How Electronic Invoicing 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.
The obligation of electronic invoicing between companies was established in Italy by the Budget Law 2018. The law provides that from 1 January 2019 all individuals in Italy must issue, in respect of Italian subjects, only and exclusively electronic invoices, in XML format , conveyed through the Interchange System and stored exclusively in digital mode. Traditional paper invoices or PDFs can no longer be paid or recorded in the accounts.
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