What is electronic invoicing all about?
Digital invoicing is the electronic exchange of invoices between a supplier and a buyer. Many organisations already transmit invoices in a PDF format via e-mail. This will no longer suffice as digital invoicing. E-invoicing implies the document is transmitted and received in a structured format which allows it to be automatically and electronically processed.
Why is this obligatory?
What is in it for you?
The advantage of digital invoicing is twofold; speed and accuracy. Creating and transmitting invoices takes time and is prone to errors, even when done via e-mail. The document has to be converted to PDF, an e-mail has to be written and the document attached. With digital invoicing this is all done automatically and the invoice is booked immediately after being sent and received in both the supplier and customer system.
How does it work?
Invoices have to be handled through a number of certified borderless secure trade systems, such as PEPPOL. PEPPOL – Pan European Public Procurement – is available in 15 countries including Belgium and is used by many governmental organisations. Others exist too, such as e-Factura for Romania and KSeF for Poland. Companies will need to understand the regulations for each country they want to do business with and develop a strategy when working in different countries, using different tools.
What do you need to comply?
Most ERP software including SAP is capable of creating documents in XML format. If you are already using ERP software, a connection needs to be set up between your system and the solutions used within the specific country. For customers already using SAP, the SAP Document and Reporting Compliance (DRC) tool provides an end-to-end solution. Once configured, documents are mapped to the required format, authorised, authenticated and sent to the respective platform. As soon as it is acknowledged by the receiver, a registration number is created and given to the sender, while the recipient will be allowed and process the e-invoice.
What is next?
Expertum is here to help
Expertum has already assisted many organisations in implementing e-invoicing, some of them operate in several European countries in which different regulations apply. Our experienced finance and integration consultants can assist you in selecting the necessary software components and will guide you through the setup and configuration, from start to finish. Feel free to contact us if you need more information. Or attend one of our free Expert Sessions on e-invoicing. For more information and registration, click here.
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Chris is based in The Netherlands.
