eInvoicing jargon 101: Key terms explained

eInvoicing is fast becoming the global standard for sending and receiving invoices, thanks to its enhanced security, efficiency, faster payment processing and many other benefits.

But if you’re new to the world of eInvoicing, making sense of all the jargon can seem daunting.

In this guide, we’re demystifying the common terms you might come across to help you get started on your eInvoicing journey.

An Access Point (or Peppol Access Point) is a software that can connect others to the Peppol network and exchange documents via the required standards/protocols and in accordance with the necessary regulations.

An Access Point Provider, also known as a Peppol Certified Service Provider, can exchange documents across the Peppol network as well as facilitate connection to the Peppol network.

API stands for Application Programming Interface. An API is a software interface that allows two or more applications to communicate with each other.

AS2, which stands for Applicability Statement 2, is a protocol used to securely send and receive documents within the Peppol network. It became the required protocol for exchanging information between Peppol Access Points in September 2014, replacing the older START system. In February 2020, AS4 replaced AS2 as the mandatory transport protocol between Peppol Access Points. As of February 2024, AS2 became an optional protocol for use across the Peppol network.

AS4 stands for Applicability Statement 4. AS4 is the message transport protocol used in the Peppol network. AS4 replaced AS2 on Feb 1st 2020 as the mandatory transport protocol between Peppol Access Points.

B2B stands for Business-to-Business. In the context of eInvoicing, B2B refers to the digital exchange of invoices between businesses via the Peppol network.

B2C stands for Business-to-Consumer. In the context of eInvoicing, B2C refers to the digital exchange of invoices between a business and their individual (non-business) customers.

B2G stands for Business-to-Government. In the context of eInvoicing, B2G refers to the digital exchange of invoices between businesses and government entities.

A Bank Identifier Code (BIC) is the unique identification code assigned to a bank to ensure automated payments are sent quickly and accurately to the correct institution. This code consists of 8-11 characters and uniquely identifies the country, city and branch involved. BIC codes are also known as SWIFT codes.

CEF stands for CEF Connecting Europe Facility. The Connecting Europe Facility (CEF) program, is an initiative by the European Commission aimed at promoting secure and interoperable electronic data exchange between public administrations, businesses, and citizens across European Union (EU) member states. The primary goal is to enhance cross-border and cross-sector interoperability in the exchange of electronic documents and data.

By promoting standardised and secure electronic data exchange, CEF eDelivery aims to contribute to the development of a Digital Single Market within the European Union, fostering economic growth, innovation, and efficiency in cross-border transactions. It aligns with the broader objectives of the European Digital Agenda and the Digital Single Market Strategy.

Cross Origin Resource Sharing (CORS) enables web pages served by one domain to access resources from another domain. CORS is used to integrate web applications more securely by determining whether it is safe to allow a cross-origin request.

Continuous Transaction Controls, or CTC, are regulatory measures used to monitor and verify transactions in real-time or near real-time. This approach is implemented to enhance tax compliance and reduce fraud by providing governments immediate visibility into business transactions. In the context of eInvoicing, CTC ensures that every invoice is reported and authenticated by tax authorities as soon as it is issued, promoting transparency and accuracy in financial reporting.

Document Exchange refers to the process of transferring documents between two or more parties. Similarly, electronic document exchange refers to transferring documents digitally between multiple parties, such as individuals, organisations or systems.

A Data Universal Numbering System (DUNS) number is a unique numerical identifier assigned to a single business. Based on a proprietary system developed by commercial research and analytics provider Dun & Bradstreet (D&B), DUNS is a global standard recognised by industry and trade associations worldwide.

eDelivery is an all-encompassing term that refers to electronic documents transmitted via the Peppol network..

EDI, or Electronic Data Interchange, refers to the electronic exchange of business documents and information between trading partners in a standardised and structured format. 

EDI eliminates the need for paper-based documents and manual data entry, streamlining and automating business processes across organisations.

EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is an international standard for electronic data interchange (EDI) used in the exchange of business documents between trading partners. EDIFACT provides a set of standardised messages in a structured format that enables the computer-to-computer exchange of information related to various business processes, including eInvoicing.

eInvoicing, or electronic invoicing, refers to the process of creating, sending, receiving, and processing invoices in a digital format. Unlike PDF or paper invoices, an eInvoice is sent directly from one piece of software to another with no manual handling required – offering a fast, secure and cost-effective way to send and receive invoices.

