Peppol, the digital invoice. let's understand the new structure of the future.

There is a gradual movement toward digital invoicing.

It is a system called Peppol. If this had been introduced first, I feel that it would have been easier to deal with the Electronic Bookkeeping Act. On the other hand, since the Electronic Bookkeeping Act has been such a mess, there is a possibility that it will not take root properly.

The term "Peppol" is very important for companies dealing with digital invoices; Peppol is a global electronic business standard that allows for the efficient exchange of electronically issued invoices. In this article, we will explain how Peppol will impact Japan's digital invoice system and discuss the benefits of Peppol and how to implement it. It is a must-read for anyone who is looking for an efficient invoice management method suitable for the digital age.

The high end of the market will use them because they will be useful. It is also likely to make a difference in the way you work with those who do not use these things.

What is a digital invoice?

In the past, when sending and receiving invoices between companies, paper invoices were generally sent by mail or fax. However, the introduction of digital invoicing is expected to improve operational efficiency and reduce environmental impact.

A digital invoice is a standardized and structured electronic invoice.
Necessary information can be exchanged from the issuer to the recipient in a structured manner.

Let's take the seller as an example and review the specifics.

Although the introduction of digital invoicing requires a review of workflow and the introduction of a system, the introduction of digital invoicing can reduce the time and errors associated with paper invoices and faxed correspondence, thereby speeding up operations. The introduction of digital invoicing also reduces environmental impact and is attracting attention as a CSR (Corporate Social Responsibility) initiative.

If such information can be directly exchanged in data, it is not a problem even if invoice forms and other forms are different. However, introducing digital invoicing can be costly and time-consuming, as it requires a dedicated system and tools. It should also be noted that introducing digital invoicing requires a legally recognized procedure.

What are the benefits of digital invoicing?

The benefits of using digital invoicing include

These benefits make digital invoicing very beneficial to businesses.

What is Peppol?

Peppol (Pan-European Public Procurement Online) is an electronic procurement system by the European public sector. Designed to enable electronic procurement procedures for public sector procurement operations within the European Union, Peppol uses standardized data exchange formats and communication protocols to streamline the procurement process with vendors in different countries.

The Peppol network includes public sector procurement agencies, vendors, and invoicing service providers; on the Peppol network, procurement agencies can exchange bid requests and bid submissions electronically, and vendors can submit bids and send invoices electronically. Invoicing service providers offer services to assist vendors in submitting invoices via the Peppol network.

Peppol's greatest advantage is its ability to increase the efficiency of data exchange in transactions between companies in different countries: by using a common format and protocol on the Peppol network, vendors can transact electronically with procurement agencies in different countries, simplifying procedures and save time and money. The Peppol network also ensures a high level of reliability in terms of security and privacy protection.

What is the Peppol standard?

The Peppol standard is a global standard specification for exchanging electronic documents such as invoices and purchase orders, and is managed by Open Peppol. The Digital Invoice Promotion Council has adopted Peppol as a standard specification in Japan and formulated JP PINT. The adoption of this standard is expected to facilitate business-to-business transactions and improve operational efficiency. In addition, the adoption of Peppol will enable electronic document exchange anywhere in the world, making it possible to respond to global business.

What are the advantages of using Peppol?

The advantage of using Peppol is that it facilitates the management of electronic invoices: with Peppol, the transmitted documents are subjected to integrity checks. The received invoice data can then be checked for conformity with the requirements for purchase tax credits, etc. The widespread use of Peppol is expected to contribute to the development of a low-cost electronic invoicing environment that can be used by a wide range of business partners, thereby improving the efficiency of business activities and reducing costs. Peppol is expected to contribute to the efficiency and cost reduction of business activities.

What is JP PINT of the Digital Agency?

The Digital Agency has established "JP PINT" as the standard specification for digital invoices in Japan. This standard is a standard specification for digital invoices exchanged between sellers and buyers, and conforms to Peppol, a global standard that allows electronic invoices to be exchanged without problems in international transactions. In addition, JP PINT is being promoted by the Digital Agency, which is working to certify access point providers to promote JP PINT. Companies are actively expanding the use of JP PINT as it speeds up transactions and reduces costs.

What companies use Peppol?

With the benefits of using Peppol and efforts to promote its use, what are the types of companies that use Peppol? In particular, companies that do a lot of business overseas or with multiple departments or offices are actively adopting Peppol because it allows them to do business more efficiently. In addition, some companies provide Peppol access points, making it easy for companies to use Peppol.

What is a Peppol access point?

