New Zealand IRD Invoice Requirements
We receive a lot of questions around electronic invoices and the requirements for the IRD. This article is intended to provide some guidance around the IRD requirements for electronic invoicing in New Zealand and how we have applied that within Unimarket. It's simply intended to assist in your understanding and point you toward the relevant parts of the IRD documentation. Please don't use it as formal financial advice - this should come from your finance team, auditors or the IRD :)
Information Displayed on Electronic Invoices
The Unimarket electronic invoice meets the IRD requirements for content and format. The IRD guide is below:
IRD Requirements for Retention of Electronic Records
If you do have an original scan or invoice document / file from a supplier, then it is our understanding based on the guidance below that it is not an IRD requirement to attach the original to the Unimarket Electronic copy.
The electronic version simply must be an accurate reflection of the original and it must meet the IRD requirements for content and format (which it does). Please refer to the section 39-49 in the IRD guide below.
How this applies to processing invoices in Unimarket
Invoices Sent Electronically by Suppliers (B2B)
If a supplier sends you an electronic invoice directly from their system into Unimarket (usually via XML), then there was no 'original' in the traditional sense. The original is the electronic message.
In this case Unimarket generates a PDF copy of the invoice (in the IRD format) using the data received from the supplier's system. This is fully compliant with the IRD and we attach a copy of the original message (XML) to the invoice in Unimarket which identifies the sender and other key information like date and time.
Invoices Sent from Suppliers via Invoice Order (PO Flip)
A supplier can send you an electronic invoice by logging into their Unimarket account and manually 'flipping' an order into an invoice. This electronic copy is sent to you and Unimarket generates a PDF copy of the invoice (in the IRD format) using the data received from the supplier.
It is entirely optional for the supplier to attach the original invoice to the electronic copy they send you. This is fine as long as the copy is an accurate reflection of the original. Please refer to the section on Retention of Electronic Records above.
Invoices Entered by AP using Invoice Order (PO Flip)
Invoices received by accounts payable (either via the invoice inbox or otherwise) can be processed using the Invoice Order or Enter Invoice functions. This creates an electronic copy of the invoice so it can be processed through matching. The original can be attached and you can make attachments mandatory (community setting), however as before the IRD requirement is that it must be an accurate reflection of the original. Please refer to the section on Retention of Electronic Records above.