A digital bill or invoice is a regular PDF or Word document, which is sometimes a scanned paper bill. A digital bill is easy for humans to understand.

An electronic bill (e-bill) or electronic invoice (e-invoice) is a data file that is transmitted between computers and is not easy to understand for people. Common file formats include XML and EDI. An e-bill contains structured data, making it easier for a computer to understand and process automatically.

Digital Bill vs. E-Bill

Dated sources on the internet create a lot of confusion about the correct and modern meaning for different types of invoices, even though they are essentially different.

The following statements are correct:

An electronic bill (e-bill) contains supplier data in a structured format that the buyer's financial information system can automatically recognize, without the need for manual data entry by an administrator. This can eliminate a lot of manual work.

• A digital bill is a bill that can be viewed and processed digitally.
• An e-bill is always a digital file format, just like a PDF or Word document.
• A digital bill is not necessarily an e-bill.

Confused? I think so. Let's dive a little deeper into the details.

What Is an E-Bill (Electronic Bill)?

An e-bill is a systematically structured digital file with data at a fixed location and specific meaning. Accounting software can read and automatically post e-bills to the system without any issues during transmission. There are many different formats for e-invoicing, and currently, there is no global standard. The most common formats are EDI and UBL.

EDI was a long-standing popular standard but expensive for small and medium-sized businesses (SMBs). An increasing number of governments worldwide have chosen UBL 2.0 as their favorite format. The European Commission (EC) is working on its successor, UBL 2.1. This is expected to become the standard format for companies that deal directly with the EC.

The following guidelines apply to e-bills:

• Structured invoice data issued in electronic data interchange (EDI) or XML formats;
• Structured invoice data issued using standard internet-based web forms.

Creating e-bills is not an easy process for developers, and that's why there aren't many solutions that enable their creation. One such solution that enables e-bill creation is our e-Invoices Online, and not only that, you can also send e-bills to the SEF (Electronic Invoicing System), archive them, and receive e-bills sent to you.

What Is a Digital Bill?

A digital bill is a bill that can be viewed and processed digitally (typically in .JPG or .PDF formats). Digital bills can be archived and linked to accounting software. With optical character recognition (OCR), digital invoices can be semi-automatically booked in systems, reducing workload.

There are many financially accessible online solutions that enable the creation of digital invoices, but in many countries, such invoices are no longer legal. (Nevertheless, in Serbia, alongside the .XML invoice in the SEF, you need to send a .PDF invoice - meaning an e-bill and a digital bill - for easier evaluation of invoices by humans. Our solution does this automatically.)

What is a digital invoice, not an e-invoice:

• Unstructured invoice data issued in PDF or Word formats;
• Scanned paper invoices.

The Purpose of Modern Invoicing

Electronic invoicing is not an end goal in itself but a means to an end. The sending party is confident that the invoice will reach the right person faster and at lower costs. The ultimate goal of the recipient is to reserve the invoice for purchase with as few human actions as possible. The medium the invoice uses to travel between organizations and the way it is processed is not a concern as long as it happens quickly and without errors.

The benefits of e-invoicing are negligible or nonexistent for the recipient without a smart system that automates invoice processing. That's when the real advantages of e-invoicing become evident.

The advantages of e-invoicing include:

• Simplicity, ease. Processing is digital and automatic;
• Speed. No more paper flow;
• Precision. Human errors reduced to a minimum;
• Cost-effectiveness. No printing and postage costs.

Challenges of E-Invoicing

Transitioning from paper to digital and now to electronic invoicing is not an easy and straightforward process.

Many companies encounter problems due to their established invoicing methods and need to find appropriate solutions. One of the big issues is faced by larger companies with complex and established ERP systems (or any accounting software) or integrating e-invoicing capabilities into such ERPs. For such cases, we have developed a solution that enables e-invoicing without any changes to the code, based on optical character recognition.

For other ERPs that have the ability to connect via APIs, there is a solution for e-invoicing via APIs. It's much easier because software can be connected to our service via API within a day, where e-invoices are created. The software user only needs to contact their software provider to see if integration is possible.

If you want to learn more about our web-based e-invoicing solution, visit our website or check out our blog for more information on Electronic Invoicing Law. You can also follow step-by-step instructions for SEF registration to ensure 100% compliance with all legal requirements in less than half an hour.

Frequently Asked Questions About E-Invoices:

1. What is an e-bill?

   An electronic bill (e-bill) or electronic invoice (e-invoice) is a data file that is transmitted between computers. Accounting software can automatically read and post e-bills to the system.

2. What are the advantages of e-invoicing compared to digital invoicing?

   The advantages of e-invoicing include:

   1. Simplicity, ease. Processing is digital and automatic;

   2. Speed. No more paper flow;

   3. Precision. Human errors reduced to a minimum;

   4. Cost-effectiveness. No printing and postage costs.

3. When will the electronic invoicing law change in Serbia?

   As of January 1, 2023, the entire B2B sector is required to send and receive invoices via the SEF (Electronic Invoicing System) in the form of e-invoices. Changes for the public sector began on May 1, 2023.