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Industry: Government entity | Source systems: 5 | Invoices per year: 60,000

Implementation of a 5-Corner Model eInvoice Solution for a Government Entity in Malaysia

Introduction

A prominent government entity in Malaysia, responsible for promoting digital initiatives, sought to implement a robust eInvoice solution in alignment with the Malaysian Inland Revenue Board (LHDNM/IRBM) requirements. The client needed an efficient, automated, and scalable solution to ensure seamless invoice submission, compliance verification, and buyer communication.

Business Challenges

  • Compliance with LHDNM/IRBM: Ensuring all invoices are submitted to LHDNM/IRBM for validation and compliance clearance.
  • Dynamic Buyer Communication: Facilitating invoice delivery through appropriate channels, including the Peppol network or email, based on buyer availability.
  • Single API Integration: Providing a unified API to manage invoice submissions and responses across multiple source systems.
  • Custom Source Formats: Supporting integration with multiple customer systems, each using its own format.
  • Real-Time Response: Relaying responses from the Peppol network and other channels back to the source systems in real-time.

Solution

Taxilla designed and implemented a 5-corner model eInvoice solution to address the client’s challenges. Key features included:

  • Integration with LHDNM/IRBM:
    • Invoices from source systems were validated, transformed, and routed to the LHDNM/IRBM for compliance verification.
    • A status update (cleared or rejected) was provided based on validation results.
  • Dynamic Channel Delivery:
    • Peppol Network Integration: If the buyer was part of the Peppol network, the validated invoice was sent via Peppol using MY PINT format.
    • Email with Invoice Link: If the buyer was not part of the Peppol network, the invoice was sent via email with a secure link to access the invoice. Optionally, the invoice could be attached as a PDF.
  • Single API Integration:
    • A unified API enabled seamless integration for the client’s multiple source systems.
    • The API handled submissions, validations, and responses, simplifying system interactions.
  • Support for Multiple Source Formats:
    • The solution included a transformation engine to convert varied source system formats into the required formats for LHDNM/IRBM and Peppol compliance.
    • Custom transformations were supported for each source system, ensuring flexibility and adaptability.
  • Real-Time Response Relay:
    • Responses from LHDNM/IRBM and the Peppol network were relayed back to the respective source systems in real time, ensuring up-to-date status updates.

Results and Benefits

  • Compliance Assurance: Achieved 100% compliance with LHDNM/IRBM mandates through automated invoice validation and submission.
  • Seamless Buyer Communication: Dynamic channel selection ensured efficient invoice delivery, improving buyer satisfaction by providing secure and accessible invoice links for non-Peppol buyers.
  • Operational Efficiency: Single API integration simplified interactions across multiple source systems, while real-time response updates enabled faster issue resolution and process transparency.
  • Scalability: The solution allowed easy onboarding of new source systems, with adaptable transformation logic for future format changes.
  • Enhanced Reporting: Comprehensive audit trails and status reports provided actionable insights for the client.

Conclusion

The 5-corner model eInvoice solution successfully addressed the client’s requirements, enhancing compliance, operational efficiency, and buyer communication. The project reinforced Taxilla’s position as a trusted partner for eInvoicing solutions in Malaysia and beyond.

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