Malaysia E-Invoicing Models and Overall Workflow: Portal vs API Explained
Updated: Oct 16
Malaysia's e-Invoicing system is changing the way businesses create, submit, validate and manage invoices.
Instead of simply sending an invoice to a customer, businesses subject to e-Invoicing requirements need to ensure that transaction data can be submitted to the Inland Revenue Board of Malaysia (IRBM/LHDN) for validation through the MyInvois system.
But how exactly does the process work?
And more importantly, what are the e-Invoicing models available in Malaysia?
Businesses can generally transmit e-Invoices through two mechanisms:
MyInvois Portal
Application Programming Interface (API)
The right approach depends on factors such as invoice volume, existing accounting systems, internal resources and the level of automation required.
This guide explains both models and walks through the overall Malaysia e-Invoicing workflow, from creating an invoice to validation, sharing, cancellation and record management.
Important: Malaysia's e-Invoicing framework continues to be updated by IRBM. Businesses should refer to the latest IRBM guidelines when implementing or reviewing their e-Invoicing processes.
Why Does the Model Matter?
The transmission mechanism determines how your business connects its invoicing process with MyInvois.
For example:
Small transaction volume
Accounting system → MyInvois Portal → IRBM
Higher transaction volume
Accounting system → API → MyInvois → IRBM
The objective is the same: get the required e-Invoice data to IRBM for validation.
The difference is how the data gets there.
Traditional | e-Invoice |
Create invoice | Create structured e-Invoice |
Send PDF/email | Submit to MyInvois |
Customer receives document | IRBM validates |
Store internally | Validated e-Invoice shared & retained |
2 Main e-Invoicing Models in Malaysia
According to BDO's updated Malaysia e-Invoicing guide, taxpayers can choose between two primary transmission mechanisms: MyInvois Portal and API integration.
1. MyInvois Portal
The MyInvois Portal is the web-based platform provided by IRBM.
Businesses can use the portal to create, submit and manage e-Invoices without developing a direct API connection between their accounting system and MyInvois.
How It Works
The simplified process is:
Prepare invoice data → Enter/upload into MyInvois → Submit → IRBM validation → Share validated e-Invoice
Who Is It Suitable For?
The portal can be suitable for businesses that:
Have relatively low invoice volumes
Do not require extensive automation
Do not have an integrated accounting system
Want to use IRBM's available portal
Are not ready to invest in API integration
BDO specifically notes that the MyInvois Portal is available at no cost and can be suitable for MSMEs, although manual processing may become less efficient as transaction volume increases.
Limitation to Consider
The main challenge is manual processing.
If your business creates a large number of invoices, repeatedly entering or uploading information can create:
More administrative work
Higher risk of data-entry mistakes
Slower invoice processing
More reconciliation work
Greater dependency on manual checks
Accounting Records → MyInvois Portal → IRBM Validation → Customer
Add a small label:
"Best suited for lower-volume or less automated workflows."
2. API Integration
The second model is Application Programming Interface (API) integration.
Instead of manually entering invoice information into MyInvois, the business's accounting or ERP system can communicate with the MyInvois system electronically.
The MyInvois API documentation describes functions for activities such as authentication, document submission, cancellation, rejection and retrieving documents.
How It Works
The simplified flow is:
Accounting/ERP system → API → MyInvois → IRBM validation → Validation result → Accounting system
This allows the e-Invoicing workflow to become more integrated with the business's existing financial system.
Who Is API Integration Suitable For?
API integration can be particularly useful for businesses with:
High invoice volumes
Existing ERP or accounting systems
More complex transaction workflows
Multiple users or departments
A need to reduce manual data entry
Internal IT or implementation support
BDO identifies API integration as a solution that can be more suitable for businesses with substantial transaction volumes, although it generally requires technology investment and system adjustments.
MyInvois Portal vs API: What's the Difference?
The two mechanisms serve the same overall compliance objective, but their operational approach is different.
Factor | MyInvois Portal | API |
Access | Web portal | System-to-system |
Manual work | Higher | Lower after implementation |
Setup complexity | Lower | Higher |
Technology investment | Lower | Higher |
Suitable for | Lower invoice volume | Higher transaction volume |
Automation | Limited | Higher |
Integration | Manual/portal-based | Accounting/ERP integration |
IT requirements | Relatively simple | Technical integration required |
Scalability | More limited | More scalable |
The important point is that API is not automatically the right choice for every business.
