What is an electronic invoice?
An electronic invoice (or e-invoice) is, as the name suggests, an invoice that is sent or received electronically. Electronic invoices are sent and received using an EAN, GLN, P, or CVR numbers.
An electronic invoice is typically sent in standardized electronic formats such as OIOUBL or OIOXML. You can easily send an electronic invoice from your accounting system.
You can handle electronic invoices automatically in Acubiz. This happens in the following three steps:
- Scanning and data capture
- Accounting and approval
- Export of data
You can handle electronic invoices automatically with Acubiz
This provides several advantages, such as faster and more efficient invoice handling, and reduces costs when sending and receiving physical invoices. You can read more about handling e-invoices in Acubiz here.
Who uses electronic invoices?
Since 2005, it has been mandatory for all public institutions in Denmark to use e-invoices. If it 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 the Nemhandelsregisteret.
However, more than just the public sector has embraced e-invoices. You can also send electronic invoices to private companies if they are registered in Nemhandelsregisteret.
Most companies use e-invoices to some extent today. Many companies have completely switched to e-invoices; others have mixed them with traditional paper invoices.
What are the requirements for electronic invoices?
If your company has yet to try electronic invoices, do not fear.
Fortunately, it is easy to create an e-invoice, as it is very similar to creating a paper invoice.
The digital invoice must contain the same information as the physical one. It typically includes information such as sender, recipient, date of issue, invoice number, and VAT amount. Remember to add the CVR number if it is a company.
You can choose to send it via email or using a financial system.
Not the same as an online invoice
Many people need clarification on an e-invoice with an online invoice. But they are not the same and differ in their purpose and use.
An online invoice is an electronic invoice that can be paid online, while an e-invoice is an electronic version of an invoice that can be sent and received digitally.
Learn more about the difference below.
E-invoice vs. Online Invoice
An online invoice is an invoice you send online in PDF format and is thus simply a PDF version of a regular physical invoice. Its function is to replace the old-fashioned invoice you know from its physical form. Customers can easily pay an invoice online using a credit card or bank transfer.
An e-invoice is a document created, signed, and sent electronically. The invoice can be sent in ways other than PDF format, such as through electronic accounting systems and electronic communication tools.
An electronic invoice is sent digitally via an EAN number, GLN number, P number, or CVR number. The number is unique, which makes invoicing more secure.
In addition, if you send your invoice digitally in formats like OIOUBL or OIOXML, your invoice is sent as encrypted data, making it more secure against invoice fraud.
It is also possible to send invoices in PDF format as an online invoice. However, if the invoice is sent as a PDF file in an email, it is not encrypted, and there is, therefore, a greater chance of 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?
With Acubiz, you can automatically manage invoices with just a few steps. It helps you create a better overview and control of your invoices while reducing the amount of manual work in your company.
You are also welcome to contact us to learn more about electronic invoicing or if you have any questions about our solutions.
How do you send an electronic invoice?
An electronic invoice can be sent using an online invoicing platform, which sends the invoice as an email in PDF form. You can also send an electronic invoice via invoicing software.