What is e-invoicing

E-invoicing is the direct exchange of invoice information between the business systems of buyers and suppliers. E-invoicing is not about sending PDFs through the email system. With e-invoicing, 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 e-invoices in the one platform.

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E-invoicing 4 corner model on grey

How does e-invoicing work? 

E-invoicing 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 e-invoicing 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 e-invoices 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
  • E-invoices $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 E-invoicing

E-invoicing is more efficient, accurate and secure. The Australian Government is committed to delivering e-invoicing. 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 e-invoice, compared to manually processed paper or PDF invoices.
  • Reliable and secure: The e-invoicing network provides a safer and more secure channel than email. E-invoices are received directly into your business's financial systems. They are sent through the e-invoicing 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 e-invoices easier to track.
  • Faster invoice payments and improved cashflow: From 1 January 2020, Australian Government agencies began paying e-invoices 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 e-invoices

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 e-invoice and traditional invoice data

tick PEPPOL certified Access Point  

A PEPPOL certified Access Point for receiving e-invoices from your suppliers Access Point provider

tick Send outbound e-invoices 

Have your system configured to send e-invoices (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 e-invoice enabled in readiness to onboard supplier e-invoices


Resources

Demystifying E-invoicing 14 October 2020 gif

Webinar: Demystifying e-invoicing – 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 e-invoicing.

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