Set up Business Central electronic invoicing for sending and receiving

Why companies move to Business Central electronic invoicing

There are two main drivers. The first is law. More governments now demand structured invoices. This is common in Europe and Latin America. For example, some use a government platform. A US company with a subsidiary abroad meets these rules quickly.

The second is commercial. Large customers ask suppliers to use a network or portal. In addition, structured invoices can be matched and approved automatically. The United States has no federal mandate for business invoices. So here the request usually comes from a customer, not from a regulator.

How Business Central electronic invoicing is built

The E-Documents framework has three parts. A document format defines the file. PEPPOL BIS 3 is one example. An e-document service defines how the file travels. It uses a connector to an access point. Finally, a workflow decides which documents go to which service.

When you post a sales invoice, Business Central creates an e-document, exports it and sends it. It logs the status as created, sent, approved or rejected. Microsoft supplies local versions for many regions. Partners add formats and connectors. So the framework can grow with you.

How we set up Business Central electronic invoicing

We first find out exactly what you need. Which format? Which network or platform? Which identifiers must your company and partners carry? We complete customer and vendor cards with those identifiers. Then we check items, units and tax setup against the format's code lists.

Next we set up the service, the connector and the workflow. Each customer gets a sending profile. We prove everything in a sandbox, using the provider's test environment. We use real examples of invoices and credit memos. Only then do we switch on the production connection. Also, your team sees each status change.

Receiving vendor invoices through Business Central electronic invoicing

The framework works in both directions. It collects incoming electronic invoices from the service and shows them in the e-documents list. Then it turns them into purchase invoices or matches them to existing purchase orders. Because the data is clean, lines, quantities and tax arrive as the vendor issued them.

We set up how the system recognizes vendors and items. We also set what happens when a line has no match. The draft then moves into your approval workflow. The original file stays linked to the purchase document. That gives accounts payable and auditors a clean trail from entry to source.

Pitfalls in an electronic invoicing project

Rejections nearly always come from master data. Common causes are a missing tax number. Others are a unit of measure with no standard code, or an address with missing fields. We check the data before the first test file. So rejections do not pile up after go-live.

The other trap is treating rules as the same everywhere. However, each region sets its own format, platform and timing. Some need approval from the tax authority first. We check the rules with official sources and your tax adviser. However, we do not give tax advice ourselves.

Business Central electronic invoicing questions

Is an emailed PDF an electronic invoice?

No. An electronic invoice is structured data, usually XML. Software reads it field by field. A PDF is an image of an invoice for a person to read. Business Central can send both when needed.

Does Business Central support PEPPOL?

Yes. The PEPPOL BIS 3 format is included. The framework can send and receive through a PEPPOL access point. You choose an access point provider. Then we connect it and test it with real invoices from your own data.

Are US companies required to send electronic invoices?

There is no federal requirement for invoices between private businesses in the United States. US companies meet electronic invoicing through foreign subsidiaries or through sales to customers abroad. Large customers that ask for structured invoices by network or portal are another route.

What is the E-Documents framework?

It is the part of Business Central that creates, sends, receives and tracks electronic documents. Microsoft maintains the core. Local versions and partners add formats and connectors. So you can meet new rules without a rebuild.

Can we keep sending PDFs to customers who prefer them?

Yes. You set document sending profiles per customer. One customer can get an electronic invoice. Another can get a PDF by email. A default profile covers everyone else. You can change profiles at any time.

Related invoicing services

Electronic invoices sit between receivables, payables and document storage. The pages below describe the services that people normally tidy up alongside a Business Central electronic invoicing setup. Read them to see how the pieces fit. Then tell us who asks you for structured invoices. We will outline the format and service. For the product detail, see Business Central documentation on Microsoft Learn.