Invoicing glossary

General e-invoicing terminology

The terms below act as a reference to help business users and developers bring more clarity to the e-invoicing process in the context of technical and business compliance requirements.

Term	Description
Invoice	An invoice is a formal, itemized document issued by a seller to a buyer, requesting payment for goods or services provided. It serves as a record of the transaction, specifying the amount due, payment terms, and details of the products or services sold.
E-invoice	An e-invoice is a structured digital document designed primarily for machine processing, ensuring efficient and accurate data handling without requiring extraction technologies (e.g. OCR). It is typically structured in standardized formats (e.g.PEPPOL BIS Billing 3.0, Factur-X/ZUGFeRD, and more), to enable integration and automated workflows. An e-invoice may include an optional visualization for human readability. In this respect, it is different from a digital invoice (e.g. PDF) that primarily serves human consumption and requires additional processing (e.g. data extraction) to enable machine interpretation.
Invoice lifecycle	The invoice lifecycle refers to the entire process an invoice goes through, from its creation to its final settlement and archiving. It is a critical part of financial management, ensuring accuracy, compliance, and timely payment in business transactions. Key stages: invoice creation, submission, receipt and validation, approval, payment processing, reconciliation, archiving.
Electronic invoicing (e-invoicing)	E-invoicing is the process of issuing, receiving, and managing e-invoices rather than using traditional paper-based methods. View our blog What is electronic invoicing? to understand the full process.
E-invoicing mandate	An e-invoice mandate is a regulatory requirement imposed by a government or a governing body that mandates electronic invoicing systems for businesses.
E-invoicing compliance	E-invoicing compliance refers to adhering to legal, regulatory, and technical requirements for creating, transmitting, receiving, and storing electronic invoices. This ensures that businesses meet the tax, accounting, and operational standards set by governments or industry bodies, enabling valid and enforceable e-invoices for taxation and financial operations.
Electronic reporting (e-reporting)	E-reporting refers to the use of digital methods to prepare, submit, and manage various types of reports and data. This concept is broad and can apply to a range of reporting types, including financial reports, tax filings, regulatory compliance reports, and performance metrics. It enhances efficiency, accuracy, and compliance while providing timely and accessible information for decision-making and regulatory purposes. Explore what compliant e-reporting services can do for your business.
E-invoicing provider	An e-invoicing provider is a third-party service or platform that facilitates the creation, sending, receiving, and processing of electronic invoices between businesses. These providers typically offer software or cloud-based solutions that enable businesses to automate and streamline the invoicing process while ensuring compliance with tax laws and accounting standards. Unifiedpost is an e-invoicing provider.
Electronic delivery (e-delivery)	E-delivery refers to the electronic transmission of documents, including invoices, purchase orders, receipts, and other business communications, between parties through secure digital channels. It is a key component of e-invoicing systems and digital document exchanges, designed to replace traditional paper-based delivery methods.
Digitalisation	Transition of moving a business to a digital business (by using digital technologies). View the full details and differences between digitisation and digitalisation on our blog.
Digitisation	Change from analog to a digital form without changing the process itself (e.g. scanning a paper document to create a PDF). View the full details and differences between digitisation and digitalisation on our blog.
Accounts payable	Accounts Payable (AP) refers to the money a company owes to suppliers for goods or services it has received but not yet paid for. It represents a liability because it is an obligation to make future payments.
Accounts receivable	Accounts Receivable (AR) refers to the money a company is owed by its customers for goods or services it has delivered but not yet been paid for. It represents an asset because it is an amount the company expects to receive in the near future.
Purchases	Purchases refer to the acquisition of goods or services by a business or individual in exchange for payment.
Sales	Sales refer to the transfer of goods or services from a seller to a buyer in exchange for payment.
Buyer	A buyer is an individual, organization, or entity that purchases goods, services, or assets from another party, known as the seller, in exchange for money or other compensation. The ownership or access for products and services is transferred to the buyer.
Seller	A seller is an individual, organization, or entity that provides goods, services, or assets to another party, known as the buyer, in exchange for money or other compensation. The seller owns or controls the products or services being sold and transfers ownership or access to the buyer.
O2C/OTC (Order-to-cash)	Order-to-cash is the complete process that businesses go through from the moment a customer places an order for a product or service until the business receives payment. It includes all the steps involved in receiving and fulfilling the order, delivering the goods or services, invoicing the customer, and collecting the payment. It is a top-level, or context-level, term used by management to describe the finance-related component of customer sales.
P2P (Procure-to-pay)	Procure-to-pay is the end-to-end process businesses use to purchase goods and services, from identifying a need to making the final payment. It exists within the larger procurement management process and starts with the identification of requirements, follows through with selecting and ordering from suppliers, receiving goods or services, and ends with processing and completing payment to the supplier. P2P streamlines purchasing and payment, ensuring efficiency, compliance, and financial accuracy within an organisation.
Transaction type	A business model refers to the framework or structure that defines how transactions between parties are conducted, including the roles of the participants, the flow of goods, services, or information, and the method of exchange. Transaction type examples B2B (business-to-business) = B2B refers to transactions and interactions between businesses and involves the sale of goods or services from one business to another, rather than to individual consumers. Examples include manufacturers selling to wholesalers, or suppliers providing materials to manufacturers. B2C (business-to-consumer) = 2C describes transactions and interactions between a business and individual consumers. In this model, businesses sell goods or services directly to end users or customers. Examples include online retail stores or physical stores where consumers purchase products for personal use. C2C (consumer-to-consumer) = C2C is a type of trade relationship where individual consumers act as both sellers and buyers, rather than involving traditional businesses. In the context of eCommerce, C2C refers to transactions where one consumer sells goods or services directly to another consumer. B2G (business-to-government) = B2G relates to public procurement and specifically refers to transactions and interactions between businesses and governments. This includes the provision of goods, services or solutions to government departments or agencies by private companies. A related term, G2B (government-to-business) refers to transactions or interactions where public bodies provide services or information that businesses need to operate or comply with regulations. This can include things like issuing permits, providing regulations, offering government contracts, or delivering public services that support business operations. G2G (government-to-government) = G2G refers to financial transactions and collaborations between two or more government entities. This includes processes such as transferring funds, billing for shared services, or settling accounts between departments, agencies, or different levels of government.
Invoice tax	Invoice tax refers to the amount of tax charged on the goods or services listed in an invoice. This tax is typically a percentage of the total price of the products or services being sold, and it is added to the base price of the transaction. The specific type of tax applied depends on the local tax laws and the nature of the transaction. Invoice tax examples VAT (Value Added Tax) = Value Added Tax (VAT) is a consumption tax levied on the value added at each stage of production and distribution of goods and services. Unlike sales tax, which is only charged to the final consumer, VAT is collected at every stage of the supply chain. Businesses collect VAT on behalf of the government whenever they sell goods or services and can usually reclaim the VAT they have paid on their inputs. This ensures that the tax burden is ultimately borne by the final consumer while avoiding the issue of cascading taxes. Prominent countries using VAT include the UK, Germany, France, Spain, Mexico, Argentina, Chile, China, South Africa, Kenya, UAE, Saudi Arabia, and Israel, among many more. GST (Goods and Services Tax) = GST is a tax added to the price of certain goods and services. When a business sells a product, it includes the GST in the price, which the customer pays. The business then collects the GST and sends it to the government. GST is a term often used in countries like Canada, India, and Australia, while in some countries, this tax is known as the Value-Added Tax (VAT).
Tax compliance	Tax compliance in e-invoicing refers to adhering to legal and regulatory requirements for the accurate reporting, calculation, and submission of taxes within the electronic invoicing process. It ensures that e-invoices are generated, transmitted, and archived in a way that complies with the tax laws and regulations of the country or region in which the business operates. This includes proper tax calculation (e.g., VAT, sales tax) on invoices and ensuring that all required tax information is included and accurate for both the buyer and seller.