The Peppol access point is the relay point required to send and receive electronic data within the Peppol network. However, in order to connect to this access point, the business must be a Peppol-enabled business, and must use the services provided by a Peppol-accredited business. Peppol access points are becoming increasingly popular in Japan, led by the Digital Agency. The Peppol access point is a network of Peppol access points, which are being used by the Digital Agency in Japan, to facilitate the smooth transmission and reception of digital invoices.

What is Peppol BIS Standard Invoice JP PINT Version 1.0?

Peppol BIS Standard Invoice JP PINT Version 1.0 is the latest version of the national standard specification for digital invoices in Japan. The Peppol BIS Standard Invoice JP PINT Version 1.0 is the latest version of the national standard specification for digital invoicing in Japan, which supports the Peppol International (PINT) model and provides a common foundation for digitizing, transmitting, and receiving invoices. The digitalization of invoices will also reduce human errors. Peppol BIS Standard Invoice JP PINT Version 1.0 will be officially announced by the Digital Agency in preparation for the introduction of the digital invoice system scheduled for 2022. The Peppol BIS Standard Invoice JP PINT Version 1.0 has been officially released by the Digital Agency in preparation for the introduction of the digital invoice system scheduled for 2022.

What are the efforts to promote Peppol?

Efforts to promote digital invoicing using Peppol are underway through public-private partnerships, led by the Digital Agency. Currently, JP PINT, the standard specification for electronic invoicing in Japan, is being developed, and Peppol-enabled services are scheduled to be available in the fall of 2022. In addition, we have been certified as a Peppol access point and are working to promote the use of Peppol in Japan. The widespread use of digital invoicing is expected not only to make billing operations paperless, but also to automate, streamline back-office operations, and realize accurate processing. Furthermore, the initiative is progressing further with the many types of documents that can be exchanged through Peppol.

What types of documents can be exchanged with Peppol?

With Peppol, electronic document types are not limited to electronic invoices. Various types of documents, such as product certificates and specifications, can be exchanged over the online network, and these documents can be electronically signed and received. Peppol is an international standard for facilitating public procurement and business-to-business transactions, and can streamline business processes. As more and more companies, government agencies, and other organizations adopt Peppol, they can expect to improve the efficiency of their business processes, reduce costs, and reduce their environmental footprint.

What is the relationship between Digital Invoice and Peppol?

Digital invoicing refers to a method of transmitting invoices electronically. Peppol, on the other hand, is an electronic procurement system in the European public sector that uses standardized data exchange formats and communication protocols designed to streamline the procurement process with vendors in different countries.

Peppol is also used for the delivery of digital invoices. through the Peppol network, public sector procurement agencies and vendors can electronically exchange requests for tenders and bid submissions and send invoices. the Peppol network simplifies the procurement process with vendors in different countries and increases the efficiency of data exchange. The Peppol network simplifies the procurement process with vendors in different countries and increases the efficiency of data exchange.

Therefore, Peppol promotes business process efficiency by establishing standards for the delivery of digital invoices and enabling vendors to send invoices electronically. Peppol will make the process of sending and receiving invoices between companies in different countries smoother, saving time and money.

Basic Structure of Peppol

This is how the invoices have been sent so far.

• Send from A to B in kind or data.
• B goes into A's system and obtains trading relationship data.

When it comes to Peppol, invoice data can be sent from A to B through the access point vendor's server.

It may not seem like much of a difference.

But the main difference is that the billing statement can also have meaningful content.

For example, when it said 10,000 yen, we needed to determine whether that was the unit price or the overall payment amount.
The amount of 10,000 yen can be sent to the recipient with a link to the payment amount.

The counterparty can recognize receipt as data, and can make journal entries, payments, select payment methods, and

Easy to deal with N vs. N counterparts, not only in terms of the company but also in terms of the departments we deal with.It is.

It is promoted by an organization called EIPA.

What is EIPA?

The E-Invoice Promotion Association (EIPA) was established in July 2020 to promote the use of digital invoicing among the Japanese public sector and private companies. EIPA provides information and conducts educational activities related to the standardization and implementation of digital invoicing.

The digital invoice promoted by EIPA includes a European standard called Peppol, which provides a standardized data exchange format and communication protocol used in electronic procurement systems and aims to streamline the procurement process with vendors in different countries. EIPA aims to introduce Peppol in Japan to facilitate transactions between domestic and European vendors.

By promoting the adoption of digital invoicing in Japan, EIPA aims to streamline business processes in the corporate and public sectors, thereby bringing benefits such as faster transactions and reduced costs. The introduction of Peppol is also expected to facilitate international transactions and facilitate the global expansion of Japanese companies.

Data advantage: No need to take into account OCR capability limits

Whether you receive the data in paper or PDF format, it is difficult to read the data 100%.
That's because once you've stripped it down to a different form.

