What is an electronic invoice?
Electronic invoices, or e-invoices, are fully digital invoices that are sent directly between companies' financial systems in a structured, machine-readable format.
It is important to distinguish between e-invoices for businesses (B2B) and eInvoices for private individuals (B2C).
For the individual company, electronic invoicing offers many advantages, including time and resource savings, better control, as well as environmentally friendly and sustainable operations.
Electronic invoice formats and networks in Norway
The Peppol network was initiated in 2008 and formally established in 2012 for the exchange of electronic invoices and other business documents across national borders and is the most widespread network in a Norwegian context.
Previously, the dominant standard for electronic invoice formats in Norway was EHF (Elektronisk Handelsformat). In 2019, EHF invoices became invalid to send in the Peppol network in connection with the transition from Peppol BIS Billing 2.0 to 3.0, and today the format Peppol BIS Billing 3.0 is used.
This format ensures:
- Compliance with Norwegian legal requirements
- Compatibility with European standards
- Automatic processing capabilities
- High security in transmission
EHF is still a valid standard for other commercial documents, such as orders, etc., but is no longer used for electronic invoices. However, many people still use the term EHF invoice in Norway, even though the correct term is Peppol BIS Billing 3.0.
Status of electronic invoices in Norway
Norway has been a pioneer in electronic invoicing and since 2012, and central government agencies have been required to be able to receive electronic invoices and credit notes in standardized formats (first EHF, and from 2019 Peppol BIS Billing 3.0 format).
The increase in electronic invoice transactions has been significant, and DFØ (the Norwegian Agency for Public and Financial Management) reports that close to 170 million invoice- and credit note transactions were carried out in 2024.
The illustration below depicts the growth of electronic invoices in both EHF and Peppol BIS formats in Norway, with all figures represented in millions of transactions.
How to get started with electronic invoicing in Norway?
In Norway, electronic invoices are mainly sent through access points in the Peppol network. The access point of the sender finds the correct address for the recipient in Peppol's address register. ELMA (Elektronisk mottaker- og adresseregister) is the Norwegian address register and contains, among other things, information about the document format and the recipient's access point.
To send and receive electronic invoices in Norway, a company needs:
- A financial system that can send and receive electronic documents, e.g. in Peppol BIS Billing 3.0 format
- Registration in ELMA or another SMP (your access point provider makes this registration)
- Connection to an access point in the Peppol network
For smaller businesses, there are several cloud-based financial systems available with integrated Peppol access point as part of their service. However, most mediums-sized and larger companies will need an EDI service provider that offers an access point. These service providers will usually also offer additional services to simplify the handling of electronic invoices.
International Electronic Invoicing
International electronic invoicing is often more complex than domestic. Most countries have their own preferred formats and use different networks. When invoicing internationally, it is therefore crucial to find the right EDI service provider with the necessary interconnection agreements and access to relevant networks, as well as an overview of the applicable legal requirements.
To be able to receive electronic invoices from abroad, you need to be connected to an EDI service provider that can:
- Exchange documents with the service provider that the sender of the invoice uses - either via interconnection agreements or via interoperability networks.
- Handle different invoice formats and convert these into a format that is compatible with your financial system.
To send electronic invoices abroad, you must be connected to an EDI service provider that can ensure that:
- The invoice can be converted to the recipient's preferred format (or a format agreed upon with the recipient’s service provider)
- The invoice is sent to the correct recipient, often by network collaboration, or via interconnection agreements
Success factors for electronic invoicing
- Choose the right EDI service provider: An experienced EDI service provider with a large network can be essential
- Collaborate with a System Integrator: Ensure seamless integration with your existing systems. (Logiq has a large and expanding network of partners that can help you)
- Build internal competence: Invest in training and understanding of electronic invoicing for your employees
- Prepare to scale: Choose solutions that can grow with your business
Summary
Electronic invoicing has long since established itself as the standard for B2B transactions. With the right partner and system in place, your company can achieve significant savings and efficiency gains. As a leading EDI provider in the Nordic region, Logiq has the expertise and infrastructure required to ensure the successful implementation of electronic invoicing.
Do you want to know more about how your company can get started with electronic invoicing? Contact us for a talk about what can be achieved.