SAP B1 blog

Implementation of the e-bill

To facilitate the introduction of electronic invoicing, it is essential to update the customer master data. The email addresses required for sending electronic invoices should be recorded. The elimination of the need for prior consent for electronic invoicing in the B2B sector significantly simplifies the transition to digitalised invoicing processes.

Increasing efficiency with the e-bill

It is recommended that all customer relationships be converted to the use of e-invoices. The hybrid ZUGFeRD format has the advantage that it contains both machine-readable data and a human-readable PDF file. Adapting the processes for incoming and outgoing invoices and utilising automation options are further steps to fully exploit the benefits of electronic invoicing.

The Growth Opportunities Act and the legal requirements

The Growth Opportunities Act, which was confirmed by the Federal Council on 22 March 2024, sets new standards for economic development through technological and organisational innovations. Part of this law is the obligation for German companies to be able to receive electronic invoices from 2025, whereby the previous prioritisation of paper invoices will no longer apply.

What transitional regulations apply to the e-bill?

The following transitional arrangements are intended to enable companies to gradually adapt to the digital requirements and carry out the necessary system updates to ensure a smooth transition.

The following regulations apply to invoicing until the end of 2026:

1. Companies may continue to issue paper invoices for sales from 2025 and 2026.
2. Electronically transmitted invoices that do not comply with the latest format can still be used, provided the recipient agrees.

For the period until the end of 2027, the regulations will be extended under certain conditions:

Companies that recorded a maximum turnover of 800,000 euros in the previous year may continue to apply the regulations from 2026. If a company exceeds this turnover limit in 2026, it is obliged to only use electronic invoices.

From 2028, the following requirements will be binding for the e-bill:

1. Full compliance with the new regulations on electronic invoicing will be mandatory.
2. From 1 January 2025, companies must be able to receive invoices in accordance with the EN 16931 standard. This means that from this date, there will no longer be any entitlement to receive invoices in alternative formats such as PDF or paper.

Guidelines for archiving electronic invoices

Electronic invoices must be processed and stored electronically without media discontinuity. It is not permitted to print out electronic invoices and archive them on paper. As electronic invoices, including XRechnungen and the ZUGFeRD format, are legally equivalent to paper invoices, they are subject to a retention period of ten years.

Document management systems, such as CKS-DMSoffer support for the legally compliant archiving of such documents. They ensure that invoices remain unalterable throughout the entire retention period.

Continuation of the EDI procedure

Electronic Data Interchange (EDI), a technology for the electronic transmission of business documents, was introduced in the 1960s. Ed Guilbert originally developed a method of electronic communication specifically for the US Army's supply chains. This approach made it possible to exchange business documents in a standardised format from computer to computer,
Companies can continue to use the Electronic Data Interchange (EDI)a system for the electronic exchange of business documents. However, it is important that the processed information is prepared in such a way that it complies with the standards of CEN standard EN 16931.

Comparison of ZUGFeRD and XRechnung as a format for e-invoicing

ZUGFeRD version 2.1.1 corresponds to XRechnung in terms of content and therefore fulfils the requirements of the German administration for e-invoicing. Nevertheless, there are significant differences between the two formats:

File format and extension:

ZUGFeRD uses a hybrid data format consisting of a PDF/A-3 part, which is readable by the user, and an embedded, machine-readable XML file. This format has a .pdf extension and contains an attachment called zugferd-invoice.xml. In contrast, the XRechnung is a pure XML file with the extension .xml, which clearly separates the file formats.

Syntax:

There are also differences in terms of syntax. According to the EU standard, the XML schemas Universal Business Language (UBL) and Cross Industry Invoice (CII) are permitted for electronic invoices. While XRechnung can be implemented in both formats, ZUGFeRD only supports the CII standard.

Target groups:

XRechnung was developed specifically for invoicing with German authorities (B2G), while ZUGFeRD was primarily designed for business-to-business (B2B) invoice exchange. The use of ZUGFeRD in the B2B area is voluntary.

Nonconformity and extensions:

ZUGFeRD 2.1.1 was adapted to the XRechnung in order to fulfil all the requirements of the EN 16931 to fulfil. At the same time, XRechnung expands the EU standard to include 21 additional national business rules that are specifically aimed at German legal requirements for electronic invoicing.

These differences illustrate that despite the fundamental similarities between ZUGFeRD 2.1.1 and XRechnung, the specific use cases and technical implementations can vary depending on the user group and legal requirements for e-invoicing.

Preparation and outlook

It is essential that companies adapt their invoicing processes at an early stage. The aim is to be able to receive and process electronic invoices smoothly from the start date. Software solutions such as SAP Business One already support the necessary formats and make the changeover much easier. The planned introduction of e-invoicing is an important step towards a comprehensive digital transformation of the financial sector in Germany. This will enable companies to operate more competitively through more efficient processes.

These new regulations should not only increase efficiency, but also contribute to transparency and the fight against VAT fraud. The EU has already laid the foundations for standardised electronic invoicing with Directive 2014/55/EU. This is now being implemented at national level. This promotes the harmonisation and integration of digital processes in the European single market.