In today's digital landscape, electronic invoicing, or e-invoicing, plays an increasingly important role in optimizing business transactions between suppliers and buyers. Using integrated, digital and structured systems simplifies processes such as invoice sending, receiving and archiving.
In this blog post, we explore how electronic invoicing, or e-invoicing, is transforming the management of financial transactions. We explain what e-invoices are, their technical features, and the benefits they offer by streamlining business processes and reducing administrative costs.
What is an e-invoice?
Electronic invoicing, or e-invoicing, involves the distribution of invoices between suppliers and buyers in an integrated digital and structured format. This makes transactions both more secure and easier to manage. This form of invoicing reduces transaction costs and increases efficiency by automating the sending, receiving and archiving of invoices. The term e-invoice can also be referred to as EDI invoice (named after the Electronic Data Interchange technology traditionally used in EDI systems).
The e-invoice carries much more information than traditional paper or PDF invoices. Paper and PDF invoices are limited in terms of information to be readable by a human and contain the information that is most important. In the e-invoice, you can fit much more data regarding, for example, VAT (per invoice line), information on materials, intrastat codes (code describing the type of goods). Structuring reduces the risks associated with manual processing and improves the efficiency of accounts payable management. As the information is already digitally processed, the invoices do not need to be interpreted, reducing the risk of errors.
The difference between e-invoices and PDF invoices
- E-invoice: Sent in a structured format (e.g. XML) directly to the recipient's business system. It requires no manual interpretation and is directly integrated into the recipient's workflow.
- PDF invoice: Sent as an attachment via email. We interpret (using OCR technology) both paper and PDF invoices. This is done automatically and means that you do not need to enter any information manually. We currently use an AI interpreter that is very secure and we have also added additional functionality to Opto to further improve quality. But as I said, there is always a risk of error, and that is one of the advantages of e-invoicing (less risk of error).
Peppol: The future of business-to-business support
Peppol (Pan-European Public Procurement Online) is a network that facilitates electronic commerce and procurement in Europe. It consists of three main components:
- Network: A system that allows business partners to send and receive business documents electronically.
- Format standard: Peppol BIS Billing 3.0, but it is also possible to use other formats such as Svefaktura and Finvoice.
- EU law: sets out the obligations of Member States and how PEPPOL will be managed and administered.
Peppol enables companies to send e-invoices to each other via a single access point. This standardized network eliminates the need to have multiple systems and standards to send and receive invoices.
Peppol as the format of the future
The EU has already established requirements for the use of Peppol to send invoices to public authorities. Several EU countries are planning to legislate on business-to-business e-invoicing requirements in the coming years. Implementing Peppol now means being prepared for future legal requirements and benefiting now from the efficiency gains and cost savings that e-invoicing brings.
Why invest in Peppol?
Using Peppol for e-invoicing means:
- Improved efficiency and accuracy of invoice processing.
- Higher level of automation and reduced costs for invoice processing and archiving.
- Ability to easily comply with current and future EU legal requirements.
- Increased sustainability by reducing paper use and environmental impact.
- More data on product and supplier, making your sustainability reporting easier
In summary, Peppol offers a robust, future-proof electronic invoicing solution that benefits both businesses and the environment. By investing in Peppol now, businesses can ensure that they are well prepared for the demands of the future, while enjoying significant business benefits today.
Contact us at Conrab to find out how our technology can help you streamline your processes and strengthen your environmental responsibility.