Direct eInvoicing in Finland and Finvoice Format
In Finland, direct e-invoicing is a method of sending and receiving invoices electronically between the sender’s and recipient’s financial systems, without the need for an intermediary service provider. This e-invoicing approach offers several benefits, including increased security, faster transaction times and lower costs.
To send e-invoices directly in Finland, the sender creates an invoice in Finvoice format, which is a standard electronic invoice format used in Finland. The Finvoice format contains all the necessary information required for the invoice, such as invoice number, date, terms of payment and items. The invoice is then transmitted directly to the recipient’s financial system using a secure electronic network.
When the invoice is received, the buyer’s financial system automatically processes the invoice and compares it with the relevant purchase order and payment details. The invoice is then approved and paid according to the payment terms stated on the invoice.
One of the main benefits of direct e-invoicing in Finland is that it eliminates the need for an intermediary service provider such as a bank or billing operator. This reduces the costs associated with e-invoicing and makes the process more efficient. It also increases security as there are fewer intermediaries in the forwarding and processing of the invoice.
Direct e-invoicing is especially useful for large organizations that handle high-volume invoices. By automating the invoicing process and eliminating the need for manual data entry, direct e-invoicing can save significant time and resources. It also reduces the risk of error as invoice data is transferred directly from the sender’s financial system to the recipient’s financial system without any human intervention.
In Finland, both direct and network-based e-invoicing are widely used, but network-based e-invoicing is more common for small and medium-sized businesses. The country has also developed a national e-invoicing standard known as the Finnish e-invoice (Finvoice) format, which is based on the European standard for e-invoicing (EN 16931).
Finvoice is a standard electronic invoice format used in Finland for sending and receiving invoices between businesses and government agencies. It is not a platform or portal, but a standardized format that can be used by different software solutions or platforms to generate and process electronic invoices.
Various platforms and portals in Finland support the Finvoice format for e-invoice. These platforms usually offer a range of e-invoice services such as invoice generation, forwarding and payment processing.
In addition to these commercial e-invoicing platforms, the Finnish government also offers a free e-invoicing portal called Suomi.fi. This portal allows businesses, government agencies, and metropolitans to exchange electronic invoices using the Finvoice format, among other formats such as e-Invoice and TEAPPSXML. Suomi.fi provides a secure and convenient way for businesses, whatever their size or level of technical expertise, to send and receive electronic invoices.