eInvoice Obligation: The Countdown Is on! – Efficient Changeover with the Public Cloud
September 19, 2024 | Reading time: Approx. 4 minutes
Experts from the FIS Group
Do you have the impression that your enterprise might have already missed the boat heading towards eInvoices? No need to worry. It is exactly the right time for you to strategically tackle your changeover. Since January 2025, B2B enterprises have successively been obliged to issue eInvoices. You can read in the blog article, how the changeover to structured and machine-readable invoices optimizes your processes, lowers costs and reduces errors. Furthermore, you will learn how you can achieve an efficient changeover by using SAP S/4HANA Cloud Public Edition.
Digitization encompasses all areas of our business life and invoicing is no exception here.
Classic paper invoices that used to characterize the image of payment transactions over many years are increasingly replaced by electronic invoices, the so-called eInvoices.
However, what exactly is behind this development and why should enterprises act now?
What is an eInvoice?
An eInvoice represents an important step towards automation and increased efficiency. In contrast to traditional invoices that are printed on paper or sent as PDF files, eInvoices are based on a structured and machine-readable XML data record.
This structure enables the electronic transmission of invoice contents without causing media changes. This means that the data can directly be sent from the invoicing party to the recipient, automatically processed and payments made.
As of January 1, 2025, this innovation will successively become an obligation for all enterprises in the B2B area that issue/receive invoices for/from companies in Germany. There will be a transitional period until 2028; however, enterprises should already familiarize themselves now with the required adjustments to benefit from the numerous advantages of eInvoices.
What are the benefits of eInvoices for enterprises?
A changeover to eInvoices involves numerous benefits for enterprises on both sides – i.e. invoicing parties and invoice recipients.
For invoicing parties:
For invoice recipients:
SAP S/4HANA Cloud Public Edition as an enabler for eInvoices
To make the implementation of eInvoices as smooth as possible, numerous enterprises rely on SAP S/4HANA Cloud Public Edition (public cloud). It provides a flexible and scalable environment that ideally adapts itself to the requirements of small and medium-sized enterprises. By means of this cloud-based ERP solution, enterprises cannot only efficiently manage their invoicing processes but also other core processes such as sales and distribution, production and stockholding.
A major advantage of the public cloud is its adaptability. It enables enterprises to dynamically adapt their IT infrastructure to growing requirements. Other advantages are fast implementation, lower implementation and operating costs as well as regular updates which ensure that the systems used always remain state of the art.
How do enterprises benefit from the combination of public cloud and eInvoice?
The combination of public cloud and eInvoice provides enterprises with numerous options of optimizing their processes. Due to the integration of eInvoices and the use of cloud-based services such as SAP Document Reporting Compliance and FIS/InvoiceManagement, the receipt of invoices throughout Europe is enabled without any problems via the Peppol network or via e-mail. This seamless integration ensures consistent and efficient processes within the entire invoice processing.
Conclusion: utilization of opportunities due to targeted preparation
The changeover to eInvoices and the implementation of a public cloud solution poses challenges for enterprises but also provide enormous opportunities. Enterprises preparing for the upcoming eInvoicing obligation as of 2025 have to adjust their invoicing processes in good time and make them efficient.
This changeover requires diligent planning and resources that many enterprises cannot provide without more ado. Solutions such as SAP S/4HANA Cloud Public Edition enable centralized and efficient invoice processing, which helps enterprises lower their costs and, at the same time, ensure compliance.
An experienced partner might be a valuable support here. Let us go the way to the future of digital invoicing together – in an efficient, safe and cost-saving manner.
Questions about this topic? Our team will be happy to assist you personally.
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