An eInvoicing network facilitates electronic invoice exchange between suppliers and buyers, with different regions adopting specific networks to meet their regulatory and business needs. Peppol is an example of an eInvoicing network used across multiple countries.

eProcurement, or electronic procurement, refers to the use of electronic systems and technologies to manage and streamline the procurement process within an organisation. The traditional procurement process involves various manual steps, paperwork, and communication, which can be time-consuming and prone to errors. eProcurement aims to automate and optimise these processes, leading to increased efficiency, cost savings and better management of the procurement lifecycle.

The model that Peppol uses to facilitate electronic transactions. There are four components (or ‘corners’) involved in this model:

The Four-Corner Model works as follows:

Step 1: The Sender transmits their message via their Access Point to their service provider within the Peppol network.

Step 2: The Sender’s Access Point locates the Recipient in the Peppol Network via their Peppol ID.

Step 3: The Sender’s Access Point passes the message to the Recipient’s Access Point, which the Recipient then receives.

Step 4: The two Access Points confirm that the message has been transmitted successfully.

File Transfer Protocol, or FTP, is a protocol used to transfer files between computers on a network by allowing users to upload or download files from a server.

Galaxy Gateway is the original name of Tickstar’s Peppol Access Point and SMP (Service Metadata Publisher) service.

Global Location Number, or GLN, is a unique code used to identify locations in a business network. It’s essential in eInvoicing for pinpointing where transactions occur, such as billing or shipping destinations. Companies, organisations and authorities can have multiple GLNs depending on where they are located. GLNs ensure that invoices and related documents are sent to and from the correct locations, facilitating efficient and accurate business transactions.

Infrastructure as a Service (IaaS) is a cloud-computing service model where a vendor provides computing resources to users, such as storage, servers or virtualisation via a subscription payment model. With IaaS, users do not need to maintain an on-premises data centre, often making it a more cost-effective solution for businesses.

Infrastructure as Code (IAC) is an approach used in DevOps (Development & Operations) to set up an infrastructure environment. With IAC, machine-readable files are used to provision and manage computer data centre resources, instead of interactive or physical hardware configuration tools.

An International Bank Account Number (IBAN) is an internationally standardised bank account identifier that facilitates cross-border transactions with greater accuracy. Each IBAN consists of a country code, two check digits, and a number comprising the domestic bank account number, branch identifier and routing information.

IP stands for Internet Protocol. IP is the set of rules governing the format of data sent via the internet or a local network.

ISMS stands for Information Security Management System. ISMS is the process by which an organisation protects their data and assets against threats or vulnerabilities. This includes defining and managing controls to maintain confidentiality, integrity and availability of assets in a secure manner.

ISO stands for International Organization for Standardization, an independent, non-governmental international organisation with a membership of 170 national standards bodies. 

ISO brings together experts to develop International Standards that support innovation and help solve global challenges.

ISO 6523 is a standard that specifies a structure for globally identifying organisations for the purpose of information exchange. A list of identifiers currently used in Peppol is available here.

JSON stands for JavaScript Object Notation. It’s a file format used for storing and transporting data which is easy to read and write by humans and machines. An alternative to XML, JSON is an increasingly common file format used for eInvoicing.

KYC stands for Know Your Customer/Know Your Client. KYC refers to the process of identifying and verifying a client’s identity. This is a mandatory process in the financial services industry.

The process of Optical Character Recognition (OCR) allows text from an image or scanned document (such as a paper invoice) to be converted into a machine-readable format. OCR can assist in automating the invoicing process, but can produce inaccuracies that require manual adjustments.

OpenID Connect (OIDC) is an authentication protocol that verifies an end-user’s identity and obtains user profile information. It is an identity layer built on the OAuth 2.0 framework, offering a more secure alternative to password management and minimising data breach risk.

OpenPeppol is the global non-profit organisation that oversees Peppol. OpenPeppol is responsible for the development, implementation and maintenance of the Peppol network.

Peppol stands for Pan European Public Procurement Online. It is a set of global technical specifications that facilitates the digital exchange of electronic documents.

Peppol integrates business processes by standardising the way information is structured and exchanged. Whether you are sending invoices or handling other business transactions, Peppol delivers a shared digital language for organisations all over the world. Peppol is a non-profit organisation.

The Peppol 5-Corner Model Pilot is an initiative designed to test an expanded framework for eInvoicing within the Peppol network. Unlike the traditional 4-corner model, which involves sender, sender’s access point, receiver’s access point, and receiver, the 5-corner model introduces an additional point to enhance transaction flexibility and data interchanges. This pilot aims to evaluate the benefits and feasibility of incorporating Continuous Transaction Controls (CTC) to improve the efficiency, scalability, and compliance of eInvoicing systems.

