It has nothing to do with display protection: Neoxum can already handle e-invoicing, XInvoice, and ZUGFeRD!

von | Oct 3, 2024 | Sustainability, About us

It has nothing to do with display protection: Neoxum can already handle e-invoicing, XInvoice, and ZUGFeRD!

The e-invoice in Germany: Key factor for the future of digital invoicing

The world of invoicing is undergoing a digital transformation that brings extensive benefits. A central component of this transformation is the e-invoice (electronic invoice), which is being gradually introduced in Germany. The aim of this digital innovation is to make invoicing processes more efficient, faster, and less error-prone. Companies now face the challenge of embracing this change in order to remain competitive. This blog post addresses the introduction and variants of the e-invoice, its structure, as well as practical applications within companies. Additionally, it highlights the important steps that companies like Neoxum GmbH are taking to respond to market needs early on.

Variants of the e-invoice: Pure XML invoice and PDF with attached XML

An e-invoice can exist in various formats, with two variants being particularly common:

    1. Pure XML Invoice: This format consists exclusively of structured XML data. An XML file contains all relevant invoice data in a way that allows for complete machine processing. It is a file that is difficult for humans to read. The advantage is that it is a searchable, structured data format that is particularly suitable for automated accounting processes.
    2. PDF file with attached XML file: This visually resembles a classic PDF invoice. However, the special feature of this format is that an XML file is additionally attached, which provides the machine-readable data. This "hybrid invoice" combines the advantages of an easy-to-read PDF file with the automated processability of the XML format. This offers the greatest flexibility, as the invoice recipient can utilize both the PDF view and process the machine-readable data.

Structure of the e-invoice

The e-invoice is not just a digital representation of the physical paper invoice. It is based on well-structured formats in which the data fields are clearly defined. This enables smooth, automated further processing. The standardized data included in it comprises, among other things:

      • Information about the sender (invoice issuer)
      • Recipient information
      • Details about the invoice items (such as item description, quantity, price)
      • Payment terms
      • Tax information (e.g. value-added tax, tax rates)
      • Notes or additional information

The structure of the e-invoice is based on international and European standards that enable compatibility and interoperability between different software systems.

Example of an e-invoice: XML structure

What does such an XML file look like? On the website https://www.e-rechnung-bund.de/standard-xrechnung-3-0-1/, you can find the download for the following example of an e-invoice in XML format:

