Why is an e-invoice standard/schema required?

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Why is an e-invoice standard/schema required?

• Presently, businesses are preparing/generating invoices in their respective ERPs/Accounting/Billing Software. All these software have their format for storing the data of invoices. Thus, the e-invoice generated by one system is not understood by the other, thereby necessitating data entry efforts and consequent errors and reconciliation problems.


• ‘Schema’ acts as a uniform standard for ERP/ Billing/Accounting software providers to build utility in their solution/package to prepare e-invoice in notified standard thereby ensuring e-invoice generated by any ERP/Accounting and Billing Software is correctly.


understood by another ERP/Accounting software. This is also required for ensuring uniformity in reporting to IRP.
• Schema ensures e-invoice is ‘machine-readable’ and ‘inter-operable,’ i.e., the invoice/format can be readily ‘picked up,’ ‘read,’ ‘understood’ and further processed by different systems like Oracle, Tally, SAP etc.