The electronic exchange of invoice documents between a supplier and buyer in a structured digital format that enables automatic processing.
E-invoicing goes beyond simply sending a PDF via email. True e-invoicing involves transmitting invoice data in a machine-readable format (like XML or JSON) that can be automatically validated and processed by the recipient's system.
Many countries now mandate e-invoicing for tax compliance — including India (GST e-invoicing), the EU (PEPPOL), and others. CRMs with built-in e-invoicing capabilities can generate compliant invoices automatically.
Key components
- IRN (Invoice Reference Number) — unique identifier for each e-invoice
- QR Code — embedded verification data
- Digital Signature — cryptographic proof of authenticity
