Mastering the mandatory e-bill from 2025 with ease
Mastering the mandatory e-bill from 2025 with ease
The German government's Growth Opportunities Act will make e-invoicing mandatory for all companies in Germany from 2025. The Federal Ministry of Finance allows XRechnung and ZUGFeRD from version 2.0.1 as a format. What does this mean for all companies, especially SMEs? How can you make your ERP system fit for e-invoicing as easily and cost-effectively as possible? After all, it's all about sending and receiving invoices, a core process for every company.
Automatically importing invoices and exchanging them with business partners is a standard process in business transactions - but unfortunately also a very time-consuming and expensive one. In most cases, the invoice issuer first converts digital invoice data into analog formats such as PDF, TIFF or even paper, which the invoice recipient then often has to transform back into digital information, often with great technical effort or even manually. We have shown how even this can be automated elsewhere shown elsewhere. From 2025, according to the wish of the federal government to put an end to this. The e-invoice, i.e. the electronic invoice in a standard format, is intended to ensure better processing of invoices, reduce costs and make it easier for the tax authorities to check them.
The e-bill explained simply
The e-invoice is a text document that contains the invoice items and other necessary information for a proper invoice in a machine-readable, predictable, structured format. Each field is defined, e.g. "invoice number", so that a program can rely on the fact that this field always contains the same information, e.g. always the invoice number.
The Federal Ministry of Finance has decided on two formats that it considers permissible: The XRechnung format for invoices to public institutions, which has been mandatory since 2021, and the ZUGFeRD standard from version 2.0.1, which is common in eCommerce. If a document is created in one of these two standard data structures, it can - but does not have to - also be signed by the creator and is thus made forgery-proof.
The XInvoice
The XRechnung is an XML file that must be structured according to a specific schema. Each field has a specific field name specified by this XRechnung standard, which is followed by the field value, e.g. "Invoice number" "RE-2023-12-0254". As the structure is fixed and uniform, any program that follows this standard can easily read the invoice information.
In addition, a PDF file that is easier to read for humans can be generated from the XML file using an XRechnung display program. However, the XML file is decisive.
Other documents can also be embedded in the XRechnung, such as proof of performance or delivery bills. They are stored in a so-called base64 encoding, a number sequence that is also used on the Internet for the transmission of images within e-mails. The program for generating the XRechnung creates this base64-encoded number sequence and writes it into a corresponding field.
The ZUGFeRD format
What sounds like a relic from pre-machine agriculture and is called Faktur-X in France is very similar to the XRechnung, but extends it. A ZUGFeRD invoice is a human-readable PDF document in which a machine-readable XML file is embedded. This has two advantages:
1. a ZUGFeRD invoice can be read by people like a normal PDF invoice.
2. any computer program that implements this standard can read the XML file hidden in the PDF file.
As a result, the ZUGFeRD standard does not require the subsequent creation of a human-readable PDF document, as it is generated when the ZUGFeRD invoice is created. The XML file in turn follows a standard so that the recipient program can rely on the ZUGFeRD invoice being easily readable.
Integration into ERP systems
We assume that the major ERP system manufacturers such as SAP S\4 or Oracle Fusion or Microsoft Dynamics will provide e-invoice-compliant functionalities for creating and importing e-invoices. Our solution is aimed at those companies whose ERP does not offer this functionality or whose e-invoice module they cannot use for whatever reason.
In doing so, we follow the principle of minimal intervention in existing IT systems: after all, you don't want to launch a major IT project. In addition, we do not want to have to install any software on your premises, but offer a cloud service that is connected to your ERP via a flexible interface (e.g. RESTful service, SFTP, EDI server, etc.). Thirdly, the service should be as simple and reliable as possible and be able to log all processes in a GOBD-compliant manner. Fourthly, the e-invoice should be able to be created and read cost-effectively so that the legal obligation does not become a budgetary problem.
Our e-invoicing service therefore relies on the following components:
- Flexible connection options to your EPR; here we use one of the most modern iPaaS services with unlimited technical possibilities, so that every customer can be easily connected.
- Reliable XRechnung and ZUGFeRD creation and readout software that is regularly tested for security vulnerabilities and functionality and always complies with legal requirements.
- Complete logging of all processes in a tamper-proof, GOBD-compliant database, so that all transactions can be traced even years later.
- Unlimited expansion options thanks to a modular, standards-based cloud architecture that takes account of the dynamics of business life.
Finally, it should be mentioned that every solution is only as good as the people behind it. That's why we attach great importance to crystal-clear communication, stringent project management and first-class customer service.
You can find the latest information on e-invoicing in our article "Electronic invoicing (e-invoicing) from 2025"
About Business Automatica GmbH:
Business Automatica reduces process costs by automating manual activities, increases the quality of data exchange in complex system architectures and connects on-premise systems with modern cloud and SaaS architectures. Applied artificial intelligence in the company is an integral part of this. Business Automatica also offers automation solutions from the cloud that are geared towards cyber security.