There are many reasons why e-invoicing is considered the future of invoicing. For one, it allows businesses across industries in their digital transformation journey by making invoicing simpler. Moreover, it can also help to eliminate the need for mundane tasks like moving between different invoicing software, manual data entries, and checking for accuracy and errors.
An e-invoice or electronic invoice should not be mistaken for any commonplace digital invoice though. While both are generated and processed electronically, an e-invoice is created by the seller’s invoicing system, ERP solution, or online banking system. It can also be done via a web-based application and sent to the buyer’s system directly or through an e-invoicing operator by downloading the e-invoice file. SAP ERP solutions further avoid the need for sending the invoices via an e-invoicing operator by coupling everything in a single suit.
Why Move to e-Invoicing?
The most striking benefit of using e-invoicing solutions is that they help to save time and human effort by cutting many unnecessary steps out of the invoicing process. Besides, an e-invoicing system also helps to reduce costs by letting businesses go the digital route for invoicing as well as eradicating the hassle of using invoice templates, creating PDFs, and sending them via emails.
As e-invoicing solutions process all the invoices as structured data, generally in formats like XML or EDI, it helps to save time for the seller as well as the buyer in a B2B scenario. There are fewer chances of errors too because e-invoicing solutions involve less manual inputs and focus on automating most of the tasks. In addition, the delivery time for processing and sending e-invoices is also much shorter when compared to using traditional methods. This can in turn be beneficial to ensure timely payments and maybe even add an incentive of early payment discounts.
Another benefit of enabling e-invoicing solutions is that it helps to keep track of the invoices in a more organized way. Businesses can easily check when an invoice was sent, viewed by the buyer, and paid when everything is managed using an e-invoicing software application. This gives both the seller and the buyer a higher degree of control over the invoicing method and allows them to process their transactions faster. Other than that, advanced ERP solutions also allow accessing the e-invoicing files on any device to get a quick overview of the invoices.
How e-Invoicing Benefits SAP Users
SAP ERP solutions automate most of the invoicing tasks to eliminate the need for manual paperwork and any potential errors. Businesses can easily integrate e-invoicing functions into a customer ERP system and generate a unique Invoice Registration Portal (IRP) for different buyers. The IRP will then generate the Invoice Reference Number (IRN) and transfer all the relevant information to the applicable invoicing as well as legally-mandated portals to make the process simpler.
As SAP ERP solutions automate all these tasks, it helps to reduce manual efforts and the likelihood of any typos or mistakes. The e-invoices can be further simplified by using dedicated web apps while the SAP system can process them easily under a unified channel. Apart from that, SAP ERP solutions also allow businesses to see if a particular buyer is eligible for electronic invoicing by reviewing the invoices and credit notes by suppliers as well as the debit notes by recipients.
Businesses can also mitigate the potential loopholes in data reconciliation under different portals and avoid any mismatch errors by using e-invoices. It also helps to automate many of the tasks in the tax return filing process, which further eases the stress of manual inputs, saves time, and reduces the chances of errors. Additionally, there will be fewer interventions of the tax authority in the process because the invoice data is seamlessly monitored at the transaction level.
Ensuring Compliance with SAP Solutions
Many countries have put forth regulatory legal obligations for invoicing since most aspects of modern-day businesses are going digital these days. Using an e-invoicing solution can help businesses to ensure electronic tax compliance and implement the best approaches to meet legal requirements. That is why SAP offers country-specific integration solutions to ensure the right implementation and compliance aside from allowing businesses to thrive through digital transformation.
Businesses can also customize their e-invoices using SAP solutions and generate professional-level invoices on the go. Moreover, they also help businesses to keep track of their transactions through automated reports and analytics. Likewise, SAP e-invoicing systems also reduce the risks of any fraudulent invoices and enhance transparency in the system. All of that can be a great way to gain a competitive advantage in the market while staying compliant with government regulations.