Electronic invoicing also known as e-invoicing is a form of electronic billing. It is used by trading partners to present and monitor transactional documents and make sure that the terms of trading agreement are being met. An electronic invoice or e-invoices, on the other hand, is an invoice document shared between suppliers and buyers in an electronic format. It is a structured invoice data issued and shared in XML or EDI format. Typically e-invoicing involves members of IT, procurement and accounts payable.
E-invoicing is right between procurement and finance. But what are its advantages really?
Advantages of receiving e-invoices
- Reduce errors and costs
- Increase efficiency and productivity
- Eliminate manual processes
- Automate invoice processing
Advantages of sending e-invoices
- Have more control
- Keep customers happy
- Decrease administration costs
- Enable faster payments
- Reduce the number of rejected invoices
An e-invoicing report in 2016 reveals that many countries in Latin America have advanced e-invoicing markets. With over 5.4 million tax payers who issue e-invoices, Mexico is identified to be the global leader in e-invoicing.
E-invoicing continues to capture the attention of AP today. It is truly a winning strategy and these five reasons are proof of that:
- Drive business such as cash flow, savings and efficiency
- Enable technology such as recognition, scanning and capture
- Demand the best solutions
- Reduce paper mountain
- Get everyone working in the system through supplier-friendly models
E-invoicing is a common B2B practice. But due to compliance issues, it separated from B2B. It has been a part of EDI or Electronic Data Interchange transactions for several years. Many finance leaders are even unaware that they are already sending and receiving e-invoices. By removing paper and manual processing from e-invoicing, companies can achieve significant cost and time savings. Moreover, they can integrate with their trading partners, invoicing software and business systems.
Reach the full potential of e-invoicing by overcoming the makeshift paradigm of PDFs, scan and capture. Learn about e-invoicing in Europe by clicking this link.