E-invoicing has brought about a new way to send invoices electronically. Like EDI, e-invoicing uses a network model, where each business either connects to the network themselves or uses a service provider. Unlike EDI though, e-invoicing uses a true standard file format exchanged between Access Points, or service providers. You might be thinking EDI also uses standard, and you’re somewhat right. There are standards like EDIFACT in use, but the reality is that retailers generally have their own unique business rules for suppliers to adhere to. Having one true standard to exchange brings a lot of benefits.
Here’s why you, as a retailer, should consider using e-invoicing:
It’s easily accessible by your suppliers
Many accounting software packages such as Xero and MYOB offer e-invoicing solutions to their customers today. The solutions are largely integrated with their software making it simple for their customers to exchange e-invoices. Xero and MYOB account for 90% of the small business market, which means a majority of your SME customers could be able to issue you e-invoices today!
It’s low cost or even free for many of your suppliers!
Cost is a big constraint for suppliers complying with EDI requirements. The major players in the accounting software space are proving e-invoicing as part of their product or for a low add-on cost. There are also e-invoicing solutions, like Colladium, that allow suppliers to send e-invoices for free. What better way to onboard suppliers than a free web portal!
Your suppliers only need to connect to the network once to connect with many
E-invoicing through the Peppol network uses a standardised file format. Unlike EDI, it means your suppliers only need to connect to the network once, then they can exchange e-invoices with anyone else on the network. This makes compliance for your suppliers so much easier. Plus, if any of your suppliers are already using Peppol e-invoicing, they can start issuing you e-invoices today!
The network is set to grow
Right now, Peppol e-invoicing supports the exchange of electronic invoices, but that’s expected to change. The purchase order (PO) is currently being reviewed to be added as another message type and more are being looked at. Eventually we could see all supply chain messages being added to the Peppol network. Plus, the Australian and New Zealand Governments have offered incentives for their suppliers to issue e-invoices, so as more businesses get onboard, the more of your suppliers will be ready to exchange e-invoices.
Ready to add e-invoicing to your arsenal? Here’s how…
Adding e-invoicing to your arsenal only takes a few steps:
- Contact an e-invoicing service provider
Here at MessageXchange, we offer both EDI and e-invoicing services. We’ll translate your software’s native file format messages to the Peppol UBL file. All you’ll need to do is a bit of testing.
- Connect to the Peppol network
No need to worry, we’ll do the work for you.
- Go live!
Start sending and receiving e-invoices!
If you’re interested in learning more about adding e-invoicing to your electronic messaging, get in touch with our team.
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