E-invoicing or Electronic Invoicing is a kind of electronic billing. It is basically used to monitor transactions between one another and to ensure the terms of their trade agreement.
The EU recognizes an electronic invoice, like any other invoice which has been issued and received in electronic format. This also includes documents that can be exchanged in a number of ways like EDI, XML, or CSV files.
As companies got advanced into the digital era, many are switching to electronic invoicing services to automate their accounts payable departments. The 2012 Global E-Invoicing study illustrated the rate at which electronic invoicing is growing. According to the study, 73% of respondents used E-invoicing to an extent in 2012, a 14% increase from 2011. Supplier resistance to E-invoicing has decreased from 46% in 2011 to 26% in 2012.
Use of e-invoicing
- The efficient way to cut costs
- Reducing errors and streamline processes
- Protecting the environment by saving paper
Apart from gaining cost and time savings by removing the paper and manual processing e-invoicing provides flexibility to meet the transactional needs of both supplier and customer in an end-to-end way.