eInvoicing: What you need to know

What is eInvoicing?

In short e-Invoicing is a method for sending invoices from the financial system of one business directly to the financial system of another business. Offering an alternative to the current print/post or email methods that most businesses currently use, and improving the accuracy, security and manual input involved in sending and receiving invoices.

Who can use eInvoicing?

To be eligible for eInvoicing you will need to have a NZBN number, and register with the Peppol network. And, of course, you will need to be using a digital accounting system, or access eInvoicing capability through one of a number of free eInvoicing solutions. Enabling eInvoicing through your software can be done in a few simple steps.

Businesses of all sizes are able to register. Many large companies that you may recognise such as Spark, Countdown and Westpac are already enjoying the benefits.

You can search for your trading partners through the Peppol directory here.

Or

You can download a list of New Zealand businesses registered to receive eInvoices from the NZ government website here.

eInvoicing in New Zealand

The New Zealand Government initiative encourages NZ businesses to adopt eInvoicing with the target of improving payment times and accuracy. The more wide-spread the uptake, the more benefit there is to be seen for those businesses involved.

eInvoicing in New Zealand is set up through the Peppol network, a secure global network capable of translating eInvoicing data seamlessly across different systems and markets.

Benefits

Faster payment

The current processes of printing, posting and emailing, along the with potential for information to be sent to the wrong people or places, and errors caused by manual entry all contribute to delays. eInvoicing can speed up payment, and improve cash flow.

Reduced admin

Switching to eInvoicing eliminates the need to manually enter or scan invoices, rectify errors, or track down missing details. Although you still need to apply your standard approval procedures prior to payment, the reduction in administrative tasks frees up more time for concentrating on growing your business.

Security

eInvoicing is simple and accurate. Invoices are transmitted securely and directly with both sender and receiver details validated, and audit logs kept. This eliminates the risk of loss or interception of paper or PDF invoices, and greatly reduces the risk of fraud.  

Improved financial visibility

eInvoicing allows for more detail on each invoice to be retained, providing better visibility through the invoicing process. This supports analysis, forecasting, planning and budgeting, enabling more accurate financial management.

eInvoicing for Xero Customers

einvoicing can be set up in Xero in a few simple steps. 

Register to receive eInvoices:

1. In the Business menu, click Bills to pay.
2. Click Automate bill entry, then click Register to receive eInvoices.
3. Enter your business’s NZBN, then click Search for business information.
4. Verify your business information, then click Yes, these details are correct.
5. Enter details for the business representative. Select the checkbox to agree to the terms and conditions.
6. Click Complete registration.

Your business is now registered with the Peppol network, and its name will now appear in the Peppol network directories.

When you receive an eInvoice into your Xero it will automatically appear in a 'draft' status for you to then approve. An eInvoice with a total positive amount will appear as a 'draft' bill. An eInvoice with a negative total amount will appear as a draft supplier credit note.

If you would like to find out more about eInvoicing, or would like some assistance getting set up then please give us a call to see how we can help.