Faster automation with e-invoicing: digitally on the move, but not standardized?

The efficient management of invoices and data has long been a decisive factor for business success. However, many companies only became aware of the potential offered by e-invoicing when the German e-invoicing obligation came into force at the beginning of 2025. Others even see it only as a mandatory program without thinking about how they can use the specific benefits of e-invoicing. The key question here is: how can invoice management be made even more efficient - including through integration into existing SAP systems?

What is changing?

The classic digital invoice workflow looked like this for many companies for a long time: The ERP or financial accounting system works together with the automated DMS. The various data relating to creditors, orders and deliveries on the one hand and invoices and postings on the other flow back and forth between the systems.

The DMS usually also took care of the automatic capture of incoming data in the upstream step. As a rule, this was still received in paper or non-standardized digital form (for example as a PDF, the format of which is at best standardized for the human eye). This data, which was automatically captured by the DMS, then had to be viewed and validated manually due to the good but not perfect capture. Faster than completely manual capture - but isn't it more efficient today?

This is where e-invoices come into play: e-invoices use standardized electronic formats such as XRechnung or ZUGFeRD, which no longer have much to do with the form of a paper-based or PDF document. All the information contained in every e-invoice of this type has the same structure.

Trump card: standardized evaluation

This uniform structure means that the data can be read with almost perfect security. The appropriate software immediately knows where to find which data contained in the electronic document. This reliability simplifies the input process immensely and ultimately improves not only the work of the internal teams, but also the smooth exchange between the parties involved in each transaction carried out in this way. With this standardized data readout, the e-bill trumps the OCR (Optical Character Recognition) that was previously used. At the time, this was seen as the technology of the future, but with e-invoicing it has become practically superfluous for invoicing processes.

Has OCR had its day?

Although OCR is far from obsolete - if only because of the non-standardized format diversity of documents in business processes - its days are effectively numbered in the area of invoice capture.the advantages of e-invoicing in the DMS can be transferred directly to SAP systems. All that is needed is a corresponding interface from the appropriate DMS solution to the SAP system.

Efficiency with a familiar interface

In the SAP-integrated DMS, all incoming documents are listed in the familiar SAP interface and can also be opened directly there. This means that all data is not only visible, but has already been transferred to the SAP system mask, without any additional effort or manual checks during initial recognition. With some standardized formats, there is nothing at this point that is reminiscent of a classic paper document. While formats such as ZUGFeRD still combine a PDF (for human viewers) with an XML data record, XRechnungen only contain a data record that looks like alphabet soup to humans. However, the DMS recognizes this jumble of characters faster and more reliably than a human eye could ever scan a paper document.

But wait a minute! Just because the data is formally recognized correctly doesn't mean that the content of this data is also error-free, does it? After all, the data was still entered by (error-prone) human hands on the sender's side. Fortunately, the DMS also helps out here, if necessary directly in SAP: the financial accounting function automatically performs comparisons after receipt of an e-invoice in order to check the electronic data. Discrepancies - for example, if a net amount does not match a gross amount and the applicable VAT - are displayed by the integrated DMS solution with a high degree of reliability. The support also extends to necessary manual changes to the data during the ongoing process: these are completed in no time at all, as the software provides standardized templates for common formats.

Smart software for everyone

In the user-friendly interface, the data captured as an e-invoice can hardly be distinguished from a paper or PDF invoice captured by OCR or manually at first glance. However, the effort involved in capturing the data is so drastically reduced that the process itself is barely recognizable. By relieving accounting teams of routine work, they save valuable hours every day that they can devote to other tasks instead.

Digitization spark e-bill

However, e-invoicing also offers another immense opportunity - especially for companies that have had little contact with comprehensive digitalization to date: Because the mandatory introduction of e-invoicing by legal decree serves as a spark for further digital optimization. Why stop at e-invoicing when there is already a DMS as a basis for even more automation?

Whether you're a digital newcomer or an advanced user, a little help with the ideal use of e-billing never hurts. That's why the provider Easy Software is offering a clear series of webinars on switching to e-invoicing. These include an on-demand course on SAP-integrated e-invoicing or - for more background information - an exclusive interview with an expert from the Federal Central Tax Office, who explains the advantages of e-invoicing for VAT recording.

E-invoices

What are e-invoices? The way in which invoices are created and received has changed significantly in recent years. More and more companies are turning to e-invoices to increase efficiency and reduce costs. In addition, e-invoicing has been mandatory in Germany since January 1, 2025. But what exactly are e-invoices, what advantages do they offer, what do you need to know and why have companies decided to take this step? E-invoices are electronic invoices that are created, transmitted, received and processed in a structured data format. These e-invoice formats enable the invoice data to be read and processed automatically, which leads to greater efficiency and a lower error rate. Common formats include ZUGFeRD and XRechnung.

Important: Electronic invoices should not be confused with an image of the invoice data as a JPEG/PNG embedded in a PDF. The use of e-invoices offers numerous advantages. These electronic invoices have been used for a long time, for example in the automotive industry or in public administration. Experience has shown the following benefits:

Cost savingsNo expenses for paper, printing, postage and shipping.

TransparencyBetter traceability and significantly lower error rate.

No input error through automation: automatic creation of payment data records and simpler posting.

EfficiencyFaster and smoother processing of invoices.

Compared to paper or unstructured PDF invoices, the use of e-invoices is said to have clear advantages. Although the data on this in Germany is still rather limited, ERP manufacturer Sage speaks of a success. SMEs save an average of 13,500 euros per year by using electronic invoices. The German EDI expert Ecosio estimates the cost savings at 65 percent. As part of the new Growth Opportunities Act, the term "e-invoice" has been redefined as follows: "An electronic invoice is an invoice that is issued, transmitted and received in a structured electronic format and enables electronic processing."

With the Growth Opportunities Act, the German government aims to strengthen the competitiveness of the German economy. Another driving force is the European Union. The EU initiative "VAT in the Digital Age" (ViDA) aims to reduce VAT fraud and modernize the VAT system as a whole. The Federal Ministry of Finance (BMF) supports this initiative and is planning a central VAT reporting system. This should be launched by 2030 at the latest; details are currently still lacking. In short: standardized e-invoices are just as necessary a prerequisite for such a reporting system as they are for error-free automatic invoice processing.

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