E invoicing sends data, which is why it removes the reading step

Updated

E invoicing is often filed alongside emailing a PDF, and it is a different thing. A PDF is a document a machine has to interpret. An electronic invoice is structured data sent in an agreed format, which means there is nothing to read and nothing to misread. Where it is available, it removes an entire class of problem rather than mitigating it, which is why it is worth distinguishing carefully.

What makes an invoice electronic

The invoice arrives as structured fields in an agreed format rather than as a rendering for human eyes. Supplier, invoice number, dates, line items, quantities, prices and tax all arrive as data. Because nothing is inferred, extraction accuracy stops being a question, and the match can run the moment the invoice lands.

Why adoption is uneven

It requires agreement on both sides and, in practice, effort from the supplier. Large suppliers with mature systems often support it; small ones frequently do not, and cannot reasonably be asked to. Most organisations therefore run electronic invoicing for a share of their suppliers and document capture for the rest, and that mixture is normal rather than a failure.

Where the effort is worth it

Concentrate on your highest-volume suppliers, since the benefit scales with the number of invoices rather than their value. A handful of suppliers usually accounts for a large share of the document count, and converting those is where a realistic programme starts and often stops.

Questions people ask about e invoicing

Is a PDF invoice an electronic invoice?

Not in the sense used here. A PDF still has to be interpreted; an electronic invoice arrives as structured data with no reading required.

Do we need a network or a portal?

Usually an exchange of some kind, whether a network, a portal or a direct integration. Which is appropriate depends on your suppliers rather than on your preference.

Does it change our record-keeping duties?

The obligation to retain and produce records is unchanged. What changes is the form the record takes, so make sure the archive is readable independently of the system that received it.

Sources

Related answers

Start Threewayly ProKeep the match, not the spreadsheet