Peppol in the hybrid billing era: how to use Peppol effectively in your business?

Peppol is on the rise. You may not have fully embraced it yet, but you’re already hearing about it left and right. And perhaps you sometimes already receive or send invoices via Peppol. Or you want to start doing so soon. But how do you use Peppol effectively in your business?

Safety and convenience first: Peppol in a nutshell

Basically, Peppol was created to create a secure environment in which you can easily exchange invoice information. You no longer do this via e-mail – and that promotes security, because e-mail has its drawbacks from a security point of view. Moreover, Peppol works with an authentication system: users must identify themselves through a process, which prevents phantom invoices. The ultimate goal of Peppol is to make the process run more smoothly: when you know that incoming invoices are verified and comply with a standard format, they are much easier to process.

However, the possibilities extend further. If you also work with purchase orders, in principle you could also exchange these via the Peppol network in the form of e-orders. This is still in its infancy, but the option is there. Speaking of the “optional component,” if you are a supplier to the Dutch government, it is already mandatory to send invoices via Peppol. This obligation also applies in several other EU countries.

In short, this development is driven by government and legislation. And when an invoice is presented to you via Peppol, you want to be ready for it. After all, it’s a much more secure method than e-mail. That’s why it makes sense to take the right measures! The question is: how do you do that?

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Peppol to fit into the larger billing picture

When it comes to invoices, the terms fly around your ears. ‘Peppol’, ‘DICO‘, ‘XML‘: how do you deal with all those different formats? On the sending side, this is often well taken care of by your ERP system. But you also want to arrange everything properly at the receiving end. There you often have to deal with a hybrid structure: different suppliers send you invoices in different formats, leaving you with a mix of PDF, XML, DICO and Peppol invoices.

Now you could just choose Peppol and “educate” all your suppliers, so that eventually you only receive invoices through Peppol. But in practice, that’s usually not a viable solution. What often works better is to integrate Peppol into your “hybrid receiving structure.

To do this, you must first choose a service provider. In fact, Peppol works just like a cell phone or energy network. It is arranged centrally, but you have to contract with a service provider to use it. You arrange this separately for the sending side and the receiving side. As mentioned, many ERP systems take care of sending Peppol invoices. But for incoming invoices, you have to make a separate arrangement. You can do this directly with a service provider or with an intermediary.

Now the first option may seem convenient, but often it is smarter to choose a reliable intermediary. This is because it ensures that you receive and process not only Peppol invoices, but also all other invoices in a coordinated manner. Such a party acts as a kind of phone store where you also conclude the contract with a good Peppol service provider. A one-stop shop for purchase invoice processing, in other words!

The costs associated with Peppol bills, by the way, depend on the provider you ultimately choose. If you conclude your contract directly with a provider, you often deal with a subscription structure. If you choose an intermediary, they usually pay a certain amount per Peppol invoice to the provider. This may be passed on to you, or it may be included in the price you pay for the intermediary’s total solution.

After the contract: how do you activate Peppol?

Suppose you enter into a contract. What actions must you then take to be able to use Peppol? Activating Peppol may seem tricky on paper, but in practice it’s actually quite simple. You need to take care of two things before you are ready for Peppol: go through a verification process and make it possible to retrieve documents directly from your software system. The latter is often done through your ERP vendor or intermediary. So you’re usually not on your own!

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