The conventional method of invoicing, which refers to billing for rendered goods/services used in business between customers and their suppliers, is usually paper-based or through printed paper format. With the limitless space for many creative ideas in the web, no longer are invoices existing as paper-based but to business transactions that are heavily dependent on digital technology, invoices can now be transmitted electronically and this is known as electronic invoice or e-invoice.
Many business companies are shifting to electronic invoicing because of these reasons: e-invoice is cheaper than paper invoice, therefore, you save money and time in invoicing cost and this kind of facility serves the customers better because it is fast and efficient. Every process introduced in coming out with an electronic invoicing uses encoding guidelines that are known as standards which are based on Electronic Data Interchange. Aside from the standards used, the layout of an e-invoice is electronically arranged using the XML or UBL message format. For a company to operate and process electronic invoicing, it could provide its own staff to handle this or it could save money by outsourcing from software companies that are on this form of service, such as receiving the data transaction and automatically checking that everything is in order and providing an operator to deliver the e-invoice via e-mail to the rightful customer through a link which will be provided for. There are also other options for a customer to choose where the e-invoice can be sent and that is by electronic transmission into the customer’s sales invoice system or the invoice is still sent electronically but a hard copy, at the same time, will also be sent. And with the advent of smartphones, it is now convenient to send electronic invoice via mobile phones using the right applications.
One must also understand that there is a slight difference between online invoice and electronic invoice, such that the online invoice uses an online platform, like cloud-based, while the electronic invoice follows the Electronic Data Interchange standard format. While it is a fact that the invoice content should include pertinent information to the transaction sale, which holds true for both online and electronic invoice, the electronic invoice, adapting the Electronic Data Interchange, uses a format where the signature from the creator of the invoice is reflected, as well as the time and date of sending is stamped on it. Once the electronic invoice is sent to the customer, any changes on it can no longer be done with. Due to the efficient manner of providing electronic invoice to the consumers, there is now a growing recognition to adapt electronic invoice in almost all online transactions, thus prompting more and more companies to automate their invoice processing, as well as developing other integrations in their business systems where there is an improvement in their business efficiency and, at the same time, allowing to explore revenue operating opportunities.