What is InvoiceNow?
InvoiceNow is the ability to send an invoice digitally between the accounting systems of business suppliers and buyers. Unlike sending a PDF file or online invoice via email, the invoice is automatically sent to a buyer’s accounting system through a secure network. So there’s no need for the business to manually handle the invoice. It also works if the two accounting systems are different, because an international standard (Peppol) allows these systems to ‘speak’ to each other.
How does InvoiceNow work in Xero?
The sender creates an invoice in Xero
The invoice is sent via the secure Peppol e-invoicing network
The customer sees the invoice within their accounting system, ready to be approved and paid
What are the benefits of InvoiceNow to business owners like me?
1. Invoices won’t get lost in the mail
InvoiceNow ensures invoices are received directly in the other party’s accounting system, so they won’t get lost in the post or in your customer’s email folder.
2. Less admin work = more time saved
When you use Xero’s InvoiceNow-ready online accounting software and register on the Peppol network, the e-invoices you receive appear automatically as a draft bill, in Xero, for you to approve. This eliminates the need for manual data entry, and reduces the risk of errors.
3. Get paid faster
When you make it easier for your customers to pay you by using InvoiceNow and issuing invoices with Xero’s online invoicing feature, you can get paid faster. Xero customers who use online invoice payments (and include an online payment option) get paid up to 25 days faster than those who don’t (Source: Xero internal data, 2019 to 2020).
Register for InvoiceNow in minutes
Visit this page (https://connect.invoi.ci/signup/integrate) and click Connect to Xero. Log in to Xero using your Xero credentials.
Click Allow access and choose the Xero organisation to connect to Invoici.
Invoici collects organisational information from your Xero organisation. Review this information and ensure that a unique company identifier is entered in the appropriate field. This should be your organisation’s UEN (Unique Entity Number).
Once you’re happy the information is correct, tick the checkboxes and click Confirm Details.
You’ll see confirmation that your Xero organisation is now connected to the Peppol e-invoicing network.
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Frequently asked questions
Originating from Europe, Peppol is also being adopted in markets beyond Europe. Peppol is in use in 28 countries in Europe plus Australia, Canada, New Zealand, Singapore and USA with Peppol Authorities placed in 13 countries. Currently, there are OpenPeppol members in 34 countries in total. OpenPeppol has certified Access Points in 26 European countries plus Canada, Singapore and USA.
No InvoiceNow is different from online invoicing.
In most current business scenarios, online invoicing refers to either a scanned copy of the invoice or a PDF file sent to the recipient organisation via email. The process relies on manual data entry as your recipient will have to re-enter the details of the invoice into his own accounting system (e.g. accounts payable). Similarly, you may be receiving many online invoices in the form of PDFs – you will also need to have someone manually input the invoice details or scan the pages of invoices into your system.
InvoiceNow on the other hand is an invoice created digitally in a supplier’s financial system, transmitted electronically through the Peppol network to the recipient (buyer) where it is processed automatically without any human intervention (i.e e-invoices received in Xero account will appear as draft bills automatically).
No, there is no installation required. You'll only need to connect your Xero account to our InvoiceNow partner, Storecove, to start sending invoices on the Peppol e-invoicing network - just follow these simple instructions.
There is no change to your current workflow. The only difference is that E-invoices need to be sent to the recipient’s Peppol ID instead of their email address.
When you receive E-invoices from your suppliers, the invoices will appear as draft bills in your Xero account automatically. There is no manual data entry required.
The security and integrity of the data exchanged through the Peppol network rely on encrypted transport using SSL and additionally a Public Key Infrastructure (PKI). This ensures that only parties with valid digital certificates can communicate on the Peppol network.
No, IRAS is not able to access your invoice under current regulation. However, you do need to comply with any applicable IRAS tax regulations.