Why use an EDM for mandatory electronic invoicing?

Summary: Electronic invoicing is gradually becoming compulsory for businesses in France. The tax reform aims to dematerialize invoices between companies and public entities for greater transparency and efficiency. This obligation is being rolled out in two stages: first for transactions with the public sector from early 2020, then gradually between companies (B2B). Companies must follow a precise timetable depending on their situation.

Electronic Document Management (EDM) covers the dematerialization of documents, whether of electronic origin or previously in paper format, as well as their archiving and preservation throughout their lifecycle. It also makes it possible to manage all of a company's documentation, whatever the department. Finally, it makes it easier to send, track and secure exchanges, both internally and externally. So, by definition, using an EDM for electronic invoicing is of real benefit.

Mandatory electronic invoicing: steps to be followed by all companies

Electronic invoicing will gradually become compulsory for companies established in France and subject to VAT. The current reform requires compliance with specific formats and a legally compliant organization.

Electronic invoicing for businesses: formats and data management processes

Electronic invoicing must respect one of the three formats provided by the tax authorities(Factur-X, CII or UBL). Note that invoicing is said to be electronic if the entire process is: issue, transmission, reception and archiving.

For companies already exchanging electronic data in other formats, partner dematerialization platforms (PDPs) are authorized to convert them into one of the three legal formats. Similarly, dematerialization operators (DOs) such as Zeendoc, can offer such a format conversion service natively within the solution for the Factur-x format, or through a privileged partnership with a PDP.

Players authorized to manage electronic company information (invoices and e-reporting)

The reform requires the use of well-defined platforms for dematerialization processing and data transmission to both customers and the tax authorities. The DGFIP's Y-scheme allows companies to choose between the following solutions:

• Public Billing Portal (PPF) ;
• Partner dematerialization platform (PDP) ;
• Dematerialization operator (OD).

Using an EDM for electronic invoicing: the advantages of these software packages

Electronic document management is the process of dematerializing documentation within a company.

Features of a corporate electronic document management system (EDMS)

By its very nature, EDM is a system that meets the requirements of mandatory electronic invoicing. This type of software replaces paper when documents arrive in the company in this format. The EDM handles dematerialization. It then performs automatic processing for accounting purposes by scanning, thus reducing the risk of data entry errors and saving a considerable amount of time.

The EDM supports the electronic archiving of invoices in a single, secure database, regardless of format. It provides information grouping that facilitates a reliable audit trail (PAF), a tax requirement. It facilitates information retrieval and team collaboration.

EDM meets tax requirements for mandatory electronic invoicing

All EDM processes comply with regulatory requirements. Archiving is secure. Finally, an EDM like Zeendoc, a dematerialization operator, can offer an enhanced service:

• Direct integration of electronic invoices into the PPF thanks to its connector;
• Partnership with a PDP for a more comprehensive service (invoice checking and format conversion where necessary).