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E-invoicing February 2005 |
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José
Luis Hernández Socorro

Accountant. Director
of Gestiones.com |
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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:
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Cost
Saving |
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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.
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Higher
data availability |
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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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