23 Jun What is E-Invoicing and how does it work ?
Currently the ATO is getting ready for E-Invoicing and solutions are being developed now. They expect them to be available in the Australian market in the second half of 2020. A demo is available to view at the ATO website.
The current experience is where you go into your software, you generate an invoice from the software, but when you want to send it, there are only a few options to send it — print and mail, fax or attach to an email with a PDF. The end state that we want here is that when a business owner generates an invoice, they are able to send it to their destination without knowing the address, and that they just need to know the other person’s business, their ABN. When it gets to the destination, it comes in digitally and does not need to be rekeyed, and when they want to send something back, they can send it without needing to know the address, and whatever they send back comes in digitally without needing to be rekeyed.
What is E-Invoicing?
E-Invoicing is the direct exchange of invoices between suppliers’ and customers’ financial systems. Suppliers can send an E-Invoice directly to their customer’s financial system through a digital ‘mail’ service. International standards allow these systems to ‘speak’ to each other, even if the two businesses are using different ERP systems.
An E-Invoice is a structured document /data file from beginning to end and is built with each piece of information in a specific place with a specific meaning. An E-Invoice contains all the elements of a normal invoice (invoice date, invoice number, tax number, invoices lines, totals), but it is created & delivered in a format that is designed to be interpreted by software rather than read by people.
- Cost Savings (due to handling time saving)
- Less time and errors
- Reliable and secure
- Connect once,trade with many
- Paperless & Environmentally friendly
So then what is PEPPOL?
PEPPOL is an international e-invoicing network that allows businesses to safely send e-invoices to companies and governments worldwide.
It’s strict interoperability framework is known as a four-corner network model. The sender is corner 1 and the receiver is corner 4. Corners 2 and 3 are the Access Points to the PEPPOL network that each party is using.
E-invoicing has been around for quite some time in the form of EDI partnerships, but those EDI partnerships have traditionally been costly closed systems with one company in the middle holding all the power over the smaller trading partners. PEPPOL differs in that it is a network that anyone using an accredited Access Point can utilise, and therefore has the benefit of simple setup & significantly lower transaction costs.
PEPPOL is widely used throughout the EU. In Australia, New Zealand & Singapore, PEPPOL e-invoicing is the format of choice for these regions with their government’s adoption, support and advocation – Malaysia set to join soon.
Which brings us to Pacifictech’s E-Invoicing
Pacifictech’s E-Invoicing is tightly integrated and automagically ingests the e-invoice data file in to their Document Processing Service (DPS) as part of the AP Automation functionality. The vendor settings from Sage 300 AP for taxes and default GL codes are utilised by DPS – making the process seamless.
Pacifictech has engaged an Access Point Partner for the PEPPOL component – which means that there are no additional requirements (or costs). All that is needed in order for you to be able to start receiving e-invoices is the DPS Connected Service along with Payables Workflow and Workflow Documents modules.
Contact us at email@example.com for further information.