The appropriate model depends on the company's transaction volume, accounting system, workflow and internal capabilities.
The Overall Malaysia e-Invoicing Workflow
Choosing the transmission model is only one part of the process. Businesses also need to understand what happens after an invoice is created. The overall workflow can be simplified into six key stages.
Step 1: Create the e-Invoice
The process starts when a business makes a sale or performs a service. The supplier prepares the required transaction information, including relevant supplier, buyer and transaction details.
This information may originate from:
Accounting software
ERP systems
Point-of-sale systems
Billing platforms
Other business systems
The invoice is then prepared for submission to IRBM.
Step 2: Submit the e-Invoice to IRBM
Once the e-Invoice has been prepared, it is transmitted to the MyInvois system.
There are two main routes:
Portal Route
Business → MyInvois Portal → IRBM
API Route
Accounting/ERP → API → MyInvois → IRBM
The choice of transmission method does not change the fundamental objective: the transaction information needs to reach the IRBM system according to the applicable requirements.
Step 3: IRBM Validates the e-Invoice
After submission, IRBM validates the e-Invoice.
The validation process checks whether the submitted document meets the relevant requirements and specifications.
When the e-Invoice is successfully validated, the system provides a Unique Identifier Number. BDO describes this validation as part of the real-time e-Invoicing workflow.
The MyInvois API also provides functionality for submitting documents and retrieving validation-related information.
Why Validation Matters
Validation creates an important difference between an ordinary invoice and an e-Invoice.
The business is not simply creating a document for its customer.
The transaction data is also being submitted through the prescribed IRBM system.
Submitted → IRBM Validation → ✓ Validated
Step 4: The Validated e-Invoice Is Shared With the Buyer
Once the e-Invoice has been validated, the supplier shares the validated e-Invoice with the buyer.
The validated e-Invoice includes a QR code that can be used to check the validity and status of the document through MyInvois.
This creates a clearer connection between:
Supplier → IRBM → Buyer
rather than simply:
Supplier → Buyer
BDO's workflow describes the supplier's obligation to share the cleared e-Invoice with the buyer after validation.
Step 5: Rejection or Cancellation
An e-Invoice does not necessarily end its lifecycle after validation. There are situations where an invoice may need to be corrected, rejected or cancelled according to the applicable rules.
BDO's current guide identifies a 72-hour window for buyer/supplier rejection or cancellation with justification from the time of validation.
The MyInvois API also provides functions for cancelling documents and handling buyer rejection requests. This makes accurate invoice data particularly important.
Businesses should establish internal procedures for handling:
Incorrect buyer information
Incorrect transaction information
Incorrect amounts
Incorrect tax information
Rejected invoices
Cancellation requests
Corrective documents
Step 6: Record and Reconcile the Transaction
The e-Invoicing process should not operate separately from accounting.
Once the invoice has been validated, the transaction should continue through the company's normal financial workflow.
For example:
e-Invoice
→ Accounts Receivable
→ Payment
→ Bank Reconciliation
→ Financial Reporting
→ Tax & Compliance Records
The Complete Malaysia e-Invoicing Workflow at a Glance
The entire process can therefore be simplified into:
This is the core workflow businesses should understand before selecting an e-Invoicing solution.
Where Does Cloud Accounting Fit Into the Workflow?
This is where e-Invoicing becomes more than a tax-compliance project.
A business still needs to manage:
Sales
Purchases
Accounts receivable
Accounts payable
Bank reconciliation
Financial reporting
Tax information
Customer information
Transaction records
If e-Invoicing is managed separately from accounting, businesses may create another layer of manual work.
A cloud accounting system can instead become part of the wider financial workflow. Podwerx describes cloud accounting as a way to give businesses access to financial data, improve collaboration, reduce paperwork and streamline invoicing and financial processes.
How Xero Works With Malaysia's e-Invoicing Workflow
Authorising Xero as an intermediary is one step in the setup process.
Once your Xero organisation is connected to Invoici by Xero, you can manage supported e-Invoicing activities through a workflow connected to IRBM's MyInvois system.
In simple terms:
Xero manages your accounting transactions and invoice data.
Invoici by Xero connects your Xero organisation to the Malaysian e-Invoicing workflow.
MyInvois / IRBM receives and validates submitted e-Invoices.
