Low levels of receiving electronic invoicesIn recent years e-invoicing has gained more and more popularity and companies are much more inclined to adopt e-invoicing and have become less skeptical about the benefits. Now, more than ever, we have the technology that allows for the adoption process to go faster and smoother. Furthermore, companies that have implemented a procurement software solution already have the option to adopt e-invoicing built into their system. So, what seems to be the hold up? Basically, it all comes down to the human nature of being resistant to change. Let me explain. Many companies have already implemented e-invoicing, whether that is via implementing a S2P software solution that comes with e-invoicing capabilities or that they are complying to certain rules and regulations regarding sending e-invoices. The problem, however, is the low volume of receiving electronic invoices. Plans to help increase this volume have been developed even at a regional level, with the EU planning on making electronic invoicing the main method of invoicing by 2030. To achieve this, it has launched several initiatives to increase adoption, one of those was the introduction of a European Standard for e-invoicing to eliminate the many e-invoice formats used across the EU. After running many procurement system optimisation reports, we identified 3 frequent reasons for low levels of receiving e-invoices:
- Lack of standardisation: e-invoices come in different formats and are produced according to different standards, as systems are developed by many different companies. This can sometime affect the transfer of an electronic invoice from one company to the other, and it could alter some of the information it contains.
- Security: many organisations are concerned about the security an e-invoicing system offers.
- Accuracy: there are many concerns regarding data accuracy when it comes to e-invoicing. Data used to populate electronic invoices is often pulled from different departments inside the organisation, using different systems. To this you need to add supplier data which can sometimes be incomplete or even inaccurate. So, a big concern remains data accuracy, whether we’re referring to supplier data or internal data.
Solutions for low levels of receiving electronic invoices
- Review AP processes
- Supplier Tiering
- Supplier Enablement