What is the Peppol network?
Do you know what Peppol is? By now, e-invoicing is the future of commerce and fiscal management, and more and more countries around the world are adopting it as mandatory. Given the latest law developments, all companies, regardless of their size, must have the tools to smooth the path towards a more automated way to process their data. Precisely thanks to Peppol, sending and receiving electronic invoices quickly, securely and standardized with companies around the world is now a reality.
Do you want to know more about this digital revolution? Read on and we’ll tell you all about it.
What is Peppol?
Peppol (Pan European Public Procurement) is an international network that allows companies around the world to exchange electronic documents securely, easily and according to a common standard, adapted to the needs of each country. It was launched in 2008 as a pilot project of the European Commission.
Thus, as stated on its website peppol.org, it is not an e-procurement platform. It provides a set of technical specifications that can be implemented in existing e-procurement solutions and e-commerce exchange services to make them interoperable between disparate systems in Europe and around the world. Peppol enables trading partners to exchange standards-based electronic documents through the PEPPOL network.
Moreover, behind Peppol there is the OpenPeppol Association, a non-profit organization comprising members from the public and private sectors. Its objective is to facilitate electronic negotiations between European companies and European public sector purchasers during procurement processes. Further, this fosters increased competition for public contracts and better value for taxpayers’ money. The association acts as a benchmark, ensuring the quality of standards and technologies.
How does it work?
Peppol operates on the principle that any company registered in its secure network can communicate with any other company, regardless of location. This is possible through Peppol’s four corners model, which ensures compatibility among all participants, even if they are from different countries. Let’s see how it works:
- Corner 1: This is the sender of the invoice.
- Corner 2: This is the Peppol Access Point, where the issuer of the electronic invoices (or other documents) is registered.
- Corner 3: This is the Peppol Access Point, where the receiver of the electronic invoices (or other documents) is registered.
- Corner 4: This is the invoice receiver.
Other interesting points about how it works:
- To access Peppol, companies must register with a certified Access Point, which guarantees security and compliance with internal rules.
- The sender and receiver can use the same Peppol Access Point or a different one at their convenience.
What is a Peppol Access Point?
Peppol Access Points are spaces where a Peppol service provider registers those companies (participants) that want to operate through this network and exchange electronic documents with other companies. In addition, the capabilities of documents and communications they can handle, that each company must have within this environment are also managed.
What type of electronic documents does this network allow?
Although the main document exchanged on Peppol is electronic invoices, this network allows much more.
Pepp0l makes possible to close the entire electronic procurement process (e-Procurement), using a common format and standard for all companies. Thanks to this, organizations all over the world can easily exchange electronic invoices, electronic orders, electronic delivery notes and the change of status communications involved in each case.
How to implement electronic invoicing through this environment?
In order to use Peppol, a company must register with a certified Peppol Access Point. B2Brouter is one of them, and it allows you to send free electronic invoices through Peppol to other national companies.
Besides, it is important to note that to access the Peppol network, you must register at an Access Point with a service provider. You cannot access Peppol directly.
Therefore, once registered in an Access Point, you must inform your Peppol identifier. This identifier can be your company identifier (NIF) and acts as a document routing code, so that transactions reach the correct recipient.
How to send Peppol e-invoices?
After registering at a certified Peppol Access Point and registering your Peppol ID, you can start sending your e-invoices.
To do so, you have to consider the following:
- The format used in the Peppol network is UBL. This means that you must generate and send your electronic documents in this format.
- In the electronic documents you send, you must always include the Peppol ID of the recipient. This allows your electronic documents to be transferred correctly.
Which electronic document format should I use?
The format used in all Peppol network’s documents is the UBL format, which is an adapted XML. We leave you detailed information about this format:
What is UBL format?Despite this, there are several variations and updates of the format used in Peppol. This is because the format has had to be adapted to the regulations and needs of different countries. Some examples are:
- Peppol BIS 3: It is the standard developed by the European norm, which allows companies from different countries of the European Union to exchange invoices without problems.
- Peppol PINT: It is the standard that allows the exchange of electronic invoices between countries around the world. For example, between an EU country and Japan.
What are the benefits of using Peppol’s solution?
Peppol has many benefits for companies and organizations using this network. This is evidenced by the growing number of countries adopting mandatory electronic invoicing with Peppol standards and processes. For example:
- It is an open, secure and standardized environment (common use of the UBL format). This allows companies to exchange electronic documents such as invoices, orders, and delivery notes with any participant, both nationally and internationally, and with the Public Administration of countries in the European Union and others around the world.
- In addition, it avoids the risks of identity theft, document forgery or other digital scams, thanks to the rules and validations imposed by the Peppol network.
What is Peppol Authority?
Electronic invoicing through Peppol is being deployed worldwide. Those countries that decide to implement Peppol processes and standards in their e-invoicing regulations must create the Peppol Authority.
The Peppol Authority is a body appointed by the government of each country, which is responsible for regulating and ensuring compliance with the use of the Peppol network for the cases designated by local regulations. Implements local requirements, manages local participants, etc. Some examples of countries with Peppol Authority:
- Germany.
- Sweden.
- Belgium.
- England.
- Iceland.
- Italy.
- The Netherlands.
- Norway.
- Singapore.
- Malaysia.
- New Zealand.
- Australia.
- Japan.
- Others.
Which countries have adopted electronic invoicing in this environment?
The countries of the European Union began to implement electronic invoicing regulations through Peppol. This was successful, as it is gradually spreading around the world and other countries such as Japan, Malaysia, Singapore, Australia, or New Zealand have also done so. It is expected that over time more countries will do so, which is good news, as this allows companies around the world to be easily connected.
Get started the easy way with B2Brouter
At B2Brouter, we are committed to progress and to offer quality technologies to our customers. Access Peppol easily, free (national sending) and securely with B2Brouter, one of the first certified Peppol Access Points.
With our solution, you can manage your invoices and electronic documents from the online application. Or you can integrate your management system or ERP to automate all the processes of issuing and receiving, as well as the exchange of status changes of your invoices and other documents.
Connect with companies around the world thanks to B2Brouter.
Manage your electronic invoice for free through Peppol!