What is E-Invoicing?
E-Invoicing or Electronic invoicing is creating, exchanging and processing invoices digitally between two parties, from an Accounting software or ERP system directly to another, using a structured digital format.
Although the term “Electronic invoicing” or “E-Invoicing” is somehow a common term in business environments, there are still some ambiguities around its definition as not all digitally created invoices are e-invoices, for example, paper invoices and PDF invoices. Paper and PDF invoices that are sent through traditional mail or e-mail are not considered e-invoices although they are created digitally as it still requires human intervention and data input.
E-Invoicing through the PEPPOL Network in Singapore
For the past few years, the Singapore Government has been helping many SMEs throughout their digital transformation journey with several new initiatives and grants, with e-invoicing through the Peppol network being a new initiative introduced by Infocomm Media Development Authority (IMDA) in 2019. To help business digitalise, companies incorporated before 25 March 2020 and registered on the nationwide e-invoicing network before 31 December 2020 will be eligible for a SGD 200 (one-time) E-invoicing Registration Grant.
Companies that are keen to adopt e-invoicing may contact any Peppol-ready solution providers, for example, Synergix Technologies as we have been pre-approved.
Benefits of E-Invoicing through PEPPOL network in business operation
As we are one of the Peppol-ready solutions in Singapore, we fully understand how an organization can benefit from this and we have summarized the main benefits below.
1. Improve Efficiency
First of all, E-Invoicing improves efficiency as the creation of e-invoices are easy and straightforward. It avoids error-prone manual data entry too and all the e-invoices received will be in the same format. In addition to that, there is near-real time visibility since companies can easily track the status and past records of all the e-invoices in the system, whether it is sent or received.
2. Reduce Cost
Secondly, E-Invoicing reduces cost of an organization as all the invoices are stored in their Accounting software / ERP software. Downloading hardcopies and filing them isn’t needed anymore.
3. Stimulate Cross-Border Transactions
Thirdly, companies can transact internationally as they are able to send and receive e-invoices from business partners all over the world as long as their business partners are registered on the Peppol network.
4. Environmentally Friendly
Another advantage of E-invoicing is that it minimizes the paper usage through eliminating printing and postage. Therefore, switching from paper-based invoices to e-invoices plays a significant part in protecting the environment.
Frequently Ask Questions surrounding PEPPOL E-invoicing
1. Is consumer invoices included?
No, E-Invoicing through PEPPOL network only covers Business-to-Business (B2B) transactions; Businesses-to-Consumer (B2C) transactions are currently not covered.
2. How do I send E-Invoices?
- Sign up with Accounting or ERP software that is Peppol ready
- Find out your business partners’ PEPPOL ID to start sending E-Invoices
3. Can I download invoices, both sent and received
Yes, that is possible
4. Are the digital electronic invoices legally valid?
In short, yes. Electronic digital invoices are still valid as evidence.
5. Do I need to change my system?
It is anticipated that only minor changes or additions to the current software interfaces are needed to make use of the PEPPOL E-Invoicing services.
Synergix Technologies – PEPPOL Ready Solution Provider
Synergix Technologies is a PEPPOL ready solution provider certified by IMDA in Singapore and is offering PEPPOL E-Invoicing as a value-added service within our Enterprise Resource Planning System. Should you wish to get more information, feel free to get in touch with us!