Fraud and Compliance

What is e-invoicing and is e-invoicing mandatory?

SAP Concur Team |

Moving to electronic invoicing  (e-invoicing) is no longer an option for businesses, it is becoming mandatory in some industries. Propelled by the goal of decreasing payment cycle times and costs and increasing efficiencies, mandatory e-invoicing legislation is on the rise, driving the transition from paper to electronic invoicing and archiving.

The public sector is one of the first industry segments to shift towards e-invoicing. Australian federal government agencies must have e-invoicing in place by July 1, 2022. The Australian and New Zealand governments are also strongly encouraging state and local government agencies to adopt e-invoicing.

What is e-invoicing?

E-invoicing is the automated digital exchange of invoice information directly between a buyer's and supplier's accounting systems. With e-invoicing there is no longer a need for businesses to generate paper-based or PDF invoices that must be printed, posted or emailed. Buyers will no longer need to manually enter or scan these into their accounting system.

E-invoicing uses a predefined electronic format. It improves efficiency, reduces cost, and gets supplier invoices paid much faster. Read our E-invoicing FAQs  for answers to our most frequently asked questions.

What happens if an organisation doesn’t adopt e-invoicing?

Australian federal government agencies are mandated to adopt e-invoicing by the Australian government before July 2022, otherwise they could face repercussions. Other organisations that don't adopt e-invoicing face delayed invoice payments, higher costs, and risks of errors and fraud associated with manual invoice processes.

How to prepare for e-invoicing

1. Seek expertise. It’s important to have a clear plan for long term success and seek expertise from a trusted software partner with public sector experience.

2. Be flexible with implementation. Even though e-invoicing is based on PEPPOL open standards, it is not a one-size-fits-all solution.  The right e-invoicing solution will seamlessly integrate with your organisation’s existing applications, and deliver benefits across all suppliers whether they use e-invoicing software or not.

3. Measure the business impact. The chosen e-invoicing solution should immediately begin to deliver a return on investment through improved administrative efficiencies, a significant reduction in manual processing, and faster payment cycles.

Download our Guide to e-invoicing and Peppol in Australia and New Zealand for handy information and useful tips to help get started.

 

Fraud and Compliance
The 2026 ACFE Report to the Nations offers the clearest views available into how occupational fraud actually occurs, how long it goes undetected, and where controls continue to fail.
Keep reading
Fraud and Compliance
Our EOFY Checklist for Australian Businesses lays out a practical roadmap to sail through the crunch period and start the new year in fighting shape.
Keep reading
Fraud and Compliance
Download the full report for insights into how fraud is changing, where gaps in visibility, training, and technology exist, and what finance leaders can do to strengthen controls and reduce risk.
Keep reading