Step 1: Prepare Your Accounting Data in Xero
Before submitting an e-Invoice, ensure your Xero organisation details and customer or supplier records are accurate.
Depending on the transaction, relevant information can include:
Business Registration Number (BRN)
Tax Identification Number (TIN)
Customer and supplier details
Invoice number and date
Transaction description and amounts
Required tax and classification information
Accurate data helps reduce avoidable validation errors.
Step 2: Connect Xero to Invoici
After authorising Xero as an intermediary through MyInvois, follow Xero's current registration instructions to connect your Xero organisation to Invoici.
Complete the registration and connection steps, and check that the connection status is active before attempting to submit e-Invoices.
Step 3: Create and Submit the e-Invoice
Create the transaction in Xero as part of your usual accounting workflow.
For supported transactions, Invoici can transmit the relevant invoice data to IRBM for validation. The precise submission process depends on the document type and the configured Xero workflow.
Xero supports tracking different document types, including individual e-Invoices, credit notes, debit notes, refund notes and self-billed e-Invoices.
Step 4: Monitor the Validation Status
Invoici provides an e-Invoices dashboard where you can check the status of transactions.
Common statuses include:
Validated: The document passed IRBM's validation.
Queued for Validation: The document has been submitted and is still being processed.
Failed: The submission did not pass validation.
Invalid Document: The document failed an internal validation check.
Not Submitted: The document has not yet been submitted.
If an invoice fails, review the error details, correct the underlying information and follow the appropriate resubmission process.
Step 5: Manage Consolidated e-Invoices Where Applicable
For eligible transactions, Xero's Invoici workflow supports consolidated e-Invoices. These group multiple eligible transactions into a consolidated submission, subject to IRBM's rules and the taxpayer's applicable implementation requirements.
The Invoici dashboard provides visibility into upcoming monthly consolidations and their due dates. Businesses should confirm which transactions qualify for consolidation and which must be submitted individually under the latest IRBM guidelines.
Step 6: Reconcile and Maintain Accounting Records
After validation, continue managing the transaction through your normal accounting process.
This may include recording payments, reconciling bank transactions, monitoring outstanding receivables and maintaining supporting records.
The objective is to connect e-Invoicing with the wider financial workflow rather than treating it as a separate administrative task.
What This Means for Businesses
Xero can help connect invoicing with accounting records and provide visibility into e-Invoice submission and validation status. However, businesses still need to configure their systems correctly, maintain accurate data and follow the IRBM requirements that apply to their transactions.
For more information, refer to Xero's official guide to e-Invoicing with Invoici and Xero's guide to consolidated e-Invoices.
What Businesses Should Do Before Choosing an e-Invoicing Model
Before deciding between the MyInvois Portal and API, businesses should assess three areas:
1. People
Ask:
Who creates invoices?
Who checks invoice information?
Who monitors validation?
Who handles rejected invoices?
Who manages accounting records?
2. Process
Review:
Current invoicing workflow
Customer onboarding
Invoice approval
Credit/debit notes
Cancellation procedures
Payment reconciliation
Record keeping
3. Technology
Evaluate:
Current accounting software
ERP system
POS system
Invoice volume
Integration capabilities
Data quality
API requirements
BDO similarly recommends assessing People, Process and Technology when preparing for e-Invoicing.
How Podwerx Can Support Your e-Invoicing Journey
For many businesses, e-Invoicing is not simply about switching on an invoicing feature.
It can require changes to the way accounting systems, invoicing processes and financial data work together.
This aligns naturally with Podwerx's Malaysia positioning as a Cloud Apps Advisor, with services focused on cloud accounting solutions, implementation, training and ongoing support.
Podwerx can support businesses with areas such as:
Cloud Accounting Implementation
Set up and configure cloud accounting systems according to the company's existing financial workflow.
Data Migration
Help businesses move relevant information from spreadsheets or legacy systems into their accounting environment.
Workflow Configuration
Review how invoices, payments, reconciliation and reporting flow through the accounting system.
Training
Provide customised, hands-on training so finance teams understand how to use the system and follow the new workflow.
Ongoing Support
Provide accounting-related support after implementation and help businesses work through system or workflow issues.
Xero Support
Podwerx's Malaysia site specifically offers Xero-related solutions and describes implementation, training and support services for cloud accounting systems.
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