United States Launches Electronic Invoicing Pilot Project
The Business Payments Coalition along with the Federal Reserve is developing a pilot project with the objective of establishing a standardized B2B electronic invoice exchange system in the United States. The initiative seeks to establish a standardized e-invoice model and create an electronic document exchange network, very similar to the PEPPOL system developed in Europe.
The pilot will run through the end of 2022 with the goal of establishing an operational B2B invoice exchange framework for the U.S. market by 2023. More than 80 organizations are participating in the pilot.
The US network will provide an electronic document exchange infrastructure to facilitate and promote trade both domestically and internationally, enabling efficient processing across all sectors.
U.S e-Invoicing Pilot reaches the first of three onboarding waves
The market pilot has just reached a major achievement where participants have started exchanging e-invoices using the framework. More than 30 organizations are involved in the market pilot waves and 17 are participating in wave one (April 1 to June 30), which is focused on testing initial technical specifications for exchanging e-invoices. Wave two (July 1 to September 30) will further refine specifications and onboarding steps for businesses, and wave three (October 1 to December 31) will finalize specifications for production. The three waves will run through the end of 2022; however, there are a variety of close out activities based on the success of the market pilot that will likely continue into 2023.
Participating market pilot organizations will have freedom to test the e-invoice exchange framework according to their own business needs. For example, some participating solution providers may use the e-invoices to initiate payments, while others may solely exchange e-invoices to test capabilities and specifications.
EDICOM, as a global technology provider of e-Invoicing solutions, is closely following this initiative and participating in the pilot as well as the work groups organized for the development and testing of the system. If you are interested in participating in the pilot with EDICOM, contact us.
What is the e-Invoicing model for the U.S being proposed by the BPC?
The proposed system is based on the exchange of electronic invoices through a Four-Corner Network Model, in which electronic documents are sent and received through Access Points that connect network users. All companies are senders and receivers. Once connected companies can exchange with all others registered in the network.
The communication protocols will be AS2/AS4. The process will support request and document status responses.
The format will be based on the existing OASIS UBL 2.X format for invoice and credit note documents. The structured file will be able to include attachments and will include electronic signature. The fields that will be included are:
- Supplier and customer information
- Shipping information
- Payment instructions, bank/card information
- Document and item level charges, discounts, and taxes
- Item descriptions
- Notes section
Benefits of electronic invoicing
In a global market companies must seek opportunities by becoming more competitive, which sometimes means taking a technological leap that improves both the organization and the quality of the information handled, optimizing internal processes and people management.
Digitalization involves automating those processes that guarantee time reduction, error reduction, and cost savings derived from the greater efficiency of the entire purchasing and payment management process. These improvements undoubtedly contribute to the optimization of the supply chain, providing transparency and efficiency for total integration of communications.
Features of EDICOM’s Global e-Invoicing solution
- Integrated SaaS Platform with your ERP: Our integrated EDI solutions operate in SaaS mode, implemented on a technological architecture in a private cloud developed and managed by EDICOM, which implements all the applications and management resources required to ensure uninterrupted exchange of all your EDI transactions. The platform establishes links with your ERP, CRM, and all management applications involved in electronic data exchange with your partners.
- Multi-standard and multi-protocol: The global platform has multi-standard (EDIFACT, X12, UBL, PEPPOL, ODETTE...) and multi-protocol (AS2, AS4, OFTP, X400, SFTP...) functionality, guaranteeing connectivity with any partner worldwide.
- Fiscal control: EDICOM has international certifications as a trust service provider to provide electronic transactions with the required security measures. Electronic signatures, timestamps, or tax control codes and specific identifiers must be considered to provide documents with tax value.
- Scalable solution: The platform always adapts to the needs of companies, expanding projects according to the requirements of each region.
- Communication with partners without the capacity to send or receive electronic invoices. For this, you should have a platform that includes specific functionalities such as web portals that allow your customers and suppliers to communicate with each other, even if they do not have an EDI solution.
- Electronic archiving: (EDICOM Long Term Archiving) is the certified long-term electronic storage solution offered by EDICOM as a Qualified Trusted Service Provider. The service applies identification, digital signatures, and electronic chronological validation mechanisms in compliance with the eIDAS Regulation, thus guaranteeing the integrity and authenticity of the files stored over time.
- Centralized management: Working centrally from a single global ERP for the entire company requires a single e-invoicing solution capable of issuing invoices in compliance with the requirements of each country in which the company operates.