Supplier invoices are suitable for invoicing, sending and receiving, as well as invoice processing in the B2B context. Such supplier invoices have important characteristics, especially in the context of the legal e-invoicing obligation from 2025 in Germany.
What is a supplier invoice?
As soon as company A orders goods or services from company B, a process, a transaction, is created. This process is represented by the supplier invoice: it proves and documents the purchase of products/services by company A from company B.
Depending on the perspective, the supplier invoice can be understood as either an accounts payable or accounts receivable invoice:
- Accounts Payable Invoice: From the perspective of Company A, which orders the goods or services and has liabilities towards Company B (creditor).
- Accounts Receivable Invoice: From the perspective of Company B, which supplies the goods or services and has claims against Company A (debtor).
What mandatory information must a supplier invoice contain?
The following information must be included in supplier invoices in Germany:
- Name and address of the invoice issuer and recipient
- Invoice date
- Invoice number
- Service or delivery period
- Descriptions and quantities of goods or scope of services provided
- Net and gross amount
- VAT rate
- Tax number or VAT identification number
- Bank details of the invoice issuer
- Invoice issuer is the same as the payment recipient
Based on mandatory information, you can verify the incoming invoice in the B2B context. The verification is done in your own interest, but also because German law requires it. Here, it is the VAT Act and its § 14 [DE].
Especially when the supplier invoice is an e-invoice, both verification and processing are particularly efficient due to the characteristics of structured e-invoice formats.
In what format must a supplier invoice be presented?
As a structured e-invoice in one of the e-invoice formats commonly used in Germany:
- XRechnung: An e-invoice format tested since 2018, which is sent as pure XML.
- ZUGFeRD: A proven format since 2015, which combines a PDF with embedded XML.
Both formats fundamentally comply with the e-invoicing obligation of 2025. Which one you choose to use is up to you.
How should supplier invoices be stored?
Like other business documents, supplier invoices must be stored in a tamper-proof manner. This is a topic in itself. Nevertheless, here are the key points at a glance:
- Electronic invoices should be archived in a traceable and unalterable manner.
- The retention period for supplier invoices is 8 years.
- Under no circumstances should you print these invoices for storage!
Conclusion
Supplier e-invoices ensure smooth payment transactions in B2B interactions. You can find software products that support you seamlessly on the easy pages.
FAQ on Supplier Invoices
How should supplier invoices be booked?
For incoming invoices, the booking is usually done following a two-step process:
- Verification of mandatory elements: First, all required information on the invoice is checked.
- Verification of mathematical and factual accuracy: Next, the invoice is checked for correct calculations and content consistency.
Only after successful verification can the supplier invoice be submitted as a booking proposal to the ERP/FiBu system.
When should supplier invoices be paid?
Payment terms in the B2B context include payment deadlines. The following deadlines have become established in Germany:
- 30 days net
- 60 days net
- 90 days net
These deadlines indicate the number of days until the payment is due.
Attention: B2B transactions are more complex, generally have higher transaction values, and are individually negotiated between suppliers and recipients. A careful look is worthwhile, as many suppliers offer discounts for early payment, e.g., 2 percent for payment within 30 days. There is potential for savings here.
How do I manage supplier invoices efficiently?
Smooth financial management regarding supplier invoices can be achieved through various methods and tools. Here are some proven approaches:
- Digital Tools: The use of software solutions for invoice management significantly simplifies the process. Tools like SAP, Oracle, or specialized software for incoming invoice management offer functions for automatic capture, processing, and archiving of invoices. These tools help minimize errors and keep track of everything.
- Automation: Automated workflows speed up the incoming invoice process through automatic approval processes and payment reminders. This reduces manual effort and the risk of delays.
- Good Communication with Suppliers: Clear agreements on payment terms and deadlines, as well as quick resolution of discrepancies, contribute to smooth collaboration. A supplier portal is extremely helpful in this regard.