What do I need to know about e-invoicing
E-invoicing is designed to reduce errors and delays, by sending your invoices directly to your customers’ accounting system. You can now send and receive your invoice from Xero and it will arrive in your customer’s accounting system ready to be approved and paid.Learn more
What are some of the benefits?
Businesses of all sizes will benefit from the efficiencies of sending and receiving e-invoices in Xero. With better security, reduced costs, a more accurate view of your cash flow and shorter payment cycles, if you're ready from the get go, you'll reap the rewards earlier.Watch video
Frequently asked questions
Sending e-invoices in Xero
Before you send an e-invoice in Xero, you’ll need to:
To send an e-invoice you’ll need to:
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.
Initially, businesses will only be able to send an e-invoice from Xero to another business or government department in the same country. We will extend this capability to support international trade in due course, where markets are covered by the Peppol network.
Xero’s new invoicing experience has been designed to be simpler and more intuitive. E-invoicing is just one of the many features that will be added to new invoicing to make it an even better experience, packed with features that will save you time.
At the moment you can't send an e-invoicing credit note from Xero.
Initially, you will only be able to send an e-invoice from Xero to another business or government department in the same country. We’re exploring this feature as a possible future enhancement.
Not all invoices will be able to be delivered via e-invoicing.You will likely still receive invoices in the mail, via email, or other means. Hubdoc ensures that no matter how an invoice is delivered, there’s an easy way to get it into Xero that doesn’t require you to manually transcribe all the invoice details.
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.
Register and receive e-invoices in Xero
To receive your incoming e-invoices (bills) in Xero you need to register Xero as your preferred software provider to have your e-invoices delivered to. Registration is quick and easy and once completed, all your incoming e-invoices will automatically appear pre-populated in Xero as a draft bill to be paid - saving you time entering bills and helping keep your books accurate and up to date.
Here’s how you register:
Within the Xero organisation you wish to register, in the menu bar click on business then select Bills to pay.
Once on the Purchases overview page within Bills, click on Receive e-invoices link at the top of the page.
In the pop-over click register to receive e-invoices.
If not already populated, enter your valid ABN then click search for business information.
Information about the legal entity name, entity type, and main business location will be displayed if it is made publicly available through the Australian Business Register (ABR). If any data elements are missing, we will not be able to verify your business for registration.
When the search is complete and the company details are correct and accurate click Yes, these details are correct.
Enter the business contact’s details. A representative responsible for the e-invoicing service.
Enter the legal representative details. A legal representative should be someone that has the authority to act on behalf of the business. This can be the same person.
Click the checkbox indicating that you agree to the terms and conditions.
Click Complete registration to receive e-invoices.
Once successful, Xero will show you a success message and the navigation bar will say Manage e-invoicing.
If you need more information about how to register for e-invoices click here.
The business contact should be the person responsible for the e-invoicing service.
The legal representative should be someone that has the authority to act on behalf of the business.
No. Currently you can only register to receive e-invoices on a desktop.
Only certain business entities can be registered to receive e-invoices. Entities that can’t register may include banks, self managed super funds, investment entities and government entities.
If you’ve registered with another accounting software provider to receive e-invoices, you’ll need to deregister with them in order to nominate Xero as your preferred software for e-invoicing. The process of deregistering will differ between accounting software providers so it is best that you contact the provider you’re registered with to find out how to get started. Once you’ve successfully deregistered, you can then register to receive e-invoices in Xero.
If you’ve registered to receive e-invoices in Xero and have changed your mind, you’ll need to log a Xero CX ticket in order to deregister Xero as your preferred accounting software provider for receiving e-invoices.
When you receive an e-invoice it will automatically appear in Xero as a draft bill ready to be approved and paid. To view your draft bills, go to the Business menu, select Purchases overview. Click on the Draft panel to view all draft bills.
If you need further assistance with receiving 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.