Comparison between a Structured Electronic Invoice and an Unstructured Electronic Invoice

Electronic Invoice

A structured electronic invoice is created, sent, and received in a standard format (such as DBNA UBL 2.3 or Peppol 2.1), allowing automatic processing without human intervention. In contrast, an unstructured electronic invoice, although digital, is presented in formats like PDF, JPG, or non-standard XML. Below is a key comparison between both and the implications in terms of security, efficiency, and operational management:

1. Automatic vs. Manual Processing

  • Structured Invoice:
    Thanks to its standardized format, the information is processed automatically in the receiver’s systems without errors or duplication. This allows for direct integration with ERP systems and accounting platforms.
  • Unstructured Invoice:
    Data must be interpreted manually or through OCR processes, which can generate errors. In some cases, the information must be re-entered manually, increasing operational costs and processing times.

2. Fraud Vulnerability

  • Structured Invoice:
    Since it is transmitted automatically between systems certified under international standards (such as DBNA UBL 2.3 or Peppol 2.1), the risks of manipulation or data alteration are minimized. Real-time transmission also reduces attempts at duplicate or false invoicing.
  • Unstructured Invoice:
    PDFs and JPG files are more susceptible to fraudulent alterations, as anyone with basic tools can modify their content without easy detection. Additionally, the lack of standardization makes it harder to validate received invoices.

3. Paper and Administrative Chaos

  • Paper Invoice:
    Issuing invoices on paper leads to a disorganized process with high risks of loss, duplication, and human errors during registration. Processing times are extended, affecting payment cycles. Managing physical files requires space, increases storage costs, and complicates audits.

4. Efficiency and Auditing

  • Structured Invoice:
    It facilitates audits by providing a complete and traceable digital record. Data can be analyzed in real-time, improving decision-making.
  • Unstructured and Paper Invoice:
    The lack of traceability and dispersed information make audits slow and complex. Gathering documents involves searching through physical files or emails, adding time and effort.

The transition to structured electronic invoicing not only improves operational efficiency but also strengthens the security and integrity of the invoicing process. In contrast, unstructured invoices and paper invoices create vulnerabilities, administrative chaos, and higher operational costs. Adopting structured standards such as DBNA UBL 2.3 or Peppol 2.1 is essential to reduce fraud and optimize the issuance and receipt of invoices.

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