Peppol eInvoicing

Go paperless by sending and receiving eInvoices and get paid faster

Peppol einvoicing iya

What is an eInvoice?

eInvoicing is an accurate computer-to-computer data language, it’s not up for interpretation by people or machines. It’s as fast as an email and it means you don’t need to send a series of emails or pdf documents to follow up on the invoice status or get paid.

automated invoice image

Why Peppol eInvoicing is important now?

The Australian government will mandate electronic invoicing for all Commonwealth government agencies by the 1st of July 2022 and promises to pay suppliers who use eInvoicing within five business days.

The Australia Taxation Office estimates that the current cost of processing invoices is $27/invoice and eInvoicing will take it down to $10/invoice.

Australia adoption of the PEPPOL network in 2019 enabled all private companies and public administrations to bill through PEPPOL. Pan European Public Procurement On-Line (PEPPOL) is the global standard and network being embraced by the government of Australia and New Zealand to electronically exchange invoices and other procurement documents.

Australia adoption of the PEPPOL network in 2019 enabled all private companies and public administrations to bill through PEPPOL. Pan European Public Procurement On-Line (PEPPOL) is the global standard and network being embraced by the government of Australia and New Zealand to electronically exchange invoices and other procurement documents.

Connect Once, Connect All

eInvoicing delivers efficiencies, enhances compliances, lowers costs, and improves business relationships. The benefits for the Australian government and businesses to use Peppol to conduct eInvoicing include:

Reduced
processing costs
E- Invoices arrive directly into your Accounts Payable / Finance system eliminating costly capture processes and time consuming data entry.
Improved network
security
End to end surety of the Peppol network eliminates the risk of invoices being intercepted by bad actors during communication.
Fewer manual
processing errors
What a sender receives is exactly what the sender entered into their finance system.
Accelerated payments
Fastest way of sending invoices straight to financial systems for payment.
Reduced cases of
invoice fraud
The identity of all trading partners is verified which essentially eliminates 3rd party impersonation fraud.
Assured reliability
and security
The accredited Access Points ensure the formats and standards are consistent while also acting as gatekeepers to the network.
Enhanced
cash flow
Better record keeping due to more outstanding timeliness and accuracy of budget and financial reporting.
Better record
keeping
Faster processing times and improved accuracy leads to faster payments times.

Simplify your accounts payable processes by replacing manual work with the automatic import of payment statements.

Partnered with ATO’s approved access point service provider Storecove we help businesses get set up with AP automation and receive eInvoices into their solution. Schedule a call today to learn more.

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FAQ's

Why is there a push for adopting eInvoicing?

The Australian Commonwealth government identified eInvoicing as a key driver to improve the economy and in the latest budget, committed $15.3m to accelerate the adoption of e-invoicing. The government aims to also encourage the business community to follow suit in adopting eInvoicing. In a mid-August 2021 announcement, the NSW government made it easy for small and medium businesses working with the NSW Government to submit and track their invoices with the launch of a new e-Invoicing portal. Businesses can submit and check the status of invoices with e-Invoicing enabled NSW Government agencies through a Supplier hub dashboard.

Minister for Finance and Small Business Damien Tudehope said e-invoicing would improve current interactions between SMEs and the government. “One of the biggest issues for small businesses across NSW is cash flow, and we want to take steps to ensure that properly rendered invoices reach and are actioned by the right teams as quickly as possible.”

Why eInvoicing?

Peppol eInvoicing is paperless. It’s a straight-through data transfer that saves time and money associated with people doing data entry from both paper or email invoices. The ATO estimates that the current cost of processing invoices is $27/invoice and e-Invoicing will take it down to $10/invoice.

The other major benefit for businesses that supply government agencies is that the Commonwealth government announced a five-day payment policy for suppliers who issue Peppol eInvoices and have contracts valued under $1m.eInvoicing is an accurate computer-to-computer data language, it’s not up for interpretation by people or machines. It’s as fast as an email and means you don’t need to send a series of emails to follow up on its status.

How are eInvoices different from digital invoices?

No. While Peppol eInvoicing can help enable AP & AR solutions, Peppol is about the format and delivery of eInvoices and not about an organisation’s business rules around how those invoices should be processed. For example, if we look at the relationship between Storecove and ACMO that might make this a little clearer.

ACMO’s APAY solution is an Accounts Payable solution. Once it receives invoices, it can help an organisation apply its business rules around how that invoice should be processed. This could include anything from GL Coding to PO matching to routing for Approvals or doing validation checks. What Storecove brings to the table is the Peppol Access Point service so that eInvoices can be fed directly into that solution. So while emailed / digital invoices get run through an OCR process to extract information from a page which is then fed into APAY, eInvoices already exist as data and don’t need to go through that process. It is more accurate because the eInvoice is literally what came out of the senders’ system and not a software application’s attempt to read something on a page.Once they are inside the APAY solution, both digital invoices and e-invoices are processed the same way with the same business rules irrespective of their format or how they were received.In short and in the context of Accounts Payable, Peppol e-invoicing is about a new ingestion channel for invoices, it’s not about prescribing new and separate business rules for how you need to process them.

