E-invoicing with SAP

An e-invoice, or electronic invoice, is a digital document used to bill for goods and services. It is created, transmitted, and processed electronically, automating the entire invoicing process. E-invoices contain all the relevant information of a traditional invoice, such as invoice number, date, amount, and payment terms, but in a structured format that enables machine processing.

The advantages of e-invoices include:

1. Efficiency: Automated processes reduce the time required for invoicing and processing.
2. Cost savings: Less paper consumption and lower shipping costs.
3. Error reduction: Automated data transfer minimizes manual input errors.
4. Faster payments: E-invoices can be processed and paid more quickly.
5. Environmental friendliness: Reducing paper consumption contributes to sustainability.

E-invoices are now legally recognized in many countries and are exchanged in various formats, such as XML or PDF.

Since November 27, 2020, at the latest, German lawmakers have required invoices to public contractors at the federal level to be sent in the XRechnung e-invoice format. The regulation was subsequently extended to the state level. With the Growth Opportunities Act (BGBl. I 2024 No. 108), the German legislature has decided to introduce e-invoicing in Germany in the B2B environment.

Key points about e- invoicing in Germany:

• Regulations and framework conditions:

  • Directive 2014/55/EU of the European Parliament forms the basis for the introduction of e-invoicing.
  • The German E-Invoicing Act and the E-Invoicing Regulation (ERechV) supplement these requirements.

• Technical standards:
  • ZUGFeRD (Central User Guide of the German Electronic Invoice Forum) and XRechnung are the two standards recognized in Germany.
  • XRechnung has been mandatory for the public sector since November 2020 because it complies with the requirements of the EU directive.

• Channels:

• • PEPPOL (Pan-European Public Procurement Online) is a network for promoting electronic business transactions, particularly in public procurement in Europe. E-invoicing is a central element of this system.
  • e-mail

E-invoicing is no longer a national issue. The EU directive also applies in other EU countries, although it is implemented using different XML formats, such as the Italian FatturaPA. There are also a wide variety of other standards around the world that must be observed when invoicing in the respective country. This makes it increasingly difficult for internationally active companies in particular to meet compliance requirements. Not only do e-invoicing formats vary internationally, but so do the mandatory information on invoices and the requirements for data delivery. In some cases, the use of portals or the involvement of tax authorities is legally required. In addition, a distinction is made between public billers and recipients and private companies. Even within a single country, this results in different constellations that must be taken into account and mapped in the company's own ERP system.

The use of e-invoices has increased worldwide because they offer efficiency, cost savings, and faster payment processing. Here are some important aspects of e-invoicing in an international context:

• Legislation: Each country has its own legal requirements and regulations for e-invoicing. Some countries, such as Italy and Spain, have already introduced comprehensive regulations, while others are still in the implementation phase.
• Formats: There are various standards for e-invoices, which vary depending on the region and industry. Common formats include UBL (Universal Business Language), EDIFACT, and XML. In Germany, the ZUGFeRD format is often used.
• Technological infrastructure: The exchange of e-invoicing requires a suitable technological infrastructure. Many countries have platforms and networks that support the secure and efficient exchange of e-invoicing.

Overall, the international use of e-invoices contributes to improving efficiency in business processes and promotes digitization in global trade. Companies that operate internationally should inform themselves about the specific requirements and standards in the respective countries to ensure the smooth exchange of e-invoices.