• Bart van Strijen, Partner |
  • Didier Boekraad, Expert |

In this blog article, KPMG explains the electronic invoicing for Microsoft Dynamics 365 Finance and Dynamics 365 Supply Chain Management. The Microsoft ERP enables configurable processing of electronic invoices and configurable electronic document exchange. 

Electronic invoicing is the exchange of an electronic invoice document between a supplier and a buyer. An electronic invoice (eInvoice) is an invoice that has been issued, transmitted and received in a structured data format, which allows for its automatic and electronic processing, as defined in Directive 2014/55/EU.

The European Parliament and Council voted on Directive 2014/55/EU on electronic invoicing in public procurement on 16 April 2014. This Directive calls for the definition of a common European standard on electronic invoicing (EN 16931) at the semantic level and additional standardization deliverables which will enhance interoperability at the syntax level.

Public administrations are supported to comply with EU eInvoicing legislation and help service & solution providers adapt their services accordingly for Business-to-Government (B2G). However, eInvoicing can also be used to enable Government-to-Government communication (G2G) as well as in the private sector for Business-to-Business (B2B) transactions.

Business-to-Business (B2B) and Government-to-Citizen (G2C) or Business-to-Consumer (B2C) are not addressed in the context of the eInvoicing Directive until now. This is a plan, especially in scandinavian countries where people are open to sharing personal data such as their private mail address, bank account number or phone number.

What is an electronic invoice?

An invoice is generated, stored and amended in a structured electronic format (usually XML) through an electronic solution, which includes all the requirements of a tax invoice. A handwritten or scanned invoice is not considered an electronic invoice.

Why are countries implementing electronic invoicing?

Western countries are implementing electronic invoices for several reasons. These include, but are not limited to:

  1. Reducing the shadow economy
  2. Increasing compliance with tax obligations & reporting
  3. Reducing commercial concealment
  4. Adopting global best practices and improving ranking in relevant international indices 
  5. Enabling fair competition and improving consumer protection

The implementation of electronic invoicing has two main phases:

  1. Phase One: generating and storing tax invoices and electronic notes in a structured electronic format issued through an electronic solution and including all the requirements of tax invoices. 
  2. Phase Two: integrating the taxable persons’ electronic solution used to generate electronic invoices and notes into tax reporting systems, with the objective of sharing data and information.

How can Microsoft D365 support?

Electronic invoicing for Microsoft Dynamics 365 Finance and Dynamics 365 Supply Chain Management is a hyper-scalable multitenant service that enables configurable processing of electronic invoices and configurable electronic document exchange. The processing and integration rules are fully adjustable, and the logic is run outside Finance and Supply Chain Management. The service is targeted mainly at the processing of electronic invoice documents in business-to-government scenarios. However, it can be customized for other purposes, such as business-to-business scenarios for different types of documents.

Service availability

Currently, electronic invoicing functionality is available for Finance and Supply Chain Management customers. For more information, review the license terms and conditions for your application.

Because the functionality that addresses country/region-specific requirements might be limited to different phases of the release, you should always review the most up-to-date documentation that highlights the coverage and scope of the supported country/region-specific solutions.

Electronic invoicing is deployed in the following Azure geographies:

  • United States
  • Europe Union
  • United Kingdom
  • Asia
  • Japan
  • Switzerland
  • Brazil
  • United Arab Emirates
  • Australia
  • Canada
  • India
  • Norway
  • South Africa

Implementation availability in KPMG

In every country from the list above, you can find KPMG specialists and enlist their support in navigating a globally connected and increasingly digitized economy where tax administrations are constantly striving for visibility of the end-to-end supply process through technology tools that automate the tax reporting process, from e-invoicing to digital reporting and e-accounting.

The evolution of tax technologies used by tax administrations is disruptive and transforming the way taxpayers interact among themselves, with their customers, with related parties and also with the government.

Governments are continuing to move forward with issuing new regulations and requirements imposed on taxpayers. By having a proactive approach to these changes with a defined tax technology strategy that includes having an e-invoicing and digital reporting policy, organizations will be able to save costs and improve their efficiency.

KPMG’s is simple: our goal is to provide targeted but scalable e-invoicing and digital reporting solutions that address country-specific requirements.

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