The Essential Laws of Invoices Explained

Understanding the Practical Wisdom of Electronic Invoicing|Electronic Invoicing and Its Mechanism|A New Trend in Billing Via Electronic Invoicing

Following the traditional approach of billing for goods and services rendered is done by issuing a paper invoice, which represents the transaction of trade between customers and their suppliers. 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.

When a business company adopts electronic invoicing in its operation, it will definitely shift its business mechanics into every aspect of its transactions electronically, primarily, because the process saves money and time and, at the same time, provides a better and efficient service to the customers. 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. A company may create a built-in department purposely to handle electronic invoicing or it can save money by outsourcing the services of software companies that provide this kind of service, which is receiving the data transaction and automatically checking that everything is in order and providing an operator to deliver the e-invoice to the rightful customer via e-mail through a link that will be provided. Customers are given the option on how the e-invoice will be sent: by email, through the customer’s sales invoice system, or by both electronic means and a print copy. With mobile phones, it is now more convenient to access electronic invoice by using the right applications.

Not to be confused, while electronic invoice may be considered an online invoice, the differences between the two lies in the platforms used where the online invoice is cloud-based while the electronic invoice is based on the Electronic Data Interchange format. Additional difference of the electronic invoice from the online invoice is the reflection of the signature from the creator of the invoice, as well as the time and date of transmission. Once the electronic invoice is sent to the customer, any changes on it can no longer be done with. The growing acceptance of the online and electronic invoicing by consumers has made it possible for more and more companies to automate their invoice processing and with the right format can further integrate this process with other business systems, thereby resulting into business efficiency and revenue operating opportunities.

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