Is Peppol eInvoicing an Accounts Payable / Accounts Receivable solution?

No. While Peppol eInvoicing can help enable AP & AR solutions, Peppol is about the format and delivery of eInvoices and not about an organisation’s business rules around how those invoices should be processed. For example, if we look at the relationship between Storecove and ACMO that might make this a little clearer.

ACMO’s APAY solution is an Accounts Payable solution. Once it receives invoices, it can help an organisation apply its business rules around how that invoice should be processed. This could include anything from GL Coding to PO matching to routing for Approvals or doing validation checks. What Storecove brings to the table is the Peppol Access Point service so that eInvoices can be fed directly into that solution. So while emailed / digital invoices get run through an OCR process to extract information from a page which is then fed into APAY, eInvoices already exist as data and don’t need to go through that process. It is more accurate because the eInvoice is literally what came out of the senders’ system and not a software application’s attempt to read something on a page.

Once they are inside the APAY solution, both digital invoices and e-invoices are processed the same way with the same business rules irrespective of their format or how they were received.In short and in the context of Accounts Payable, Peppol e-invoicing is about a new ingestion channel for invoices, it’s not about prescribing new and separate business rules for how you need to process them.

What do businesses need to do to start eInvoicing?

Regardless of whether you are ready to start now or whether this is a project for some time in the future, the first thing you can do is make sure that you have the ABN’s for all your trading partners in your finance or ERP system. I’ve found that when compared to New Zealanders that Australians are already pretty good at this as ABN is both a company number and a tax number, whereas in NZ they are two different numbers.

The next thing to do is to talk to your existing solution providers. If you have APAY then talk to ACMO, if you have MYOB EXO then talk to your MYOB partner, if you have TechOne or Oracle or Sage or any one of dozens of other solutions partners then talk to the people you already work with. If they have a plan around Peppol that’s great. If that plan works for you and matches your timeframes, even better. However, if they don’t have a plan or if their plan doesn’t work for you, or even worse they don’t know what you are talking about, then you need to find someone you can trust. If you want a vendor-neutral starting point then the ATO website is another good place to get info.

Why should Businesses get eInvoice ready?

Businesses that are currently supplying government councils and other governing bodies, the case for faster invoice payment- the proposed 5-day payment guarantee is a major attraction. For other businesses it may just be having the conversation about e-invoicing, and what advantages it can offer in the future for speed and security.

What is OpenPeppol?

OpenPEPPOL is a non-profit organisation established under Belgian law whose membership is made up of both public and private organisations all over the world. They govern the standards and the network. OpenPEPPOL administers Peppol in multiple countries through the appointed regional authorities that are responsible for the administration of Peppol within each jurisdiction. In Australia, the Peppol Authority is ATO, and in NZ its MBIE. The Authorities in turn runs an accreditation process to validate and certify which vendors can provide access point services to organisations within that jurisdiction.

What is the Peppol network?

The Peppol network is a secure network through which documents are exchanged between training partners. Usage of the Peppol network can only be accomplished by using an Access Point to the network, which as mentioned has to have accreditation from the Peppol Authority for that region. So to use an imperfect analogy, the Peppol network is like using a cell-phone. You and the person you are calling can use different handsets, but each of you both need to use the services of a telco before you can call each other. So too with Peppol invoicing in that you and your trading partner can have different finance systems, but you each need to use an Access Point service to eInvoice each other over the Peppol network.

Is the Peppol network secure?

For an organisation to transact on the Peppol network you need to have what’s known as a Peppol identifier. This identifier is globally unique and it’s how your trading partners know that they transacting with the real you. In Australia, the Peppol ID is made up of the ABN and in NZ they use the NZBN. Now because you have to use an accredited access point to get information into or out of the network, the access point providers are essentially the bouncers or the gatekeepers for the network. We have various responsibilities such as a Know Your Custom (KYC) obligation to validate that organisations we are connecting are who they say they are. So if you get an eInvoice from someone like BOC Gas, you know that it has been legitimately sent by BOC Gas.

What if you have different software for sending invoices than for receiving them. Does each system need its own access point?

You can use one access point to send eInvoices and another to receive them. For example, if you are a Xero customer and also an ACMO APAY customer, you might want to use Xero’s Access Point to send eInvoices directly from Xero, however when you receive them you want to use APAY access point, which is provided by Storecove so that the invoices are delivered into APAY rather than straight in Xero.

Alternatively, you can use the same service for both sending and receiving.

Much depends on the systems you use and whether the Access Point service is being provided by the vendors you get those systems from. One thing you do need to be mindful of though is that you can only receive from one Access Point. For sending you can as many different ones as you need to, but you can only receive through one. So think of it kind of mail or the postal service. If you want to send someone a letter you can post it in any postbox you like, but you only have one mailbox at the end of your driveway. The key is to identify where you need the incoming invoices to be delivered and which system you need them to be in first. So in the Xero / APAY example, I used just before, you want the eInvoices to be delivered into APAY so that you can apply your business rules to the way they are coded, approved, matched, etc. You don’t want the eInvoices to bypass APAY and go directly into Xero because then they haven’t gone through your business process.