Large businesses and government
The New Zealand Government is committed to delivering e-Invoicing.
With over 280 million business to business invoices exchanged in New Zealand annually, savings to our economy through e-Invoicing are estimated to be $4.4 billion over 10 years.
In June 2021 Central Government agencies were set e-Invoicing implementation and e-invoice volume targets:
- All Central Government agencies to be e-Invocing ‘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 e-Invoicing.
Adopting e-Invoicing 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 e-Invoicing:
Talk to the software provider of your accounts payable system to see if your system is e-Invoicing capable or planning to be.
Other options to consider:
- Repurchase: Replace your invoice processing system with one that is e-Invoice capable.
- Rebuild: Rebuild your current system to one that is e-Invoice capable, or alternatively upgrade to a version that is e-Invoice capable.
- Retire: If you have multiple invoicing systems, consider consolidating and moving to one e-Invoice capable system.
- Retain: Keep your current invoicing system and compliment it with an add-on which is e-Invoice capable.
Determine how you’ll access the e-Invoicing network. See the register for:
- a software provider for an e-invoice enabled system – they will work with an access point provider on your behalf OR
- an accredited access point provider to integrate e-Invoicing 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.
Check the New Zealand Government Procurement and Property website for more information.(external link)
Implement e-Invoicing, encourage your suppliers to send e-Invoices, and start gaining benefits.
Top tip: Engage and on-board your suppliers. The more suppliers you have sending you e-Invoices, the more you’ll benefit from the speed, accuracy, and savings.
Do this as soon as you start your own implementation.
Cost to implement e-Invoicing
The set up and ongoing costs of e-Invoicing 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.
PEPPOL capabilities and associated services(external link) - New Zealand Government Procurement