Electronic invoicing (e-Invoicing) is the exchange of the invoice document between a supplier and a buyer in an integrated electronic format. Traditionally, invoicing, like any heavily paper-based process, is manually intensive and is prone to human error resulting in increased costs and processing lifecycles for companies.
e-Invoicing is a common B2B practise and has been part of Electronic Data Interchange transactions for many years. The issue of compliance seems to have seperated e-Invoicing from B2B. Perhaps surprisingly many Finance leaders are unaware that their company is already sending/receiving EDI electronic invoices.
The true definition of an electronic invoice is that it should contain data from the supplier in a format that can be entered (integrated) into the buyer?s Account Payable (AP) system without requiring any data input from the buyer?s AP administrator.
E-invoicing enables a company to automate their invoice processing. As a result, buyers, suppliers and other managers gain a number of operational and strategic benefits. In addition to cost savings, the ability to automate the invoicing process and integrate with other business systems provides business efficiency and revenue generating opportunities.