Before explaining why it is important for businesses, especially those in Southeast Asia, to find a PEPPOL invoicing enterprise resource planning (ERP) system, we must first answer the question: “What is PEPPOL?”
PEPPOL stands for Pan-European Public Procurement Online. According to OpenPEPPOL, “PEPPOL…is a set of technical specifications that aim to harmonise and simplify electronic procurement processes, reducing ‘digital’ barriers to trade across the EU.”
Established in 2008 and implemented by the IMDA in 2019, PEPPOL invoicing (currently known as InvoiceNOW) allows organizations to send and receive electronic invoices safely and without manual intervention through “interoperable commercial PEPPOL ‘access points.’”
If you’re wondering, “Do I need PEPPOL invoicing capabilities?”, the simple answer is “Yes.” Government agencies, such as those in Singapore, are pushing for vendors to use PEPPOL einvoicing for all future government contracts, especially those in the construction industry. Companies outside the InvoiceNOW network will ultimately be excluded from any government engagements or contracts.
Prior to electronic invoicing (einvoicing), lack of productivity, inaccurate information, and human errors in data entry were common complaints levied against manual, paper-based invoicing processes. However, technological advances over the past decade have helped businesses move to automated einvoicing, and the benefits are clear.
Sellers can increase efficiency through quick, accurate invoice creation and by eliminating the constant printing, posting, and storing of traditional, paper invoices. This is both cost-effective and eco-friendly. When you use PEPPOL einvoicing, you send invoices directly (and quickly) to your customers’ systems, which often results in faster payments.
Buyers can expect increased accuracy and a standardized format from different sellers. The e-invoices will also be automatically filled within your system, allowing you to pay them on time.
For PEPPOL invoicing to work, you need a PEPPOL Access Point (AP) that connects to the PEPPOL network. When you purchase this service from a service provider, such as a PEPPOL einvoicing ERP solution, you will be able to send electronic documents to, and receive them from, other companies with an AP.
The procedure for getting an invoice to the proper person involves four parties, and, thus, it is known as the “Four Corner Model.”
Basically, the issuer directs the invoice to the AP sender. The service then moves the invoice through the secure PEPPOL Network to the AP receiver, which passes it on to the recipient.
Finding a PEPPOL einvoicing ERP solution, which complies with government requirements and is specifically designed for the construction industry, would be the easiest, most effective way to set your business up for einvoicing success.
What is an ERP solution? An ERP solution integrates data from business-critical applications and departments into a single, centralized database, providing synchronized information and insights into the entire organization. It automates manual tasks and administrative processes, increasing efficiency and profitability. If cloud-based, an ERP solution is also accessible remotely. Employees can reach the system from the office, at home, or on the road—day or night.
For those in the construction industry, the complexity of managing multiple projects with integrated, mobile technology is simplified. Front office, back office, and jobsite needs seamlessly integrate with specialized applications (e.g., Procore, ProEst, etc.). Because information is synched, everyone has the same job costing, change management, budgets, compliance (and more) data at their fingertips.
As a seller or buyer, your einvoice information is populated automatically within your accounting and financial modules. Generating and receiving einvoices does not require manual intervention, as the information is already updated and accessible. Connecting people, processes, and technology in this way creates a connected business—a critical step for success in response to the changing governmental requirements that businesses in Southeast Asia must follow.
As Singapore’s government moves toward making InvoiceNOW the standard einvoicing method, all businesses that interact with the government must be set up and ready to go. Acumatica Cloud ERP is an approved PEPPOL solution, with various editions designed to suit the needs of specific industries (including the Acumatica Construction Edition).CRT Insights Technologies, a provider of technological solutions and expert consultations on ERP implementations, can help you get started with Acumatica Cloud ERP and InvoiceNOW. We can tell you what PEPPOL einvoicing is, how to register with Acumatica for an InvoiceNOW profile, and what to expect. Contact our experts today
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