Peppol E-Invoicing for Singapore Businesses (Ultimate Guide)

The Singapore Business Review reported that 80% of workers in one survey went back to sort invoices during Covid. The study interviewed 400 employees who said that they processed invoices manually, which was time-consuming. In addition, a worker spent an average of 218 hours processing invoices, causing workplace stress.

And yet, the researchers noted that the Singapore government has an initiative for paperless e-documents via InfoComm Media Development Authority (IMDA). Because of this, companies should leap on this opportunity to improve the efficiency of invoice processing. For these reasons, in this guide, you’ll learn about Peppol E-invoicing and how your business can reap its massive benefits.

Get 7 days free trial for ABSS accounting software (Peppol E-invoicing supported).

As a business owner, you prepare, send, and receive loads of invoices. You need time, money, and manual labour to process all these documents. Is there a fast and cost-effective way of handling e-documents?

Enter Peppol e-invoicing, “a set of interoperable networks for public procurement,” says one Forbes contributor. Peppol.com adds that it’s a “set of artefacts and specifications enabling cross-border e-procurement.” A mouthful.

But here are the key takeaways:

• Interoperability - means things that are made to work together like a web browser and webpage
• IT framework that lets your business sync with and sends messages to other connected systems to the network
• Network links several existing business and public administrator’s platforms
• Makes it easy for your cross-border business to exchange electronic documents with others

With Peppol e-invoicing, you can exchange standard-based e-documents, including;

• E-Catalogues
• E-Orders
• E-Advance shipping notes
• E-Invoices
• E-Certificates for animal products, specifically meat products with New Zealand

Caution: Peppol isn’t an e-procurement platform, but it’s designed in a way that allows it to work with your existing e-procurement solutions. Think of it as software services sharing data.

The Nationwide e-invoicing network is InfoComm Media Development Authority’s brainchild, the Singapore agency (IMDA). In 2018, through IMDA, Singapore became the first Peppol authority outside Europe to grab the massive benefits of the Peppol network.

Taking Peppol to the next level, IMDA launched a nationwide e-invoicing network campaign in 2019. It offered various incentives to encourage Singaporean businesses to come on board.

Nationwide e-invoicing network is “an extension of the international Peppol E-Delivery Network calling businesses to transact internationally with other linked companies”, says IMDA.

Its key features:

What does it mean to your business? You can participate in the enormous benefits of exchanging cross-border e-documents seamlessly with a software like ABSS. Read on to find out how you can sign up for Peppol e-invoicing and use the Peppol network.

First, you must understand the gurus behind Peppol. In 2008, the European Commission and 17 partners, including France, Denmark, etc., kickstarted the Pan-European Public Procurement On-Line system (PEPPOL).

Peppol aimed to help businesses exchange documents electronically with any European government agency. Today, Singapore is part of the Peppol IT infrastructure that OpenPeppol now owns and manages.

Recall that Peppol e-invoicing aims at letting your business exchange e-documents or e-invoices electronically without human effort. Because of this, note these crucial issues on how the software works.

• XML format called Peppol BIS (Business Interoperability Specifications) is the default format for standard e-documents
• BIS lets you choose your preferred Access Point Provider and accounting software
• Access Points are the gateway by which you can send & receive e-documents over the Peppol network
• APP converts your invoices in different formats into the standard format. Next, APP sends the standard docs to the receiving APP via the Peppol network.

Here is a simple example involving four parties:

• Your business (seller) sells medical supplies to a government agency. Next, you send your e-invoice to your APP
• Your APP converts the doc into the proper format that Peppol specifications allow and then dispatches it to your customer’s APP
• Buyer’s APP also changes the e-document to the format the Singapore agency prefers
• Singapore agency receives the invoice in its preferred format

All this happens through the Peppol network system known as the four-corner model, according to IMDA.

IMDA says, "E-invoice goes from sellers' system to buyers' system without any human intervention".

To access the full benefits of Peppol e-invoicing, you should use a certified Peppol Service Provider or Access Points.ABSS partners with Storecove to provide this service. Your APP links your company with the network to start sending and receiving e-documents following Peppol specifications.

Also, your Access Point Provider will give you a Peppol ID, which is a unique identification number.

Signing up with ABSS is as easy as 123. Here are the three steps to getting started.

 Step 1. Subscribe to ABSS Premium Cover/Upgrade Cover

Step 2. Register and log in to ABSS Connect

Step 3. Register and connect your business to Peppol

• Boost your electronic data interchange (EDI) - Connecting with other businesses using the same Peppol system reduces many EDI rules or protocols.
• The business saves on EDI investments - That’s because Peppol simplifies EDI protocols & lessens EDI vendors (APP) you need to work with.
• Businesses improve efficiency - Invoices move at the speed of lighting between participants. Also, it minimises human error during the transmission of e-documents.
• Reduce costs - There’s increased accuracy, and less paperwork, leading to significant savings for your business.
• Better use of time - Time spent to verify invoices and chase buyers for payments decreases
• Boosts workers’ morale - Stress levels of handling a mountain of documents fall, leading to happy staff.
• Pumps up your cashflow - Peppol delivers your invoices instantly, shortening the payment time.

Because of IMDA’s successful rollout of Peppol E-invoicing in 2019, your business can now maximise Peppol’s benefits. You can choose to sign up with your preferred Access Point Provider, accredited by IMDA. After that, your business can exchange e-invoices with others in the same Peppol network, leading to efficiency.

Looking to boost your cash flow with Peppol E-invoicing? Sign up for free with ABSS; an IMDA accredited Access Point Provider.