E-invoicing and EDI glossary

This e-invoicing glossary explains 27 terms around EDI, e-invoicing and Peppol, briefly and clearly.

A

Formats

ANSI X12

EDI standard used mainly in North America. The counterpart to EDIFACT.

Transport

AS2

Secure protocol for sending EDI messages over the internet. Messages are encrypted, signed and acknowledged with a receipt.

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D

EDI

DESADV

EDIFACT message for the despatch advice. The supplier announces what will be delivered, when and in which packaging.

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E

E-invoicing

E-invoice

Invoice in a structured electronic format that software can process automatically. A PDF alone is not an e-invoice.

Formats

EANCOM

EDIFACT variant for retail and consumer goods, maintained by GS1.

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EDI

EDI

Electronic Data Interchange. The automated exchange of business documents between IT systems.

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Formats

EDIFACT

International EDI standard of the United Nations and the most widely used in Europe. Defines messages such as ORDERS, DESADV and INVOIC.

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Legal

EN 16931

European standard for e-invoicing. It defines the data model, meaning what an e-invoice must contain. XRechnung and ZUGFeRD implement it.

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G

Legal

GoBD

German principles for keeping and archiving books and records electronically. They also govern the archiving of e-invoices.

Legal

Growth Opportunities Act

German law that introduced mandatory B2B e-invoicing. Receiving since 1 January 2025, sending phased in until 2028.

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I

Legal

Input VAT deduction

A company’s right to reclaim the VAT it has paid. It requires a correct invoice.

EDI

INVOIC

EDIFACT message for the invoice. Accepted as an e-invoice in Germany as an agreed EDI procedure, with extra requirements from 2028.

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L

E-invoicing

Leitweg-ID

Routing ID used in Germany to deliver e-invoices to the right public sector recipient. The contracting authority provides it.

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O

Transport

OFTP2

Secure transfer protocol of the automotive industry. Handles large files and acknowledges receipt.

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EDI

ORDERS

EDIFACT message for the purchase order the buyer sends to the supplier.

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P

Peppol

Peppol

European network for exchanging e-invoices and orders securely. Participants connect via access points.

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Peppol

Peppol Access Point

Gateway through which a company sends documents to and receives them from the Peppol network. Run by certified providers.

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Peppol

Peppol ID

Participant identifier in the Peppol network, for example based on the VAT number. It identifies a recipient uniquely.

S

Transport

SFTP

Encrypted file transfer over SSH. A simple way to exchange EDI files between systems.

Peppol

SMP

Service Metadata Publisher. Directory listing which documents a Peppol participant can receive and via which access point.

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V

Formats

VDA

EDI formats of the German Association of the Automotive Industry. Increasingly complemented by EDIFACT-based formats.

Legal

ViDA

VAT in the Digital Age. EU package that mandates e-invoicing and digital reporting for cross-border B2B supplies from 1 July 2030.

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W

EDI

WebEDI

EDI in the browser. Documents are created and received in a portal, without your own interface. Suits low volumes.

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X

Transport

X.400

Older messaging standard, still in use in parts of the EDI world such as automotive.

Formats

XML

Structured text format readable by people and machines. The basis of XRechnung, ZUGFeRD and Peppol BIS.

E-invoicing

XRechnung

German e-invoice standard based on EN 16931 as a pure XML file. Required by many public sector buyers.

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Z

E-invoicing

ZUGFeRD

Hybrid format of a PDF with an embedded XML file. Readable by people and machines. An e-invoice from the EN 16931 profile up.

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