It is final and there is no going back. Electronic invoicing is here to stay, driven by the Create and Grow law approved by the Council of Ministers and which will come into force next year 2023 .

According to the executive, the law simplifies procedures for companies and will help the government combat delinquency in commercial operations, obtaining greater traceability and controlling payments. For practical purposes, this law makes it mandatory for companies to issue, send and receive invoices in electronic format in all commercial relationships between companies and the self-employed (previously it was only with public administrations).

Both the issuer and the recipient of the electronic invoice must provide information on the status of the invoice.

When will mandatory electronic invoicing be imposed?

Today there are two scenarios in which it is mandatory to use the electronic invoice:

When the recipient is a public entity (General Administration, CCAA, Local Administration, Universities, Provincial Councils, etc.).
When you are a contractor or subcontractor of the Public Administration.

In October/November 2023, the implementation of electronic invoicing will be mandatory for companies that invoice more than 8 million euros. The rest of the companies will have a little more time, but not much since in October/November 2024 the regulations will also apply to them.

How should companies prepare?

Companies that invoice more than 8 million euros typically already work with an ERP and possibly many of them have already worked with electronic invoices by uploading them directly to the Public Administration portals.

Now, as the mandatory electronic invoicing will apply to all commercial transactions , it is essential to work on a single platform, so it is necessary to prepare our ERP to incorporate and contemplate electronic invoicing processes.

Electronic invoicing in Business Central

We have carried out several webinars to give you all the keys you need to know to operate with electronic invoicing from Business Central . 

eSign Facturae is the solution that allows the generation and sending of electronic invoices in Business Central and, additionally, it has direct connectors to the main portals of the Public Administration (FACe, eFACT, Osakidetza).  

what is an electronic invoice?

An electronic invoice is an invoice issued and/or received in electronic format. Since 2003 it has the same validity for legal purposes as the one issued on paper.

There are 2 types of electronic invoice:

PDF or scanned document : graphical representation of the old paper invoice. The data is not structured and therefore to read it and obtain the information an OCR tool is needed.
Structured data invoice : file that has all the data perfectly located, with labels, in such a way that a computer is able to identify all the data without the possibility of error. The most common formats are UBL or Facturae.
Benefits of the electronic invoice

Some of the main benefits of electronic invoicing are:

The team saves management and filing time
Streamlines invoice processing and collection cycles
Reduce the use of paper (advancing on the path of digitization)
Possible human errors are avoided
Simplifies transactions between countries, since the same formats are used
Easier to integrate with applications already in use in the company
Do you still have doubts?

This change will be easier if you have the right help. If you have any questions about how to implement electronic invoicing in Business Central , do not hesitate to contact us Dynamics 365 partner and we will be happy to help you.