How much does a Peppol eInvoice cost?
- Posted by: David Watters
- Category: Best Practices, Peppol
As Peppol eInvoicing continues to grow in popularity and more and more businesses start to investigate what is required to reap the benefits of Peppol eInvoicing, one of the first questions that comes up is how much does a Peppol eInvoice actually cost? In order to help businesses choose the right Peppol solution provider we break down how the costs for Peppol eInvoicing.
The business case for Peppol e-invoicing
One of the first considerations when looking at how much Peppol eInvoicing costs is to consider how much it costs to process your invoices currently – this gives you an idea of what your baseline costs are. There are a few different ways to calculate how much it costs you to process each invoice, you could look to break down each of the different activities involved in processing an invoice and mapping out the time it takes for each process and the cost of the resources involved in each activity.
Alternatively you can review the research the ATO has done into the approximate costs of processing different types of invoice:
- Paper invoices – approximately $30 to process each invoice
- PDF Invoices – approximately $27 to process each invoice
- E-invoice – less than $10 to process each invoice.
Using these calculations along with your invoice volume gives you an idea of the total cost you pay to process all your invoices currently and then you can apply the same calculations for the cost of e-invoicing. This will also give you an idea on potential cost savings that can be achieved.
How do Access Points work out the Peppol eInvoice cost per invoice?
As there are a number of different Certified Peppol Access Point Providers across Australia and New Zealand the costs involved with each vary greatly from provider to provider. A key principle for our pricing model has been that it should be on a pay-as-you-go model as the adoption of Peppol across Australia and New Zealand will grow over time. Our pricing is designed to scale as the number of transactions you send or receive (e.g. e-invoice, e-order etc) grow.
There are two main components to our pricing:
- Implementation fee – this covers the initial setup of the access point and integration to your finance systems, this could include an integration from your accounts payable platform into our access point, an integration from your accounts receivable platform into our access point or both.
- Monthly subscription fee – Once your finance systems are all connected to our access point there is then a monthly subscription fee. This covers the costs involved in sending and receiving business documents (e.g. e-invoices, e-orders) via the Peppol Network. To ensure that the subscription fee is right sized for your business, the subscription fee is completely volume-based so that you are only paying for what you use. With greater discounts available for greater volumes, the average cost per business document sent or received goes down as the volume increases.
How can we get started with Peppol e-invoicing?
Enabling Peppol e-invoicing for your organisation should be simple, value driven and cost effective. We offer a range of different solutions to get your business ready for Peppol e-invoicing. If you’re considering Peppol e-invoicing, why not speak with our experts today?
Want to learn more about Peppol?
Check out our Peppol e-invoicing education series
- What is e-invoicing?
- What is Peppol?
- How does e-invoicing work?
- What is Peppol e-invoicing?
- How will Peppol help my business?
- Who Owns Peppol?
- Why Use Peppol e-invoicing?
- How can I send and receive Peppol e-invoices?
- What do I need to be able to work with a Peppol Access Point?
- What should I be looking for in a Peppol Access Point?