Electronic Invoicing – What is an Electronic Invoice?

Electronic Invoicing – What is an Electronic Invoice?

Posted by Pete Loughlin in Electronic Invoicing 24 Sep 2010

Purchase to Pay, P2P and Dynamic DiscountingIn a previous article we argued that electronic invoices were dead and that electronic invoicing would thrive. It not an especially original paradox that addresses an emerging issue: what exactly is an electronic invoice?

Electronic Invoicing

Because scanning, OCR and data capture technologies have evolved and developed in their sophistication the superiority of a “pure” electronic invoice over a PDF invoice for example is becoming less obvious and an organisation embarking on an e-invoicing programme could, quite understandably, ask themselves the question “why have e-invoicing? Why not simply scan or accept emailed images?”

Electronic invoicing - Electronic Invoice Comparison

Electronic invoicing – Electronic Invoice Comparison

There are a few factors to consider summarized in our very broad brush comparison with traditional paper invoices. Scanned invoices will help to automate the accounts payable process but the level of accuracy will not be 100% – especially at line level and continuing to accept paper invoices does nothing toward your environmental targets. Emailed images have a high level of data integrity and are extremely inexpensive  because there’s no transaction charge to worry about.

  • invoice format September 25, 2010 at 6:46 pm /

    I agree with you. The electronic invoice is better than paper invoice.

  • Basware Hits The Hundred - Purchasing Insight October 28, 2010 at 6:47 am /

    […] the leading provider of purchase-to-pay solutions, has further expanded its Open Network for e-invoice and purchase message transactions by achieving the significant milestone of 100 partners across the […]

  • Chet Kamal Parkash March 6, 2011 at 6:21 am /

    Thanks to the concept of e-invoicing, it has helped me improving my Business.

  • Penelope April 4, 2011 at 3:34 pm /

    Quite efficient it seems, however, what happens where there are legal requirements about not paying without an original hard copy invoice, is the solution to change the legislation requirements?

  • Henk Beukers April 19, 2011 at 2:43 pm /

    Your figure is incomplete. The is a major difference in sender and receiver of the invoice

  • James R. Clawson July 20, 2011 at 4:24 pm /

    It is somewhat deceiving to call a scanning solution electronic invoicing. The company may be really looking for electronic workflow. If that is the case then scanning is the answer. It is hard to justify a scanning system when they can be easily outsourced for a lot less.

  • procurement management November 21, 2012 at 2:09 am /

    true electronic invoicing is certainly the more popular way to go these days, and often time people don’t understand the difference between e-invoicing and scanning/email/images. thanks for breaking that down in a chart!

  • Kevin Price January 21, 2013 at 2:08 am /

    One other easy but little known option is to use one of the services that can convert non-scanned PDFs (Invoices printed directly to PDF) into an e-invoice format. This achieves the 100% accuracy that this article suggests is not possible. One such service is EDI Link by ecdynamics http://ecdynamics.com/pdf-conversion.php

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