26th August 2021 - When searching the exact and accurate definitions of Digital and Electronic Invoices. Internet sources fail to provide us with the correct difference between the terms. Rather we end up considering both terms the same, which is far from the truth.

Electronic Invoice

الفاتورة الالكترونية refers to the electronic file which is generated digitally and preserves information in one place. Since a common standard for E-invoice is not chosen yet, multiple formats are prevailing across the globe. Two of the most popular being EDI and UBL.

SME’s despite the popularity of EDI, avoid the format for they cannot afford it. Whereas UBL 2.0 is gaining trust constantly among the governments of the world. The European Commission is also developing an advanced version called UBL 2.1. UBL 2.1 is expected to be the standard format for companies working with the EC. Some of the regulations of electronic billing software Saudi Arabiaare mentioned below:

1. Organized invoice data produced using standard Internet-based web forms.
2. Organized invoice data produced in Electronic Data Interchange (EDI) or XML formats

Digital Invoice

Any invoice that is eligible to be modified through digital means is called Digital Invoice. Linking electronic billing software Saudi Arabia to accounting software and storing it is comparatively easy. In addition, working pressure is reduced; optical recognition (OCR) partially books digital invoices into systems.What differentiates a digital invoice from an e-invoice:
1. Scanned paper invoices;
2. Unorganized invoice data generated in PDF or Word formats.

The Motive behind Modern Invoicing
الفاتورة الالكترونية is not considered the final step of a billing process. Instead, it is a better method to accomplish a target. Using E-invoice guarantees that the invoice will arrive at its destination quickly and at lower costs. The recipient’s main purpose is to book a purchase invoice by minimum human actions. The medium of transaction of an invoice is insignificant as long as the ultimate purpose is fulfilled efficiently.The advantages of switching to e-invoices are:

1. Simplicity; automatic generation and modification reduces the work-load
2. Elimination of paper stacks boosts the work speed
3. Minimum human handling means better accuracy
4. Not using print and post facilities decreases expenditure considerably

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