Large businesses and government
The New Zealand Government is committed to delivering eInvoicing.
With over 280 million business to business invoices exchanged in New Zealand annually, savings to our economy through eInvoicing are estimated to be $4.4 billion over 10 years.
In June 2021 Central Government agencies were set eInvoicing implementation and eInvoice volume targets:
- All Central Government agencies to be eInvoicing ‘receive’ capable by 31 March 2022.
- 90% of business to Central Government invoices are einvoices by July 2026.
Wider Government is also encouraged to adopt and use eInvoicing.
Adopting eInvoicing across all levels of government and large businesses is good for the economy and helps support faster payments to small businesses. As government and large businesses are mainly receivers of large volumes of invoices, significant savings can be realised through reduced processing costs. It can also reduce administrative delays and payment issues. Faster payments and more streamlined processing for your goods and services suppliers can improve trading relationships.
Here are the main steps to getting started with eInvoicing:
Talk to the software provider of your accounts payable system to see if your system is eInvoicing capable or planning to be.
Other options to consider:
- Repurchase: Replace your invoice processing system with one that is eInvoice capable.
- Rebuild: Rebuild your current system to one that is eInvoice capable, or alternatively upgrade to a version that is eInvoice capable.
- Retire: If you have multiple invoicing systems, consider consolidating and moving to one eInvoice capable system.
- Retain: Keep your current invoicing system and compliment it with an add-on which is eInvoice capable.
Determine how you’ll access the eInvoicing network. See the register for:
- a software provider for an eInvoice enabled system – they will work with an access point provider on your behalf OR
- an accredited access point provider to integrate eInvoicing directly into your chosen system and connect directly to the Peppol network. An open syndicated agreement with a panel of access point providers is available for all of Government only to use. This will simplify and shorten the procurement process for wider government agencies to secure a provider.
PEPPOL capabilities and associated services(external link) — New Zealand Government Procurement
Implement eInvoicing, encourage your suppliers to send eInvoices, and start gaining benefits.
Top tip: Engage and on-board your suppliers. The more suppliers you have sending you eInvoices, the more you’ll benefit from the speed, accuracy, and savings.
Do this as soon as you start your own implementation.
Cost to implement eInvoicing
The set up and ongoing costs of eInvoicing may be smaller than you may think. The costs will vary depending on your finance system, security requirements and related bespoke applications, as well as the volume of invoices you send and receive.
Implementation costs may range from $3,000 to $20,000. This excludes any internal effort to implement the solution. Medium to large organisations tend to have more complex environments and are expected to require more effort and cost to implement, but should also achieve higher overall benefits.