Why EU’s PEPPOL offers a success template for e-invoicing in the USA

Roger Hatfield, VP of Sales, CloudTrade published an interesting article on EBN Online here.

He asks himself how far has the US come in the last six months and is anything likely to change under the Trump administration?  In an article he recently wrote generated lots of interest within the USA and it should be noted that, while Europe still struggles to implement and come to terms with a myriad of regulations, the USA has a unique opportunity to create a more workable solution that is 1) easier to implement and that 2) encourages organizations to trade electronically.

The first question he asks himself is whether the OMB will mandate electronic invoicing or will this become one of the Obama initiatives that the new administration will quietly remove. Another question is whether that will happen at a cost of more regulation by mandating electronic invoicing. And where should they go to to find out what the best solution is.

His answers? First, he agrees with Todd M. Albers. Todd M. Albers is a senior payments consultant at the Federal Reserve Bank of Minneapolis and he chairs the Business Payments Coalition electronic invoicing working group. Interestingly, Todd recently wrote that he believes that it is doubtful the OMB will ever enact a policy that requires businesses to exchange electronic invoices and that it will be down to system vendors, payment service providers, banks and corporations to help drive adoption to increase adoption in the US.

Second, Roger Hatfield believes that PEPPOL is the answer to the second and third question.

1
PEPPOL allows government organizations, corporate businesses and their suppliers to use a standardized connection for e-ordering, electronic invoicing, electronic credit notes and advance shipping notifications.
2
The advantage of PEPPOL’s approach is that it removes the need for an organization to create an individual Electronic Data Interchange (EDI) connection to each of their suppliers. One of the biggest barriers over the years to network liquidity is that every new supplier needs a new connection (at a cost to the supplier) and that the traditional EDI approach means that every point to point supplier needs an individually negotiated contract to provide a hard-coded service to each buyer – this can be both time consuming and expensive.
3
PEPPOL lets an organization have a single connection to the outside world, by which they can trade with current and future suppliers across Europe. More importantly, the supplier only needs one connection (or access point) to the PEPPOL network to reach all the other PEPPOL-connected trading partners.
4
The PEPPOL approach has seen an increase in network liquidity across Europe as more and more organizations subscribe to the PEPPOL service.

Read the entire post here


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