EInvoicing – The Basics
Electronic invoicing also called e-invoicing is a form of electronic billing.
E-invoicing methods are used by trading partners, such as customers and their suppliers, to present and monitor transactional documents between one another and ensure the terms of their trading agreements are being met. These documents include invoices, purchase orders, debit notes, credit notes, payment terms and instructions, and remittance slips.
The main responsibility of the accounts payable department is to ensure all outstanding invoices from its suppliers are approved, processed, and paid. Processing an invoice includes recording important data from the invoice and feeding it into the company’s financial or bookkeeping systems. After the feed is accomplished, the invoices must go through the company’s business process to be paid.
An e-invoice can be defined as structured invoice data issued in Electronic Data Interchange (EDI) or XML formats, possibly using Internet-based web forms. These documents can be exchanged in a number of ways including EDI, XML, or CSV files. They can be uploaded using emails, virtual printers, web applications, or FTP sites. The company may use imaging software to capture data from PDF or paper invoices and input it into their invoicing system. This streamlines the filing process while positively impacting sustainability efforts. Some companies have their own in-house e-invoicing process; however, many companies hire a third-party company to implement and support e-invoicing processes and to archive the data on their own servers.