What is a Disbursement and Reimbursement process?

Refer to Section 5 of the e-Invoice Specific Guideline published by IRBM on 28/10/2023, outlines the “Disbursement and Reimbursement” process involving three parties: the Supplier, Middleman, and Buyer. In the first place, If the Supplier invoice a Buyer, and a Middleman pays expenses on behalf of the Buyer to the Supplier, the Middleman should not include the payment in their e-Invoice or issue an additional e-Invoice for the same expenses already invoiced by the Supplier. Instead, the Middleman must provide proof of payment to the Buyer to recover the payment made to the Supplier. However, if the Supplier invoices the Middleman for expenses incurred on behalf of the Buyer, the Middleman must issue an e-Invoice to the Buyer for the said expense. That is, no duplication of e-Invoice on the same expense.