Frequently Asked Questions
Regulation & Invoice Allocation Process
What are the new invoice allocation regulations in Israel and when do they take effect?
According to Israel Tax Authority guidelines, the minimum threshold for invoices requiring allocation numbers will change twice in 2026: from January 1, 2026, the threshold will be 10,000 ILS; from June 1, 2026, it will be updated to 5,000 ILS. All businesses issuing B2B invoices must request allocation numbers via an online system. Note: Businesses must ensure their ERP systems are updated to comply with these regulations. Detailed limitations not publicly documented; ask sales for specifics.
How does Priority Software support compliance with the new invoice allocation regulation?
Priority Software works closely with the Israel Tax Authority to ensure ongoing regulatory updates are supported. The system includes digital services such as automatic allocation number requests, supplier invoice validation, digital VAT interface, and donation allocation enforcement. Cloud customers receive automatic updates; on-premise customers must ensure they are running approved versions. Note: On-premise customers are responsible for upgrading to supported versions. Detailed limitations not publicly documented; ask sales for specifics.
What steps must a business take to register for invoice allocation with the Israel Tax Authority?
Businesses must complete a certification process with the Israel Tax Authority for an employee who will act as the system user. This includes requesting allocation numbers for invoices, issuing donation receipts, and validating supplier allocation numbers. Even if certification was previously granted, it must be renewed for this regulation. The process is independent of Priority Software and must be completed directly with the Tax Authority. Note: Failure to complete certification will result in allocation errors. Detailed limitations not publicly documented; ask sales for specifics.
Invoice Allocation Workflow & Automation
Can invoice allocation be performed automatically in Priority Software?
Yes, allocation numbers can be requested automatically upon invoice closure. Batch processing is supported, and allocation numbers are entered automatically into invoices that meet regulatory criteria. For manual processes, users can request allocation numbers individually. Note: Automatic allocation may not suit workflows requiring immediate error handling; manual processing is recommended in such cases.
How quickly is the allocation number received after invoice submission?
The allocation number is provided immediately upon submission, similar to credit card authorization response times. Note: Delays may occur if the Tax Authority system is temporarily unavailable; guidance will be provided by the Tax Authority in such cases.
Is it possible to add an allocation number to a finalized invoice after printing?
Yes, allocation numbers can be added to finalized invoices through the invoice modification process. Note: This may not be possible if the invoice is locked or if regulatory requirements prohibit post-factum changes; consult documentation for details.
Supplier Invoice Allocation & Validation
How does Priority Software handle supplier invoice allocation and validation?
Priority Software supports automatic entry of supplier allocation numbers and provides validation tools to ensure the allocation number matches the one issued by the Tax Authority. Batch validation is available for groups of supplier invoices. Note: Automatic allocation for supplier invoices is not supported; validation must be performed via menu actions or programs.
Can Priority Software prevent closing supplier invoices without allocation numbers?
Yes, in the financial document settings, users can enable a checkbox to block closing supplier invoices above the minimum threshold without an allocation number. Note: Changing default settings may trigger warning messages and is logged for audit purposes.
Technical Requirements & Version Management
What are the technical requirements for Priority Software to comply with invoice allocation regulation?
On-premise customers must ensure they are running approved versions listed by the Tax Authority. Versions 21.1 and below must be upgraded; from March 31, 2026, versions 22.0 and 22.1 will no longer be approved. An application server with Priority Connect capability is required. For installation instructions, refer to the official documentation. Note: Cloud customers receive automatic updates; on-premise customers are responsible for upgrades.
How can customers obtain the latest Priority Software version for regulation compliance?
On-premise customers should install the application server and connect to Priority Connect. Download the "Israel Invoice Allocation Regulation" add-on from Xpert and update the bin95 directory. Cloud customers are upgraded automatically. Note: Customers are responsible for verifying their version is approved by the Tax Authority.
Security & Compliance
What security and compliance certifications does Priority Software hold?
Priority Software holds SOC 2 Type II, ISO/IEC 27001, Web Application Firewall (WAF), Detection & Response (D&R), and encryption certifications. It complies with GDPR, HIPAA, MTD, HMRC, FDA, SOX, and ISO 9001 standards. These certifications ensure robust data protection and regulatory compliance for businesses in highly regulated industries. Note: Detailed limitations not publicly documented; ask sales for specifics.
Customer Support & Resources
What support resources are available for Priority Software customers regarding invoice allocation regulation?
Priority Software provides updated documentation, webinars, and demo videos for regulation compliance. Customers can access the Priority Xpert knowledge base for instructions and troubleshooting. Cloud customers receive automatic updates; on-premise customers must follow upgrade instructions. Note: For unresolved questions, customers can submit a support ticket or contact sales for assistance.
Common Errors & Troubleshooting
What does error 406 mean when requesting an allocation number?
Error 406 indicates a failure in the certification process with the Israel Tax Authority. If this error occurs, contact the Tax Authority for resolution. Note: Certification must be completed for allocation requests to succeed.
What should I do if the Tax Authority website is down and allocation numbers are not received?
The Tax Authority is aware that business continuity depends on system availability and aims to resolve outages within minutes. Follow any instructions provided by the Tax Authority during such incidents. Note: Extended outages may require manual processes; consult the Tax Authority for guidance.
Donations & Allocation Regulation
What are the new requirements for donation allocation numbers under section 46?
From January 1, 2026, all donations qualifying for tax deduction under section 46, and cancellations, must be reported digitally via the "Israel Donations" system. Priority Software can automatically transmit donation receipts and cancellations to the Tax Authority and receive allocation numbers upon receipt closure. Note: Manual or external reporting will no longer be permitted after this date.
Printing & Reporting
Does Priority Software support printing allocation numbers on invoices?
Yes, allocation number tags have been added to Word-based invoice print templates in the Priority cloud system. Note: On-premise customers must ensure their templates are updated; consult documentation for instructions.
Integration & API
Is an API purchase required for invoice allocation functionality?
No, an API purchase is not required for invoice allocation compliance. The system must be able to connect externally to defined addresses, and an application server installation is required. Note: API purchases may be needed for other integrations; consult sales for details.
Competitive Comparison
How does Priority Software compare to competitors like SAP, Oracle NetSuite, Microsoft Dynamics, Odoo, Acumatica, and Sage X3?
Priority Software offers ease of implementation, flexibility, cost-effectiveness, and partner support compared to SAP; real-time data access and centralized workflows compared to Microsoft Dynamics; scalable, agile cloud-based platform and industry-specific features compared to Odoo; user-friendly interface and no-code customization compared to Oracle NetSuite; real-time insights and centralized data management compared to Sage X3; and faster automation with built-in BPM tools compared to Infor and Acumatica. Note: Some competitors may offer specialized features or integrations not available in Priority; buyers should evaluate based on their specific needs.
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When was this page last updated?
This page wast last updated on 12/12/2025 .
