Electronic Invoicing vs EDI: do you know the differences?
Posted: Thu Dec 26, 2024 3:48 am
If you thought that Electronic Invoicing is the same as EDI, then we are here to dispel that myth. In fact, the two are similar, but there are differences that can be misleading. Let's start by defining the two terms:
What is EDI?
EDI – an acronym for Electronic Data Interchange – is, in short, a data transmission technology that allows the digital transfer and import of document data between entities.
How does EDI work?
With EDI, data is generated following a structured format, such as XML, CIUS-PT or UBL2.1, with its own syntax and parameters that are commonly read across platforms, which allow information generated on one device, such as an invoice or other document of fiscal relevance, to be received and imported correctly and automatically into another device.
What is Electronic Invoicing?
Electronic invoicing is the issuing, processing and transmission of indonesia whatsapp number database in digital format, as opposed to the traditional paper format. As the name suggests, this invoice format is a purely electronic system, and is therefore digital at every step of the invoicing process.
An electronic invoice, to be accepted according to European Union standards, must meet the following requirements:
Follow a correctly structured electronic format that allows for automatic processing, according to the European standard model;
Be sent from the seller's system to the buyer's system for automatic import into the public entity's system;
Use a data interchange system (Electronic Data Interchange, typically referred to as EDI) to transmit the structured data file for subsequent automated processing;
Contain a qualified digital certificate that verifies the authenticity of its origin and the integrity of its content.
Electronic invoicing vs EDI: the differences
As we have seen, and in summary, the electronic invoice is a document issued electronically and EDI is the system that allows the structured data file to be transmitted so that it can be automatically processed.
Due to its reliability, EDI is one of the procedures permitted by the Tax and Customs Authority (AT) for the use of electronic invoicing.
Electronic invoicing via EDI
Electronic Invoicing using EDI technology requires a common semantic data model. Therefore, there is a need to impose a model – in the case of Portugal, the CIUS-PT – that is common to all platforms, so that the data received and sent can be easily interpreted by them.
Electronic Invoicing using EDI technology is no longer a novelty within large companies, as well as in the relationship with Retail/Large Distribution, but, with the introduction of electronic invoicing in the public sector and the consequent mandatory use of it, it has gained new prominence.
Electronic Invoicing via EDI for Public Administration
According to Decree-Law No. 42-A/2022, of June 30, small and medium-sized companies, micro-enterprises, as well as public entities as co-contracting entities are obliged to adhere to electronic invoicing within the scope of the execution of public contracts, from December 31, 2022.
Due to the constraints caused by the COVID-19 pandemic, the adoption deadlines have been successively postponed, the most recent of which was by Decree-Law No. 104/2021, of November 27. Thus, the following deadlines are in force for companies to start issuing electronic invoices for the public sector:
Public contractors: April 18, 2019;
Other entities referred to in article 3 of the Public Contracts Code: April 18, 2020;
Large companies that are co-contractors under the CCP: January 1, 2021;
Small and medium-sized enterprises, as co-contracting entities under the CCP : December 31, 2022;
Microenterprises and public entities as co-contracting entities under the CCP: December 31, 2022.
These obligations presuppose the use of EDI to deliver the XML structured data file according to the CIUS-PT format to an intermediary entity (Broker) that makes the respective electronic transfer of data to the State.
Would you like to know how you can respond to the requirements of Electronic Invoicing?
If you are an SME or micro-enterprise that supplies the State, you should know that you have tax obligations to comply with in 2023. Find out everything you need to know about Electronic Invoicing in public contracts, CIUS-PT, EDI or Qualified Digital Signature !
For over ten years, PRIMAVERA has been providing electronic invoicing solutions, tested and proven by numerous leading organizations. Discover our electronic invoicing solutions and ensure full compliance with legislation, while increasing the administrative efficiency of your company.
What is EDI?
EDI – an acronym for Electronic Data Interchange – is, in short, a data transmission technology that allows the digital transfer and import of document data between entities.
How does EDI work?
With EDI, data is generated following a structured format, such as XML, CIUS-PT or UBL2.1, with its own syntax and parameters that are commonly read across platforms, which allow information generated on one device, such as an invoice or other document of fiscal relevance, to be received and imported correctly and automatically into another device.
What is Electronic Invoicing?
Electronic invoicing is the issuing, processing and transmission of indonesia whatsapp number database in digital format, as opposed to the traditional paper format. As the name suggests, this invoice format is a purely electronic system, and is therefore digital at every step of the invoicing process.
An electronic invoice, to be accepted according to European Union standards, must meet the following requirements:
Follow a correctly structured electronic format that allows for automatic processing, according to the European standard model;
Be sent from the seller's system to the buyer's system for automatic import into the public entity's system;
Use a data interchange system (Electronic Data Interchange, typically referred to as EDI) to transmit the structured data file for subsequent automated processing;
Contain a qualified digital certificate that verifies the authenticity of its origin and the integrity of its content.
Electronic invoicing vs EDI: the differences
As we have seen, and in summary, the electronic invoice is a document issued electronically and EDI is the system that allows the structured data file to be transmitted so that it can be automatically processed.
Due to its reliability, EDI is one of the procedures permitted by the Tax and Customs Authority (AT) for the use of electronic invoicing.
Electronic invoicing via EDI
Electronic Invoicing using EDI technology requires a common semantic data model. Therefore, there is a need to impose a model – in the case of Portugal, the CIUS-PT – that is common to all platforms, so that the data received and sent can be easily interpreted by them.
Electronic Invoicing using EDI technology is no longer a novelty within large companies, as well as in the relationship with Retail/Large Distribution, but, with the introduction of electronic invoicing in the public sector and the consequent mandatory use of it, it has gained new prominence.
Electronic Invoicing via EDI for Public Administration
According to Decree-Law No. 42-A/2022, of June 30, small and medium-sized companies, micro-enterprises, as well as public entities as co-contracting entities are obliged to adhere to electronic invoicing within the scope of the execution of public contracts, from December 31, 2022.
Due to the constraints caused by the COVID-19 pandemic, the adoption deadlines have been successively postponed, the most recent of which was by Decree-Law No. 104/2021, of November 27. Thus, the following deadlines are in force for companies to start issuing electronic invoices for the public sector:
Public contractors: April 18, 2019;
Other entities referred to in article 3 of the Public Contracts Code: April 18, 2020;
Large companies that are co-contractors under the CCP: January 1, 2021;
Small and medium-sized enterprises, as co-contracting entities under the CCP : December 31, 2022;
Microenterprises and public entities as co-contracting entities under the CCP: December 31, 2022.
These obligations presuppose the use of EDI to deliver the XML structured data file according to the CIUS-PT format to an intermediary entity (Broker) that makes the respective electronic transfer of data to the State.
Would you like to know how you can respond to the requirements of Electronic Invoicing?
If you are an SME or micro-enterprise that supplies the State, you should know that you have tax obligations to comply with in 2023. Find out everything you need to know about Electronic Invoicing in public contracts, CIUS-PT, EDI or Qualified Digital Signature !
For over ten years, PRIMAVERA has been providing electronic invoicing solutions, tested and proven by numerous leading organizations. Discover our electronic invoicing solutions and ensure full compliance with legislation, while increasing the administrative efficiency of your company.