Let us open this post by quoting Peppoli’s original motto: “Connect once, connect to all”.
Not only the European Commission but also the participants in the peppol go are living up to the motto until now. And there is no sign of stopping this compliance for many businesses who want to expand theirs achieves to the global market.
PEPPOL creates a robust set of aspects and standards for e-procurement, especially e-invoices, which turn out to be a huge problem solver in many practices across the globe.
As we know, bilateral transactions have always been a challenging rodeo for most businesses, regardless of their scales. It is because one party uses a special e-invoicing software. These different tools and software indeed have their ways to interact in the business documents. And here is where the problem arises. The misunderstanding and other errors often occur because of the different messaging formats and languages in the various systems.
The OpenPEPPOL organisation, with its peppol access point, can rule how the set of standards used through the agreements network. It is important for beginners to understand that Peppol is not an accommodation. Rather, it is an open network that is available internationally.
The members in the peppol Australia network can then use the connection to transfer or exchange business documents with other users. Keep in mind that the counterpart users should also be within the network and be compliant with the Peppol standards.
So, what’s the result then?
Remember when we said the misunderstanding in the different systems? With the help of people, this problem is gone. The huge reach benefit of Peppol is the qualitative interoperability of different e-procurement software and processes among the members. So, one would not fear the difference anymore in order to upgrade their business to the next level. The practice of peppol has reached Asia, America, and Africa, although it was initially focused on European areas. Now, the implementation is relevant for Australia, New Zealand, and Singapore.
What is Peppol?
PEPPOL is the compilation of accurate components and standards that unlock the bilateral e-procurement in many countries. Back then, the Pan-European Public Procurement Online project focused on the project for the European members. It does not take a long time until the set of standards can be applied in other countries in other parts of the world.
The application of the peppol to new Zealand and other Asian countries have been proven to be prevalent in improving productivity and taxation compliance.
The exchange of information between companies will be speedy and cost-effective.
The development of the project can be implemented in the e-procurement software and solutions. The different systems won’t have problems interacting with each other anymore. For instance, a business in Singapore can easily send the e-invoicing to a UK partner without having errors or misunderstandings. This will help both parties to achieve the interoperability that has been long yearned for in the global market.
Peppol in Australia, New Zealand and Singapore
For those who haven’t known about peppol New Zealand and its neighbour countries, they have joined PEPPOL. Two years ago, Australia, New Zealand and Singapore decided to join PEPPOL.
It is one of the ways to achieve the interoperability of the e-invoices across the border. The PEPPOL international invoicing standard will open the windows of opportunities for many companies and entities in the mentioned participants to improve their productivity and interactions with their foreign partners.
This framework won’t only ensure compliance and interoperability but also the practices of business documents.
Back then, the documents process was challenging when conducting across the border. But it is not a big deal anymore. The international standards created by PEPPOL has eliminated the barriers in the borders.
The e-invoices can be automatically processed and finalised without additional fees for administration. In turn, the providers and clients can save their operational costs and get rid of unnecessary expenses as they conduct the procurement online.
Each business has its customer software that might be different from its partner. The different systems are prone to errors and misunderstanding. While some folks are trying to find alternatives to mitigate the risks, there is an easy way out from the problem. The invoices can be processed automatically with ample security and transparency inside the particular network.
Not only these three countries, but many enthusiasts across the world are also hoping that this helpful set of standards will be more prevalent beyond the current 39 countries that join the cause. A business can use this model and encourage its peers to do the same.
Which countries use Peppol?
There are currently 39 countries that have been participating in the set of specifications. Thirty-one countries are coming from European areas. Meanwhile, the others are from the rest of the world. If your country is out of membership, rest assured that it is only a matter of time until your government claimed the application of PEPPOL for every business e-procurement.
What are the next steps?
In peppol Australia, the government and private entities have reaped the real benefits of the international standard model. As claimed by the government representatives, there are around 1.2 billion invoices exchanged on an annual basis.
It is important to understand the nature of the e-invoice first before linking it back to peppol Australia. The adoption of e-invoicing with the PEPPOL standards can generate savings to 30 billion dollars in the next ten years. That is only the minimum estimation. Imagine how much Australian businesses can save per year thanks to the help from this paperless solution?
Businesses can expect to save up to 80% on invoice processing costs since e-invoicing requires little fees compared to printed out invoices or PDF invoices.
More and more businesses and organisations have embraced the adoption of this international standards model. Now it is your turn.