![]() ERP).Īutomation: With the help of an EDI solution, both conversion and communication can be automated. The received electronic invoice can then be accepted by the respective company and transferred to its own system (e.g. databases or ERP) into a predefined format.Ĭommunication: The converted invoice can now be sent to the recipient via a specified communication channel. Now the sender must ensure that the data for the invoice is converted from the sender's own system (e.g. In many cases, the business partner specifies a standard that must be adhered to. In this example, let's take a company that wants to issue an electronic invoice to another company.Ĭonversion: Before the recipient receives the invoice, the format and communication channel are often defined in advance. The lifecycle of an electronic invoice starts with its sender. Despite the simplification and improvement of classic invoicing processes, many new terms and hurdles are added in the electronic variant. With the help of EDI software, different invoice formats can be exchanged automatically between business partners. The term EDI covers the entire (internal and external) electronic data exchange of a company. Issuing and receiving electronic invoices (e-invoicing) is an important part of the overarching term "EDI" (=Electronic Data Interchange). Typical EDI communication protocols are: AS2, OFTP2, email, FTP, http or SOAP. With an EDI connection, suitable solutions can be created for such requirements, which improve such exchange processes. There are several options for transmitting and receiving electronic invoices (e.g. In addition, systems used as an interface for such communication channels can optimize and automate individual processes. The communication channels of electronic invoices offer a direct exchange between sender and receiver. With the help of EDI software, invoice formats can be converted, sent, and Some formats are called "hybrids", because they consist of both structured and unstructured data (e.g. The information in the latter alternative is thus sent in an unstructured data format. Others communicate the content in the form of an image file (e.g.jpg or. Information of an invoice in the form of structured data. EDIFACT or XML) transmit all the necessary Depending on the type of document, DMS/OCR or EDI solutions are used to ensure that such invoicing processes can be carried out smoothly.įrom a technical point of view, there are several formats (invoice formats) for electronic invoices. In any case, the transmitted information can be processed automatically on the recipient side. PDF by e-mail), but also the transport of more complex formats by elaborate means (e.g. It is understood to mean both: the transmission of pictorial representations by simple means of transport (e.g. However, the term e-invoicing is not rigidly defined. The e-invoice is also sent and received in this digital format. So how do digital invoice processes work? What challenges, issues, advantages and disadvantages do you face when implementing an e-invoicing solution? Find out everything you need to know about e-invoicing in our article.Īn electronic invoice is an electronic document, unlike a classic invoice, which is usually issued in paper form. In addition, electronic solutions are significantly less prone to errors compared to humans. By introducing electronic invoicing processes, many important resources such as material, time and budget can be saved. Electronic invoicing processes are not only a necessary standard, but are also drivenįorward by law (European Directive 2014/55/EU). Many companies are dealing with e-invoicing issues. From a legal perspective, electronic invoices are treated in exactly the same way as "classic" invoices. With the help of e-invoicing (electronic invoices), an important part in the value chain can be optimized and even automated. The digitalization and modernization of traditional business processes is one of the most important topics of our time.
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