Some companies prefer electronic invoicing, especially in Europe. It involves delivery of invoices electronically via the Internet or formalized EDI relationship between the buyer and supplier. With tools like Vendor and Supplier Portals, virtually any company can accept electronic invoices from their vendors and suppliers without having to implement costly and complicated systems. It provides benefits to both buying companies (paper and expense reductions) and supplying companies (elimination of mail float and lower billing costs).
Web Suite supports electronic invoices using both the Finnish Reference Number and Structured Creditor Reference. Depending upon your preference, you can specify a reference calculation method in Global Settings.
Support for electronic invoicing is available in the Web Suite Enterprise edition only.
The Finnish Reference Number is generated using an invoice number and a check digit (minimum 4 digits + 1 check digit and maximum 19 digits + 1 check digit). Web Suite calculates it automatically using a method called Multiplier 137. The 137 Method ensures the delivery of invoices electronically to its intended recipient with these numbers printed on the invoices. The reference number is very important to make online electronic invoicing between accounting and banking systems possible. The invoicing company’s reference number identifies the invoice sent to the client. Payments furnished with a reference number are transferred to the payee’s account reserved for payments with a reference number. The check digit makes sure that the payments in the bank and invoices in the accounting systems can be connected with each other automatically.
On the other hand, the Structured Creditor Reference is a new international business standard based on ISO 11649, popularly used by the European Union. The Creditor Reference number is generated as an alphanumeric string with RF as a prefix and two check digits (RF + 2 check digits + 21 digits maximum). Web Suite generates it automatically using the invoice number. This RF Creditor Reference method ensures the delivery of invoices electronically to its intended recipient with these unique references printed on the invoices. The invoicing company adds the RF Creditor Reference to its invoices. When clients pay the invoices, they write this RF Creditor Reference instead of the invoice number in the message or payment ledger. When the company receives that payment, it can automatically match the remittance information to its accounts receivable system.