<?xml version="1.0" encoding="UTF-8"?>
<ubl:Invoice xmlns:ubl="urn:oasis:names:specification:ubl:schema:xsd:Invoice-2"
             xmlns:cac="urn:oasis:names:specification:ubl:schema:xsd:CommonAggregateComponents-2"
             xmlns:cbc="urn:oasis:names:specification:ubl:schema:xsd:CommonBasicComponents-2">
    <cbc:CustomizationID>urn:cen.eu:en16931:2017#compliant#urn:xeinkauf.de:kosit:xrechnung_3.0</cbc:CustomizationID>
    <cbc:ProfileID>urn:fdc:peppol.eu:2017:poacc:billing:01:1.0</cbc:ProfileID>
    <cbc:ID>123456XX</cbc:ID>
    <cbc:IssueDate>2016-04-04</cbc:IssueDate>
    <cbc:InvoiceTypeCode>380</cbc:InvoiceTypeCode>
    <cbc:Note>#ADU#Es gelten unsere Allgem. Geschäftsbedingungen, die Sie unter […] finden.</cbc:Note>
    <cbc:DocumentCurrencyCode>EUR</cbc:DocumentCurrencyCode>
    <cbc:BuyerReference>04011000-12345-03</cbc:BuyerReference>
    <cac:AccountingSupplierParty>
        <cac:Party>
            <cbc:EndpointID schemeID="EM">seller@email.de</cbc:EndpointID>
            <cac:PartyName>
                <cbc:Name>[Seller trading name]</cbc:Name>
            </cac:PartyName>
            <cac:PostalAddress>
                <cbc:StreetName>[Seller address line 1]</cbc:StreetName>
                <cbc:CityName>[Seller city]</cbc:CityName>
                <cbc:PostalZone>12345</cbc:PostalZone>
                <cac:Country>
                    <cbc:IdentificationCode>DE</cbc:IdentificationCode>
                </cac:Country>
            </cac:PostalAddress>
            <cac:PartyTaxScheme>
                <cbc:CompanyID>DE 123456789</cbc:CompanyID>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:PartyTaxScheme>
            <cac:PartyLegalEntity>
                <cbc:RegistrationName>[Seller name]</cbc:RegistrationName>
                <cbc:CompanyID>[HRA-Eintrag]</cbc:CompanyID>
                <cbc:CompanyLegalForm>123/456/7890, HRA-Eintrag in […]</cbc:CompanyLegalForm>
            </cac:PartyLegalEntity>
            <cac:Contact>
                <cbc:Name>nicht vorhanden</cbc:Name>
                <cbc:Telephone>+49 1234-5678</cbc:Telephone>
                <cbc:ElectronicMail>seller@email.de</cbc:ElectronicMail>
            </cac:Contact>
        </cac:Party>
    </cac:AccountingSupplierParty>
    <cac:AccountingCustomerParty>
        <cac:Party>
            <cbc:EndpointID schemeID="EM">buyer@info.de</cbc:EndpointID>
            <cac:PartyIdentification>
                <cbc:ID>[Buyer identifier]</cbc:ID>
            </cac:PartyIdentification>
            <cac:PostalAddress>
                <cbc:StreetName>[Buyer address line 1]</cbc:StreetName>
                <cbc:CityName>[Buyer city]</cbc:CityName>
                <cbc:PostalZone>12345</cbc:PostalZone>
                <cac:Country>
                    <cbc:IdentificationCode>DE</cbc:IdentificationCode>
                </cac:Country>
            </cac:PostalAddress>
            <cac:PartyLegalEntity>
                <cbc:RegistrationName>[Buyer name]</cbc:RegistrationName>
            </cac:PartyLegalEntity>
        </cac:Party>
    </cac:AccountingCustomerParty>
    <cac:PaymentMeans>
        <cbc:PaymentMeansCode>58</cbc:PaymentMeansCode>
        <cac:PayeeFinancialAccount>
            <!-- dies ist eine nicht existerende aber valide IBAN als test dummy -->
            <cbc:ID>DE75512108001245126199</cbc:ID>
        </cac:PayeeFinancialAccount>
    </cac:PaymentMeans>
    <cac:PaymentTerms>
        <cbc:Note>Zahlbar sofort ohne Abzug.</cbc:Note>
    </cac:PaymentTerms>
    <cac:TaxTotal>
        <cbc:TaxAmount currencyID="EUR">22.04</cbc:TaxAmount>
        <cac:TaxSubtotal>
            <cbc:TaxableAmount currencyID="EUR">314.86</cbc:TaxableAmount>
            <cbc:TaxAmount currencyID="EUR">22.04</cbc:TaxAmount>
            <cac:TaxCategory>
                <cbc:ID>S</cbc:ID>
                <cbc:Percent>7</cbc:Percent>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:TaxCategory>
        </cac:TaxSubtotal>
    </cac:TaxTotal>
    <cac:LegalMonetaryTotal>
        <cbc:LineExtensionAmount currencyID="EUR">314.86</cbc:LineExtensionAmount>
        <cbc:TaxExclusiveAmount currencyID="EUR">314.86</cbc:TaxExclusiveAmount>
        <cbc:TaxInclusiveAmount currencyID="EUR">336.9</cbc:TaxInclusiveAmount>
        <cbc:PayableAmount currencyID="EUR">336.9</cbc:PayableAmount>
    </cac:LegalMonetaryTotal>
    <cac:InvoiceLine>
        <cbc:ID>Zeitschrift [...]</cbc:ID>
        <cbc:Note>Die letzte Lieferung im Rahmen des abgerechneten Abonnements erfolgt in 12/2016 Lieferung erfolgt / erfolgte direkt vom Verlag</cbc:Note>
        <cbc:InvoicedQuantity unitCode="XPP">1</cbc:InvoicedQuantity>
        <cbc:LineExtensionAmount currencyID="EUR">288.79</cbc:LineExtensionAmount>
        <cac:InvoicePeriod>
            <cbc:StartDate>2016-01-01</cbc:StartDate>
            <cbc:EndDate>2016-12-31</cbc:EndDate>
        </cac:InvoicePeriod>
        <cac:OrderLineReference>
            <cbc:LineID>6171175.1</cbc:LineID>
        </cac:OrderLineReference>
        <cac:Item>
            <cbc:Description>Zeitschrift Inland</cbc:Description>
            <cbc:Name>Zeitschrift [...]</cbc:Name>
            <cac:SellersItemIdentification>
                <cbc:ID>246</cbc:ID>
            </cac:SellersItemIdentification>
            <cac:CommodityClassification>
                <cbc:ItemClassificationCode listID="IB">0721-880X</cbc:ItemClassificationCode>
            </cac:CommodityClassification>
            <cac:ClassifiedTaxCategory>
                <cbc:ID>S</cbc:ID>
                <cbc:Percent>7</cbc:Percent>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:ClassifiedTaxCategory>
        </cac:Item>
        <cac:Price>
            <cbc:PriceAmount currencyID="EUR">288.79</cbc:PriceAmount>
        </cac:Price>
    </cac:InvoiceLine>
    <cac:InvoiceLine>
        <cbc:ID>Porto + Versandkosten</cbc:ID>
        <cbc:InvoicedQuantity unitCode="XPP">1</cbc:InvoicedQuantity>
        <cbc:LineExtensionAmount currencyID="EUR">26.07</cbc:LineExtensionAmount>
        <cac:Item>
            <cbc:Name>Porto + Versandkosten</cbc:Name>
            <cac:ClassifiedTaxCategory>
                <cbc:ID>S</cbc:ID>
                <cbc:Percent>7</cbc:Percent>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:ClassifiedTaxCategory>
        </cac:Item>
        <cac:Price>
            <cbc:PriceAmount currencyID="EUR">26.07</cbc:PriceAmount>
        </cac:Price>
    </cac:InvoiceLine>
</ubl:Invoice>

It is clear that an XML file is not readable without deep knowledge. For this reason, XML files are essentially read exclusively by machines (computers). However, there are some software tools, such as the Quba Viewer, that present the XML files of e-invoices in a human-readable format.

