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  • Benefits of eInvoicing

    There are many benefits of Peppol eInvoicing for suppliers and buyers.

    Cost savings

    Generally, paper and emailed PDF invoices costs between $27 and $30 to process. eInvoicing enables process-automation and reduces costs to less than $10 an invoice.

    You:

    • as a supplier, will no longer need to create paper or PDF invoices to print, post or email
    • as a buyer, won't need to scan and manually enter invoices into your software
    • can automate processing of invoice through eInvoicing
    • can save on material costs and reduce your environmental impact through less paper, printing and physical delivery.

    While you still need to apply your internal checks and assurance processes before paying your invoices, you may see cost savings due to automation of manual administrative tasks and faster processing.

    As a result, payments may also be made faster helping improve your cash flow. Some federal government agencies are already paying eligible eInvoices within 5 days.

    Fewer errors

    An eInvoice is accurate and complete. eInvoicing uses standardised data that is validated before the eInvoice is sent through the network to your software.

    With eInvoicing you don't need to:

    • re-type or scan invoices
    • make corrections
    • chase missing information.

    Reliable and secure

    • eInvoices are exchanged securely through the Peppol network by approved access points, using the buyer's and supplier's ABNs.
    • The risks of fake or compromised invoices, email scams and ransomware attacks are lower compared with posted or emailed invoices.
    • There is no risk of lost invoices.
    • You keep control of invoice processing. This includes verifying and approving invoices. eInvoices can only be viewed by the supplier, buyer and digital software provider, where needed.
    • eInvoices do not go through the ATO and we cannot view them.

    Accreditation

    To be accredited for eInvoicing with the Australian Peppol Authority, DSPs must carry out appropriate validation checks and apply security and integrity measures. For example, they must check ABNs to make sure they are active and valid for use in the eInvoicing environment. They also must check that mandatory invoice details are included on the eInvoice, to meet the Peppol standard.

    Validating ABNs means you can better identify the sender. This increases protection against the fraudulent misuse of a business’s ABN.

    Reduced payment times

    Federal government agencies are paying eligible eInvoices within 5 days. This applies to eligible contracts up to $1 million where both the supplier and buyer use Peppol eInvoicing.

    State governments are also encouraging eInvoicing. For example, NSW Government has mandated eInvoicingExternal Link for all government agencies by 1 January 2022. Other states are working on their approach.

    See Australian Government Supplier Pay On-Time or Pay Interest PolicyExternal Link.

    Connect once, trade with many

    Businesses only need to connect once to trade with anyone on the Peppol network.

    • Businesses can trade regardless of their size or type of accounting software they use.
    • Large businesses in public or private sectors can add Peppol to their trading networks and help others to do business with them.
    • All that's needed is that both the supplier's and buyer's software are connected to the Peppol network.

    Start talking about eInvoicing

    You can start talking about eInvoicing and the benefits as:

    • a business to your buyers or suppliers
    • a tax professional or book-keeper to your clients
    • a DSP to your users
    • a business adviser to your clients
    • an industry representative to your associations and their members.
    Last modified: 20 Dec 2021QC 67571