What is the difference between Peppol and EDI?

What’s the difference between Peppol and EDI as a way to exchange invoice and order data? Isn’t EDI pretty much the same as Peppol? It’s a question we get a lot, so our team of Peppol eInvoicing experts pulled together a detailed breakdown of the differences between invoices sent via EDI and Peppol eInvoices considering a wide range of areas including:

  • How is the invoice data captured when it is received?
  • How accurate is the data captured off the invoice?
  • How structured is the data that is being captured?
  • How eco-friendly is it?
  • What is the risk of falling victim to invoice fraud?
  • How many companies can use this method?
  • How complex is this to implement and run?
  • What are the costs like to set this up?
  • What are the costs like to maintain this option?
  • What is the risk of losing invoices?
  • What is the risk of paying invoices late through this option?
  • How much does each invoice cost you to process?

What is EDI

EDI (or Electronic Data Interchange) is where businesses develop system to system integrations with suitably sized buyers and customers to send and receive invoice and order data directly. This is also referred as 2 corner model where the supplier and buyer are integrated on a one to one relationship. The system to system integration is standardised between the two organisations but will likely need changes to work with and for other organisations.

Large businesses developed system to system connections in Australia, New Zealand and globally however it has not been an affordable option for small and medium sized businesses. Meanwhile, large businesses have struggled to scale past a small selection of suppliers.

A typical EDI invoice process flow is outlined below:

how can we help you?

Contact us today, our team will be happy to assist you.

What is the difference between Peppol and EDI?

Data Entry

Automated

Data is integrated directly from the suppliers systems to the buyers.

VS

Automated

Data is integrated directly from the suppliers systems to the buyers

Accuracy

High

Direct exchange of structured data from system to system.

VS

High

Direct exchange of structured data from system to system.

Data Structure

Structured

A variety of formats are in use e.g. XML.

VS

Structured

 Standard BIS 3.0 format

Sustainability

Good

Direct transfer of invoice data is far more sustainable than paper and post invoicing.

VS

Great

Direct transfer of invoice data is far more sustainable than paper and post invoicing.

Risk of Fraud

Low

Point to point integrations minimise the risk of fraudulent transactions

VS

Low

Peppol security standards ensure the buyer and sender are legitimate.

Reach

Limited

Only available to those trading partners that you have created an integration with

VS

High

Buyers and suppliers can trade openly with anyone in the network.

Complexity

High

Differing formats and systems create a high level of complexity in the process.

VS

Medium

Peppol network is completely standardised making it easy to work with once setup.

Setup Costs

High

Requires IT and integration expertise and is custom built for each supplier/buyer relationship.

VS

Low

The initial setup costs can be scaled across all the suppliers within the Peppol network.

Maintenance Costs

High

Custom built point to point integrations are required to be maintained

VS

Medium

Universal standards ensure maintenance is straightforward. You connect once, you connect to all suppliers in the network.

Risk of Losing Invoices

Low

Data is transferred directly into the buyers system so the risk is very low

VS

Low

Data is transferred directly into the buyers system so the risk is very low

Risk of Late Payments

Low

Due to the automated processes involved, processing times for EDI invoices are faster, reducing the risk of late payments.

VS

Low

Due to the automated processes involved, processing times for Peppol invoices are faster, reducing the risk of late payments.

Processing Cost Per Invoice

~$15 AUD

VS

~$9 AUD

book in a consultation with our experts

Trusted by leading businesses across the region

We are procure to pay automation experts with over 30 years of experience across the team and have been trusted partners of a number of leading organisations to deliver procure to pay automation and optimisation solutions across APAC.

why our customers choose us

Our Focus on Business Value

Value is ultimately a common vision of what success looks like. It’s visibility. It’s savings. It’s user adoption. It’s compliance. It’s best practice. It’s all of that combined. It’s what we define, together, as our shared objective. Value is what we measure, what we strive for.

Partnership Approach

To help drive value, we work with you in an open and transparent way, we position ourselves alongside you every step of the way actively sharing both the risk and benefits with you – ensuring that we succeed together. That’s what we call partnership.

Procure to Pay Expertise

Our team has over 30 year’s experience across successful Procure to Pay transformations across the globe and have worked with some of the leading companies in a number of industries. We provide invaluable insights on how to ensure you are successful.