What is an EDI invoice?
EDI-invoice
EDI invoice, also called and E-invoice (electronic invoice), is an invoice that is sent entirely through electronic channels. EDI is an abbreviation for Electronic Data Interchange and entails the transmission of the invoice to the recipient as structured information in an agreed format. An EDI is not the same as a PDF invoice, since a PDF invoice does not contain the same type of well-structured information that you find on an EDF invoice. A PDF invoice is mported exactly the same way as a paper invoice. So far, there is no software that can reliably read the content of such an invoice without the risk of error. With EDI this risk does not exist, thus you get a more efficient invoice process and ensures that the invoice is correct and that everything goes according to schedule.
Since 1 April 2019, Swedish law stipulates that all purchases in the public sector must be invoiced using an electronic invoice (e-invoice).
The advantages of EDI and E-invoicing
In addition to the benefits already mentioned above, EDI invoicing also provides:
- E-invoice is the most secure way to send and receive invoices
- Makes invoice processing as digital and efficient as possible
- Greater internal efficiency
- Cost savings, including postage costs
- Reduced risk of errors on invoices, orders and order confirmations
- Less administrative work
- Easier troubleshooting
- Customers and suppliers receive invoices and verifications in the format they prefer
- Fewer transports, which is both cost-effective and environmentally friendly
- Reduced paper consumption
How does one get started with EDI invoicing?
You will need an invoicing programme that can create E-invoices, a recipient who is able to receive this type of invoice and an intermediary who conveys the electronic invoices. Today also accounting software can have additional solutions for E-invoicing. We can help with this process. Please feel free to contact us if you have any questions.
What is needed on an EDI invoice?
The invoice must contain a GLN number and a reference code.
An orderer reference is required information on an EDI invoice; it is specified as a code that shows which individual in the business placed the order. There is no standard method for this; the individual business or organisation sets its own standard.
In addition to helping you set up your EDI solutions, Accountor can also help with all of your accounting needs, including sub-ledgers, bookkeeping and reporting.
PEPPOL Standard
PEPPOL (Pan-European Public Procurement On-Line) is a standardized way of securely exchanging electronic documents within and across EU borders. The PEPPOL standard simplifies e-commerce and e-procurement within the country and across borders. It is easy to join for new business partners and it also reduces the number of denied invoices. It can also reduce the costs connected to procurement.
GLN
A GLN (Global Location Number) is a unique, international identifier for a company or department. The number is used to identify the exact delivery location, invoice address, workplace, branch and even functions or roles. Larger companies can purchase unique GLNs to differentiate their various departments. You need to verify a customer’s GLN before sending an invoice. If the customer does not have a GLN, the recipient’s company registration number is used instead.
In addition to helping you set up your EDI solutions, Accountor can also help with all of your accounting needs, including sub-ledgers, bookkeeping and reporting.
