Tracking of service items under inventory asset & E – Invoicing with SAC code & Impact of accurate P & L Statement.

TuvisTech is a Zoho Premium Partner providing end-to-end services including Zoho implementation, customization, business consultation, and AI-driven solutions. TuvisTech helps organizations optimize their business processes and achieve compliance through tailored Zoho ecosystem deployments.

22By7 is a technology and consulting organization that specializes in helping businesses streamline operations through digital transformation and enterprise software solutions. With a strong focus on process optimization, customization, and implementation, 22By7 works closely with its clients to deliver scalable, efficient, and business-aligned solutions. The team brings deep domain expertise, a structured approach, and hands-on support to ensure successful project delivery and long-term value.

22By7 expected items and services created in Zoho Books to integrate seamlessly into their e-invoicing workflow, inventory management, and financial reporting, similar to their earlier experience with Tally.

However, several issues emerged after implementation:

• Profit & Loss and Balance Sheet reports did not reflect business reality due to improper segregation of goods vs services
• Incorrect HSN/SAC classification caused mismatches in tax and reporting modules
• Frequent failures while pushing invoices to the IRP (Invoice Registration Portal)

Due to these gaps, 22By7 could not reliably generate e-invoices, had limited confidence in inventory reports, and faced compliance risks—since incorrect classification can block e-invoice submission under GST regulations.

Project Duration:
Start date: – 07-10-202 End date: – 16-10-2025 total 10 Days

Problem Statement & Key Challenges

• Service items were incorrectly mapped with HSN codes instead of SAC codes, causing IRP push failures
• Goods were sometimes treated as services, leading to:
  • Broken inventory tracking
  • Incorrect stock movement and valuation
  • Inconsistent costing
• Zoho Books (India edition) enforces strict validation and rejects e-invoices if SAC/HSN codes are mismatched, which caused repeated invoice failures
• Financial reports lacked accurate segregation, impacting compliance and management visibility

Solution Approach
(Statement of Work & Deliverables)

TuvisTech conducted a detailed evaluation of the existing Zoho Books setup, including:

• Auditing item master records
• Reviewing HSN/SAC code assignments
• Checking inventory configuration
• Analyzing IRP e-invoice failure logs

Based on this assessment, the following solution was designed and implemented:

• Correct Classification
  
  • Goods items mapped to valid HSN codes
  • Service items mapped to valid SAC codes, as mandated by Zoho Books (India edition)

• Customization & Validation
  
  • Customized item creation forms and workflows to enforce correct code selection
  • Automated validation to prevent incorrect classification at the time of item creation
  • Conversion of legacy items to correct goods/service classification

• E-Invoicing Configuration
  
  • Proper mapping of mandatory fields required for IRP submission
  • Validation of code types before invoice push
  • Automation to reduce manual errors

• Inventory Fixes
  
  • Corrected item types (goods vs services)
  • Enabled stock tracking for goods
  • Fixed costing methods and ensured correct linkage with P&L and Balance Sheet

• User Training
  
  • Trained the 22By7 team on:
    • Correct item creation (HSN vs SAC)
    • Invoice generation
    • Monitoring and troubleshooting e-invoice push statuses

Solution Overview

A custom-coded solution was developed and integrated with Zoho Books and Zoho Inventory to enforce correct classification, ensure compliance, and stabilize inventory and financial reporting.

Outcomes
(Implementation & Results)

The implementation followed a phased rollout over approximately three weeks:

• Phase 1: Audit of existing item master and IRP failure logs
• Phase 2: Zoho Books configuration, bulk item corrections, and customized workflows
• Phase 3: Testing with sample invoices, successful IRP push validation, inventory flow testing, and financial report verification
• Phase 4: Training and knowledge transfer

Results Achieved:

• 100% success rate in pushing new invoices (goods and services) to IRP
• Fully functional inventory tracking with accurate stock movement and costing
• Profit & Loss and Balance Sheet reports correctly reflect goods vs services and tax classification
• Elimination of compliance risk due to HSN/SAC mismatches
• A robust, GST-compliant classification framework aligned with Indian e-invoicing standards

22By7 now operates with a stable, compliant, and scalable financial and inventory workflow within Zoho Books.

Business Impact

• Improved GST and e-invoicing compliance
• Accurate financial visibility for management decision-making
• Reduced operational errors and rework
• Strong foundation for future scale without compliance risk
• Increased confidence in Zoho Books as a system of record