E-invoicing – why it’s inconceivable that paper is superior

What I’d look to challenge is this misconception that e-invoicing is cumbersome addressing the individual points in turn:

1. Format is not an issue
Since e-invoicing was introduced there has been much debate regarding the format to use for presenting invoice data in an electronic format. Many have raised the lack of one common format for buyers and suppliers as a reason for delaying their e-invoicing projects. This doesn’t need to be the case – operators, like Basware, are capable of providing automated format conversions across the 50 formats that exist today.

2. Handling legal requirements
Back in 2007, e-invoicing was underused across the EU due to legal uncertainties and operational constraints. The 2006 EU VAT Directive (2006/112/EC) allowed countries to adopt very strict, overly complex and non-practical policies where, for example, possible mistakes in e-invoicing could be classed as non-compliancy for VAT. Since then, there has been a lot of positive development in terms of clearer e-invoicing VAT regulations, which has made shifting to e-invoicing more straight-forward.

With the latest amendments to the 2006/112/EC Directive http://register.consilium.europa.eu/pdf/en/10/st10/st10858.en10.pdf, the strict constraints for compliant electronic invoicing have been removed and paper and electronic invoices will be treated equally. All EU member states will need to adopt these new regulations by January 1, 2013. Many countries have however proceeded with a much faster implementation schedule – for example, in Germany the amendment will take effect much sooner, as of July 1, 2011.

3. Digital signatures
The digital signature secures the data integrity of the invoice during the sending process and by using the right e-invoicing provider it can be added by an operator as easily as any other piece of information. The above mentioned EU Directive amendment will, however, remove the digital signature obligation once it comes into force.

4. Interconnection is already available
One of the biggest misconceived challenges is that multiple e-invoicing operators do not talk to each other. In fact, based on the discussions we have had with the global operator market around 95% of operators support interoperability. Basware has an extensive global interoperability network with over 110 operators – enabling a true global reach for all buyers and suppliers part of this network.

5. Supplier connectivity – solved
Connecting suppliers to buyers is essential to the success of any e-invoicing project. Operators are capable of managing the buyers’ supplier communication; gradually shifting suppliers from paper to electronic using automated supplier activation tools and contacting suppliers to find the best approach for them.

6. Global e-invoicing is enabled
E-invoicing supports, not hinders, global transactions. E-invoicing providers offer multiple formats and options that automatically comply with differing country legislation and invoicing requirements. Suppliers can send invoices electronically and operators can decide whether to print and post the invoices to countries that don’t yet have the policies in place to receive e-invoicing.

7. Paper and electronic can co-exist
Shifting to e-invoicing does not necessarily mean excluding paper from the process altogether. E-invoicing operators are capable of providing 100% electronic supplier invoice sending and 100% buyer invoice receiving, regardless of the format in which the document was originally set up. E-invoicing – when combined with operator provided scan & capture services for handling those invoices still on paper – enables buyers to receive all of their invoices through a single electronic connection. With this operator provided service, all invoices can be handled electronically.

8. Implementation timelines
Finally, I’d like to dispel the myth that implementation projects to enable e-invoicing to ERPs takes time. E-invoicing can get started before ERP is ready by implementing a supplier portal, virtual printer, paper to e-invoicing conversion, PDF emailing and simple integrated connection. Customers can see the return on investment straight away.

In the digital world we live in now, it no longer stands up as an argument that manually handling paper invoices and ensuring they comply with every piece of country legislation is easier than doing it electronically. Globalization has become a reality because of technology and the Internet and e-invoicing is not preventative to this.