INVOICE MANAGEMENT SYSTEM

A PROJECT REPORT

Submitted by

Divyanshu Thapar

In partial fulfillment for the award of the degree of

BACHELOR OF ENGINEERING

IN

INFORMATION TECHNOLOGY

Chandigarh University

NOVEMBER 2022
 BONAFIDE CERTIFICATE

Certified that this project report invoice management system is the bona fide
work of Divyanshu Thapar who carried out the project work under my/our
supervision.
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my project

supervisor Mr. Prabhneet Singh for their able guidance and support in
completing my project.

I would also like to extend my gratitude to the co-supervisor

Mr. Kulvinder Singh for providing me with all the support and facility
that was required to complete my project with highest possible
accuracy.

DATE: Divyanshu Thapar

TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
 ABSTRACT

The purpose of Invoice Management System is to automatize the prevailing manual system
by the assistance of computerized instrumentality and full-fledged laptop software system
fulfilling the wants so their valuable data/information may be kept for an extended amount
with simple accessing and manipulation of a similar. the specified software system and
hardware area unit simply accessible and straightforward to figure with. Invoice Management
System, as delineated on top of, will cause error free, secure, reliable and quick management
system. It will assist the user to consider their alternative activities rather to consider the
record keeping. Thus, it'll facilitate organization in higher utilization of resources. The
organization will maintain computerized records while not redundant entries. meaning that
one needn't be distracted by data that is not relevant, whereas having the ability to succeed in
the knowledge. The aim is to automatize its existing manual system by the assistance of
computerized instrumentality and full-fledged laptop software system, fulfilling their
necessities, so their valuable data/information may be kept for an extended amount with
simple accessing and manipulation of a similar. Basically, the project describes the way to
manage permanently performance and higher services for the purchasers.
GRAPHICAL ABSTRACT
ABBREVIATIONS
 CHAPTER -1

INTRODUCTION

1.1 Need Identification

 There were many problems with the noncurrent manual system. the method of storing,
preserving, and retrieving the knowledge was extremely long and effortful as a result
of the whole system had to be maintained manually. The records were ne'er unbroken
in an exceedingly structured manner. It won’t to be quite troublesome to attach every
specific dealings with a particular context. it absolutely was necessary to travel
through the assorted records for info as a result of invoice generation ne'er existed for
papers. whenever records are entered or retrieved, time is wasted in Associate in
Nursing unwanted manner. Another issue was that it absolutely was extremely
difficult to identify mistakes created once getting into the records. it absolutely was
quite troublesome to amend the records once they were entered.
 The reason for this is often as a result of managing the business needs tons of
knowledge to be maintained and unbroken in mind. because of this, we've enclosed
options. though this system is basically machine-controlled (computerized), it's still
rather arduous as a result of an equivalent info should be entered thrice.
1.2 Identification of Problem

The problem with the old manual system was quite obvious as the records were meant to be
kept by writing them down on a piece of paper then preserving it for future reference. The
writing part was too laborious and took a lot of time to write all the matter needed and
moreover, if we come to preserving the record it was really difficult to keep them in good
position as the life of paper depends upon the environment and it could be easily stolen, torn
or misplaced due to which it can cost the companies’ reputation.

1.3 Identification of Tasks

The problem occurring in the manual systems could be overcome by the use of computer-
based invoice management system. Basically, an invoice management system is something
that generates the invoices for the user and help them to keep track of their bills and
payments.
1.4 Timeline

Chart Title

fourth task

third task

second task

first task

30-Dec-1899 1-Jan-1900 3-Jan-1900 5-Jan-1900 7-Jan-1900 9-Jan-1900 11-Jan-1900

Start date End date Duration

1.5 Organization of the Report

The report would consist of 5 chapters in total with various headings and sub headings.

 Coming to the first chapter, it would primarily consist of the basic things like the need
identification in which the need of the change is given, the identification of the
problem in which the problem due to which the project is taking place and then comes
the identification of the tasks in which the brief explanation the new project
formation tasks will be discovered which would be explained step by step, then there
comes the time line in which the time taken to complete a phase would be given and
with this the chapter 1 will be summed up.

 The second chapter will start with the timeline of the problem will be disclosed in
which the time when the problem was first discovered would be given and how it
 came to limelight. Then there will be a section which you can discover the brief
solutions which were proposed in the early times of the problem generation. Then
comes the bibliometric analysis which is the main part of the chapter in which the
main features of the project would be disclosed with its effectiveness and its
drawbacks. Then after the analysis comes the summary in which the link findings of
the literature with the project at hand will be disclosed. After that the hardships faced
throughout the project will be disclosed and moreover the solutions and what-not-to
be done will also be told. Then comes the goals and objectives which would consist of
statements setting the milestones of the project work and with this the chapter two
will be summed up.

