The e-invoicing concept has been revolving around many industries for many years. For some reasons, it’s only in the past five years that we’ve seen significant movement from the traditional invoice to the e-invoicing one.
Some businesses want to expand their operations and participate in the global market. Therefore, e-invoicing is the only choice to conduct the business procurement process. Meanwhile, some organizations are adopting Peppol e-invoice because they are mandated to do so.
Whether you have adopted it into your business system or not, it doesn’t take much time to realize the importance of e-invoicing in international transactions. There is no room for error in the E-invoice because everything is handled by sophisticated technology with high accuracy and versatility.
Using e-invoicing in your business process is already a great move. But using the set of standards is a different matter. It is important to use the best framework in order to conduct safe, secure, and speedy e-procurement.
So far, Peppol is the best framework that allows their clients to exchange business documents with zero risks of errors and disputes.
What Exactly is E-invoicing?
E-invoicing, or electronic invoicing, is a form of procurement that converts the authentic invoices into an electronic form that allows the exchange of the documents in an agreed electronic format between the buyer and seller through the particular ERP systems.
How Does an E-invoice Work?
When it comes to the set of specifications in e-procuring, including e-invoices, one can have such good results with a safe and secure network. In this case, sending and receiving electronic invoices through the Peppol network is the best way to proceed with the procurement.
It is straightforward to understand how the Peppol e-invoice works.
First things first, you will need to connect your business or organization to the PEPPOL network through an official access point provider. In this case, you are going to need Tickstar’s help as your formal peppol service provider to connect your business with the network.
After registering your company with your access point provider, you will receive a Peppol ID. This ID is the way to address your organization within the Peppol network. You will also use this ID to conduct the e-procurement online.
Once you are all set and connected to the Peppol network, all you need to do is to send your documents. Don’t forget to notify your clients or suppliers that you are now ready for e-procurement via the Peppol network.
It is easy to comprehend the real process of sending and receiving electronic invoices. Here is what is going to happen.
The sender will enter the invoicing data, which includes receiver, payment method, amount of the funds, and many more. The data will go to the access point. Then, it is the access point’s turn to generate the e-invoice automatically. Then the access point will automatically send it to the receiver of the recipient in the Peppol network. Keep in mind that the recipient receiver is through their own access point. So, it is possible that you have different access points with your partner. But the most important thing to know is that you and your partner are already in the same PEPPOL network.
The receiver’s ERP system or solution will automatically process the details.
It is simple to comprehend the way it works. But there is complexity behind the automatic e-invoicing technology through the Peppol network.
How Do I Create an Electronic Invoice?
Electronic invoicing is about handling the payments. Individuals will be required to manage invoices in an electronic format from start to finish or you can use automatic invoice recognition that will recognize and extract information from invoices and make that process more efficient.
PEPPOL invoicing can help the organization get full visibility of the accounts payable.
If you think that you need to scrape off the current ERP software to embrace PEPPOL invoicing in your business, you won’t need to worry about that since it won’t happen. The good thing about the PEPPOL framework is that you can adopt it into your existing ERP software.
The top-rated ERP software already includes an e-invoicing feature in its apps. Therefore, you could conduct the invoice management right away. You will need to pick up some good ERP software to start with.
If you are in charge of an organization, you know what it takes to get your team members to work together. Every member of the department in your group needs to work and collaborate together to achieve the main objective on the same page.
Accounts payable aligns with the invoicing process. The best accounting software will take all the data that your access point operations generate and feed it into your accounting software. It allows you to figure out the direction of your business funds and determine what financial resources your business has. It is going to be challenging to manage your ERP software if it is not integrated with the right accounting tool.
Creating an invoice from your ERP software is as easy as one single click of a button. But before it lands on your recipient, you better make sure that you already have the best access point provider to help you use the Peppol network for business document exchanges.
What Is the Difference Between an Invoice and an E-invoice?
An invoice and an e-invoice are two different things, although they have the same function. Invoices are typically a manual and paper-based process that has been practiced by society for centuries. Meanwhile, the e-invoice is an automatic and electronic invoice.
In a nutshell, e-invoicing is the electronic sending and receiving of particular invoices in the right data format that is understood by both software and the solutions of the involved parties.
Keep in mind that the e-invoice is not the PDF invoice. The most appropriate way to call a PDF invoice is a digital invoice. E-invoicing is done from software to software. Unlike PDF invoices, the process is automatic and much faster. Moreover, it will be more exponential than traditional invoicing.
The e-invoice works differently compared to the PDF invoice and conventional invoice. The seller will send the invoice from their software. And the buyer will receive the invoice automatically through their software as well.
Reach out to Tickstar now to explore the possibilities for you.
