The legislation obliged public administration entities to be able to receive and process e-Invoices sent by their suppliers in the public procurement processes. Then there’s the European Directive of 2014, which paved the way for and encouraged the use of e-Invoicing - setting standardisation rules for digital invoices which member states had to comply with by April 2019. There are several EU regulations regarding e-invoicing - the first one dating back to the European Directive of 2010 which stated that the digitalisation of invoices is no longer unavoidable, simply by using an electronic software platform for audit trail. How does e-Invoicing help with compliance? Plus, as e-Invoices are issued through EDI, they can be transmitted using any method agreed to by the sender and the recipient - such as through an email, web browser, portal, or mobile. It then transfers the file to both the supplier’s and the customer’s e-Invoicing software for a secure and accurate system of record.īy converting the e-Invoice, both the supplier and the customer can adhere to their respective standards for compliance and auditing without manually changing anything. For example, an invoice sent as a PDF uses unstructured data and therefore would not count as an e-Invoice.Į-Invoices on the other hand use structured data - such as markers and tags to separate elements including tax codes, supplier address, or total cost - and are issued using Electronic Data Interchange (EDI) or XML formats.īecause these documents use structured data, e-Invoice software and processing tools are able to automatically validate, manage, store and prepare them for payment - providing an almost completely touchless process.Īs soon as the supplier’s e-Invoicing software receives a receipt of goods ordered, the system automatically scans and transforms the e-Invoice into the preferred file type - such as XML or CSV. However, not all invoices are made the same, and just because an invoice was sent or received electronically doesn’t always mean it is an e-Invoice. Like the name suggests, an e-Invoice is simply an electronic version of a physical, paper-based invoice, but it can also be used to describe the way in which invoices between a supplier and a buyer are exchanged in a digital platform. To help accounting teams, we’ve looked at what exactly an e-Invoice is, the benefits of e-Invoicing, and why businesses should look to adopt e-invoicing software to transform their accounts payable processes. Despite technology being at the forefront of everyone's fingertips these days, it seems like some businesses still haven’t got the (digital) memo.Ĩ0 percent of EU companies are still sending paper invoices, according to Eurostat, which means there’s still a vast majority of businesses out there that are wasting precious hours scanning, sending, processing, and storing financial documents.Īnd while accounts payable automation and integration of electronic invoices, or e-Invoices, is not necessarily a brand new concept to those businesses, there is still some confusion surrounding these concepts.
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