PEPPOL e-Invoicing

What is PEPPOL e-invoicing?

PEPPOL, which stands for Pan-European Public Procurement On-line, is an international framework that allows companies to exchange electronic data with one another worldwide. This is designed to simplify the purchase to pay process.

PEPPOL e-invoicing allows trading partners to send invoices digitally between the accounting systems of business suppliers and buyers. This is different from sending a PDF invoice via email. Through the PEPPOL e-invoicing, the invoice is sent securely to the customer’s accounting systems and it will automatically pick up the detail in the system.  This replaces the need for the business to handle the invoice manually. It also works seamlessly with the different accounting systems, as long as it is with PEPPOL enable functions that allow the systems to “talk” to each other.

 

What are the benefits for me as a business owner?

First of all, e-invoicing is sent and received directly into the other party’s accounting system. Therefore, the invoice will not be “lost” in the email folder or did not received it.

Secondly, you can expect less admin work because the invoice will automatically appear in the accounting system. You can just simply log in and approve the draft bill without having the need to do data entry. And when you use a cloud accounting system, you can access the system anywhere. This also eliminates human errors while recording the invoice manually. With less admin work, you and your staff will have more time for other productive matters.

Lastly, by using e-invoicing, it makes it easier for your customer to pay you. Options such as online payment can be included to allow customers to pay you directly.

To encourage Singapore business owners to adopt digital solutions, Infocomm Media Development Authority (IMDA) has introduced a new scheme – E-Invoicing Registration Grant. This Grant provides businesses with a one-time payment of S$200 per company.

To qualify for this grant, businesses need to be registered with ACRA by 25 March 2020. Subsequently, registered with PEPPOL service provider by 31 December 2020. The grant payout will be disbursed automatically by PayNow Corporate to the registered UEN. No application for the grant is required.

 

How do I sign up for E-invoicing?

You will need to sign up for a subscription plan with any cloud accounting system that is PEPPOL ready. There is no additional fee for this feature. Next, connect the account to an E-invoicing partner that integrates with the accounting system. Do follow the instruction directly from your accounting system and it should be simple to set up. Once the integration is done, you are now ready to send and receive e-invoices from your accounting system.

To send an invoice to the other party, you will replace the email address to the recipient’s PEPPOL ID. And you will also need to register on the PEPPOL network to receive the e-invoices from your suppliers or vendors.

Overall the setting up process is relatively straightforward. However, we are happy to assist you if you need help in setting up an accounting system with XERO or Quickbooks Online.