What is an electronic invoice?
An electronic invoice, or e-invoice, is, as the name indicates, an invoice that is sent or received electronically. Electronic invoices are sent and received via an EAN number, GLN number, P number, or CVR number. Typically, an electronic invoice is sent in standardized electronic formats such as OIOUBL or OIOXML. You can easily send an electronic invoice from your finance system.
You can handle electronic invoices automatically with Acubiz. This is a process which is divided into three stages: scanning and data capture, accounting and approval, and finally exporting data. You can read more about handling e-invoices in Acubiz here.
Who uses electronic invoices?
Since 2005, it has been a statutory requirement for all public institutions in Denmark to use e-invoices. If the invoice is not sent electronically, it will be rejected. When you send an invoice to a public institution, it is a requirement that you send the invoice with an EAN number. The EAN number is the public institution’s electronic identity and can be found in Nemhandelsregisteret.
However, it is not only the public sector that has adopted electronic invoices. You can also send electronic invoices to private companies if they are registered in Nemhandelsregisteret. Most companies today use e-invoices to varying extents. Many companies have switched completely to e-invoices and others mix them with classic paper invoices.
What are the requirements for electronic invoices?
If your company has yet to try electronic invoices, fear not. Fortunately, it is reasonably easy to create an e-invoice, as it is very similar to creating a paper invoice. The invoice itself must contain the same information as if it were not digital. You can choose to either send it by mail or use a financial system.
E-invoices are, as mentioned, sent digitally via an EAN number, GLN number, P number or CVR number. The number is unique, which makes invoicing more secure. In addition, your invoice is sent as encrypted data if you send it digitally in e.g. an OIOUBL or OIOXML format. You can therefore also protect yourself better against invoice fraud.
It is also possible to send invoices in PDF format, as a so-called online invoice. If the invoice is sent as a PDF file in an e-mail, however, it is not encrypted, and there is therefore a greater chance of being exposed to fraud.
Optimize your work flows
When you receive an e-invoice, it lands directly in your finance system, which can process the invoice and read the encrypted data. The finance system can therefore process your e-invoices with a minimal amount of typing. In addition to saving time, the removal of manual handling usually means fewer errors and improved data.
Want to know more?
Do you want to know more about how invoice handling is handled in Acubiz? Contact us.