 The third chapter will consist of the designing of the project. Starting with the
evaluation and selection of the specifications/features of the project. It would be
followed by the design constraints in which things like manufacturing cost, labor, and
many more things will be covered. Then the finalization of the features with respect to
the constraints will be disclosed. After that the design flow would be disclosed in
which alternative methods or the alternative ideas would be shared which were in
consideration before the final product. Then the design selection would be disclosed
which took place before choosing the final design with comparison and reasons of
selection. After this the third chapter would come tan an end.

 The chapter four is solely based on result analysis and validation. With the start of this
chapter comes the implementation of the solution in which implementation of the
project would be shared. It will consist of all the processes taking place during the
project generation and with this the chapter four will come to an end.

 The chapter five will be the last chapter stating the conclusion and the work which
would be done in the future for the betterment of the project.
 The report end would consist of references, appendix and the user manual.
 Chapter-2

BACKGROUND STUDY

2.1 Timeline of change in the invoice system

 The invoice management system had a very long history dating back to thousands of
years when the invoices were carved on clay tablets. If we talked about the recent
times like 16th century the invoices were written on the papers and after 3 centuries
(19th century) the invoices were printed on the paper by machines or some companies
might use type writers to type the invoices.
 The manual invoice system was very hectic process as it required a lot of precision
and moreover the work labor was also a factor which made this process quite lengthy.
It costs a lot as there were people who were working all the time to generate invoices
and manage them for their customers.
 Some of the times the pages containing the invoices might be torn or destroyed by the
outer force due to which the person might face a lot of problems and moreover, there
were chances of theft or revealing of the peoples personal information.

2.2 Proposed solutions relating to the problem

After all this struggle of manual invoicing methods the solutions were proposed in which the
new concept of e-invoicing came up.

When the first EDI (electronic data interchange) system was created in the 1960s, the era of
e-Invoicing (electronic invoicing) had officially begun. Companies and their business
partners can exchange documents like invoices and purchase orders thanks to EDI systems,
which connect them. The technologies reduced a lot of the paperwork and time needed to put
in the data, but invoices still needed to be printed and sent by mail. The IBM 3800 Laser
Printer, which was made commercially available in the 1970s and utilized for high-volume
document printing, made it simple to make invoices. The revolution in the invoicing system
is in the great pace in the recent times as all the companies bigger or smaller have their own
electronic invoice management systems in order to reduce the cost of maintaining and
management the invoices manually. Moreover, the labor cost to maintain and generate the
invoices has decreased as not more than a person is required in a small business to keep a
track of invoices.

2.3 Bibliometric analysis

2.3.1 Key features of the project

 Based on products and components

 Easy creation and modification of issues, in-depth querying of issue lists, and more
thorough reporting and charting
 Simple Status & Resolutions; User Accounts to manage access and uphold security
 Priorities & Severities on multiple levels.
 Goals and benchmarks for instructing the programmers
 For additional information, see Attachments & Additional Comments.
 Strong database back-end
 Numerous levels of reports with a wide range of filter criteria are provided
 It offers more storage space.
 Workplace accuracy.
 Quick and simple information retrieval.
 Reports with good design.
 Lighten the workload of those involved in the current manual system.
 Individual access to any information.
  The pace of the work increases.
 Simple information updates

2.3.2 Advantages of computerized invoicing system

 Since the advent of electronic invoicing, all invoices have been fully interoperable.
This gets rid of transcription errors and other things.
 It is no longer necessary to issue invoices in two different formats.
 By providing an exhaustive audit trail of B2B invoices, this technique aids in the
decrease of tax evasion.
 Real-time tracking of invoices is available to suppliers.
 It is possible to match input tax credits (ITC) and output taxes at the system level.
This enables input tax credits to become available more quickly.
 This substantially decreases manual intervention. Consequently, it will lower the
quantity of errors brought on by data entry errors.
 The buyer receives a digital copy of the signed e-Invoice (via email). As a result, the
buyer can instantly accept or reject the e-invoice and compare it to his purchase order.
 Real-time reporting eliminates any opportunity for invoice manipulation. This further
limits the potential for producing fraudulent invoices.