A Peppol Authority is a regional authority that is responsible for setting local regulations and overseeing Peppol accreditation. 

Peppol BIS (Business Interoperability Specification) defines standardised formats and structures for various procurement-related documents, such as invoices, purchase orders, and shipping notices. This standardisation promotes consistency and interoperability, allowing different organisations and systems to understand and process the documents effectively.

Peppol IDs, or Peppol Participant Identifiers, are unique identifiers assigned to organisations or entities that participate in the Peppol network. The Peppol Participant ID is used to uniquely identify each trading partner within the network and is a crucial component for the secure and standardised exchange of electronic documents, such as invoices and purchase orders.

From January 1st 2024, all Peppol Access Point providers must submit monthly statistics reports to OpenPeppol. There are two monthly reports to be submitted:

EUSR details the number of end users you have served broken down by document type. 

TSR includes the same breakdown – per document type – but details the other Access Points that you have exchanged documents with.

Learn more about Peppol reporting here.

Stands for Peppol International Invoice. PINT Billing has been developed by the OpenPEPPOL AISBL Post Award Coordinating Community as a template for creating globally interoperable invoice specifications.

This is the general data model for an invoice based on PINT, which can be used as a base for specialisations in various jurisdictions.

Post-Award describes the business processes that occur after a business relationship has been established between two trading partners. Such processes include the exchange of catalogues, orders, despatch advices, and invoices between those parties.

Pre-Award refers to processes involved in the tendering and contractual arrangement phase of a business relationship. Once a buyer and supplier begin to trade, they are in the ‘Post-Award’ phase.

SaaS stands for Software as a Service. SaaS is a software licensing and delivery model in which software is purchased on a subscription basis and is hosted centrally.

SDK stands for Software Development Kit. An SDK is a set of tools for third-party developers to use in producing applications using a particular framework or platform.

Secure File Transfer Protocol, or SFTP, enhances the traditional File Transfer Protocol by adding a layer of security to file transfers. It enables users to move data securely between computers on a network. By encrypting both commands and data, SFTP protects the integrity and confidentiality of file transfers against potential cyber threats, making it a reliable choice for transmitting sensitive information.

The SMK is the Service Metadata Locator (see below) for test scenarios. The SMK is only used to exchange files between Peppol Access Points with pilot certificates.

SML stands for Service Metadata Locator. The SML is a service managed by Peppol. Each Service Metadata Publisher (see below) is registered in the SML.

SMP stands for Service Metadata Publisher. An SMP is a registry that stores receivers’ metadata such as their Peppol Identifier(s), document type receiving capabilities and which access point(s) they use to receive each document type.

Secure Trusted Asynchronous Reliable Transport, or START, was a protocol used within the Peppol network to exchange messages between Access Points. It helped ensure secure and dependable communication. START was discontinued in 2014 and replaced by AS2.

SWIFT codes, also known as SWIFT numbers or addresses, is a unique identification code for identifying banks and financial institutions. Consisting of 8-11 characters that identify the country, city and bank branch, this code ensures automated payments are sent quickly and accurately to their intended recipient. Also known as Bank Identifier Codes (BIC).

A Transport Layer Protocol provides a mechanism for transmitting data  from one network to another, ensuring end-to-end communication between devices. Online financial transactions, for example, will use transport layer protocols to ensure reliable delivery.

Universal Business Language (UBL) is a global standard for electronic documents and information models used in domestic and international supply chain processes, designed to streamline information exchange between businesses. Peppol eInvoices, for example, are based in UBL.

UUID stands for Universally Unique Identifier. A UUID is a unique code assigned to each eInvoice to guarantee traceability as the eInvoice travels from the sender through to the receiver’s access point.

VAN stands for Value-Added Network. A VAN is a hosted service network that enables businesses to exchange information, such as eInvoices, with each other. 

VIDA stands for VAT (Value Added Tax) in the Digital Age. VIDA is an initiative introduced by the EU to address the challenges of digital commerce and ensure the fair and efficient collection of VAT for businesses selling goods or services online to customers in the EU.

XML stands for eXtensible Markup Language. It’s a markup language and file format for storing, transmitting and reconstructing data in a human-readable format. Like JSON, XML can be used as a file format for eInvoices.

If you’re looking to learn more about eInvoicing, we’re here to help. Get in touch with our team here.