HOW THE ELECTRONIC INVOICING BETWEEN PRIVATE BUSINESSES WORKS
E-invoicing is the digital process that allows the generation, transmission, management and preservation of invoices in the electronic format (editable by the IT systems), discarding the paper format throughout the invoice lifecycle.
After the well-established procedure towards Public Administration, electronic invoicing is now for everybody. From January 2017 electronic invoicing between companies (B2B), will be fully applied not as an obligation but as an opportunity to achieve significant savings in time and costs, thanks to the digitization of administrative processes.
The XML format and the interchange system (SDI), both already in use for the invoicing to the PA, will be the tools to achieve this “digital revolution”, which will also allow the Revenue Agency to electronically transmit the issued/received invoices data and payments, obtaining attractive incentives and tax simplifications.
THE ADVANTAGES OF ELECTRONIC INVOICING
The advantages of electronic invoicing derived from the standardization and digitization of all processes related to the lifecycle of the invoice, with significant improvements in efficiency and cost reduction. As evidenced also by the Electronic Invoicing research and dematerialization Osservatorio of the School of Management of Politecnico di Milano, the benefit obtained through a traditional process paper-based to electronic invoicing, can get to 11.5 EUR per invoice.
Electronic invoicing, allowing you to cope with the transition from analogue invoices, still widespread in Italy, to electronic invoices into editable format, is the first step for the digitization of the entire order to cash and procure to pay cycle, and brings tangible and immediate benefits:
- Innovation and automation in customer/supplier relations
- For the reception of invoices: a normalized format and automation in accounting
- For the issuance of invoices: one output format can be used by all types of customer/supplier
- Simplification of the recovery credit management: reliable invoice transmission dates and evidence of the recognition of the debt
- Possibility to extend automation to the entire Order-document of transport-invoice cycle
- Improved management control
- Digital Preservation in minimal impact
- Tax Simplification adhering to the Revenue Agency electronic filing