Skip to main content

E-invoice

An e-invoice, or electronic invoice, is a digital document that records the details of a transaction between a buyer and a seller. It typically includes information such as the date, the parties involved, the items or services provided, the quantities, prices, taxes, and total amount due. Unlike a traditional paper invoice, an e-invoice is created, sent, received, and processed electronically, often through standardized formats like XML or EDI (Electronic Data Interchange).

E-invoices offer several advantages over paper invoices:

  1. Efficiency: Faster processing and reduced manual handling.
  2. Cost Savings: Lower costs related to printing, mailing, and storage.
  3. Accuracy: Reduced errors due to automated data entry.
  4. Speed: Quicker delivery and payment cycles.
  5. Compliance: Easier adherence to regulatory requirements and audit trails.

E-invoicing is increasingly adopted in both private and public sectors worldwide, often encouraged or mandated by governments to streamline tax reporting and reduce fraud.

Related terms

3 Way Match
3-way matching refers to a three-step process of matching three key documents before processing a payment to a supplier.
Accounts Payable Automation
Accounts payable automation (AP Automation) refers to the use of technology and software solutions to streamline and optimize the accounts payable process within an organization.
Accounts Payable Days
Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.
Accounts Payable Turnover
Accounts payable turnover explains how many times a business pays its creditors in a set timespan. Companies can use this metric to measure their short-term liquidity.
Advanced Electronic Bank Payments
Advanced electronic bank payments typically refer to sophisticated electronic payment methods and systems that enable businesses to execute various types of transactions with their banks electronically, often leveraging advanced technologies and automation capabilities.
Advanced Inventory
Advanced inventory refers to a comprehensive and feature-rich inventory management system or module within an enterprise resource planning (ERP) software or inventory management software.