e-Invoicing
Electronic invoicing is the automated process of issuing, sending, receiving and processing of invoice and billing data by electronic means generally based upon previously agreed data formats between business partners.
E-Invoicing may be carried out by the use of recognised global or industry standards or simple proprietary formats. The invoice data file must include at a minimum, all tax and legal elements, along with a unique sender ID. There are generally agreed methods of communication between partners that may be as simple as a one to one transfer of a data file sent via FTP or a fully integrated end to end process that may include the use of third party networks that track the files from point of entry to receipt and sophisticated partner infrastructure that includes sender and receiver gateways to accept or reject files and pass them on to translation software prior to automated ERP integration.
The direct value of electronic invoicing concerns the efficiency or productivity of the process measured in terms of the resources (personnel, space, paper, postal services etc.) used to carry out the process manually. It also includes the accuracy and promptness of the process. In addition the effectiveness of the cycle is an important factor in the competitiveness of individual companies and complete supply chains with regards to their customers, and contributes to an improvement in the level of perceived service.
The indirect sources of value are equally important, albeit difficult to quantify in monetary terms. Electronic invoicing models that fully integrate the end to end process constitute a basis for elementary inter-company cooperation that often leads to more advanced levels of collaboration including co-design and collaborative planning within the supply chain.
In summary the invoicing process automation may provide for:
- reduction of error margins, missing invoices, manual data key
- use of structured data for internal system integration and business data reconciliation
- easier dispute handling
- improved cash flow
- environmental benefits via reduction in paper and delivery
- rapid transmission of invoice data and faster payment processes
- improved customer relationships via increased cooperation
