E–invoicing

The European Commission estimates that electronic invoicing (e-invoicing) has the potential to save businesses approximately EUR 64.5 billion per year in Europe alone.

E–invoicing allows companies to streamline business processes as well as increase visibility of their financial supply chain and accounts payable. Research indicates that large corporate customers pay up to EUR 60 for a single incoming invoice, whereas electronic invoices can be processed for 1/10th of the cost.

It is estimated that roughly EUR 500 billion of unnecessary working capital is locked up in the financial supply chains of Europe's top 1,000 corporates, due to poor visibility of payables and receivables. One major reason for this inefficiency is the huge volume of paper in circulation.

With such potential massive cost savings and increased economic competitiveness on offer, it’s no surprise that many governments are strongly advocating change in this area. There are currently 18 countries in Europe, Asia and South America with initiatives and support for e–invoicing. It is expected that by 2010 most EU countries will have mandated the use of electronic invoicing in public administration.

In 2008 the European Commission set up a group of experts with a mandate to prepare a European e-invoicing framework by the end of 2009. This framework will include legal and best practice guidelines, commercial and operational rules for e-invoicing systems and technical standards. Its aim is to support the wider uptake of secure, high-quality and compatible e-invoicing services across Europe. The Expert Group of 30 members is chaired by Bo Harald.