What is e-invoicing?
E-invoicing is a way to seamlessly exchange invoices between software systems. This means that unlike emailing a PDF or a link to an online invoice, e-invoices are sent securely from Xero and appear in your customer’s accounting software, ready to be approved and paid. Recipients no longer need to manually enter invoice details, which saves time and may contribute to faster payment and healthier cash flow.
How does sending e-invoices in Xero work?
The sender creates an e-invoice in Xero
E-invoice is sent via a secure network dedicated to e-invoicing
Customer sees the invoice within their software system ready to be approved and paid
Quicker for everyone
E-invoices are almost instantly delivered into your customer’s software system, which eliminates the risk of your invoice getting lost or stuck in the in-tray waiting to be reviewed and paid.
E-invoices in Xero are exchanged via a secure network protected by encryption and strict protocols reducing the risk of interception and fraud.
Bird’s-eye view of cash flow
Having all your incoming revenue in Xero gives you a bird’s-eye view of how your business is performing.
Get your business set up for sending e-invoices in Xero
Sending e-invoices in Xero easy – just follow the steps below to get started:
Step 1: Update your organisation details with your ABN and if you have one, your branch number
Step 2: Update your customer's contact details with their ABN number
Step 3: Be sure that you’re using the new invoicing setting on your desktop in Xero as you can only send e-invoices from there
Tip: If you’re a government supplier, reach out to them directly to find out if they’re ready to receive e-invoices so you can benefit now from the government’s commitment to faster payment times
Want to learn more about sending e-invoices in Xero?
Why governments are accelerating the e-invoicing economy
Xero has been investing in e-invoicing for a number of years and that's why we’re working with the big end of town to support faster payments for our small business customers.
What is e-invoicing and how do I get started in Xero?
Watch our latest video to see how your business can benefit from sending e-invoices in Xero.
Frequently asked questions
E-invoices are exchanged via Peppol, an international network that facilitates the exchange of documents relating to e-commerce and e-procurement. It was developed over 10 years ago in Europe to streamline interactions between government agencies and their vendors. Today business-to-business usage is growing and it's used in 28 countries in Europe plus Australia, New Zealand, and Singapore.
For e-invoicing, Peppol defines the standards that determine how e-invoices are structured when exchanged between accounting systems. The Peppol network will facilitate the secure exchange of digital invoices between accounting systems in Australia, New Zealand and Singapore.
Unlike emailing a PDF or a link to an online invoice, an e-invoice is sent directly from one accounting system to another via a secure e-invoicing network. When you send an e-invoice from Xero, it will appear in your customer’s accounting software almost instantly, ready to be approved and paid. There’s no need for your customer to manually enter invoice details.
E-invoices can only be sent to another business or government department within Australia. You will only be able to send an e-invoice if your customer is registered to receive e-invoices and their software is connected to the Peppol network. Don’t worry, Xero will check whether your customer is registered before sending an e-invoice.
Initially, you will only be able to send an e-invoice from Xero to another business or government department in the same country. In due course Xero will extend this capability to support international trade between markets covered by the Peppol network..
When you choose to send an e-invoice to a customer, Xero will check if your customer is registered to receive them. If your customer hasn’t registered, Xero will let you know and you’ll be prompted to send the invoice as a regular online invoice.
Once an e-invoice has been successfully sent and received via the Peppol network it can not be changed and resent. Additionally, the Peppol system does not allow e-invoices with a negative amount to be sent. If you’ve sent an e-invoice with an error, you can rectify this by issuing a credit note created via the traditional credit note workflow in Xero. Then send a follow-up e-invoice for the correct amount.
You will be able to receive e-invoices in Xero in the future. We’ll let you know once this feature is available.
If you need further assistance with sending e-invoices in Xero, you can get help from Xero support, just search the information you need, if you can't find an article that answers your question, contact our support team by raising a case.