There's a lot of talk about Peppol, but what is it, what is it about and how does it work?
Welcome to the ultimate guide to Peppol!
Peppol (Pan-European Public Procurement On-Line) comprises components and specifications that enable cross-border e-procurement. It is a specified infrastructure that connects buyers and sellers. It also includes standards and regulations for electronic document types such as invoices, orders and catalogs.
The concept also includes the member-driven organization OpenPeppol, which manages technologies, formats and agreements.
If you want to know more about the content of this infrastructure and why this international network was set up, you canread our in-depth information. This article describes how the architecture itself is structured, why it was created, what the responsibilities are and what it covers.
The Electronic Document Transport Route was created in 2008 to allow the EU to send invoices and respond to tenders across borders in a standardized and structured way. It has standardized the way of exchange as well as the standards of the documents themselves.
This EU-established framework has gradually expanded as non-EU countries have chosen to adopt the technology.
The aim of this distribution solution is to allow senders and recipients to exchange documents without having to adapt to each other's technical solution.
But what is the process and how does it work?
A document sent within the network in question initially ends up at the access point to which the sender is connected. This access point turns to the central address register to find out which local address register has more detailed information. The local register tells it what types of documents the recipient can handle and what its address is. The document is then sent to the recipient's access point and finally to the recipient.
The side chapter"The document path in Peppol " describes in more detail what the infrastructure looks like and how documents are exchanged within the network.
In order to receive a document via this EU-based creation, such as an invoice, you need an access point that acts as a connection. The access point makes the connected party both visible and searchable in the network.
This link,"What is an access point?", describes the role of the access point in detail.
We (InExchange) are an access point as well as some other VAN operators. Also some ERPs have support in their business systems. We have been an authorized access point for a long time and our customers can access it automatically.
The Peppol ID is a unique number that identifies the connected party in this network.
Each receiver has its own identification number that allows the different access points to find the parties. The number has two parts.
The first four digits are a prefix. For a Swedish recipient, it is either 0007 (organization number) or 0088 (GLN number). The second part of the number really only has a technical function. It is an indication to the access point.
It is worth noting that anyone who sends invoices and documents via the described transfer options and with InExchange as the access point does not need to think about the recipients' Peppol ID.
InExchange always keeps track of the ID number for its customers.
For a more detailed description of ID assignment and application, see the linkDetailed facts about the ID number.
For each document type sent within this circulation system for electronic business documents, there is a standard.
If we stick to invoice/credit, the format is called Peppol BIS Billing 3 and covers supplier issued invoices and credit notes. It is a specification that complies with the European standard (EN16931) and which, since April 1, 2019, is by law the type of invoice to be issued in public procurement.
When doing business in the public sector, the purchasing authority thus requires that invoices be sent in BIS Billing format. There are definitely advantages in using this format for other activities as well.
More detailed information about the format can be found at the link"What is Peppol BIS Billing 3?"
InExchange has been an approved access point for a long time and has full support for this transport model. InExchange monitors all updates regarding formats and regulations. The organization responsible for the platform is allowed to make changes to its formats twice a year. Changes that a system supplier may find difficult to implement in time.
Whatever format your ERP system can handle, InExchange will convert between it and the formats required by the network backend free of charge.
If you send your invoices via InExchange, you don't need to do anything special. The possibility to send to Peppol recipients is included in your service.
If you use an InExchange service to receive invoices, you can contact our support to register your company as a recipient in the Peppol register. There is no extra charge for registration. After that, you can receive from a Peppol sender in the format you usually receive your documents in when they come from InExchange. We'll convert from the original format to the one you want at no extra cost.
If you use InExchange for invoice processing, no special software is required to send or receive in this EU-related structure. We convert the material so that it is interpreted correctly by the recipient regardless of the format in which the sender sends it.
If your ERP system does not support Peppol BIS Billing 3.0, InExchange will of course help you convert between your existing format and the BIS Billing version.
The Accounting Act (BFL) states that "accounting information that the company has received from someone else must be preserved in the condition the material had when it came to the company", but under general advice the following is clarified:
"Received accounting information in electronic form that did not take physical form when it came to the company may be converted to the company's system and saved in the converted format provided that the data does not change or disappear in connection with the conversion."
When a conversion is performed, InExchange saves all information about what happens to your documents. An overview you can of course take part in. So you don't have to worry about breaking any laws by not being able to handle Peppol BIS Billing 3.0.
However, a recommendation is to note in a collection plan that a conversion takes place at InExchange so that system documentation and processing history comply with BFL. The Accounting Act states that the company must draw up descriptions of the organization and structure of the accounting system that are needed to provide an overview of the system (system documentation).