2.3.3 Drawbacks/disadvantages of e-invoice management system

 As of right now, only B2B bills are covered by the new invoicing system. B2C
invoices have not yet been included in the scope of e-Invoicing. When B2C bills are
involved, numerous frauds are reported. This is due to the absence of an ITC
component.
  The archive choice is not supported by IRP. The IRP is required by law to keep
invoices on file for no longer than 24 hours.
 Malicious software and viruses may penetrate the system which could cause the
leakage of the vital invoice-based information.

2.4 Review summary

System analysis is the process of assembling and interpreting data, identifying issues, and
learning about the Invoice Management System in order to suggest system changes. The
system users and system developers must communicate extensively during this problem-
solving process. Any system development process should start with a system analysis or
research. The system is meticulously examined and assessed. The system analyst assumes the
role of an interrogator and delves deeply into how the current system functions. The input to
the system is identified, and the system is seen as a whole. The various procedures can be
linked to the outputs from the organizations. Understanding the issue, identifying the
pertinent and important variables, evaluating and synthesizing the many elements, and
selecting the best or, at the very least, most acceptable course of actions are all part of system
analysis. The process must be thoroughly studied using a variety of methodologies, including
questionnaires and interviews. To reach a conclusion, the information gathered by these
sources must be carefully examined. Understanding how the system works is the conclusion.
Now, the current system is carefully examined, and issue areas are found. Proposals are made
in place of the solutions. The proposal is then analytically compared to the current system,
and the best one is chosen. The user is given the opportunity to approve or reject the
suggestion. On user request, the proposal is assessed and appropriate revisions are made. As
soon as the user is content with the suggestion, this loop breaks. The process of acquiring and
analyzing data in order to use it for future system studies is known as preliminary study.
Initial research is a problem-solving activity that necessitates close coordination between
system users and developers. It conducts a number of feasibility studies. These studies
provide a preliminary estimate of the system activities, which can be used to determine the
tactics to be employed.
2.4.1 Existing system of Invoice Management System

• In the prevailing system the exams square measure done solely manually however in
planned system we tend to have to computerize the exams mistreatment this
application
• Lack of security of knowledge
• More man power
• Time intense
• Consumes giant volume of pare work
• Needs manual calculations
• No direct role for the upper officers

2.4.2 Proposed system of Invoice Management System

• The aim of projected system is to develop a system of improved facilities. The

proposed system will overcome all the restrictions of the prevailing system. The system
provides correct security and reduces the manual work.

• Security of knowledge.

• Ensure knowledge accuracy.

• Proper management of the upper officers.

• Minimize manual knowledge entry

• Minimum time required for the assorted process

• Greater potency.

• Better service

• User friendliness and interactive

• Minimum time needed

2.5 Problem Definition
2.6 Goals/objectives of the project

The management of consumer, consumer quotes, invoice, payment, and merchandise details
square measure the first goal of the project on invoice management system. It controls all
consumer, bill, product, and consumer info. Since the project was entirely developed on the
executive finish, solely the administrator is assured access. The project's goal is to form AN
application code which will reduce the number of manual work needed to manage shoppers,
consumer quotes, bills, and invoices. It keeps track of each facet of the invoice, payment, and
merchandise.

2.6.1 Functionalities provided by Invoice Management System are as follows:

 Offers search options based on a variety of criteria. such as Customer, Bill, Payment,
and Product
 The Invoice Management System also manages the online billing information for
payment, product, and client information.
 It manages the information of Client Quotes and keeps track of all the Client Quotes,
Bill, Payment, and other information. • It displays the Client Quotes information and
description.
 To improve client management effectiveness, use Client Quotes
 It deals with keeping track of payment-related data and transactions.
 Control client information
 Records editing, adding, and updating are improved, leading to proper client data
resource management.
 Control payment information
 Integration of all Product records.
 Chapter-3

DESIGN PROCESS

3.1 Evaluation and selection of features

3.1.1 Problems faced in manual system

The options of this project had been chosen to beat the subsequent complications of
the invoice system:
• Many businesses round the world still use the traditional methodology of
process invoices victimization paper, despite the growing disruption caused by
digital-first businesses. Bills withdraw and forth between departments and endure a
prolonged approval method, that causes payment delays.
Suppliers become annoyed, their income is injured, and your relationship with them is
compact. in addition, they place stress on your accounts collectable staff and increase
their work. you'll even be needed to pay fines. whereas there area unit actions you'll
desire scale back processes, like enhancing division cooperation and predicting future
payments, human error can continuously happen as long as invoices area unit handled
manually.

