Digital Invoices
Efforts to standardize digital invoices are ongoing. In August 2022, Fast Accounting was officially certified by the Digital Agency as a Peppol service provider in Japan. We are developing services to facilitate the transmission and reception of digital invoices via Peppol access points.
What is Peppol?
Peppol is an international standard for exchanging electronic documents, such as purchase orders and invoices, over the internet. In Japan, the Digital Agency serves as the Peppol Authority, overseeing the management and operation of Peppol domestically. They are working on developing Japanese standard specifications that align with various national laws and business practices. In August 2022, Fast Accounting received certification from the Peppol Authority as a Peppol service provider and is committed to promoting its adoption in Japan.
Benefits of Peppol
By utilizing the common Peppol standard for digital invoices, companies using different accounting systems or EDI can exchange invoice-related electronic data seamlessly. Digitizing traditionally paper-based invoices through Peppol enables digital transformation. Furthermore, automation via Peppol can lead to reduced labor, cost savings, shortened payment cycles, and paperless operations.
Transitioning to electronic invoice delivery with Peppol also offers advantages such as reducing the labor associated with printing, envelope stuffing, and postage costs.
Relation to Japan’s Qualified Invoice System
Starting October 1, 2023, Japan’s Qualified Invoice System was implemented. To apply for input tax credits under this system, it is mandatory to retain invoices and receipts issued by sellers, known as qualified invoices or simplified qualified invoices. While the use of digital invoices is not mandatory under this system, qualified invoices require specific statutory information. Digital invoices are gaining attention for their ability to reduce the burden of verifying this information for recipients.
About Peppol Access Point Services
A Peppol access point serves as an intermediary within the Peppol network, facilitating the transmission and reception of electronic data between companies. Only certified providers can offer this service, and electronic data cannot be exchanged over the Peppol network without passing through an access point. Fast Accounting is certified by the Digital Agency as a Peppol service provider in Japan.
We plan to offer agent functions that convert invoice data sent by sellers into the Peppol format and transform Peppol-formatted invoice data received by buyers into their specified formats.
Tips & Insight: How Will DX Change with Peppol Implementation?
Accounting operations still involve manual paper-based tasks, such as printing, envelope stuffing, mailing, and storing invoices, leading to significant labor and costs. Managing paper documents necessitates on-site work, hindering remote work opportunities. Additionally, the environmental impact from mass printing, mailing, storing, and disposing of documents is a concern.
Implementing Peppol enables the digitization of invoice delivery, eliminating the need for printing, envelope stuffing, and mailing. Direct data exchange between systems removes manual data entry, reducing errors, mismatches, and losses associated with manual processes. Defining data elements facilitates significant advancements in process automation.
Customer Stories
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Asahi Kasei Corporation
- Key Benefits
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• Significant cost reduction
Reduced workload and prevention of human errors
• Quick and accurate compliance with Japan’s Invoice System and Electronic Accounting Record Keeping Law
• Continuous accuracy improvement with AI-OCR learning from scanned data
• Achieved workstyle reforms
[Remota] [Robota]
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Omron Expert Link Co., Ltd.
- Key Benefits
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• Automated checks and approvals for approx. 50% of payment vouchers
• Significantly reduced workload
• Eliminated the need for manual checks, reducing pressure on employees
• Ensured compliance with Japan’s Invoice System
• Time savings, cost reduction, and error minimization
[Robota]
Services
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Digital Invoice
