What is An Electronic PDF Invoice and How Does it Augment Business Transactions? Key Takeaways
An electronic PDF invoice is nothing but a Digital equivalent of a traditional paper invoice. The two most commonly used Invoices are PDF and XML. PDF is a common Invoice format developed by Adobe. The second popular format is XML Format. The document has the extension .xml after its name. An electronic invoice is issued and sent to the buyer in an electronic format. It is nothing more than a digital document in a popular format, e.g. PDF. An electronic PDF invoice is the digital equivalent of a traditional paper one.
According to the currently applicable regulations regarding its form, an E-PDF invoice is as important a document as a paper one from the point of view of the tax administration, entrepreneurs, and other taxpayers. For this reason, the regulations specifying the structure of invoices and the scope of the information they contain, as well as the rules under which they should be stored, also apply to a PDF invoice.
A special case of an E-invoice is a structured one in the form of a structured XML message by a specific standard. It is currently used in public procurement, concessions for construction works or services, and public-private partnerships.
E-invoices offer many benefits. Currently, they are most often saved in PDF or XML formats. How do they differ from each other?
Electronic Invoice – Available Formats Currently, E-invoices have the same value as paper ones. They contain all the features of standard invoices, but are in electronic form, so they can be used on computers, saved on data carriers or in the “cloud”, and easily sent online.
This solution brings several benefits for both the issuer and the recipient of the e-invoice. These include not only saving money and time but also easier archiving, greater security, and environmental protection.
The regulations contain information on what an e-invoice is, what elements it should contain, what the conditions for using E-invoices, and how they should be stored. However, they do not specify the exact format in which electronic documents are to be saved.
Therefore, many entrepreneurs who want to start E-invoicing have difficulty choosing the right format that would make the formalities easier.
The two most commonly used formats for E-invoices are:
What exactly is the difference between these formats? Which of them is worth implementing in your company?
Invoice in PDF Format PDF is a common format for an E-invoice that was developed by Adobe Systems. Files saved in this format have the extensions from the Portable Document Format.
E-invoices saved in PDF format are a visual representation of the data in the document. They can be sent, opened in appropriate programs, and printed.
Sometimes you have to make a PDF invoice or file editable , it also does not allow documents of this type to be incorporated into automated IT systems in the enterprise, for example, accounting programs or EDI systems – electronic data exchange between enterprises.
Moreover, E-invoices saved in PDF format do not allow easy copying of the information stored there. The information contained in the document must be manually transcribed.
How to edit a PDF invoice? Each PDF invoice or file can be formatted and changed. We will have the least problems with documents where text predominates, although there should also be no major problems with graphic PDFs. The most important thing is to choose the right PDF program such as Adobe Acrobat or SwifDoo PDF that will meet our expectations.
In its early release…
Did you know? in its early release, people had to pay to use PDFs. Then in 2008, Adobe released a Public patent for PDFs, it made PDFs for free use and protection.
Invoice in XML Format The second popular form for e-invoices is in XML format. In this case, the document has the extension .xml after its name. The name XML comes from the English language Extensible Markup Language, which can be translated as Extensible Markup Language.
Unlike an e-invoice in the standard PDF format, the one in the XML format contains an additional data template. Most often, it takes the form of a PDF file containing appropriate metadata in XML format. The invoice then looks like a regular E-invoice but contains additional elements that make it easier to use.
it is a universal data exchange format that is used in many business IT systems, or financial and accounting programs. Metadata is then automatically downloaded by systems and makes it easier for companies to save, pay, search, and store E-invoices.
E-invoices in XML format can be prepared using appropriate invoicing software.
The use of e-invoices in the XML format in cooperation with the appropriate software allows you to obtain several benefits, including supporting the automation of document flow, reducing costs, eliminating the risk of errors, and facilitating the exchange of documents between various entities.
Some Additional Options By using online invoicing software, you can also provide your contractor with many other important information. You will inform him about the delivery method and address, provide packaging details, include product photos on the invoice, or provide any comments. You can also use many variants of E-invoice graphic templates and freely configure the content of the footer and header.
Ultimately, nothing is stopping you from attaching additional files or at the same time creating a pro form, advance payment invoice, commercial offer, order form, correction note, or receipt. You can save any document to PDF format with one click.
In Closing Undoubtedly, the ability to issue an E-invoice and then send it to the contractor to an e-mail address in PDF format significantly speeds up business transactions and facilitates settlements with contractors.
However, you should remember to be particularly careful and carefully analyze the invoice, especially in terms of the bank account number to which the payment is to be made.
Also Read: Benefits Of PDF Tools
