The European digitisation journey accelerates. As a result of the e-Procurement Directives from the European Commission, all national authorities within the EU must be able to send and receive standardised electronic invoices by April 2019. Here’s the what and why of the PEPPOL revolution – and how to take advantage.
The public sector is heading for a leap in evolution as PEPPOL, the Pan-European Procurement On-Line standard, becomes policy. It's basically a new electronic standard format for transactions.
The value of a standardised electronic format is significant. E-invoice processing reduces errors and manual work, as well as costs in every step of the process: from system development to printing and postage. The potential benefits have been estimated in a report to €40 billion* annually.
To be able to fully reap the benefits, organisations need the right tools.
What is PEPPOL?
Pan-European Public Procurement On-line, PEPPOL, is one of the largest and most ambitious digital transformation initiatives. Initiated by the European Commission with the so-called e-Procurement Directives, and managed by the non-profit organisation OpenPEPPOL, the objective is to accelerate public and private sector digitisation and harmonise standards. A common e-invoice standard offers huge advantages, making business transactions significantly easier, more efficient and transparent for both buyers and sellers.
How does PEPPOL work?
PEPPOL is a network to share trading documents digitally between buyers and sellers. It enables organisations to connect with all possible partners in one single system. The format is typically e-invoices but PEPPOL manages all types of business documents such as contracts and receipts.
The result is instant, fully digital, and more accurate trans- actions. Domestically and internationally. Costs are lowered for all parties, with fewer resources needed and less manual work. System and process complexity is reduced, with less need for format conversion, and improved accounting.
How is PEPPOL implemented?
The directive 2014/55/EU, a key policy in the e-Procurement Directives from the European Commission, constitutes that national authorities must be able to send and receive e-invoices by April 2019. Regional and local authorities may postpone implementation until April 2020 at the latest.
Each member state has the freedom to implement the directives in a way that suits local needs, which means that different rules apply in different countries.
How to get started?
What is the right approach for companies and the public sector? Various invoice management vendors has different solutions and not surprisingly, with a variety of pricing. It's often based on a cost per transaction model.
At Qvalia, we have a different approach. We believe that sending and receiving e-invoices should be just as easy as emailing. And just as free. With our intuitive and easy-to-use cloud-based platform we offer the experience of fully digitised transaction management. Click here for more information about PEPPOL in Sweden
Additional features to increase efficiency are just a click away.
Swedish organisation? Check out this page for more information in Swedish.