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LEADERS IN BUSINESS PROCESS AUTOMATION   |  +61 2 8228 6600

What is eInvoicing

eInvoicing is the direct exchange of invoice information between the business systems of buyers and suppliers. eInvoicing is not about sending PDFs through the email system. With eInvoicing, there will be a shift in the way suppliers interact with their vendor and Xcellerate IT solutions provide a holistic method to manage the on-boarding of both traditional (email with attachments and paper-based) and eInvoices in the one platform.

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E-invoicing 4 corner model on grey

How does eInvoicing work? 

eInvoicing requires a 4 Corner model to exchange information. Corner 1 is the supplier, Corners 2 and 3 are Access Points and Corner 4 is the buyer. Invoices are sent between Access Points using PEPPOL, an internationally established eInvoicing standard that allows invoice exchange between different accounting systems. We work with Link4, an accredited PEPPOL Access Point provider for Australia and New Zealand, to enable the onboarding of eInvoices into our Kofax automation solutions for further validation, before exporting the data and invoice image to your ERP.

AP inefficiencies

Over 1.2 billion invoices are exchanged annually in Australia

89% of small and medium businesses process invoices manually

Estimated processing costs (source ATO):

  • Paper invoices $30.87
  • PDF invoices $27.67
  • eInvoices $9.18

Late Payments

On average, Australian businesses are paid 9 days late. This can also impact their ability to pay on time.

Delays due to:

  • Incorrect information (21.4%)
  • Incorrect recipient (21.9%)

Australian small businesses are collectively owed $26 billion in unpaid invoices at any one time

Market imbalance

EDI networks impose closed trading solutions on suppliers

Too many complex, proprietary standards


What are the benefits of Einvoicing

eInvoicing is more efficient, accurate and secure. The Australian Government is committed to delivering eInvoicing. With over 1.2 billion invoices exchanged in Australia annually, savings to the economy are estimated to be $28 billion over 10 years. Benefits of this initiative include:

  • Easier invoice processing: removes the need for extra manual data entry as the process is automated for both the supplier and buyer.
  • Fewer errors: Data will be more accurate and complete as it travels from system-to-system. Reducing manual handling and the re-keying of information results in fewer mistakes. Not having to mail invoices lowers the chance of them being lost in transit.
  • Cost savings: an estimated 70% savings for a fully automated eInvoice, compared to manually processed paper or PDF invoices.
  • Reliable and secure: The eInvoicing network provides a safer and more secure channel than email. eInvoices are received directly into your business's financial systems. They are sent through the eInvoicing framework with security measures added throughout the process to ensure they aren’t altered or changed, greatly reducing fake invoices and billing scams. Steps in the process are logged, making eInvoices easier to track.
  • Faster invoice payments and improved cashflow: From 1 January 2020, Australian Government agencies began paying eInvoices within five days and paying interest on any late payments.
  • Connect once, trade with many: all businesses, in all sectors, can open their networks and trade with many partners, regardless of their size or the financial software they each use.
  • Environmentally friendly: eliminate paper and use less energy, resources and physical space.

 

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Key Benefits

tick A single vendor  

A single vendor for managing all supplier invoices, both traditional and eInvoices

tick A holistic view

A holistic view of all invoice types within the same platform

tick Multi-channel onboarding

A single, multi-channel onboarding ramp for different invoice formats such as email attachments and EDI

tick ERP integration

Integration with your ERP from Kofax, providing a PDF representation of eInvoice and traditional invoice data

tick PEPPOL certified Access Point  

A PEPPOL certified Access Point for receiving eInvoices from your suppliers Access Point provider

tick Send outbound eInvoices 

Have your system configured to send eInvoices (outbound) from your finance solution using the same Access Point provider via Xcellerate IT

tick Fast implementation 

Fast implementation for current Xcellerate IT customers to become eInvoice enabled in readiness to onboard supplier eInvoices


Resources

Demystifying E-invoicing 14 October 2020 gif

Webinar: Demystifying eInvoicing – the new ATO initiative (with guest speakers from Link4 and the ATO)

Join Howard Boretsky (Xcellerate IT), Robin Sands (Link4) and the ATO as we demystify eInvoicing.

The Case for a Single-Vendor Approach to Automation

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White Paper: The Ultimate Guide to Improving your Business Processes

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Get in touch with one of our Business Process Specialists who will work with you to clearly understand your requirements and identify a solution tailored to your business needs.

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