Business Case E-Invoicing / E-Billing
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C
B. Koch, Billentis Page 24
• The master data have to be updated manually, resulting in high trading partner administration
costs.
• For archiving paper invoices, a great deal of space is required. It is also costly to retrieve pa-
per invoices in the event of audits or queries.
• The demand of trading partners for an electronic channel is not satisfied.
• Last but not least, paper invoices are harmful to the environment.
4.3 Digitisation
Digitisation is a huge step forward. Currently, two methods are in the foreground:
• Paper scan and capture
• Image-based PDF invoices
Digitisation requires organisations to establish invoice workflow and archiving solutions. As a
consequence of this improvement, many disadvantages of conventional paper processing disap-
pear, but several still remain:
• The accuracy of the invoice content remains a problem; typically 20-30% of all invoices
have to be treated as exceptions in one form or another, resulting in very high processing
costs.
• The master data can be updated on a semi-automatic basis, but the risk of redundancies of
master data with minor differences could increase.
• The demand of trading partners for an electronic channel is not, or not fully, satisfied.
• Last but not least, paper invoices are harmful to the environment.
Image-based PDF invoices are for many organisations a first step towards paperless invoices. In-
voice issuers favour these as they have an immediate positive impact on costs. Larger invoice re-
ceivers are more sceptical towards exclusively image-based digital invoices. Nevertheless, it is
even an improvement for them compared to paper invoices. Transport is much faster. They have
access to a quick, digital channel for feedback and rejects. For internal processing, recipients can
feed the PDF invoices into the scan and capture process. The resulting data quality of this is
slightly better than with paper invoices.
4.4 Automated e-invoicing
The legislation in many countries (in Europe, North America, Pacific etc.) considers paperless
invoices in any electronic format to be e-invoices. This includes structured electronic invoices as
well as image-based PDFs. Depending on the country, up to 50% of all businesses use office
programs to generate invoices. They often neither have AR nor AP modules for their accounting.
Many of them have outsourced invoice-related processes to third parties. For them, it is challeng-
ing to practically automate e-invoicing processes. For most others, however, a key objective is to
fully automate these processes. Terms like ‘touchless e-invoicing’, ‘zero touch e-invoicing’,
‘true e-invoicing’ or ‘automated e-invoicing’ are used in this connection.
Suppliers and buyers use structured invoice data and typically establish direct two-way commu-
nication or increasingly use a service provider for the bilateral exchange. This results in many
benefits.
E-invoicing is typically practiced in a centralised manner for all outbound and inbound invoices.
This results in increased transparency and builds an excellent basis for the optimisation of cash
management.