eInvoicing Legislation: What do the changes mean to my Business?

2nd August 2016

The European Commission and Central Governments are both legislating for eInvoicing adoption. In April 2014, the European Parliament and Council agreed a directive on eInvoicing in public procurement, with plans to adopt it by May 2017 (BASDA, 2015). This means that businesses and organisations must move away from traditional invoicing (including the use of PDF’s and images) to eInvoicing. Electronic invoicing is more efficient and provides considerable benefits. It also stresses the importance of legal certainty, a clear technical environment and open and interoperable electronic invoicing solution based on common legal requirements, business processes and technical standards (Directive 2014/55/EU of the European Parliament and of the Council). This is big news to your business or organisation and not something to be ignored.

However, this is a good news story as the legislation is about providing an incentive to embrace beneficial change. eInvoicing really will add huge benefits to your business, such as an average 31% reduction in invoice processing costs and 24% less time spent on supplier inquiries (The Hackett’s Group 2015 eInvoicing Poll).

Without eInvoicing, buyers and suppliers use invoicing. The administrative efforts are time consuming, costly and the opportunities for human error are in abundance leaving buyers and suppliers feeling like there has got to be an easier way.

Introducing the easier way…eInvoicing!

Electronic invoicing or eInvoicing, is the electronic transfer of invoicing information between business partners, or in the Science Warehouse case, Buyer and Supplier. eInvoicing modules enable all of an organisation’s Suppliers, no matter how large or small, to send invoices electronically to a Buyer for fast, hassle free financial settlement.

How does eInvoicing work?

Firstly, the Supplier submits a sales invoice via the eInvoicing module and the document is automatically checked against the approved purchase order. The invoice must match against all the validation criteria specified by the Buyer before it is released to the accounts payable application. Invoices that pass the pre-match are queued on the Science Warehouse server and the buying organisation’s finance system automatically pulls down invoices set at intervals. If it fails the pre-match, the eInvoice automatically fires back to the supplier to correct and re-submit back to the Buyer.

Technology innovation and automation has made invoicing it that simple. It is clear to see why the European Parliament and Central Governments are lobbying to make it compulsory. To comply with these changes, businesses must adopt eInvoicing. Why not sooner rather than later? Science Warehouse can offer an hour’s free consultancy to show you how your business will benefit from eInvoicing and become compliant with legislative changes. Just email info@sci-ware.com to start saving time and money with eInvoicing.

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