Electronic billing (also known as e-billing) is a form of electronic billing. Electronic billing methods are used by business partners such as customers and their suppliers to provide and control transaction documents between them and to ensure that the terms of their trade agreements are met. These documents include invoices, orders, debit slips, credits, payment terms, payment instructions and transfer documents. Electronic billing reduces the risk of billing errors and exceptions by digitizing accounting data and assigning it to contracts, orders, service stations and merchandise inputs. If electronic invoices are transferred via a digital business network and programmed with associated document data and business rules, they can be automatically validated before booking. And because digital information is easier to display in all systems than on-the-job paper, electronic billing is made easier: electronic billing solutions help you reach a new level of billing. Digitalization of invoices can eliminate errors, reduce supplier requests, speed up approvals and improve compliance. As businesses move into the digital age, more and more electronic billing services are automating to automate their credit services. The Global E-Invoicing Study 2012 illustrated how quickly electronic billing is progressing.
According to the study, 73% of respondents used electronic billing to some extent in 2012, an increase of 14% over 2011. Supplier resistance to electronic billing increased from 46% in 2011 to 26% in 2012. [8] According to a 2013 GXS report, Europe is adopting government legislation encouraging companies to adopt electronic billing practices. The U.S. Treasury estimated that the implementation of electronic billing across the federal government would reduce costs by 50% and save $450 million per year. [9] Since the mid-1960s, companies have begun to connect with their business partners to transfer documents such as invoices and orders. Inspired by the idea of a paperless office and more reliable data transmission, they developed the first EDI systems. These proprietary systems were quite efficient, but rigid. Each group of business partners seemed to have its own method of electronic data exchange. There was no standard that any trading partner could choose. In recognition of this, the Accredited Standards Committee X12, a standardization institution under the aegis of ANSI, standardized EDI processes.
The result is now called EDI ANSI X12 standard. [6] This remained the most important way to exchange transaction data between business partners until the 1990s, when companies that offered more robust web applications for the user interface appeared. These new web-based applications had features that served both the provider and the customer. They allowed the online filing of individual invoices and downloads of EDI files, including CSV, PDF and XML formats. These services allow providers to submit invoices to their customers for comparison and approval in a web application. Suppliers can also see the history of all invoices they have submitted to their customers without having direct access to customer systems.