Document types

A document type refers to the classification or category of a document exchanged between parties in a digital transaction.
These document types specify the purpose and nature of the document and ensure it adheres to standard formats for seamless processing across various systems.

Term	Description
Bill	A bill is a formal request for payment of money owed, typically documented on a physical or digital piece of paper. While an invoice serves as a detailed record of items sold, including their quantities and prices, a bill is specifically used by a supplier to request payment for goods or services provided.
Credit note	A credit note is a document you send to your customer to correct a mistake on an order or an invoice, or to refund an amount paid for products or services.
Debit note	A debit note is a formal document issued by a buyer to a seller to indicate a return of goods, request for a price adjustment, or an increase in the amount due under specific circumstances.
Delivery note	A delivery note is a document provided by the seller to the buyer that accompanies goods being delivered. It serves as proof that the goods were shipped.
Expense	Expenses are costs incurred during a company's operations to generate revenue or support its activities. They can include payments for goods, services, or obligations.
Goods received note	A goods received note is a document used by the buyer or recipient to confirm the receipt of goods delivered by a supplier.
Invoice	See the description here.
Invoice reminder	An invoice reminder is a communication sent by a seller or service provider to a buyer, reminding them of an outstanding invoice that has not been paid by the due date.
Purchase order	A purchase order is a formal request or instruction from a customer to a business or supplier to purchase goods or services.
Order confirmation	An order confirmation is a document or communication issued by a seller to a buyer to confirm that an order has been successfully received and processed.
Receipt	A receipt is a document acknowledging that a person has received a payment following a sale or other transfer of goods or provision of a service. The key difference between receipt and invoice is that an invoice is a request for payment and a receipt is a confirmation of payment.

