Electronic invoicing is a form of electronic billing. Electronic invoicing methods are used by trading partners, to present and monitor transactional documents between one another and ensure the terms of their trading agreement are being met. These documents include purchase orders, invoices, debit notes, credit notes, payment terms and instructions and remittance advices. These documents can be exchanged in a number of ways including EDI, XML, or CSV files.
Files can be uploaded using web applications or FTP sites. The company may use imaging software to capture data from PDF or paper invoices and input it into their invoicing system. Some companies have their own in house electronic invoicing process. However many companies will hire a third party company to implement and support these electronic processes and to archive the data.
Electronic invoicing includes so many different technologies and entry options, it is used as an umbrella term to describe any method by which an invoice is electronically presented to a customer for payment.