E-Invoicing is the direct exchange of invoices between the financial systems of suppliers and buyers. It’s a solution that all businesses can benefit from, regardless of their size and the financial systems they use, because the common framework enables systems to ‘speak’ to each other. As such, it is different to the customer specific EDI (Electronic Data Interchange) systems used by some larger businesses, but provides a complimentary option to enable their smaller trading partners to also engage in a digital manner.
Through the direct digital exchange of invoices, e-Invoicing replaces paper and PDF versions, reducing both manual processing and errors, while improving security. This facilitates both faster processing and payment times, which improves business cash-flow and productivity. Superior data also enables better analysis, forecasting and planning, driving innovation and business growth.
The Government is encouraging the adoption of e-Invoicing as a means to enable faster payment, and sees it as supporting the move by agencies to pay invoices within 10 days.
E-Invoices are exchanged via a network of New Zealand accredited service providers using the New Zealand Business Number (NZBN) as the unique business identifier. All e-Invoices will be facilitated by NZBNs, which direct the invoice to the correct recipient, and nearly 715,000 businesses already have one.
Service providers from New Zealand and overseas have been accredited to offer e-Invoicing services, and software providers are adding e-Invoicing to the products they offer, making it easier for businesses to access and benefit from e-Invoicing.
To get started, it’s important to consider a business’ existing e-Invoicing capability and what their accounting software provider is able to support, before discussing options with different service providers.
The Peppol framework can also enable wider e-Procurement products including e-Ordering, e-Catalogue and e-Dispatch, and these are being readied for implementation in mid-2020.