• The Association of Certified Fraud Examiners estimates that fraud prices

businesses five-hitter of their annual revenue, with a median loss of $125,000.
Departments accountable for paying the bills area unit notably susceptible to fraud.
 Internal larceny Internal company fraud happens additional ofttimes than you would
possibly imagine. money theft, fallacious payments, and finances manipulation area
unit samples of internal fraud cases. External fraud: Associate in Nursing example of
this sort of fraud performed by outside actors is phishing. progressively frequent
cyberattacks area unit a result to a digital-first economy in recent years. truly,
payment scams targeted seventy- four of corporations in 2020. to get cash,
cybercriminals ofttimes create as executives and vendors.

• Three-way matching could be a common follow that involves checking the

acquisition order, product receipt note, and therefore the supplier’s invoice before
payment is approved. The goal of many-sided matching is to notice discrepancies
between these 3 documents.
Accounts collectable groups usually need to do that manually, thus human error will
surface within the kind of incorrect or missing info. Even worse is once the AP
department pays Associate in Nursing invoice despite the products not having arrived.
breakdown mistakes like that's tedious and long.

• Paper invoices will simply go misplaced in an exceedingly ocean of work or

on the thanks to the workplace. in addition, unpaid invoices can't be paid till they're
found. The AP personnel can expertise heaps of stress whereas looking for them,
which is able to take time. in addition, as we'll see in an exceedingly moment, it hurts
your reference to your provider and interferes with their income.
The similar problem may arise with purchase orders; if they're absent or ne'er issued,
it's going to be difficult to demonstrate the agreed-upon total once Associate in
Nursing invoice refers to a unique total. The supply of purchase orders is avoided
since it takes heaps of your time.

3.1.2 Features provided as solution of the problems

 Based on products and components

  Easy creation and modification of issues, in-depth querying of issue lists, and more
thorough reporting and charting
 Simple Status & Resolutions; User Accounts to manage access and uphold security
 Priorities & Severities on multiple levels.
 Goals and benchmarks for instructing the programmers
 For additional information, see Attachments & Additional Comments.
 Strong database back-end
 Numerous levels of reports with a wide range of filter criteria are provided
 It offers more storage space.
 Workplace accuracy.
 Quick and simple information retrieval.

3.2 Design constraints

3.2.1 System Design of Invoice Management System

In this section, a system of logic is made that fulfils the given necessities. style section of
software system development deals with reworking the purchasers 's necessities into a
logically operating system. Normally, style is performed within the following within the
following 2 steps:

1. Primary style Phase:

In this section, the system is meant at block level. The blocks square measure created on the
premise of research exhausted the matter identification section. totally different blocks square
measure created for various functions stress is placed on minimizing the data flow between
blocks. Thus, all activities that need a lot of interaction square measure unbroken in one
block.

2. Secondary style Phase:

In the secondary section the elaborate style of each block is performed.

The general tasks concerned within the style method square measure the following:

1. style varied blocks for overall system processes.

2. style smaller, compact and possible modules in every block.

3. style varied information structures.

4. Specify details of programs to realize desired practicality.

5. style the shape of inputs, and outputs of the system.

6. Perform documentation of the look.

7. System reviews.

3.2.2 User Interface Design

User Interface style thinks about with the dialogue between a user and also the

computer. it's involved with everything from beginning the system or work into the

system to the eventually presentation of desired inputs and outputs. the general flow of

screens and messages is named a dialogue.

The following steps square measure numerous tips for program Design:

1. The system user must always remember of what to try and do next.

2. The screen ought to be formatted in order that numerous kinds of data, directions

and messages invariably seem within the same general show space.

3. Message, directions or data ought to be displayed long enough to permit

the system user to scan them.

4. Use show attributes slenderly.

5. Default values for fields and answers to be entered by the user ought to be

specified.
6. A user mustn't be allowed to proceed while not correcting a mistake.

7. The system user ought to never get a software system message or fatal error.

3.2.3 Cost estimation

Software price contains a little proportion of overall computer-based system price.

There square measure variety of things, that square measure thought-about, that may have an
effect on the final word price of the software package like - human, technical, Hardware and
software package availableness etc.

The main purpose that was thought-about throughout the price estimation of project was its
filler.

In spite of complete software package filler, operate purpose and approximate lines of code
were additionally wont to "size" every component of the software package and their cost
accounting.

The price estimation done by ME for Project additionally depend on the baseline metrics
collected from past comes and these were utilized in conjunction with estimation variables to
develop cost and energy projections.

We have essentially calculable this project in the main on 2 bases -

1) Effort Estimation - This refers to the entire man-hours needed for the event of the project.
It even includes the time needed for doing documentation and user manual.

