Understanding the Practical Wisdom of Electronic Invoicing|Electronic Invoicing and Its Mechanism|A New Trend in Billing Via Electronic Invoicing
In business, trading partners, which are the customers and their suppliers, transact an agreed business deal through a paper document referred to as an invoice. The advent of digital technology has made it possible for even a classical paper invoice to be now sent electronically over the web.
Many business companies are shifting to electronic invoicing because of these reasons: e-invoice is cheaper than paper invoice, therefore, you save money and time in invoicing cost and this kind of facility serves the customers better because it is fast and efficient. Every process introduced in coming out with an electronic invoicing uses encoding guidelines that are known as standards which are based on Electronic Data Interchange. Aside from the standards used, the layout of an e-invoice is electronically arranged using the XML or UBL message format. A business company may either have an internal department to operate and handle the electronic invoicing or they can outsource companies who can provide them this form of service – receiving the data transaction and automatically checking that everything is in order and providing an operator to deliver the e-invoice to the rightful customer via e-mail, where the customer will be provided with a link to a page where he/she can see the invoice. There are also other options for a customer to choose where the e-invoice can be sent and that is by electronic transmission into the customer’s sales invoice system or the invoice is still sent electronically but a hard copy, at the same time, will also be sent. With mobile phones, it is now more convenient to access electronic invoice by using the right applications.
For those who might interchange online invoice with electronic invoice, there is actually a difference between the two with respect to the platforms used, since online invoice is cloud-based while e-invoice uses the standards of the Electronic Data Interchange. Additional difference of the electronic invoice from the online invoice is the reflection of the signature from the creator of the invoice, as well as the time and date of transmission. Furthermore, no additional alterations on the invoice can be done with after it has been sent online to the customer. With all these possibilities, this is due to the increasing recognition of electronic invoicing by consumers and, thus, enables more companies to automate their invoice procedures and, with the aid of the right software, can even integrate other areas of their business systems to rake in revenue generating opportunities, as well as business efficiency.