greatly enhance efficiency and accuracy. By choosing a provider with robust middleware solutions, businesses can achieve a more seamless, error-proof integration with the MyInvois system, ensuring compliance and operational efficiency.