2) Hardware needed Estimation - This includes the price of the PCs and also the hardware
cost needed for development of this project.

3.2.4 Preliminary Product Description:

The first step within the system development life cycle is that the preliminary
investigation to see the feasibleness of the system. the aim of the preliminary
investigation is to judge project requests. it's not a style study nor will it embody the
gathering of details to explain the business system all told respect. Rather, it's the
aggregation of knowledge that helps committee members to judge the deserves of the
project request ANd create an enlightened judgment concerning the feasibleness of
the projected project.
Analysts functioning on the preliminary investigation ought to accomplish the
subsequent objectives:
a
Clarify and perceive the project request
Determine the scale of the project.
• Assess prices and edges of different approaches.
• confirm the technical and operational feasibleness of different approaches.
• Report the findings to management, with recommendations outlining the acceptance
or rejection of the proposal.
• profit to Organization
The organization can clearly be ready to gain edges like savings in
operating value, reduction in work, higher utilization of human resources and
additional respectable image increasing goodwill.
• The Initial value
The initial value of fitting the system can embody the value of hardware computer
code
(OS, add-on computer code, utilities) & labor (setup & maintenance). constant needs
to bear by the organization.
• Running value
Besides, the initial value the long-run value can embody the running value for the
system together with the AMC, stationary charges, value for human resources, value
for update/renewal of assorted connected computer code.
• Need for coaching
The users alongside the administrator have to be compelled to be trained at the time of
implementation of the system for sleek running of the system. The shopper can offer
the coaching website.
We talked to the management folks that were managing the money problems
of the middle, the workers UN agency were keeping the records in countless registers
and also the coverage manager concerning their existing system, their needs and their
expectations from the new projected system. Then, we have a tendency to do the
system study of the whole system supported their needs and also the further options
they needed to include during this system. Reliable, correct and secure knowledge
was additionally thought-about to be a posh task while not this projected system. as a
result of there was no such record for keeping track of all the activities, that was done
by the Invoice Management System on the everyday. The new system projected so
developed by American state can ease the task of the organization in thought. it'll be
useful in generating the specified reports by the workers, which is able to facilitate
them to trace their progress and services.
Thus, it'll ease the task of Management to a good extent as all the foremost
activities to be performed, area unit processed through this method.

3.2.5 Project category

Relational Database Management System (RDBMS) : this can be AN RDBMS

primarily based project that is presently exploitation MySQL for all the group action
statements. MySQL is AN opensource RDBMS System.

Brief Introduction concerning RDBMS:

A computer database management system (RDBMS) may be a direction system
(DBMS) that's supported the relative model as fancied by E. F. Codd, of IBM's San
Jose laboratory. several standard databases presently in use area unit supported the
computer database model.
RDBMS became a predominant alternative for the storage of knowledge in new
databases used for money records, producing and supplying data, personnel
information, and far a lot of since the Nineteen Eighties. relative databases have
typically replaced gift gradable databases and network databases as a result of they're
easier
to understand and use. However, relative databases are challenged by object
databases, that were introduced in a shot to deal with the object-relational electric
resistance couple in computer database, and XML databases.
3.3 Analysis and feature finalization subject to constraints

The feature finalization could be done taking some things in consideration because if the
purpose for developing the new idea is not served the work done on the project will go to
vain. First of all, we have to look for the constraints in order to finalize the features of the
project.

The limitations of the features selection would consist of the cost, software, the hardware it is
used on(computer/laptop) and the purpose of the use. If we come to the cost the person who
wants to use this type of software may not be able to pay for the complex structure which
would cost more or the else the person might not be able to pay for the hardware it could be
used on. So keeping all these things in the mind this project is very simple to use and
moreover it does not need any type of highly expensive machines to work on and moreover,
it provides best in class features and is easy to use.

Talking about the features of this project subjected to constraints are chosen very wisely. The
list of the features is given as follows:
 Based on products and components
 Easy creation and modification of issues, in-depth querying of issue lists, and more
thorough reporting and charting
 Simple Status & Resolutions; User Accounts to manage access and uphold security
 Priorities & Severities on multiple levels.
 Goals and benchmarks for instructing the programmers
 For additional information, see Attachments & Additional Comments.
 Strong database back-end
 Numerous levels of reports with a wide range of filter criteria are provided
 It offers more storage space.
 Workplace accuracy.
 Quick and simple information retrieval.
 Reports with good design.
 Lighten the workload of those involved in the current manual system.
  Individual access to any information.
 The pace of the work increases.
 Simple information updates

3.4 Design flow of the project