Document formats

A document format refers to the structured way in which an electronic invoice is created, stored, and transmitted. It defines how the invoice data is organized and encoded so that it can be interpreted by software systems across different platforms.

Supported formats by country

Country	Document format
Austria	ebInterface PEPPOL BIS Billing 3.0
Belgium	PEPPOL BIS Billing 3.0
Croatia	PEPPOL BIS Billing 3.0
Denmark	PEPPOL BIS Billing 3.0
Estonia	PEPPOL BIS Billing 3.0
Finland	PEPPOL BIS Billing 3.0
France	FacturX CII PEPPOL BIS Billing 3.0 UBL 2.1
Germany	XRechnung ZUGFeRD
Hungary	NAV XML
Italy	FatturaPA XML
Latvia	PEPPOL BIS Billing 3.0
Lithuania	PEPPOL BIS Billing 3.0
Luxembourg	PEPPOL BIS Billing 3.0
Norway	PEPPOL BIS Billing 3.0
Poland	Polish XML Faktura
Portugal	CIUS PT UBL based
Romania	RO-CIUS UBL based
Serbia	Serbian CIUS UBL based
Spain	Facturae
Sweden	PEPPOL BIS Billing 3.0
Switzerland	Swiss XML
The Netherlands	SI-UBL PEPPOL BIS Billing 3.0

Document format	Description
CIUS	CIUS (Core Invoice Usage Specification) is a customization layer that allows specific sectors, countries, or organizations to adapt the European Norm EN 16931 for electronic invoicing to their unique requirements, ensuring compliance with the core standard while addressing local needs and regulatory differences.
CSV	CSV (Comma-Separated Values) is a simple text-based file format used to store and exchange structured data. It represents tabular data where each value is separated by commas, making it suitable for data import/export, storage, and processing across a variety of applications and systems.
CXML	CXML (Commerce XML) is an XML-based protocol designed to facilitate the exchange of business documents, particularly in e-commerce transactions.
FacturX	FacturX is an electronic invoicing standard used primarily in Germany and France, combining an XML structured file embedded within a human readable PDF A/3 format to facilitate the accurate and compliant exchange of invoices. Its hybrid format supports both automated processing and human readability, aligning with European e-invoicing standards and regulations. It is also known as ZUGFeRD in Germany.
JSON	JSON (JavaScript Object Notation) is a lightweight, text-based format for representing structured data. It is widely used for data interchange between systems and in configuration settings.
PDF	PDF (Portable Document Format) is a widely used, cross-platform file format for creating, sharing, and printing documents, particularly electronic invoices. It preserves the document’s layout, fonts, and images, ensuring consistency across devices and platforms.
PDF/A	PDF/A is an ISO-standardized version of the Portable Document Format (PDF) specifically designed for long-term digital preservation. The "A" stands for "Archive," ensuring that documents can be accurately rendered and maintained over time, regardless of the software or technology used.
PEPPOL BIS Billing 3.0	Peppol BIS Billing 3.0 is a standard that complies with EN 16931, the European e-invoicing norm defining the semantic data model for core electronic invoice elements. It operates within the PEPPOL (Pan-European Public Procurement Online) framework, enabling the standardized exchange of electronic documents across Europe.
UBL	UBL (Universal Business Language) is an open library of standard electronic XML-based business document formats for procurement and transportation, such as purchase orders, shipping notices, and invoices.
UNCEFACT XML CII 16B	UN/CEFACT XML Cross Industry Invoice (CII) 16B is a globally recognized standard for electronic invoicing developed by the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT).
XML	As a flexible markup language and a file format, XML (eXtensible Markup Language) is designed to store, transmit and reconstruct arbitrary data, and is commonly used for data interchange between different systems. XML defines rules for encoding documents in a human-readable and machine-readable format.
XRechnung	XRechnung is the German CIUS, a standard for converting invoice information into an XML data file. The XML data file constitutes an electronic invoice. The standard allows invoices to be received and processed by different software systems. The XRechnung standard is maintained by the Coordination Office for IT Standards (KoSIT) on behalf of the IT Planning Council. Learn more about the advantages of the XRechnung on our blog.
ZUGFeRD	ZUGFeRD is a standard used for e-invoicing in Germany, today officially known as FacturX. See FacturX above for more details, or learn more about the advantages of the ZUGFeRD (FacturX) standard for modern businesses on our blog.

