Alternatives to Paper Invoices in the Digital Age

Document management in the digital age is a more than a good idea. It is basically a must. With information overflow fueling the business engine every moment, managing information correctly is essentially a strategic move that can improve business performance.

Over the lat years, e-invoicing has become increasingly popular. More and more businesses choose the electronic sending and receiving of invoices instead of printing invoices and using the regular mail. Especially, large organizations are switching to e-invoicing to take advantage of the numerous benefits that it offers. The acceptance of e-invoicing not only can enhance the internal efficiency, but can also positively influence the business processes through optimization, make the organization more competitive through automation and generate potential savings in logistics, sales, marketing and finance.

E-invoicing can be practiced in several ways. In particular:

EDI

One of the most popular methods of e-invoicing is the Electronic Data Interchange (EDI), a standard format for exchanging business data. By sending an EDI message, the supplier sends a standardized UN/EDIFACT, ANSI X12 string of data elements that contains all the information of the transaction including the price, the product serial code etc. By using a value-added network (VAN) that plays the role of the traditional post office, the trading partners can transmit their documents, check the "from" and the "to" information, and route the business deal to the final recipient. Moreover, suppliers can provide third party audit information and use Internet-based protocols.

SAP

SAP is another popular method of e-invoicing. Particularly, for small and midsize companies (SMEs) that cannot afford on their own the cost of switching to e-invoicing, SAP provides a series of innovative solutions that drive operational efficiency and improve organizational performance. By focusing on customer relationship management (CRM), SAP helps SMEs to gain a clear insight for key performance indicators, transform their customer interaction center into a strategy delivery channel and make strategic decision making with a customer-centric view. Besides, SAP provides generic solutions for a variety of industries including aerospace & defense, banking, engineering & construction, media, oil & gas, retail and many others.

Web Portal

Web portal is another method that facilitates e-invoicing. Providing customizable access to data including email services, it enables the transmission of invoices through an organized gateway. Well-known examples of web portals (that are often mistakenly confused to search engines) are Yahoo!, AOL , iGoogle, Netvibes and MSNBC.

In conclusion, in today's competitive market realities e-invoicing makes business sense. Suppliers can cut their costs by 40 percent to 80 percent; trim down the costs of invoice storage; have online access of their invoices 24/7 and get an invoice acknowledgement as a guarantee that their customers not only have received, but have read the invoice. Similarly, customers can trim down the costs of invoice storage; have online access of their invoices 24/7 and comply with national government regulations. All these factors make e-invoicing less expensive and more reliable.

Sources:

http://www.unece.org/cefact/forum_grps/tbg/tbg15/project_docs/Utimaco_e-Invoicing_presentation.pdf

http://en.wikipedia.org/wiki/Electronic_Data_Interchange

http://www.sap.com/index.epx

http://www.wisegeek.com/what-is-a-web-portal.htm