If you want to send and receive invoices electronically, you can choose from several types of e-invoicing. Which one fits best depends on how many invoices you process, the software you already use and the way your customers and suppliers work. This page explains the types that exist, how they relate to each other and how to decide which one suits your organisation.
A PDF sent by email is not an e-invoice
A PDF invoice sent by email is digital, but technically it is not an e-invoice. The recipient still has to retype the data or have it scanned. A real e-invoice is a structured data file, usually in XML format, that the recipient’s software can read and process automatically. That saves manual work, prevents errors and speeds up payment. For the basics, see What is e-invoicing.
The network behind the types: Peppol
Before looking at the types, one distinction matters: the type is the way you create and receive invoices, the network is the route those invoices travel along. Peppol is such a network: an international, open network that you join once through a Peppol Serviceprovider, after which you can exchange e-invoices with any other participant, whatever software or service provider they use.
A portal, accounting software or ERP integration is therefore not an alternative to Peppol, but usually a way of using it. In the United States, DBNA plays a comparable role as a network framework for e-invoicing.
Four types of e-invoicing
Portal solution
Accounting software with built-in Peppol
EDI (Electronic Data Interchange)
ERP connection or API integration
The types side by side
Want to see which Peppol Serviceproviders offer a portal, a software connection or an ERP integration? Use the comparison tool on peppol.nu to filter by the type that suits you.
| Type | Level of automation | Reach | What you need | Best suited to |
|---|---|---|---|---|
| Portal solution | Low: manual entry or upload | Any participant on the Peppol network | Just a web browser | Low invoice volumes, occasional e-invoicing requirement |
| Accounting software with Peppol | High within the package | Any participant on the Peppol network | A package with Peppol functionality | Small and medium-sized businesses |
| EDI | Very high | Regular trading partners with agreed arrangements | EDI software or an EDI service, alignment per partner | High volumes in established supply chains |
| ERP connection / API | Very high, including booking and matching | Any participant on the Peppol network | An ERP system and technical support | Larger and more complex organisations |
Which type suits you?
Go through the questions below. The first answer that applies to you usually points to the most logical type.
You send a handful of invoices per month without Peppol software?
A portal solution is the quickest start. You meet your customer's requirement without overhauling the way you work.
You already use accounting software?
First check whether Peppol is already available in it or can be switched on. That is almost always the simplest and most efficient route.
Your major customers or suppliers already use EDI?
Then EDI is the obvious choice, possibly combined with Peppol for trading partners who do not use EDI.
You work with an ERP system and process high volumes or several countries?
Then an ERP connection via an API delivers the most value, because invoices flow through your systems from order to booking without manual work.
Undecided between two types?
Choose the type that connects to the software you already use. You can always scale up later, for example from a portal to a software connection, without changing your Peppol address.
For public sector organisations
Under Directive 2014/55/EU, public sector organisations in the European Union must be able to receive e-invoices that comply with the European standard EN 16931. In practice, many countries use Peppol for this, with receipt usually handled through an ERP connection or a central receiving platform. For public bodies the key point is that all their suppliers can invoice them: even a small supplier using only a portal solution or accounting software with Peppol can submit an e-invoice that is directly processable.
In summary
There is no single best type of e-invoicing. A portal is the most accessible start, accounting software with built-in Peppol is the logical choice for most businesses, EDI suits high volumes in existing supply chains and an ERP connection gives larger organisations the most automation. In most cases, Peppol is the network underneath. Curious about the costs? Read What does e-invoicing via Peppol cost, or compare Peppol Serviceproviders on peppol.nu to see straight away which solution fits your situation.
