If you’re in the wholesale business, you’re likely managing high-volume sales, tight margins, and long credit terms. All while juggling inventory, logistics, and supplier relationships. Whether you supply goods to retailers, restaurants, or corporate buyers, managing cash flow is already a challenge.
Now with the Inland Revenue Board of Malaysia (IRBM) mandatory e-invoicing rollout, wholesale and distribution businesses must prepare for stricter invoicing requirements. This article breaks down what e-invoicing means for your business, the typical scenarios involved, and how to handle the costs and operational shifts without straining your cash flow.
Learn more about e-invoicing by the Inland Revenue Board of Malaysia (IRBM), including the Comprehensive Guide to E-invoicing in Malaysia
What is E-Invoicing for Wholesale and Distribution?
E-invoicing refers to the digital issuance, validation, and submission of invoices to IRBM through the MyInvois platform. From 1 July 2025, all businesses, including wholesale distributors, must comply with this system. Businesses earning more than RM100 million annually have already begun the earlier phases.
Whether you’re distributing beverages, consumer goods, industrial materials, or food products, every sale, purchase, and expense must be properly e-invoiced moving forward.
Who this applies to:
- Wholesale suppliers (FMCG, food, household items)
- Product distributors and logistics handlers
- Import-export trading companies
- Bulk packaging or fulfilment service providers
Even if your clients are mostly retailers or restaurants, your business is still obligated to issue e-invoices for each transaction.
Wholesale Transactions That Require E-Invoices
The IRBM requires both income and expense transactions to be supported by e-invoices. For wholesalers and distributors, that typically looks like this:
| Income Transactions | Expense Transactions |
| B2B product sales (to retailers or resellers) | Purchase of goods from manufacturers |
| Delivery or handling charges | Transport, freight, and warehousing fees |
| Packaging and repacking services | Equipment leasing or maintenance |
| Credit sales with payment terms | Staff salaries, utilities, and insurance |
| Pre-orders or deposits | Marketing or software subscriptions |
These invoices are required regardless of whether the payment is upfront, staggered, or credit-based.
For full details on income and expense scenarios, check out IRBM’s General e-Invoicing FAQ.
How E-Invoicing Applies to Common Wholesale Scenarios
Large Bulk Orders
Each confirmed bulk order requires an e-invoice at full payment or as part of a credit sale. This applies whether the order is fulfilled in one delivery or several batches.
Pre-Orders and Deposit-Based Sales
If clients place pre-orders or pay a deposit before full delivery, separate e-invoices must be issued for the deposit and balance payments.
Credit Term Sales
Distributors offering 30 to 90-day terms must still issue the e-invoice at the point of sale, not when payment is received.
Delivery Fees and Handling Charges
Any service charges added to your sales invoice, such as delivery, packing, or storage, must be included in the e-invoice total and itemised clearly.
Returned Goods and Adjustments
If a buyer returns part of their order, you must issue a credit note e-invoice to reflect the refund or adjustment.
Operational Challenges for Wholesale Businesses
1. Volume of Transactions
High-volume order processing, especially for multi-location clients or daily B2B orders, can make manual e-invoice submission via the MyInvois portal tedious and time-consuming.
2. Credit Terms vs Payment Delays
Long payment cycles (30–90 days) mean that cash is tied up in inventory or receivables. E-invoicing won’t speed up payment collections, but will make those delays more visible in your reporting.
3. System Compatibility
Legacy inventory or order management systems may not support integration with IRBM’s MyInvois API, requiring system upgrades or third-party platforms.
4. Admin and Staff Burden
Sales and finance teams may need training and additional SOPs to manage progressive billing, returns, and credit notes accurately.
How Wholesalers Can Prepare for E-Invoicing
Here are practical steps to prepare your business:
- Audit your current systems (POS, inventory, accounting) to check for MyInvois compatibility
- Engage a software provider if needed to handle API submissions and invoice validation
- Set internal procedures for handling partial deliveries, returns, and deposit-based sales
- Assign team roles for invoice issuance, tracking, and corrections
- Start testing MyInvois Portal now if you have low transaction volume or operate manually
Financing Solutions to Support Wholesale Businesses During the Transition
While e-invoicing may create more accurate financial records, it doesn’t solve immediate business realities, like waiting for customer payments, covering freight costs, or buying stock upfront.
Funding Societies offers financing options tailored for wholesale and distribution businesses:
Invoice Financing
Turn your issued e-invoices into immediate cash. Access up to RM1 million in working capital to fund new inventory, supplier payments, or logistics even before your clients pay.
Micro Financing
Collateral-free funding up to RM200,000. Ideal for digital system upgrades, onboarding new staff, or covering temporary cash flow gaps.
Islamic Financing
Shariah-compliant financing options are available for businesses that are looking for ethical alternatives.
Government Support: Budget 2025 Incentives
The Malaysian government has introduced support initiatives to help SMEs adopt e-invoicing and digital tools:
- RM3.2 billion in microloans through TEKUN and BSN
- RM50 million in matching grants for software and digital upgrades
- RM3.8 billion via BNM to support automation, digitalisation, and ESG adoption
- RM20 billion in SJPP loan guarantees, with RM5 billion for Bumiputera SMEs
- Up to RM50,000/year tax deductions (YA 2024–2027) for ESG consulting, including e-invoicing advisory
You can combine these grants and deductions with private financing to ease the cost burden of transitioning to e-invoicing.
Final Thoughts
Wholesalers and distributors are the heart of many B2B supply chains. But with high transaction volume, long payment terms, and tight cash cycles, the shift to e-invoicing can be a real operational challenge.
With proper planning, financial support, and the right tools in place, your business can stay compliant while strengthening your cash flow and preparing for future growth.
For official transaction guidance and updated compliance rules, refer to IRBM’s e-Invoicing General FAQ.
