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How to Process E-Invoices Under EU Regulations

Learn how to automate e-invoice data extraction and approval to comply with EU regulations.

TABLE OF CONTENTS

What Is E-Invoicing

E-invoicing, or electronic invoicing, is the process of exchanging invoices in a standardized electronic format. Its purpose is to grant governments better visibility into transactions via digital reporting to ensure tax compliance. 

E-invoices are created in a predefined structured data format. Designed for digital transmission and formatted for machine reading, e-invoices usually don't have a convenient visual presentation, but can be rendered for viewing.

As e-invoicing gradually becomes mandatory in the EU, Precoro offers a way to process e-invoices and incorporate them into your established workflow.

How to Process E-Invoices with Precoro

💡Please note: To enable e-invoicing in your company, contact your Customer Success Manager. Once the feature is activated, Precoro will recognize e-invoices. E-Invoicing in Precoro is available for countries listed in this section.

Adding Documents to AP Inbox

There are two ways to add e-invoices into your AP Inbox, similar to documents for OCR processing:

  1. Send the document as an email attachment to the dedicated Precoro inbox email. To get the address, open the AP Inbox page (AP Inbox for precoro.us) and click Upload Through Email.
  2. Click Upload Attachment on the AP Inbox page to add the document manually.

upload through email
Since e-invoices are designed for machine reading, you won’t see the regular preview when clicking the attachment name on the AP Inbox page. Instead, you can click on the document number to review the available visualization.

Handling Various E-Invoice Formats with DDD Invoices

Take a look at e-invoice processing order:

  1. Once you’ve uploaded the attachment, it obtains the Processing status.
  2. The invoices are sent to DDD Invoices—our reliable partner that specializes in e-invoice processing. There, the data is extracted from the XML file, restructured, and returned to Precoro. Please note that processing may take up to 15 minutes.
  3. When Precoro receives the recognized data, the attachment obtains the Draft status.
  4. After that, the invoice proceeds to the same steps as regular OCR attachments: it is matched with AI, auto-created, or created as a Draft awaiting your action.

E-Invoicing Implementation Specifics by Country

E-Invoicing for Germany

E-invoicing is mandatory in Germany for B2B transactions. However, unlike many European countries, electronic invoices do not have to be sent to a tax portal, and can be transferred by email directly between businesses.

DDD Invoices and, therefore, Precoro recognize XRechnung and UBL e-invoicing standards that can be used in Germany.

The entire process from attachment uploading to processing is compliant with the requirements of German law.

E-Invoicing for Other Countries

We are planning to implement e-invoicing for Romania and Belgium soon. If you want another country to be added, please consult the Open Product Plan and upvote the relevant idea or submit a new one.