XInvoice and ZUGFeRD: The Established Formats

In Germany, two formats of e-invoicing have particularly established themselves: XRechnung and ZUGFeRD.

        • XRechnung is the preferred format for the public sector as it meets the requirements of the EU Directive 2014/55/EU. It is a purely XML-based format specifically designed to enable fully automated invoice processing.
        • ZUGFeRD (Zentraler User Guide des Forums elektronische Rechnung Deutschland) offers various versions, including ZUGFeRD Basic, Comfort, and Extended, each covering different levels of complexity. The unique feature of ZUGFeRD lies in its hybrid nature: it integrates both the XML file for machine processing and a human-readable PDF version of the invoice.

An electronic invoice (E-invoice) according to EU standards is an invoice that is created in a structured format, transmitted and received electronically, to enable seamless automatic and electronic processing. Designed as a semantic data format, the E-invoice allows for the seamless import of invoice data into processing systems. It is based on a structured XML format that is primarily intended for machine readability. Using visualization programs, the XML dataset can be made human-readable. There are various standards and specifications for electronic invoicing, such as the XRechnung standard. XRechnung represents a national adaptation of the European standard EN 16931, known as a Core Invoice Usage Specification (CIUS). To adapt the European standard EN 16931 to country-specific requirements, each member state defines its own CIUS. In Germany, the national adaptation is referred to as XRechnung and serves to uniformly implement the requirements of public contracting authorities at the federal level, as well as in many states and municipalities.

E-Invoicing in Companies: Benefits and Profitable Use

The transition to e-invoices is more than just a legal obligation. It offers numerous advantages for companies, particularly in the areas of efficiency, cost reduction, and transparency.

          1. Automation of Processes: The use of structured data such as XML allows for the invoice processing to be largely automated. This reduces manual data entry and the associated errors. The transmission, processing, and storage of invoices occurs automatically and can be seamlessly integrated into existing ERP systems (Enterprise Resource Planning).
          2. Cost savings: The reduction of paper, postage, and manual tasks leads to significant savings. Additionally, the time-consuming archiving of paper documents is eliminated. e-invoices can be stored digitally in a space-saving and legally compliant manner. According to studies, companies can save up to 60% of costs by switching to electronic invoices.
          3. Transparency and Traceability: E-invoices provide better traceability and transparency of the invoicing chain. The digital storage and processing make it easier to track workflows, which is particularly advantageous in terms of audits and compliance requirements.
          4. Sustainability: The reduction of paper usage supports the sustainability goals of companies. This not only leads to lower paper and printing costs but also to reduced environmental impacts.

Neoxum GmbH: A Pioneer in e-Invoicing

For many years now, we have been forgoing paper invoices.

For many years, we have refrained from using paper invoices both when sending and receiving invoices. Instead, we have been sending our customers PDF invoices for many years and requesting our suppliers and partners to send invoices in PDF format. In retrospect, we have saved a lot of trees, avoided using filing folders, and conducted our entire accounting digitally. For many years now, we have not had to send large amounts of folders and paper documents to our tax consultancy for the preparation of accounting and the annual financial statements. Through digital accounting, we save a significant amount of CO2!

Logical consequence: Early introduction of the e-invoice

To meet the requirements of modern invoice processing, Neoxum GmbH has proactively adapted to the needs of digitalization. Starting from October 1, 2024, Neoxum will offer e-invoices according to the latest standards of the XRechnung and ZUGFeRD formats. Customers will have the freedom to choose between the latest versions or, upon request, older versions of the formats. This flexibility allows Neoxum's customers to design their invoicing processes efficiently and in accordance with their operational circumstances.

Conclusion: The future belongs to the e-invoice.

The e-invoice is a fundamental building block of digitalization in Germany and Europe. It accelerates processes, reduces costs, and enables a more sustainable way of working. Companies that transition to e-invoicing early benefit from these advantages and ensure that they meet legal requirements. Neoxum GmbH demonstrates its reliability and modernity as a partner for this transition through its willingness to meet the requirements for e-invoice processing early. Additionally, we have been acting sustainably for many years by forgoing paper invoices.

For companies of all sizes, the rule is: The sooner they implement e-invoicing, the more they benefit from the competitive advantages of digitalization.

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