The introduction of electronic invoices has begun to have a huge impact and has become a matter of course in various organisations in both the private and public sector. Various enterprises are discovering the huge savings potential and the numerous benefits of introducing e-invoices. However, the term e-invoice is beginning to be used incorrectly within several areas. Analysing the concept requires dissection of the term e-invoice and a definition of what is a genuine e-invoice.
What is an e-invoice?
A genuine electronic invoice is an invoice that is issued electronically (digitally) and received and processed electronically. It is digital from the moment it is created by the issuer in their business system until it is received, processed and filed by the recipient. A genuine e-invoice is, quite simply, electronic all the way.
Is a PDF invoice sent via e-mail an e-invoice?
No, a PDF invoice sent via e-mail is not a genuine e-invoice. This is primarily due to the fact that the PDF file, and thus the information itself, is not interpretable. A PDF invoice is generally printed out and processed manually or scanned with the aid of expensive software by the recipient. A PDF invoice sent via e-mail is not electronic throughout and is therefore not a genuine e-invoice. In addition, for the recipient, a PDF invoice means an absence of automated invoice processing, such as receipt, input, authorisation and allocation. This means time and money ultimately, and delays what is probably the most important thing for the issuer: being paid on time.
Is a received and scanned invoice an e-invoice?
No, a scanned invoice is not a genuine e-invoice. It started as a paper invoice that the recipient scanned to produce an electronic version. As a consequence, the invoice "loses" information/data en route. The invoice includes all the data, but the scanning process only renders a limited number of values. A scanned invoice is not electronic throughout and is therefore not a genuine e-invoice.