Definition
eInvoicing is the digital exchange of standardised invoice information between sellers’ and buyers’ accounting systems, using a common agreed standard via a secure network. It enables government to receive and process eInvoices from individuals, businesses and authorised representatives.
eInvoicing is more efficient, accurate and secure than receiving invoices as PDFs via email.
As a capability, eInvoicing is an enabler of Payments – that is, the services that manage government payments. eInvoicing is often delivered in line with an Enterprise Resource Planning (ERP) solution, integrated with the ERP functions of:
- accounts payable receiving and processing as part of the procure to pay value stream
- accounts receivable sending as part of the revenue to bank value stream.
Purpose
The Australian Government uses the Peppol standard and network to facilitate safe, standardised eInvoicing with a growing number of suppliers and vendors. Small business software vendors are increasingly including eInvoicing in their offerings and larger businesses are increasingly eInvoicing-enabled.
eInvoicing improves the efficiency of government accounts payable and receivable functions, enabling the exchange of standardised data faster than other invoicing processes.
This capability supports small businesses and boosts productivity by automating data entry for both entities and vendors, enabling automated processing and facilitating greater interoperability.
The benefits of eInvoicing include:
- reduced manual data entry and fewer mistakes, resulting in 'cleaner' data
- reduced administrative delays and fewer payment issues
- reduced risk of fraud and scams perpetrated via email due to a more secure network and messaging.
Objective
The objectives of this content are to:
- support the uptake of eInvoicing across the APS, helping entities comply with the government requirement to support eInvoicing in their payment systems
- ensure eInvoicing capability is standardised across government, supporting entities and business alike
- ensure investments in eInvoicing solutions prioritise security and privacy in planning, implementation, and operation.
Whole of government applicability
Government must be a leader in the adoption of eInvoicing across the economy. eInvoicing supports government ambition to improve cash flow, disrupt payment redirection scams, and boost productivity across the economy.
From July 2022, use of eInvoicing functionality is mandatory for non-corporate Commonwealth entities. To encourage adoption, government policy requires non-corporate Commonwealth entities to pay suppliers within 5 days for eInvoices, compared to 20 days for non-eInvoices.
The Data and Digital Government Strategy (DDGS) sets a vision for 2030 to deliver simple, secure and connected public services for all people and business, through world class data and digital capabilities.
Suitable handing of eInvoicing as a capability supports the DDGS missions of:
- Provide simple and seamless services: By 2030, APS plans to integrate technology, data, and analytics to offer simple, inclusive, and accessible services. Governments are shifting from traditional department-based delivery to an integrated model. As digital use rises, both individuals and businesses expect better government services. To address this, the Government is adopting a 'digital by design' approach.
- Trusted and secure: supporting the APS to embody best practice engagement by putting in place the right settings and infrastructure to build and maintain public trust and embedding safety by design.