e-Invoicing

The electronic exchange of invoices between the systems of a supplier and a buyer. 

How is it solving problems? 

Invoice processing is often a manual process and is prone to error due to its paper-based nature. The current invoicing system adds avoidable delay in payment to recipients.  

E-Invoicing removes the need to create invoices that are: 

  • paper-based or PDF  
  • posted or emailed 
  • manual processed.  

It enables direct transmission of invoices between software systems of the buyer and supplier, preventing lost or delayed invoices. The e-Invoicing specifications ensure data is structured and coherent on both ends of a transaction, even when different software is used. 

What are the benefits? 

e-InvoicingBasics.co.uk outlines the following benefits for users. 

Buyers: 

  • Reduced costs 
  • Increased accuracy 
  • Increased Accounts Payable (AP) productivity 
  • Faster processing and payment cycles 
  • Focus on higher value activities 
  • Enhanced accounts reconciliation 
  • Improved cash management 
  • Reduced fraud, duplicates and late payment fees 
  • Improved dispute handling 
  • Improved supplier relationships 
  • Optimised community management 

Suppliers: 

  • Faster payments 
  • Reduced costs 
  • Fewer rejected invoices 
  • Increased productivity 
  • Enhanced accounts reconciliation 
  • Improved customer relationships 
  • Improved cash management 
  • Alternative finance options 

Managers: 

  • Improved visibility 
  • Optimised working capital 
  • Improved compliance 
  • Improve supplier/customer relationships 
  • Enhanced IT system optimisation 
  • Meeting green initiatives 

What are the savings? 

  • estimated to be 70% cheaper to use compared to traditional paper or PDF invoices 
  • reduced cost associated with manual data entry and error handling 
  • reduced payment times to businesses, as little as five business days 
  • improved cashflow, critical to the running of any business. 

Roadmap 

Pan-European Public Procurement Online (PEPPOL) is an international standard. PEPPOL is a proven approach used in over 32 countries to foster international trade. 

Australia and New Zealand (A-NZ) have adopted the PEPPOL framework for e-invoicing. A-NZ has developed local invoice specifications based on the PEPPOL standard. 

ATO is a PEPPOL Authority for the Australian Government, and will provide accreditation services for digital service providers.  

The NSW Department of Customer Service led the delivery of a joint limited pilot testing the PEPPOL standard in collaboration with the Commonwealth Department of Human Services, ATO, access point vendors and select suppliers. 

Between mid-September and end of November 2019, this pilot has tested: 

  • end-to-end business process testing  
  • PEPPOL compliant e-Invoicing using A-NZ specifications. 

NSW Government will be completing the following by July 2020: 

  • January to March 2020, we will adopt e-Invoicing and use it with select suppliers to pay real invoices. 
  • April to June 2020, another NSW Government agency will adopt e-invoicing to increase in the number of suppliers engaged. 
  • A sector wide adoption plan is being developed to speed-up agency and supplier engagement.  
  • All artefacts developed by NSW will be loaded onto the NSW Design System. 

More information

 

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