Introduction
When issuing e-Invoices in Malaysia using Xero, businesses can choose between two formats: Individual e-Invoices and Consolidated e-Invoices. Both formats are valid under LHDN’s MyInvois framework, but they serve different purposes.
This guide explains the differences, when to use each option, and how Xero helps you stay compliant with Malaysia’s e-Invoicing requirements.
What Is an Individual E-Invoice?
An individual e-Invoice is created for a single transaction with a specific buyer.
Each sale or service to a customer is documented separately.
The invoice includes unique details such as the customer’s TIN/BRN, items or services purchased, and applicable classification codes.
Example:
A consulting firm bills Client A for one engagement → issues one individual e-Invoice.
A restaurant bills each dine-in customer separately → each receipt can be issued as an individual e-Invoice.
Best Use Cases:
B2B transactions (with customers providing TIN/BRN).
Large-value sales requiring detailed documentation.
Transactions that must be traceable one by one.
What Is a Consolidated E-Invoice?
A consolidated e-Invoice combines multiple transactions into a single invoice for efficiency.
It represents a summary of many smaller sales.
Often used when customers do not provide TIN/BRN (e.g. walk-in retail buyers).
Example:
A supermarket records hundreds of sales daily but issues one consolidated e-Invoice at the end of the month for all walk-in customers.
A business issuing self-billed invoices to many small suppliers without TINs can consolidate into one e-Invoice.
Best Use Cases:
B2C retail sales to the general public.
High-volume, low-value transactions.
Self-billed invoices for multiple small suppliers.
Key Differences: Consolidated vs Individual E-Invoice
Aspect | Individual E-Invoice | Consolidated E-Invoice |
Purpose | Records a single transaction | Summarises multiple transactions |
Buyer Information | Requires specific TIN/BRN | Uses General TIN (EI00000000010) for general public |
Detail Level | Itemized for one buyer | Aggregated totals for many buyers |
Frequency | Issued per transaction | Issued periodically (e.g. daily, monthly) |
Common Users | B2B companies, professional services | Retailers, F&B, businesses with walk-in customers |
How Xero Handles Consolidated vs Individual E-Invoices
Individual Invoices in Xero
Created the same way as regular invoices.
Each invoice is mapped to the customer’s details (including TIN/BRN).
Automatically validated and sent to MyInvois.
Consolidated Invoices in Xero
Businesses can group multiple sales under one invoice.
Xero allows you to apply the General Public TIN (EI00000000010) for transactions where individual TINs are unavailable.
At period-end, issue one consolidated invoice covering all sales.
Common Mistakes to Avoid
Using consolidated e-Invoices for customers who already have TIN/BRN.
Forgetting to apply the correct General TIN.
Mixing B2B and B2C transactions in the same invoice.
Frequently Asked Questions (FAQs)
Q: Can I issue both individual and consolidated e-Invoices in the same business?
A: Yes. For example, a company may issue individual invoices to corporate clients and a monthly consolidated invoice for retail walk-in sales.
Q: Which TIN do I use for consolidated invoices?
A: Use EI00000000010 (General Public’s TIN) unless otherwise specified.
Q: Do I need approval from LHDN before issuing consolidated invoices?
A: No, but you must follow MyInvois guidelines and ensure correct categorization.
Conclusion
Both Individual and Consolidated e-Invoices are supported in Malaysia’s e-Invoicing framework and in Xero. Choosing the right type depends on your business model, transaction volume, and customer base. By applying the correct format and codes, you’ll ensure compliance, reduce errors, and streamline reporting.