An actionable summary of how European Union Regulations impact the working capital, and how an organisation should plan its next steps to drive the regulation.
E-payment is an upcoming trend to be implemented in B2B landscape. However, a study reveals that 55% of the respondents in EU/UK do not expect a significant change in their B2B customer payment behaviour over the upcoming 12 months. In this backdrop, Italy has made e-invoicing mandatory for all B2B, as well as B2G(Business to Government) transactions. The purpose of this is to introduce e-adoption of payments in Europe. The key aspects of this mandatory e-invoicing include the following:
This regulation is a result of Italian Budget Law† 2018, the decision from EU council is awaited. What it means for your OTC team? Shorter Payment Cycles Adoption of e-invoicing will lead to faster cash conversion cycle, eliminating invoicing issues. Standardized Invoicing If invoicing across EU becomes standardized, it will be easier for the treasury/AP team to accept the payments and reflect them in the books. Elimination of Spesometro The Spesometro report was sent to Agency of Revenue, meant to control tax-evasion, which is no longer required after this mandate is effective. Seamless transition to Automation It is better to experience an exponential growth in automating rather than a disruptive one. E-invoicing facilitates the same. Next Steps: How to drive compliance
HighRadius Electronic Invoice Presentment and Payment (EIPP) Software provides tools that automate and speed up invoice communication and facilitate a faster collection of payments, enabling a closer and more convenient relationship with customers. It automates the invoice transmission and payment collection process providing a configurable solution that supports multiple invoice formats and different modes of transmission (fax, email, portal, etc.) depending on the targeted customer, its integration with ERP systems and a rich search capability enables efficient storage and retrieval of past invoices, backup attachments to minimize disputes and short pays. Apart from that it also has some key features that you would not want to miss out: level-III interchange and surcharge; self-service customer portal; invoicing across email, customer portals, post, and fax; advanced deduction management; and lightning e-payments. The result is faster invoicing and payment collection, better customer service, and improved profitability and cash flow.
HighRadius Corporation
2107 CityWest Blvd,
Suite 1100,
Houston, TX 77042
