Electronic invoicing
What is “electronic invoicing”?
In a word, e-invoice or e-invoicing is electronic transfer of information regarding the invoices (settlements and payments) between business partners (provider-purchaser).
Why e-invoice?
It is a fundamental element of an effective financial delivery chain which allows for entering the enterprise internal processes into the payment systems.
Traditional paper invoices are important accounting documents exchanged between commercial partners. E-invoice is a secure and economical version of the paper invoice.
Electronic invoicing is a significant step towards increasing the use of electronic commerce. E-invoicing allows for invoice information to be transferred from the issuer's account in the accounting system directly to the recipient of financial administration in the IT system.
Electronic invoicing is not a new service on the market. EDI (Electronic Data Interchange) systems, i.e. systems for exchanging electronic information between different organizations within various types of IT networks, have been appreciated by customers for a long time. But EDI systems, however popular and successful they may have been, will be inevitably replaced with electronic invoicing programs for a number of various reasons. The invoicing program is faster and more efficient with regard to reducing operational costs and improving management of assets and capital. E-invoicing does so without paper: a provider may send an invoice to the orderer who can in turn view it online. Moreover, the Internet allows for realizing the payments using the services of connected financial institutions. If there is an issue between the payer and the provider, it may be settled exclusively and immediately via the Internet.
Other important advantages of e-invoicing are the following: firstly, it is possible to integrate all financial activities, including payment liabilities and capital management; secondly, the paper transaction costs are considerably reduced since the invoicing program enables one to perform all necessary tasks by means of several mouse-clicks. A number of large companies and enterprises have been using e-invoices and e-archiving with the result of significantly lower costs and increases in productivity and sales.