SAP and e-invoicing – an overview
Advancing digitization and legal requirements mean that companies have to modernize their invoicing processes. In Germany, the obligation to issue electronic invoicing (e-invoicing) will be introduced from 2025. This article provides an overview of the most important aspects of e-invoicing in the SAP environment.
What is e-billing?
An e-invoice is a digital, structured and machine-readable invoice format that enables automated processing. Unlike traditional PDF or paper invoices, e-invoices can be integrated directly with accounting and ERP systems, reducing errors and speeding up processes. Find out more
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Legal requirements from 2025
From 1 January 2025, companies in Germany will be obliged to receive and process electronic invoices in the B2B sector. From 2026, the obligation to issue electronic invoices will also be introduced. These measures serve to increase efficiency, reduce costs and combat tax fraud. Details of the legislation
Common formats: XRechnung and ZUGFeRD
Two formats have been established for electronic invoicing in Germany:
- XRechnung: A structured XML format that was specially developed for exchange with public clients. It enables automated processing and meets the requirements of the European standard EN 16931. More about XRechnung
- ZUGFeRD: A hybrid format that combines a PDF/A-3 file with an embedded XML structure. This allows both humans and machines to read and process the invoice. This format facilitates the exchange of invoices between companies without the need for prior agreements on the format. More about ZUGFeRD
SAP’s own e-invoicing tools
SAP offers several solutions to support e-invoicing to help companies meet regulatory requirements and automate invoicing processes:
- SAP Document Compliance: This solution enables the seamless processing and exchange of e-invoices in accordance with the regulatory requirements of different countries. It supports formats such as XRechnung and ZUGFeRD and ensures smooth compliance with legal regulations.
- SAP S/4HANA for Advanced Compliance Reporting: This tool provides a central platform for managing tax and regulatory reports, including the creation and processing of e-invoices.
- SAP Business Network: This platform facilitates the electronic exchange of invoices with business partners and suppliers. It ensures a smooth integration of invoicing processes throughout the supply chain.
- SAP Integration Suite: A powerful middleware solution that helps companies securely and efficiently integrate e-invoices into their existing business processes.
- SAP Invoice Management by OpenText: An invoice management optimization solution that enables automated processing and validation of incoming invoices.
Advantages of e-invoicing
- Increased efficiency: Automated processes reduce manual effort and speed up invoice processing.
- Cost reduction: By eliminating paper, postage and manual processing, companies can save costs.
- Sustainability: The absence of paper contributes to the conservation of resources and supports ecological goals.
- Legal certainty: Compliance with legal requirements is ensured by standardized processes.
Preparing for e-invoicing
Companies should analyze their current invoicing processes at an early stage and check to what extent they meet the requirements of e-invoicing. The implementation of suitable software solutions, training of employees and adaptation of internal processes are crucial steps to make the transition successful.
The introduction of the e-invoicing obligation from 2025 presents companies with new challenges, but also offers the opportunity to optimize processes and benefit from the advantages of digitalization. By using suitable SAP solutions, companies can manage this transition efficiently and increase their competitiveness at the same time.
