How do consolidated e-Invoices and credit notes work in the books?
A consolidated e-Invoice lets a business summarise many small sales, such as retail cash sales, into one e-Invoice for the period, generally monthly. Returns and errors are handled by credit or debit notes. Record each in the ledger with its reference so sales totals tie to what was submitted.
LHDN's guidelines allow a taxpayer to issue a consolidated e-Invoice for transactions where the buyer does not request an individual e-Invoice, in specific categories such as retail sales, rather than one for every receipt. The consolidated e-Invoice is submitted within seven calendar days after the end of the month (Specific Guideline v4.9). Until 31 December 2027, taxpayers in the up-to-RM5 million group can consolidate more widely under the interim relaxation period.
Bookkeeping steps
- Keep the daily sales summary or point-of-sale report
- At month end, reconcile it to the consolidated e-Invoice submitted
- Post the sales to the ledger, with the e-Invoice reference
- If a customer later asks for an individual e-Invoice, handle it according to the guideline, and avoid double counting
Credit and debit notes
- A credit note reduces a sale after a return, discount or error
- A debit note increases it
- Each is a separate e-document, posted to the ledger and linked to the original invoice number
Cancellation: a validated e-Invoice can be cancelled within 72 hours of validation (General Guideline v4.8); after that, use a credit note.
Reconciling submissions to ledgers every month is the simplest control.
Legal basis
- LHDN e-Invoice Guideline
Sources
Applies to 2026 (confirm latest LHDN guideline) · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- What is the difference between bookkeeping and accounting in Malaysia?Bookkeeping is the day-to-day recording of transactions: sales, purchases, payments and receipts. Accounting uses those records to prepare financial statements, interpret results and support decisions and tax filing. Good bookkeeping comes first, because accounts can only be as reliable as the entries beneath them.
- Is a Sdn Bhd legally required to keep accounting records?Yes. Section 245 of the Companies Act 2016 requires every company, including its directors and managers, to keep accounting and other records that explain its transactions and financial position. This applies even to a new, dormant or loss-making company.
- How long must a Malaysian company keep its accounting records?A company must keep accounting records for seven years after the transactions they record were completed. For tax, documents must be kept for seven years from the end of the relevant year of assessment. Use whichever period ends later.
- What documents should a Malaysian company keep for bookkeeping?Keep every document that proves a transaction: sales and purchase invoices, receipts, bank statements, contracts, payroll records, and records of assets and loans. If a transaction is not supported by a document, it is hard to defend in an audit or tax review.
- Can I keep accounting records and receipts in digital form only?Electronic records are accepted if they are complete, readable, accessible and can be converted into writing. Documents issued electronically, such as e-Invoices, can stay electronic. If you scan a paper original, the Income Tax Act says to keep the paper original as well.