In the central regulatory process, invoices are transmitted from the supplier to the central settlement institution via TecCom e-Invoicing. Lately, we have detected an increase in the transmission of consolidated invoices. Regarding this topic, we would like to give you the following details.
Why is this so important?
For you as a supplier, sending a consolidated invoice under centralized settlement has financial and legal disadvantages:
- No assumption of credit risk: Invoices are paid by the central regulatory institution only after receipt, meaning that the assumption of credit risk begins only when the invoice is received. In a consolidatedinvoice, however, many individual documents are “collected” and typically delivered significantly delayed at the end of the month without any reference to the delivery.
- Your invoices are paid late: Sending consolidated invoices results in delayed operational cash flow to you and less room for short-term liquidity.
- There is a significant liability risk: In the event of the recipient’s insolvency, the central regulatory institution cannot assume liability since the consolidatedinvoice is received with a significant delay after the delivery. The invoice must be issued as soon as the delivery is made.
In addition, the processing of consolidated invoices means considerably more manual processing effort for both, TecCom and the central settlement institution, due to the large volume of data and missing references.
The benefits for you through a transition to individual invoices are obvious: Your outstanding invoices will be settled more quickly, and you will benefit from assuming credit risk as well as the insolvency liability of the recipient by the central regulatory institution.
In 3 simple steps to individual invoices:
- Adjust the invoice delivery in your ERP system to a delivery-based or order-based approach for all documents. Discuss the implementation options with your ERP provider or administrator.
- Inform your accounting department that invoices processed through central regulation need to be created and sent based on deliveries or orders – preferably immediately after the goods have left the warehouse.
- Contact your representative at TecAlliance if you require assistance with the transition.
If you have any questions, please do not hesitate to contact Christina Meier (Christina.Meier@tecalliance.net).
Thank you for your cooperation. Let’s keep moving forward together for more efficiency and benefits for all involved parties.
