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E-invoicing   February 2005
 
José Luis Hernández Socorro Curriculo
Accountant. Director of Gestiones.com
 
From now on, dusty and chaotic archives are a thing of the past. The time has come for the e-invoice. All Spanish companies, regardless their size and activity, have the support of a legal framework validating the digital exchange of electronic invoices. By means of a combination of the EDI system (Electronic Data Interchange), the digital signature, and the electronic invoice, which now has full legal validity, thousands of companies will be able to avoid mistakes, reduce administrative costs, save time and reduce judicial pitfalls. In addition, the electronic process is more ecologically sound due to the lack of paper usage. Sending these kinds of documents is simple and, in addition to containing the same data as paper invoices, the e-invoices will include a digital signature.

Traditional invoicing process consumes a considerable amount of human and physical resources. The electronic invoice authenticated by a digital signature produces a cost saving between 2 and 5 euros per invoice for issuers (the amount varies according to the turn over, the complexity of the invoice, the automation of the invoice, etc.) through the removal of paper processes as printing, and delivery and handling expenses. Costs are reduced for invoice receivers through the removal of reception expenses, document handling, and archiving. More benefits for companies are reduction of ordering errors and invoice issuing, continuous updating of internal catalogues, and optimization of internal processes.

Electronic invoices have to be protected by a digital signature in order to ensure the full legal validity of the process. This is a method to guarantee data privacy, to avoid the modification of these data (integrity), and to authenticate the issuer identity. In order to use this system, the issuer will just need the approval of the receiver. Main benefits of e-invoicing can be summarized in two categories:

 
Cost Saving
 
a) Time and human resources saving in non valuable tasks.

b) Higher personnel productivity, as they are no longer dedicated to data input and document management.

c) Stamps, paper and envelopes are no longer necessary.

d) Invoices are electronically archived, thus avoiding paper archiving.
 
Higher data availability
 
a) Electronic Document Interchange (EDI)

b) Data Automation and Integration.

c) Data are free of errors.

d) Content integrity and issuer identity privacy (it is extremely difficult to falsify)Contract of hire on the property or contract of business assignment. This includes all the contracts dating back to the purchase date of the property, in order to confirm the continuity of the busines.

Main features of digital invoice may be summed up as following:

- The approval of the receiver is necessary.
- The full legal validity is only obtained through the digital signature
- It is not necessary to be authorised by Tax Authorities, and no agreements have to be signed.
- Software authorization and notification is removed, so a quick, bureaucracy free system is obtained.
- Any means of transmission are accepted: Internet or e-mail. The only requisite is the digital signature, so issuer privacy and data security are guaranteed.
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