Compliance with legal requirements
Compliant and Efficient Invoicing with SAP DRC
The B2B e-invoice is coming
By January 1, 2025, German companies must be able to receive electronic invoices. Sending them will also become mandatory in stages starting in 2027.
The regulations follow the Growth Opportunities Act and affect all sizes and types of businesses. An obligation to send e-invoices to federal government suppliers has already been in place for three years.
What is an e-invoice?
Unlike a simple PDF invoice, the law defines an e-invoice as an invoice that is available in structured formats such as XML. Germany relies on the "XRechnung" standard (pure XML) as well as the hybrid format "ZUGFeRD", in which an XML is embedded in a PDF file. Both formats meet the requirements of the EU Directive on the Standardization of Electronic Invoice Formats.
Transmission options
Although not regulated, the PEPPOL network is becoming increasingly important for cross-border electronic document exchange.
It allows companies to communicate with authorities and other companies in the EU via approved service providers. Web capture, uploading and emailing are also possible.
The benefits of electronic invoicing are many
Significant reduction in process and throughput costs
Help protect the environment by saving paper
Save time and money through more efficient processes
Faster receipt of payments to optimize cash flow
The SAP Document and Reporting Compliance (DRC) solution
SAP Document and Reporting Compliance (DRC) is a cloud-based solution that helps companies meet these new requirements. This cloud-based application enables companies to automate the process of sending and receiving electronic invoices. SAP DRC supports both XRechnung" and ZUGFeRD" and integrates an HTML preview so that invoices can be professionally reviewed before they are sent.
SAP DRC minimizes the risk of non-compliance by ensuring compliance with real-time, periodic, and ad-hoc mandates worldwide. It helps transform, standardize, and harmonize processes globally to ensure fast and efficient local compliance. By ensuring consistent processing between real-time document submissions and regulatory reports, companies can achieve a seamless transition to continuous transactional controls and regulatory mandates.
The core functions of SAP DRC include
- Automated e-documents with real-time monitoring and correction: Enables secure, automated integration with government and business partners, increasing efficiency and simplifying compliance.
- Comprehensive reporting to automated filing with data-driven insights: Gives users real-time, actionable insight into their ERP to prevent business disruptions and ensure smooth operations.
- Easily extend and create scenarios and reports: A library of predefined processes and real-time scenarios is available to quickly respond to business needs and define compliance reports or quickly customize existing reports.
The solution supports the automated transmission and digital processing of business transactions via standards such as PEPPOL or local standards, and enables efficient correction of transactions through direct access to the underlying transactions. In addition, SAP DRC provides a holistic dashboard, from electronic documents to reports, to seamlessly manage corrections and follow-ups, and to standardize the user experience across different scenarios and countries.
Another advantage of SAP DRC is its global applicability, which enables companies to flexibly adapt to the ever-changing digital legal requirements around the world. This is demonstrated by the availability of region-specific content and webinars on solutions such as e-invoicing in Saudi Arabia, PEPPOL e-invoicing for Australia, New Zealand, and Singapore, and legal reporting for various countries and regions.
For companies seeking seamless integration and compliance within their SAP landscape, SAP Document and Reporting Compliance provides a robust and adaptable solution to meet e-invoicing and regulatory reporting requirements worldwide.
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E-Invoicing with SAP Document and Reporting Compliance
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