What is an eInvoice? An electronic invoice, or eInvoice, originates digitally and is processed using specific document formats. It remains digital throughout its whole lifecycle, from issue to archiving.

A true eInvoice will fully automate the entire life and processing of an invoice – from the moment it is issued, sent, matched, reported and archived.

The buyer does not need to perform any data entry – that’s because the invoice information flows directly from the supplier to the buyer’s back-office system, with no manual intervention.

The buyer receives invoices from its suppliers using formats that have been agreed in advance and may include mechanisms such as digital signatures, to ensure their authenticity and integrity.

An invoice will typically show information such as:

  • unique number
  • VAT number
  • date of sale and payment due date
  • business name, address and contact details
  • customer’s contact details
  • details of the goods or services provided including the price and a brief description
  • the total amount due

A good eInvoicing solution will enable you to populate mandatory fields for all the information required on the invoice.

It will also extend to related documents and messages, for example:

  • any extra data you may need to send separately to tax authorities for validation
  • mandatory record-keeping
  • audit purposes

If you are trading with companies across multiple borders you need to be aware of the information and formatting required to meet the regularity requirements of the local tax authority. Different governments take different approaches, with some authorities requiring more direct oversight at an earlier stage than others.

PDF and paper invoices, even if converted to digital formats later and sent by email, are not, strictly speaking, eInvoices. That’s because they don’t have a structured digital format and they were not generated electronically to start with.

Benefits of eInvoicing

eInvoicing can help you replace time-consuming, repetitive, labour-intensive and error-prone manual tasks across both your AR and AP departments – and according to an international market report by Swiss company Billentis, eInvoicing can provide savings of between 60% and 80% compared with the costs of conventional paper-based invoice processing.

More on the benefits of eInvoicing

eInvoicing can provide savings of between 60% and 80% compared with the costs of conventional paper-based invoice processing

Find out much you could save with eInvoicing

Digitising your incoming and outgoing invoices will allow you to free up accounts resource, reduce errors improve accuracy by optimising your invoice processing.

The Transalis ROI calculator gives you a good indication of how much your organisation could save by switching to eInvoicing –  turning your accounts department into a profit centre rather than a cost centre.

How much could I save?

You can also get in contact with our expert team 0845 123 3746 or +44 1978 369 343 (for international callers), or contact us via email sales@transalis.com