Electronic Invoice simply explained

Technology in change

Digitalisation is the future and the shift to electronic invoices plays a significant role in this change. This change has been underway for several years and includes new policies and business practices as well as the introduction of new technologies.

It is more important than ever to save time and resources while increasing efficiency. One way to do this is to use electronic invoices and send them automatically via EDI (electronic data interchange). Unlike traditional paper invoices, electronic invoices offer a faster, more efficient and cost-effective way to exchange invoices.

What is an electronic invoice?

An e-bill enables the completely digital processing of invoices, starting with the creation and ending with the payment. Electronic transmission, automated receipt and further processing ensure a high level of efficiency in the invoice process.

Unlike paper invoices or image files such as PDFs, the invoice contents of an e-invoice are presented in a structured machine-readable data record. This ensures that this type of invoice can be transmitted electronically, received and further processed automatically without media discontinuity to enable fast payment.

How can I create an electronic invoice?

There are several ways to create an electronic invoice, depending on your client’s requirements and your company’s capabilities. One option is to create a direct link between your system and your client’s system using EDI (Electronic Data Interchange). EDI enables exchange without human intervention or paper, saving time and paper. Feel free to download our free whitepaper if you need more information.

Which format should be used for electronic invoices?

While the PDF format is suitable for information exchange, it is not the best choice for electronic data interchange (EDI). PDFs do not have an embedded structure for EDI, which makes it difficult to process and integrate data. Therefore, special EDI formats such as XInvoice, IDOC, UN/EDIFACT or X12 are better suited for the electronic exchange of business data.