The XRechnung is based on the European standard EN 16931 - Electronic Invoice. Germany is thus implementing the requirements of the European Committee for Standardization (CEN). The data of an invoice are exported to a standardized XML file and transmitted electronically.

Currently, invoices are usually sent as PDF files. The recipient then has to scan them and enter them using handwriting recognition or even manually so that they can be processed in their financial accounting. These media breaks are time-consuming and error-prone. Thanks to the standardized XRechnung, all relevant invoice data can be automatically processed and further documents can also be integrated if necessary.

The XRechnung is mandatory from November 27, 2020. This means that authorities are only allowed to accept invoices that are issued as XRechnung. Since this is a European requirement, it will gradually become binding throughout the EU. In some countries the standard is already mandatory. This means: All companies, the billers or bill recipients must be able to send and process XRechnungen by the end of November.

Anyone who sends an invoice to a contracting authority after November 27, 2020 that does not meet the XRechnung standard will experience an unpleasant surprise: the authority is not allowed to accept the invoice and will therefore not pay it. Important: Conventional PDF invoices are not considered correct electronic invoices in the sense of the XRechnung format.

The underlying guideline relates exclusively to authorities. This means that invoices in any format can still be sent between two private companies. However, it can be assumed that corporations will use the switch to XRechnung to make this standard mandatory for their suppliers. Therefore, the XRechnung will most likely establish itself bit by bit in the private sector.

No rule without exception. This also applies to the XRechnung. The mandatory standard can be waived for:

• Invoices of up to EUR 1.000 net
• Defense and security contracts

Act! Especially if there is still no electronic invoice processing in-house, the processes in this area have to be completely reviewed and, if necessary, redone. In addition, it will be necessary to introduce software that is able to process the XRechnung standard.

Even if companies do not have any business contact with public clients, they should deal with the topic promptly. Because the rapid expansion of the standard to the private sector is to be expected.

In order to be ready to send invoices electronically, companies only need two things: On the one hand, the KUMAVISION EDX module, which enables electronic data exchange with third parties and can easily be added to any ERP software. It is also necessary to commission a service provider such as crossinx who has access to a certified access point and who handles the data transmission.

The creation of an XML file that withstands the test is not sufficient on its own for the successful implementation of the XRechnung. The encrypted transmission must also be processed via a secure network that can only be accessed via a certified access point.

There are various registered access point providers who convert the transferred data into the format required for sending and send it over a secure network. KUMAVISION works with the service provider crossinx, a GoBD-certified company from Germany that supports the exchange of documents with millions of companies and administrations worldwide.