Factors to be Considered when Setting up E-Invoicing Systems

European Countries are leaders in innovation and implementation where E-Invoicing is concerned. With international projects like PEPPOL (Pan-European Public Procurement Online), market transactions have become smoother, safer and more transparent. Organizations in Norway, especially, have been proactive where E-invoicing and E-procurements are concerned. There are many reasons for this such as market requirements, ease of legal proceedings, and recordkeeping (Carmen Ciciriello, PEPPOL, "ELECTRONIC INVOICING IN NORWAY, STORY OF SUCCESS", 2014). Organizations new to E-invoicing could familiarize themselves with E-invoicing processes and benefits. Some basic points related to E-invoicing are presented below.

The following are some factors related to E-Invoicing processes:E-invoicing is a system of electronically logging, presenting and monitoring billings and transactions. This system facilitates suppliers to send invoices via the web, which are then received and processed by buyers. This transfer of invoices takes place over what is called an aksesspunkt. These points are used to access the registry of addresses, send and receive data and cross-reference bills. Suppliers and buyers are connected through and E-faktura aksesspunkt. This forms the basis for a notification system that has a fixed structure for delivery of invoices and other documents. Apart from E-Invoicing software, organizations could approach companies that offer E-Invoicing solutions for businesses. Depending on specific requirements of organizations, various entities such as banks, billing service providers, aggregators, etc, could play various roles in E-Invoicing processes (European Commission Banking and Finance 2016).

The following are a few benefits of E-Invoicing:E-Invoicing systems offer huge advantages where efficiency and accuracy are concerned. Because of this, there are various national and international bodies that prescribe and monitor e-invoicing methods and standards (European Commission Banking and Finance 2016). E-invoicing systems do not require manual handling of bills and information. This means that money is retrieved faster from customers. Also, organizations need to spend less on printing, postage, shipping, handling, etc. This facilitates smoother trade between entities, when even each is located in a different part of the world. Where storage is concerned, electronically stored invoices are not only easier and faster to access and browse through, but also physical storage space is not required for these. Additionally, this is also beneficial to the environment as less paper would be needed.

Other Factors:Considering the benefits of E-Invoicing, companies that want to set up E-invoice systems with an aksesspunkt should consider internal requirements beforehand. Organizations would have to plan ahead. There could be a transition period where an organization that has newly shifted to e-invoicing is still generating and processing invoices the traditional way. Another factor that would need addressing is internal training of employees. Organizations would also be required to install the necessary technology and equipment needed to set-up and use e-invoicing. Also, clients of an organization would need to be able and willing to participate in e-invoicing processes (E-Invoicing Basics 2016). Organizations could spend some time researching e-invoicing processes in detail before they make a decision. One company that provides E-invoicing services is Basware. More information can be found on their website.

For every business process and aspect, there are always questions as to which functions should be conducted with premise-based solution or which ones should be outsourced.