What is the difference between digitizing, transforming, and converting?
Digitizing is the process of scanning paper documents, which is fortunately becoming less common as most documents are now sent directly as PDFs.
Converting involves converting a PDF to a structured format, usually XML. In this process, all values must be recognized with their meaning. For instance, an invoice date must be identified without confusing it with a delivery date or payment date. Conversion can be increasingly reliable thanks to AI (link to another article), but it will never provide 100% certainty.
Transforming involves converting one structured format to another structured format. In this process, the information can be reliably converted. However, it may happen that certain data is mandatory in one format and optional in another. During transformation, some data might be lost, or assumed values may need to be used. Fortunately, the European Norm (EN16931 link) has ensured that the core of the invoice (the essential elements) must be present in all standards.
What is transformation?
Transformation in the context of Peppol means converting a message from one standard to another. Peppol does not allow all documents as email does. Within Peppol, documents are always based on a standard. This allows for more reliable transformation than through email.
In the Peppol network, the sender must validate their message before it is sent. This approach helps in the reliable processing and possible transformation of messages.
Transformation is essential because different companies and government agencies often use different message standards. The two most common standards within Peppol are UBL (Universal Business Language) and CII (Cross Industry Invoice).
Why is transformation important?
Transformation is essential to ensure interoperability between different systems. Companies and governments often use different standards for their electronic documents. By transforming messages, it becomes possible to exchange data seamlessly, regardless of the standard used. This promotes efficient and error-free communication within the Peppol network.
How does message transformation work on the Peppol network?
In the world of electronic data exchange, the Peppol network is important. This network enables electronic business transactions by using standardized messages. However, sometimes it is necessary to transform these messages from one standard to another.
Extensions on E-invoices
In addition to basic standards like UBL and CII, the Peppol network also has so-called 'extensions' for e-invoices. These extensions extend the standard invoice formats with specific fields and structures needed for certain sectors or types of transactions. A good example of this is the "energy e-invoice."
Extensions are therefore additional specifications used on top of the basic standard to contain extra information specific to a particular industry or application. They ensure that all necessary data for that specific context is included in the electronic document.
Example: Energy E-invoice
An energy e-invoice is a specialized version of the standard e-invoice, designed to meet the needs of the energy sector. These invoices often contain additional data not found in a standard invoice, such as:
Meter readings: Specific fields for reporting meter readings at different times.
Usage data: Details about energy consumption, specified per time unit (e.g., monthly or yearly).
Tariff information: Information about different tariffs that may apply depending on the time or amount of energy consumed.
Contract data: Specific information about the energy contract, such as the contract duration and terms.
With this extra information, energy suppliers and customers can exchange detailed and accurate invoices that fully meet the sector's requirements.
