Download the European e-Invoicing Guide for SMEs - Celeris Ltd.

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European E-Invoicing Guide for SMEs 2.1. MANUAL INVOICING PROCESS This diagram depicts a simple manual invoicing process between two companies. The number of steps involved will vary depending on the size of the business, the number of departments and controls involved, and the complexity of internal systems and processes. SENDER RECEIVER ERP system produces Invoice batch Prints invoices Sorts by customer Inserts in envelopes and applies postage Delivers to Post Office or arranges pick-up Copy of invoice is archived Figure 1.1 POST OFFICE Opens mail and date stamps invoices Checks against orders or obtains approval to process Looks up supplier and expense codes in system Enters invoice details into ERP system Invoice data reviewed and approved for payment by authorised person Invoice is matched to supporting documents and archieved In this scenario, there are unnecessary costs and time spent by both parties on highly repetitive tasks allowing for human error in every step of the process. 7 INTRODUCTION TO E-INVOICING
European E-Invoicing Guide for SMEs Key considerations can be described as follows: For the Sender • cost of labour for invoice printing, sorting, stuffing envelopes, posting, and archiving • cost of postage and paper • environmental impact of paper and physical delivery • possible printer or mailing errors resulting in missing invoices • possible sorting errors resulting in one customer receiving another customer’s invoices • cost of calling customers for late payments as a result of missing invoices • cost of posting invoice copies and possibly extending terms • cost of the organisational structure (manpower) to manage invoice handling • cost of paper documents archiving • cost related to archive management (e.g. searches, logistics, etc.) • impact on customer relations as both parties generally believe the other is at fault For the Receiver • cost of labour for opening mail, sorting invoices by supplier, date stamping, matching to orders or other supporting documents, looking up supplier numbers and account codes for processing, entering the data into the computer and checking input for accuracy • possible errors in data entry resulting in incorrect payments and reconciliation issues with suppliers or incorrect internal postings leading to further accounting problems • cost of additional staff in order to segregate data input from invoice approval • cost to maintain the paper archives NOTE: While ERP by definition means 'Enterprise Resource Planning', it is also commonly used to describe the information system where your customer accounts are located, core business activities are performed, and financial transactions recorded. In some cases, these activities may be carried out in more than one system. 8 INTRODUCTION TO E-INVOICING
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Page 3 and 4: THE EUROPEAN E-BUSINESS LAB The Eur
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AUSTRIAN FEDERAL ECONOMIC CHAMBER T
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CBI CONSORTIUM - CUSTOMER TO BUSINE
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SEPA INTERNATIONAL Our mission is t
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