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Autosave the Purpose Code for Future Invoices With Skydo

Autosave the Purpose Code for Future Invoices With Skydo
rohit
Rohit29 December 2023

According to a report by PwC, India has emerged as the largest global market for cross-border payments. While it benefits the economy and the business landscape, it also increases the risks of money laundering, tax evasion, and other fraudulent activities. 

Therefore, the Reserve Bank of India (RBI) has mandated the use of purpose codes for each foreign inward remittance. Purpose codes or payment codes are unique to each category of services Indian exporters offer to foreign clients. These codes indicate the nature of service provided to the foreign client by the Indian exporter or the purpose of foreign inward remittance. 

In the case of incorrect or missing purpose codes, banks may

  • Either reject the payment and send it back to the source or
  • Keep it on hold until the bank verifies the purpose of the transaction

In either case, your payments get delayed.

Skydo, a modern cross-border payment platform, aims to resolve this issue. It adds the purpose code to the invoices as per your previous input. Thus, it facilitates quicker and seamless payments for exporters and freelancers by mitigating the risk of payment cancellations or delays. This blog discusses Skydo’s autosave purpose code feature in-depth and how it supports the development of a seamless financial ecosystem.

Skydo: Simplifying Purpose Code Allocation

According to Salesforce, business automation helps organizations save 3.6 hours per week, which amounts to 23 extra days yearly. This figure is extremely significant because it enables businesses to boost efficiency and productivity. 

Payments and invoicing is one of the major areas where Indian businesses require automation. They spend long hours navigating through the complex cross-border payment landscape. However, Skydo serves as a one-stop solution for all concerns related to cross-border transactions. It automates tedious processes like invoice generation, payment tracking, sending reminders, and even adding purpose codes to invoices.

Therefore, instead of spending time and resources on manual tasks, using Skydo’s comprehensive payment automation features can streamline cross-border transactions. 

Steps to Autosave Purpose Code in your Invoice with Skydo

If you cater to several foreign clients and send out invoices regularly, manually entering purpose codes in hundreds of invoices over a long period can be challenging. In fact, there is tremendous scope for potential human errors. 

But with Skydo, you can eliminate the manual effort and mitigate risk because it saves the purpose code in its database and prefills it corresponding to the services offered.

Let’s understand the step-by-step process of creating an invoice on Skydo and how the purpose code feature works:

Steps to Autosave Purpose Code in your invoice with Skydo
  • You can find the complete list of purpose codes for cross-border transactions here on the RBI's website or any other authorized bank's website.
  • For all new services you offer to the client, you must manually enter the purpose code for the first time while creating the invoice on the Skydo payment platform.
  • Once you add the purpose code for a specific transaction or service, it gets saved in the Skydo payment platform database. When you add the same service next time while creating an invoice, you have to click on the section to add the purpose code, select the appropriate purpose code from the drop-down, and the code is pre-filled to the invoice.
  • The next and final step is finalizing the e-invoice and sending it to the customer through Skydo for seamless cross-border transactions.
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