EIPP works through delivering invoices electronically via a secure online platform, typically connected to an ERP system, which also facilitates payment. The steps are:

1. Invoice is generated from ERP or other financial system data.
2. Invoice is delivered electronically (sometimes directly to an AP system or government portal, via EDI or XML).
3. An email or other notification is sent to the buyer, providing a link to a secure portal which provides a human-readable version of the invoice.
4. Recipient can log in to the EIPP platform and view the invoice, as well their other invoices and associated documents.
5. Payment is either automated via direct connection with the buyer’s AP system, which releases payment after validating the invoice against a PO and other data (see 3-way matching), or manually paid through the EIPP platform’s online payment handling – accepting credit cards, faster payments, ACH and other payment methods.
6. EIPP platform records invoice settlement in the AR ledger through connection to ERP or other financial systems.

Electronic invoicing is just one element of EIPP, it concerns the generation and sending of invoices electronically. Electronic invoices are any invoice sent in an electronic format – whether this is a PDF, content of an email or by machine-to-machine communication, such as EDI or XML data transfer.

EIPP is a platform that facilitates e-invoicing, but also provides secure access to invoices and related documents, including records of payment and previous invoices, and the self-service portal allows users to pay invoices securely online.

If you send invoices electronically without a dedicated EIPP platform, you may find that you have challenges with formatting, data types and even delivering these directly to all your customers’ AP platforms. EIPP also provides the seller with real-time insight into who has received, acknowledge or paid invoices.

EIPP protects you and your customers by holding all invoices and payment functionality on a secure platform. Emailing a link to log in to access, and pay, an invoice via an EIPP platform removes the risk of invoice redirection fraud, such as phishing email attempts to divert payments into hackers’ accounts.

EIPP takes time to set up and configure for optimal use, so there is often a set up cost. However, the initial investment is offset by the savings in longer-term efficiency (particularly if moving away from paper invoicing) and reduction in invoicing fraud risk.

It can be more cost-efficient to invest in EIPP as a managed service (such as Corcentric EIPP), where no initial outlay is required; the deployment and any future refinements are included in the volume-based pricing for invoices sent.

Evaluate the EIPP solution provider’s success in delivering EIPP for other customers, through testimonials and case studies. Have they delivered solutions for customers with similar needs to yours?

Platform and process security should be carefully understood to minimize risk of your customers experiencing invoicing fraud, as well as hackers being able to access customer information or funds.

Weigh up the best way to pay for EIPP, should this be an initial investment or a volume-based managed service cost.

Understand how flexible the EIPP solutions are to integrate with both internal solutions and customer AP requirements. How quickly can it be deployed and how much IT involvement is required? How difficult will it be to add new functionality, integrate with future systems and accept new customer requirements in the future?