Introduction
In Malaysia’s LHDN e-Invoicing system, a self-billed credit note is issued by the buyer to adjust or reverse part of a self-billed e-Invoice — for example, when there’s a refund, overpayment, or correction involving a foreign supplier or individual without a TIN (Tax Identification Number).
In Xero, self-billed credit notes are managed under Bills to Pay. Once the credit note is approved and tagged with a MyInvois Classification Code, Xero automatically sends it to LHDN’s MyInvois portal through Invoici for validation.
This guide explains how to validate self-billed credit notes in Xero Malaysia, confirm the validation status, and manually trigger resubmission if necessary.
5 Steps You Need to Know About Validating a Self-Billed Credit Note in Xero Malaysia
Step 1: Create the Self-Billed Credit Note in Bills to Pay
Go to Business → Bills to Pay.
Click New Credit Note.
Enter the relevant supplier, reference, date, and description as usual.
In the Tracking Category column, choose the correct MyInvois Classification Code that matches the original self-billed e-Invoice.
Approve the credit note once all details are verified.
💡 Tip: Adding a MyInvois Classification Code in an approved credit note automatically triggers submission to LHDN MyInvois via Invoici — no manual “Send” action is required.
Step 2: Automatic Submission to LHDN via Invoici
For self-billed credit notes, Xero does not include a manual “Send to LHDN” button.
Instead, the validation submission happens automatically when:
The credit note includes a MyInvois Classification Code in the tracking category, and
The credit note is set to Approved status.
Once approved, Xero automatically transmits the credit note through Invoici to LHDN’s MyInvois system for validation.
Step 3: Check Validation Status in Xero
To check whether your self-billed credit note has been validated:
Open the credit note in Xero.
Scroll down to the History and Notes section.
Review the validation log:
✅ Validated / Approved → The credit note has been accepted by LHDN.
⏳ Pending → Sent but not yet processed (refresh after a few minutes).
❌ Rejected → Validation failed — check the message for error details.
Once validated, the approved e-Invoice with QR code is automatically attached to the same credit note record in Xero.
You can view or download it directly from that record — no manual upload is needed.
Step 4: Manually Trigger Resubmission (If Needed)
If validation does not occur automatically after approval:
Open the credit note.
Scroll to History and Notes.
Click Add Note.
Type “Resubmit” and click Save.
Xero will detect this keyword and resend the credit note to LHDN via Invoici for validation.
💡 Tip: Only use the “Resubmit” command after confirming that validation hasn’t triggered automatically. Avoid multiple submissions.
Step 5: Fix Common Validation Issues
Issue | Cause | Solution |
No validation record appears | Credit note missing classification code or still in draft. | Add the code and reapprove. |
Rejected due to invalid or missing TIN | Supplier has no valid Malaysian TIN. | Use the correct General TIN (EI00000000010–40). |
Wrong classification code | Tracking category not mapped correctly. | Update the code and reapprove. |
Duplicate reference number | Same reference used for another document. | Change to a unique credit note reference and reapprove. |
Validation not triggered | Invoici connection inactive or timeout. | Reconnect via Settings → Connected Apps → Invoici. |
Best Practices for Validating Self-Billed Credit Notes
Always include a MyInvois Classification Code before approving.
Ensure supplier TIN or General TIN is valid and consistent with the related self-billed invoice.
Use the same classification code as the original invoice for consistency.
Avoid editing validated credit notes — issue a new one if changes are needed.
Check History and Notes regularly for validation logs.
Frequently Asked Questions (FAQs) about How to Validate a Self-Billed Credit Note in Xero Malaysia
Q1: How does validation work for self-billed credit notes in Xero?
Validation is automatic once the credit note is approved and contains a MyInvois Classification Code in the tracking category.
Q2: Where can I find the validated credit note?
The validated version (with QR code and LHDN approval) is attached directly to the same credit note record in Xero.
Q3: Can I resend a credit note if validation didn’t trigger?
Yes. Add a note with “Resubmit” in History and Notes, and Xero will resend it to LHDN via Invoici.
Q4: What happens if my self-billed credit note is rejected?
Check the error in History and Notes, correct the issue (e.g., missing TIN or code), reapprove, and trigger validation again.
Q5: Should the classification code match the original self-billed invoice?
Yes. The credit note should use the same MyInvois Classification Code as the related self-billed invoice to ensure validation consistency.