If you are looking for What Is PEPPOL E-Invoicing, then here is a complete step by step guide. Everything that you need to know. Peppol e-invoicing is a framework used in more than over 32 countries. But what is Peppol e-invoicing?
Before jumping to that, let us briefly introduce Peppol!
What Is Peppol?
It is a mechanism to send and receive electronic transactions or e-invoices in the public and private sectors. Based on international standards, it is a network that allows critical business transactions keeping it secure.
Originally designed as per the EU standards, Peppol caters to a large number of businesses in Europe. But that’s not the end. Due to the security this network provides, businesses from all over the globe are now connecting to this network. The countries include Singapore, the United States, New Zealand and Canada, to name a few.
Any business that is a part of this network can share its critical business documents with ease and, as stated above, with security. Since many businesses are connecting to this network, it will not be wrong to add that soon Peppol will become a global standard.
Peppol is considered by businesses, due to the ease it provides in carrying the electronic transactions. Companies from the public and private sectors are a part of this network.
Now comes, what is Peppol e-invoicing?
What Is Peppol E-invoicing?
Every country follows a national standard to generate e-invoices that need to be sent to the public sector. But, since 2020, in the EU especially, all public sector authorities are abided by the law to follow peppol invoicing. This takes away the hassle to know about different rules and regulations for generating e-invoices.
As stated earlier, Peppol is not limited to the EU now. It has been growing globally as a standard. So, what is Peppol e-invoicing? Let us discuss this in detail!
It is a standard used to exchange electronic orders, shipping documents, order confirmations and goods catalogues. So, it is not limited to e-invoicing only.
How Does Peppol E-invoicing Work?
Peppol is a set of standards for exchanging electronic documents like e-invoices. This means, a document that needs to be exchanged using Peppol, must fulfil certain conditions to be accepted to be exchanged. Any business is bound to accept your e-invoice as long as it is complying with the set standards.
The business can be public or private since Peppol is adopted by both sectors. It is a two-way exchange standard. So, any business, that is a part of the Peppol network, can both send and receive e-invoices. As per the standards agreed upon, any invoice received via Peppol is paid within five business days.
Now comes the most critical question.
How will you determine that your e-invoice meets the Peppol standards?
Or, how will you ensure that the intended recipient has received your e-invoice?
Peppol Access Point is the answer.
Keep reading to know more.
What Is Peppol Access Point?
The way you need an access point to connect to a network, you need an access point to connect to the Peppol network too. Peppol Access Point serves as a connection that is taken through a service provider. All businesses connected to some Access Point are legible to exchange their electronic documents.
Peppol Access Point works exactly the way a telecom provider works to connect two or more entities through an access point. Similarly, like a telecom provider, there are several access point providers for peppol that allow the formation of a secure, global network. You can choose any from about 300 certified Access Point providers.
The transfer of data (e-invoices or other electronic documents in this case) happens using a four-corner model. Each corner caters to one of the four entities involved: you, the recipient and the respective access points of each of you. When you exchange electronic documents with a recipient, it first reaches their access point through yours. The receiver’s access point then transfers the documents to the recipient.
What Is Peppol Authority?
The Peppol Authority is appointed to check whether or not the access points are following the service specifications and technical standards set by Peppol.
There are 17 Peppol Authorities currently working. These authorities can regulate the services and technical standards as per the national requirements applicable to the region of the Access Point. These requirements apply to the content and design of the Peppol documents.
The international non-profit organization, OpenPeppol, reserves the right to develop and disseminate the Peppol standard globally. All 17 Peppol Authorities refer to OpenPeppol for maintaining their standards.
Why Use Peppol For Business?
Business processes are moving towards digitalization. Using e-documents, especially e-invoices plays a significant role in this transformation. We have already discussed that e-invoicing is fast and reliable. But, it is also more cost-efficient than paper mail or PDF invoices. Peppol has become the most adapted e-invoicing service in the public and private sectors. Moreover, Peppol is open source, therefore, communication among businesses and industries using it is easily possible.
Peppol is not a platform limited to exchanging documents. It is an IT infrastructure that connects all the businesses available on the network. Other than the document exchange, it allows communication on the network through messages.
In the modern era, where Peppol is getting its due acknowledgement in 32 countries, it is also globally expanding its network. The process of sending and receiving invoices to public and private businesses has become a lot easier. The service provider authorities or the Access Points have also been designed with a rigorous infrastructure that guarantees security over the network.
If you also want your business to join this trusted network and make your business processes smooth, Peppol e-invoicing is the best option!
How to register your business on Peppol?
The answer is easy. Connect with K&K IT. We are here to help you!
What are the primary business benefits of an ERP system?