Electronic invoices (also called e-invoicing ) are electronic billing forms. The e-invoicing method is used by trading partners, such as their customers and suppliers, to present and monitor transactional documents between each other and ensure their terms of trade agreement are met. These documents include invoices, purchase orders, debit notes, credit notes, payment terms and instructions, and remittance slips.
E-invoicing involves a number of different technologies and entry options and is used as an umbrella term to describe any method that is electronically delivered to the customer for payment.
Video Electronic invoicing
Destination
The primary responsibility of the trade payables department is to ensure that all outstanding invoices from its suppliers are approved, processed and paid. Process invoices include recording important data from invoices and putting them into the company's financial system or bookkeeping. Once the feed is complete, the invoice must go through the company's business process to be paid.
E-invoices can be defined as structured invoice data published in Electronic data interchange (EDI) or XML format, possibly using Internet-based web forms. These documents can be exchanged in several ways including EDI, XML, or CSV files. They can be uploaded using email, virtual printer, web app, or FTP site. Companies can use imaging software to extract data from PDF or paper invoices and put it into their invoice system. This simplifies the archiving process while positively impacting sustainability efforts. Some companies have their own in-house e-invoice process; however, many companies hire third-party companies to implement and support the process of e-invoicing and archiving data on their own servers.
Various formats and delivery channels make it difficult to use e-invoices. To simplify this, the.INV file extension can be used, which will make the.INV file easily opened in the accounting software. The.INV file can be in standard-compliant XML format.
Maps Electronic invoicing
History
Since the mid-1960s, companies began building data relationships with trading partners to transfer documents, such as invoices and purchase orders. Inspired by the idea of ​​a paperless office and more reliable data transfer, they developed the first EDI system. The ownership system is quite efficient, but rigid. Each set of trading partners seems to have their own electronic data exchange methods. There is no standard that any trading partner can choose to adopt. Recognizing this, the Accredited Standards Committee X12, a standard body under the umbrella of ANSI, moves to standardize the EDI process. The results are known today as the ANSI X12 EDI standard. This remained the primary way to exchange transactional data between trading partners until the 1990s, when companies offering stronger user interface web applications began to emerge. This new web-based application has functions that serve both suppliers and customers. They allow individual online invoice delivery as well as EDI file uploads, including CSV, PDF, and XML formats. This service allows suppliers to present invoices to their customers for matching and approval in web applications. Suppliers can also view the history of all the invoices they send to their customers without having direct access to the customer system. This is because all transactional information is stored in the data center of a third-party company that provides a web invoicing application. This transactional information can be set by the customer to control how much information the vendor is allowed to see.
As companies advance into the digital age, more and more are turning to electronic invoice services to automate their debt departments. The 2012 Global E-Invoicing study illustrates the growth rate of electronic invoices. According to research, 73% of respondents use electronic invoices to some degree in 2012, a 14% increase from 2011. Supplier resistance to e-invoicing has declined from 46% in 2011 to 26% in 2012. According to a report conducted by GXS on 2013, Europe adopted a government law that encourages businesses to adopt electronic invoicing practices. The US Treasury estimates that implementing e-invoicing across federal governments will reduce costs by up to 50% and save $ 450 million annually.
Standard e-Invoice
- EDIFACT
- Finvoice (Finnish)
- EHF (Elektronisk handelsformat) (Norway)
- FacturaE (Spanish)
- FatturaPA (Italy)
- CFDI (Mexico)
- ISDOC (Czech Republic)
- OIOUBL (Denmark)
- PEPPOL BIS (Austria, France, Belgium)
- Svefaktura (Sweden)
- UBL-OHNL (Netherlands)
Usage
To enable e-invoicing, there must be an existing method for viewing transactions, usually ERP or accounting systems. Routing and rules must be specified in project specifications. This usually involves members of debt, IT, and sometimes procurement. After routing is set to the system, validation rules can be set to reduce the number of invoice exclusions. Further validation can be set to automatically reject errors, invoice of three-way match, purchase order, and other documents. Validation may also inform the supplier of acceptance or rejection. After the e-invoicing specification is completed and testing is completed, the business supplier is connected electronically, and the e-invoicing system is ready.
See also
- Electronic receipt
References
Source of the article : Wikipedia
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