Updated 5.8.2024
Not sure where to start with understanding the most important e-invoicing terms and concepts? Don’t worry, we’ve got you covered.
E-invoicing is one of those things that eases a company’s daily business flow by digitising invoicing processes through automation and structured standards. It is an increasingly important cog in the wheel of financial management but the constantly evolving terminology can be hard to keep up with. In this blog post you’ll learn the most important terms of electronic invoicing and electronic document exchange.
Pro tip: Feel free to bookmark this page and come back to it anytime you need inspiration and support to navigate through the terminology jungle of e-invoicing.
The amount of money a company owes to its suppliers or creditors for goods and services received.
Address and Capability Lookup. Previously known as Service Metadata Provider or SMP. A decentralised register within the Peppol network containing end-users’ connection details and their capabilities for handling different message types and versions.
Application programming interface. A structure or mechanism that allows two software component to communicate with each other, using definitions and protocols.
A set of documents providing details about how to interact with an application programming interface (API). We’re particularly proud of our own free and public API documentation, which you can check out here.
A Norwegian direct debit service allowing automatic payments of bills and invoices.
The process of issuing invoices and conducting financial transactions between businesses.
The process of issuing invoices and conducting financial transactions directly with individual consumers.
The process of issuing invoices and conducting financial transactions between businesses and public or government entities.
A unique identification number assigned to a business entity for legal and administrative purposes.
A UN/CEFACT managed standard for the representation of business documents in XML. One of the 2 approved syntax of EN16931.
The entity that approves changes to the rules and regulations of an organisation. For example, Peppol has several CMB:s.
A document issued by a seller to a buyer, indicating a reduction in the amount owed due to returned goods or other reasons.
Adhering to regulations and standards in e-invoicing. These can be on for example national level, EU-level or even on a global level.
A document, similar to a credit note, issued to correct errors or omissions in a previously sent invoice. It serves as an amendment, providing corrected details without invalidating the original transaction, distinct from a credit note which is typically used to adjust the total amount payable due to reasons such as returns or overcharges.
A debit note is separate from an invoice and informs a buyer of current debt obligations. A debit note is also a document created by a buyer when returning goods received on credit.
A Norwegian digital mailbox service for citizens to receive and manage official digital communications.
The electronic delivery of invoices and billing information, often replacing traditional paper-based billing methods.
An electronic address used for the delivery and reception of electronic billing documents.
A database or system containing electronic addresses used for sending and receiving e-invoices.
Adherence to the regulatory and technical requirements for the electronic exchange of invoices.
An entity responsible for facilitating the exchange of electronic invoices between parties, e.g. Maventa.
An identification code assigned to an e-invoice operator for recognition and tracking purposes.
The electronic creation, delivery, and processing of invoices between business partners.
Electronic Address Identifier. Used in Peppol context, an address used for the electronic transmission of invoices between business entities.
Electronic Address Scheme that describes the type of EAID.
An address used for the electronic transmission of invoices between business entities.
The computer-to-computer exchange of business documents in a structured format.
The Norwegian standard for electronic invoicing and document exchange.
ELMA is a Norwegian electronic recipient register (ACL) of companies and public entities capable of receiving electronic documents.
An invoice sent via email in a PDF or other format for payment processing. An email invoice is not an electronic invoice as it lacks structured data.
A European standard specifying the semantic data model for the electronic exchange of invoice information. Used to streamline invoicing between the EU nations.
The process of purchasing goods and services electronically.
Integrated software applications for managing business processes, including invoicing and financial functions.
An XML-based standard for electronic invoicing used in Finland.
Software designed for managing an organisation’s financial transactions, including invoicing.
Delivery system in the Peppol network where document travels from sender through sending operator to receiving operator and finally to the recipient.
Delivery system similar to the Peppol four corner model but the operators register the transmitted document to a government entity, the fifth corner.
Common way to tax goods and services used in other countries similar to VAT.
A digital representation or a scan of a paper invoice, often used for archiving and record-keeping.
A digital mailbox service for consumers for secure and convenient receipt of digital documents. Originally from Sweden, but nowadays also operating in Finland.
A Swedish register of electronic addresses used for the exchange of e-invoices.
A Danish e-commerce platform facilitating electronic trading and invoicing.
Organisation number, a unique identification number assigned to businesses in Norway.
A Danish standard for electronic invoicing.
A Finnish digital mailbox service for citizens to receive communications instead of paper mail.
An entity responsible for facilitating the exchange of electronic documents between parties. E.g. Maventa is an operator.
The process from receiving an order to collecting payment.
An invoice saved in Portable Document Format, mostly used for sending and receiving invoices via email or to scanning.
Pan-European electronic procurement network facilitating standardised e-invoicing and business document exchange.
A service provider connecting businesses to the Peppol network for the exchange of electronic documents. Maventa, for example, serves as a Peppol Access Point.
Business Interoperability Specifications defining the requirements for Peppol compliant documents.
A directory providing information on Peppol participants and their electronic exchange capabilities.
A secure network infrastructure supporting the exchange of electronic documents using the Peppol specifications. Aims to a simplified and borderless trade for both private business and public organisations.
Specifications allowing different countries’ domestic features to coexist in an invoice, making the format internationally usable.
A traditional paper-based invoice intended for physical delivery.
A service providing physical printing and delivery of invoices.
An invoice issued by a seller to a buyer for goods or services purchased.
The end-to-end process involving procurement and payment.
The immediate reporting of financial data to authorities, often facilitated by e-invoicing systems.
Amounts owed to a business by its customers or clients for goods or services provided.
The systematic process and strategies employed by companies to ensure timely collection of outstanding amounts owed, including monitoring payments, sending reminders, and initiating debt collection procedures.
Representational State Transfer Application Programming Interface, a set of rules for building web services.
The process of directing electronic documents to the appropriate recipient or system.
An invoice issued by a seller to a buyer for goods or services sold.
Checking the structure and adherence to a predefined schema of electronic documents.
A service providing scanning and digitization of paper documents, including invoices.
A service currently run by the European Commission that acts as an address lookup service for Peppol and Nemhandel networks. You find the correct ACL for given EAID using a SML.
A Dutch standard for the use of UBL (Universal Business Language) in electronic invoicing.
Simple Object Access Protocol Application Programming Interface, a protocol for exchanging structured information.
A Swedish standard for electronic invoicing.
An XML-based standard for electronic invoicing, used in Finland, originally developed by Tieto.
Universal Business Language, a OASIS managed standard for the representation of business documents in XML. One of the 2 approved syntax of EN16931.
The United Nations Centre for Trade Facilitation and Electronic Business.
A consumption tax added to the value of goods and services at each stage of production and distribution.
A Norwegian mobile payment application.
A standard for electronic invoicing developed by Visma, a software company.
The convention for representing data in a structured form. A markup language that defines rules for encoding documents in a format that is both human-readable and machine-readable.
German standard format for e-invoice delivery. Will be identical to PeppolBIS in the next version.
Now that you have a comprehensive understanding of e-invoicing terms, it’s time to dive deeper into the world of e-invoicing. If you’re looking to learn the basics of e-invoicing, we recommend checking out our blog post, ‘What is e-invoicing? Here’s everything you need to know from basics to benefits’.