Document processing

Document processing refers to the workflow involved in handling electronic invoices and other financial documents (e.g. credit notes). This includes generating, transmitting, validating, storing, and managing e-invoices. The terms below explain different aspects involved in processing files and documents in Banqup.

Term	Description
File	A file refers to the digital container that stores the data of one or more documents. The system supports multiple file types: PDF, CSV, etc. The file objects serve as input and act as the medium for parsing, converting (via OCR), and processing, ultimately resulting in the creation of document objects.
File status	The file status represents the current condition of a file as it moves through various stages of the upload and processing processes. List of file statuses Status Description AWAITING_UPLOAD The file has been created, but not uploaded yet. VIRUS_SCANNING The uploaded file is currently being scanned for viruses. VIRUS_SCANNED The file has passed the virus scanning process and is ready for further processing. VIRUS_ERROR The file contains a virus and cannot be processed further. PROCESSING The system is currently processing the file, in order to create the document. PROCESSED The file has been successfully processed, making it visible in the UI. ERROR An error occurred during the upload or processing stages, and the file did not reach a valid end state.
Document	A document represents a formal, structured piece of information that contains data related to invoicing. The system supports a wide range of document types: purchase orders, delivery notes, invoices, receipt, etc. The document contains the header, which refers to the section at the top of a document that contains key identifying and summary information about the document. Typically, this includes details that are essential for both the sender and recipient to understand the context and status of the document. The document also contains detailed line items and other specifics that follow in the body of the document. There are two ways to create a document: either by manually inputting the content through a user interface or by uploading a file, which will then be processed and converted into a document automatically.
Document representation	A document representation refers to the physical form of a document, typically consisting of scanned images of the original document. The system also supports other formats: e.g. XML, PDF.
Document attachment	Attachments are additional documents or files that accompany an invoice to provide further information, clarification, or evidence related to the transaction, e.g. contracts, proof of shipment, expense reports, time sheets, payment instructions etc.
Document line item	Document line items represent individual products or services being charged on the document. Each line item typically includes details that break down what is being charged for, the quantity, unit price, and any discounts or taxes applied. All the line items contribute to the total amount of the document.
Document status	A document status refers to the current state or condition of a document within its lifecycle. This status indicates its progress, actions performed, and any pending steps necessary for completion. Check out more information on purchase or sales document statuses.
Document relation	Document relations refer to the hierarchical or dependent relationship between two or more electronic documents where one document (the "child") is derived from, linked to, or associated with another document (the "parent"). This relationship is essential for maintaining traceability and compliance in invoicing systems. Examples: Invoice = parent; credit note = child.

Document actions

Document actions refer to the actions that can be performed on a document by different users, at a particular moment in the document flow.

Action	Description
Validate	The document has gone through the Document Processor and no errors are returned. This means that the document can be validated to continue with the business flow. If there are errors encountered in the document processing phase, the errors need to be resolved before being able to validate the document. A document that passes validation is considered accepted by the system and can move forward in the workflow. Common validation rules include: • Mandatory fields like invoice number, issue date, and VAT ID; • Correct tax rates and calculations; • Valid buyer and seller identifiers; • Matching totals; • File structure compliance with specific document formats (e.g. PEPPOL UBL or Factur-X). Note: This step doesn't necessarily mean that the invoice is entirely correct. After validating the invoice, you can still refuse, suspend or dispute it.
Approve	Approving an invoice is a business decision, confirming that the invoice is correct and can be paid as is. Validated and unpaid documents can be approved when they are ready to be paid.
Refuse	The invoice is incorrect and cannot be paid as is, for various reasons: e.g. incorrect amount, double invoicing, incomplete invoice, incorrect VAT rate, incorrect recipient, etc. The refusal is a business decision. Ideally, in this case, reconciliation should occur, e.g. via credit note, which ends the invoice flow.
Reject	The customer's platform rejected the invoice because of technical reasons (e.g. inappropriate format, non-compliance with standard). The invoice flow cannot continue, so a credit note might need to be issued.
Suspend	The customer suspended the invoice because it is not complete (missing attachment/comment), and the supplier is expected to provide the missing data. This is intermediary action and the invoice flow can end in refusal, approval or partial approval.
Dispute	The customer claims that the invoice is not correct and more communication is needed to reach an agreement. This is an intermediary action and the invoice flow can end in refusal, approval or partial approval.
Reconcile	Reconciliation is the process of verifying that related financial records, e.g. invoices, payments, and credit notes, are consistent and accurate. It ensures that what was billed, paid, or recorded aligns across documents, helping to identify and resolve any discrepancies.

