Electronic Invoices

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Overview

Paper invoices are highly inefficient and more expensive for the buyer and supplier. They also are one of the greatest barriers to reducing days-sales-outstanding (DSO). An electronic invoice (e-invoice) offers the opportunity to reduce DSO by eliminating inefficient delivery and manual processing for both buyers and suppliers—while supporting multinational compliance. In addition, e-invoicing is the first step to achieving straight-through processing for business-to-business (B2B) payments.

The Business Payments Coalition (BPC) is dedicated to broadening the ability for businesses to exchange e-invoices with each other. In September 2021, the BPC with support from the Federal Reserve, began convening the E-invoice Exchange Market Pilot to establish a secure, open e-invoice delivery framework – known as an exchange framework. An exchange framework is an electronic delivery network based on a set of technical standards and policies to allow businesses to securely share electronic supply chain documents with one another. As a testament to the importance of this work, 73 industry organizations joined this effort (Off-site).

Watch the video below, for an overview of an exchange framework.

Connect to the Digital Business Networks Alliance’s Exchange Framework

Following completion of the market pilot, in early summer of 2023, participants of the E-invoice Exchange Market Pilot launched a market ready exchange framework (Off-site) and formed the Digital Business Networks Alliance (DBNAlliance) as the legal entity to oversee it. Today, the DBNAlliance is operating the exchange framework that is now available to all businesses via their service providers. To learn more and connect to the exchange framework today, contact the DBNAlliance at membership@dbnalliance.org or visit the DBNAlliance website (Off-site).

Resources

Additional Resources

  • e-Invoice Interoperability Framework Assessment Report (PDF) (2018)
    Report of the findings of a preliminary e-Invoicing Interoperability Framework (e-Invoice exchange framework) assessment with an overview of the goals and approach used for the preliminary assessment along with key themes that emerged. The report includes recommendations and considerations for future BPC e-Invoicing efforts.
  • Catalog of Electronic Invoice Technical Standards in the U.S. (PDF) (2017)
    The Catalog documents the large number of electronic invoice technical standards that exist in the U.S. market, resulting in a fragmented market and interoperability challenges among the standards.
  • U.S. Adoption of Electronic Invoicing: Challenges and Opportunities (Off-site) (2016)
    U.S. corporations lag in adopting e-Invoice solutions. This white paper by the Payments, Standards, and Outreach Group of the Federal Reserve Bank of Minneapolis highlights opportunities for businesses to gain efficiencies and reduce costs by more broadly adopting e-Invoicing.

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