Electronic invoicing has become increasingly popular in Germany and across Europe due to its efficiency and cost-effectiveness. The two most common electronic invoicing formats in Germany are XRechnung and Zugferd. While both formats offer similar benefits, they have different data formats and usage requirements. To ensure compliance with legal requirements and customer needs, businesses can utilize SAP Document and Reporting Compliance solutions for XRechnung and Zugferd.

In this blog post, we will explore the differences between XRechnung and Zugferd and explain how SAP Document and Reporting Compliance solutions can help businesses achieve compliance with these standards.

XRechnung: Overview and Requirements

XRechnung is a pure XML format that was introduced by the German government in 2014 as part of its initiative to simplify electronic invoicing in public procurement. The format became mandatory for public authorities in November 2020. XRechnung uses a standardized data model and can be exchanged via the PEPPOL network.

To comply with the XRechnung standard, businesses must ensure that their electronic invoices contain specific data fields and meet the technical requirements of the XRechnung XML schema. These requirements include:

    • Using the correct namespace and version of the XRechnung schema
    • Including mandatory data fields such as invoice number, invoice date, supplier and customer information, and invoice line items
    • Providing data in specific formats, such as using ISO currency codes for currency values
    • Following the structure and formatting rules outlined in the XRechnung schema

Non-compliance with XRechnung requirements can result in rejected or delayed invoices, which can cause cash flow issues and damage customer relationships.

Zugferd: Overview and Requirements

Zugferd is a hybrid format that combines a PDF invoice with an embedded XML data file. The format was developed by German industry associations and is not mandated by the German government. Zugferd can be used in both B2B and B2G (business-to-government) transactions and is compatible with the PEPPOL network.

To comply with the Zugferd standard, businesses must ensure that their electronic invoices meet the technical requirements of the Zugferd data model. These requirements include:

    • Embedding an XML file with specific data fields into the PDF invoice
    • Using the correct namespace and version of the Zugferd data model
    • Including mandatory data fields such as invoice number, invoice date, supplier and customer information, and invoice line items
    • Providing data in specific formats, such as using ISO currency codes for currency values
    • Following the structure and formatting rules outlined in the Zugferd data model

Like XRechnung, non-compliance with Zugferd requirements can result in rejected or delayed invoices.

SAP Document and Reporting Compliance for XRechnung and Zugferd

To achieve compliance with XRechnung and Zugferd, businesses can utilize SAP Document and Reporting Compliance solutions. These solutions offer several benefits, including:

    • Automated Compliance Checks: SAP Document and Reporting Compliance solutions can automatically check electronic invoices for compliance with XRechnung and Zugferd requirements. This can help businesses avoid errors and delays caused by non-compliant invoices.
    • Customizable Templates: SAP Document and Reporting Compliance solutions offer customizable templates for XRechnung and Zugferd invoices. This can help businesses ensure that their electronic invoices contain all required data fields and meet technical requirements.
    • Integration with SAP Systems: SAP Document and Reporting Compliance solutions can integrate with SAP systems, such as SAP S/4HANA, to provide a seamless invoicing process. This can help businesses streamline their invoicing processes and improve efficiency.
    • Reporting and Analytics: SAP Document and Reporting Compliance solutions offer reporting and analytics capabilities that enable businesses to monitor their invoicing processes and identify areas for improvement. This can help businesses optimize their invoicing processes and improve cash flow.
    • Multilingual Support: SAP Document and Reporting Compliance solutions offer multilingual support for XRechnung and Zugferd, which can help businesses with international operations comply with local invoicing requirements.

SAP Document and Reporting Compliance solutions can help businesses achieve compliance with both XRechnung and Zugferd formats, regardless of the complexity of their invoicing processes. By automating compliance checks, providing customizable templates, integrating with SAP systems, offering reporting and analytics, and providing multilingual support, SAP Document and Reporting Compliance solutions can help businesses streamline their invoicing processes and avoid costly errors.

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SAP PEPPOL Germany Scope – XRechnung and ZugFerd

XRechnung-ZUGFeRD-Peppol

Why Comweg?:

At Comweg, we are experts in SAP Document and Reporting Compliance, and we have a deep technical understanding of the einvoicing and statutory reporting around the world. Our team of experienced consultants will work with you to ensure that you are fully compliant with the legal regulations. We will work with you to implement SAP DRC in your company, and we will provide ongoing support and maintenance to ensure that the system runs smoothly.

 

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Project

Setting up a project for SAP Document and Reporting Compliance requires expert knowledge and experience. Consultants with specialized skills can help enterprises navigate the process, ensuring a successful and efficient implementation of SAP Document and Reporting Compliance in their systems.

Typical project lead time per country:

3-4 Months

 

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Implementation

Successful implementation of SAP Document and Reporting Compliance requires effective collaboration between internal and external consultants. A dedicated team with specialized skills and knowledge can ensure a smooth and efficient implementation, delivering the benefits of SAP Document and Reporting Compliance to the enterprise.

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Maintenance

To ensure long-term success of SAP Document and Reporting Compliance, proper maintenance and support is crucial. Externalizing this process to a partner can provide access to specialized skills and resources, helping to ensure a smooth and efficient maintenance and support experience. With a partner's expertise and dedicated support, enterprises can be confident in the continued success of their SAP Document and Reporting Compliance implementation.

Conclusion

In conclusion, electronic invoicing is becoming increasingly important in Germany, and compliance with XRechnung and Zugferd is critical for businesses that want to participate in public procurement and maintain strong customer relationships. SAP Document and Reporting Compliance solutions can help businesses achieve compliance with these standards by automating compliance checks, providing customizable templates, integrating with SAP systems, offering reporting and analytics, and providing multilingual support. By utilizing SAP Document and Reporting Compliance solutions, businesses can streamline their invoicing processes and ensure compliance with local invoicing requirements.

Sources:

    1. “XRechnung is a pure XML format that was introduced by the German government in 2014 as part of its initiative to simplify electronic invoicing in public procurement.” – Source: Bundesministerium des Innern, für Bau und Heimat. (2020). XRechnung – Die elektronische Rechnung für den öffentlichen Auftraggeber. URL: https://www.xoev.de/cms/Xoev1/DE/Downloads/XRechnung/xrechnung_node.html
    2. “The format became mandatory for public authorities in November 2020.” – Source: XRechnung. (2020). Informationen zur XRechnung. URL: https://www.xrechnung.org/informationen-zur-xrechnung/
    3. “Zugferd is a hybrid format that combines a PDF invoice with an embedded XML data file.” – Source: Forum elektronische Rechnung Deutschland (FeRD). (2021). ZUGFeRD. URL: https://www.ferd-net.de/zugferd/
    4. “SAP Document and Reporting Compliance solutions offer several benefits, including automated compliance checks.” – Source: SAP. (n.d.). SAP Document Compliance for Public Sector by TJC. URL: https://www.sap.com/products/document-compliance-public-sector.html
    5. “SAP Document and Reporting Compliance solutions can integrate with SAP systems, such as SAP S/4HANA, to provide a seamless invoicing process.” – Source: SAP. (n.d.). SAP Document Compliance for Public Sector by TJC. URL: https://www.sap.com/products/document-compliance-public-sector.html.

 

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