Standards and frameworks in e-invoicing

Term	Description
EN 16931	EN 16931 is a European standard that defines a common framework for electronic invoicing (e-invoicing) across the European Union. Officially known as "European Standard on electronic invoicing", EN 16931 specifies the requirements for electronic invoices to ensure interoperability, compatibility, and compliance with EU regulations. More information here.
ViDA	ViDA (VAT in the Digital Age) is a EU Commission's initiative providing a framework for modernising the existing European VAT system. The aim is to streamline tax collection processes, ensuring efficient and fair taxation in the evolving digital economy. The initiative includes 3 pillars: Mandatory intra-community Digital Reporting Requirements (DRR) & e-invoicing. Platform economy changes under which travel & accommodation sharing platforms should become deemed supplier/liable to users' VAT. Single VAT registration with the extension o the One Stop-Shop (OSS).
EDI	EDI (Electronic Data Interchange) is a technology and process used for the electronic exchange of business documents between organisations in a standardised format. It replaces traditional paper-based communication methods with digital transmission, enabling businesses to exchange documents such as purchase orders, invoices, shipping notices, and other transactional data more efficiently and accurately.
GENA	GENA is a non-profit organisation designed to develop best industry practices and foster influence in the public policy domain. GENA was initially established as EESPA (European E-invoicing Service Providers Association). The association transitioned to Global Exchange Network Association, or GENA, in October 2023, shifting its focus from an EU approach to a global approach with regional chapters.
OCR	OCR (Optical Character Recognition) is a technology that converts different types of documents—such as scanned paper documents, PDF files, or images taken by a digital camera—into editable and searchable data. It is closely related to e-invoicing in that it facilitates the digitisation and automation of invoice processing, especially when dealing with paper-based or non-digital documents.
PEPPOL	Peppol (Pan-European Public Procurement OnLine) is an open European network dedicated to the secure electronic transmission of digital business documents (including orders, invoices, delivery notes, and others), enabling seamless communication between governments and businesses (B2G/G2B) as well as between businesses themselves (B2B). While initially designed for the European market, Peppol's influence now extends globally.
Peppol BIS	In the context of Peppol, BIS are a set of guidelines and standards aimed at facilitating seamless communication and interaction between different business systems and processes. They provide a framework for ensuring that various software applications and platforms can work together effectively, enabling organisations to exchange information and conduct transactions smoothly. BIS typically cover aspects such as data formats, protocols, and business processes, promoting interoperability across different sectors and industries.
CTC	CTC (Continuous Transaction Control) is a set of processes and technologies that enable governments and tax authorities to seamlessly monitor financial transactions in real-time.
RTIR	RTIR (Real-time invoice reporting) refers to a system or process that mandates the (near) immediate reporting of invoice data to tax authorities or designated governmental bodies. This approach allows for the continuous monitoring of transactions and ensures compliance with tax regulations by providing real-time visibility into business transactions. RTIR often involves the electronic transmission of invoice details as soon as they are issued, facilitating quicker detection of tax evasion and streamlining the tax collection process. Examples include Hungary, where all domestic invoices must be reported in real-time to NAV within 5 minutes of the invoice issuance, and Spain, which has a near real-time reporting obligation to SII (Suministro Inmediato de Información) for certain taxpayers and ticketBAI real-time reporting in the Basque country.
DCTCE	DCTCE (Decentralised Continuous Transactions Control and Exchange) is a new emerging tax compliance and electronic invoicing (e-invoicing) model. Created and endorsed by the likes of Peppol, GENA (formerly EESPA), dspanz and other e-invoicing stakeholders around the globe, the model aims to simplify tax compliance and benefit not only the tax authority, but businesses and software providers alike.

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Other glossaries

• REST APIs
• Workspace
• Payments