A large number of businesses are now moving towards electronic invoicing instead of using paper-based documentation. Electronic invoicing, also known as e-Invoicing, is commonly used by businesses when sending invoices to debtors, or receiving from vendors.
E-Invoicing is a type of billing that’s presented to buyers electronically, facilitating faster collaboration and processing. It involves the exchange of information between vendors and customers. The invoice must be issued and transmitted following a structured data format so that it can be processed automatically or electronically.
Usually, structured electronic invoices contain data that is machine-readable. This makes it easy for buyers to quickly import into their AP system and process the invoice, without having to manually enter the particulars. Directive 2014/55/EU gives more detail about the structured data format to be followed.
There are two key functions to know about e-invoices:
The following cannot be considered as e-invoices:
E-Invoicing helps companies save a considerable amount of time and money when processing invoices. By going completely paperless, companies can reduce the burden on their AP departments.
More importantly, with the help of AP automation software, organizations can virtually automate every step of the procurement process, allowing businesses to go completely touchless.
This helps companies save a great deal of resources, and allow AP teams to focus more on impactful activities instead of manually reviewing invoices and feeding data into the system.
More importantly, e-Invoicing also reduces the risk of human error when copying data and entering it into the system. Companies can also configure workflows to address specific requirements, especially when managing complex requirements, such as non-PO invoices.