If this can be made into a state where only data is exchanged, there will be no interruption of semantic information along the way.
Also, there is no misreading of numbers or letters, although this is a basic requirement.

Here are the advantages of sending data via Peppol

The reverse of the advantages can also be introduced in case it is easy to mention how far it will spread and how much it will cost, so I will contrast them here in case you are interested.

How is it different from EDI?

The advantages described above can also be done with EDI (Electronic Data Interchange).
If you look at the abbreviation of EDI, it says "the exchange of electronic data.

But the big challenge with EDI is that it is not compatible with other EDI!The following is a list of the most common problems with the
That is the only state in which it is closed.

In other words, you can call from a DOCOMO phone to DOCOMO, but not to au.
If that one framework is large enough, it won't be a hassle to some extent, but it's not like I'm never going to call AU.

One advantage of Peppol is that it can be a mechanism for crossing this barrier.
As a result, there is no longer any confusion over which system to adopt in terms of standards.

For example, do you want Android or iOS on your cell phone?
This is another example of the struggle for standards.
Similarly standards battles that were HDMI and DisplayPort for PC displays.

The advantage of this is that it reduces the struggle for these standards and facilitates the distribution of data.
This is a major difference.

As a spillover option for service providers to target.

In addition, by receiving the data as it is, service providers can hope for spillover business development.

• Transaction data is available so that credit can be viewed and linked to loans.
• Loans are made automatically as needed based on payments and deposit balances
• The payer can decide the payment method (bank transfer, credit card, etc.)
• Data exchange and processing of employee advances in conjunction with a household budgeting application

If we can understand the movement of money, we can develop services around it.

We have not mentioned much about the smoothness of data management and processing because that is a given.
It is also possible to automate journal entries from the data, and some companies offer such services.

Peppol Certified Access Point Operators As of October 19, 2022

For Peppol, the first option is to become a service provider with an access point.
Here is the list as of October 19, 2022.

• Basware(Finland)[OpenPeppol].
• EDICOM CAPITAL S.L. (Spain) [OpenPeppol].
• First Accounting Corporation (Japan) [Digital Agency].
• Fujitsu Japan Limited(Japan)[Digital Agency].
• IBM(USA)[OpenPeppol].
• KMD (NEC Group) (Denmark) [Danish Business Authority (ERST)].
• OGIS Research Institute, Inc.(Japan)[Digital Agency].
• OpenText(USA)[OpenPeppol].
• Pagero AB (Sweden) [Agency for Digital Government (DIGG)].
• Saphety Level - Trusted Services SA (Portugal)[OpenPeppol].
• SEEBURGER AG (Germany) [Koordinierungsstelle für IT Standards (KoSIT)].
• Storecove (Datajust B.V.)(Netherlands)[Netherlands Peppol Authority (NPA)].
• TKC Corporation (Japan) [Digital Agency].
• Travel Data Corporation (Japan) [Digital Agency].
• WingArk 1st Corporation (Japan)[Digital Agency].

Peppol Service Providers

The service will be available as early as December 2022.
It is my impression that many of them have a service structure that includes an initial fee and a pay-as-you-go fee.

Rather than understanding the detailed services, we believe that it is better to introduce the overall picture of what the vendor is offering to help you understand digital invoicing.

The following is an introduction to the process flow diagram from EIPA's explanatory material.

TOKIUM

eCubenet

Works Applications

Miroku Information Service

SuperStream

Datajust B.V. (Storecove)

Business Engineering Co.

SAP Japan

Mitsubishi Electric IT Solutions Corporation

Trade Shift Japan K.K.

Deepwork Inc.

Sansan Corporation (Bill One)

OBIC Business Consultant Co.

ProRedo Partners, Inc.

Past examples show that it is difficult to establish unless you are serious about it.

There are also examples such as Densai Net as a mechanism to facilitate data exchange.
Despite being free, the penetration is not that great.

From the Densai Net statistical data for November 2021, electronically recorded receivables are 13.71 TP3T for large enterprises, 8.51 TP3T for small and medium enterprises, and 6.81 TP3T for small enterprises.
It is convenient and does not charge a fee, yet it is not widely used.

The practice has not been well established because some of the parties involved have not been successful in changing the practice or because the change would reduce their revenues.

Digital invoices are expected to hit a similar wall.
It may be because it took time to adjust, but it would have been nice if the service was offered as an option from around 2020, when the Electronic Bookkeeping Act and the invoice system became a topic of discussion.

In any case, there will be occasions in the future when managers will choose to use digital invoicing.
I would like to gather information to help us run the company more efficiently.