CASE 1
Cross-border eInvoicing in the Nordic Region: benefits, challenges, and new initiatives
For many SMEs, invoice management is a burden that takes time away from their core business. Electronic invoices processed by ERP systems with virtually no manual handling are gaining ground and saving SMEs time. However, there are still problems with divergent data formats for both national and cross-border trade. NSG&B has proven that it is possible to send eInvoices across Nordic borders using the EU network Peppol BIS 3, designed to streamline digital transactions, such as eInvoicing, across-borders.
At its facility in Hallingdalen, Norwegian company Hallingplast produces its plastic pipes and parts to the Nordic market. They use eInvoices but experience challenges when it comes to sending eInvoices cross-border.
eInvoicing, or electronic invoicing, is a digital method of processing and exchanging invoices. Instead of sending paper or PDF invoices – that need to be entered manually which increases the risk of errors – eInvoices are automatically created, sent, received, and processed directly between systems. This automation can make financial transactions faster, more accurate, and more secure. However, despite the benefits of eInvoicing, there are challenges related to interoperability meaning that many eInvoicing systems cannot work together.
The interoperability challenge
Hallingplast is a family-owned Norwegian company that specializes in the production of plastic pipes and pipe parts, primarily serving the Nordic market. The company has embraced eInvoicing for both incoming and outgoing invoices, though they still handle a mix of eInvoices and PDF invoices.
We are registered in Peppol but some Norwegian companies are not in Peppol. They are in the Norwegian Elma system. There are some difficulties with the invoicing between Elma and Peppol. So because the two systems are not interoperable we have to choose between the Norwegian and the European system. It shouldn't be a problem to choose between Europe or Norway.Peder Romslo, Chief Finance Officer, Hallingplast
NSG&B pilots on eInvoicing – a path toward smoother and safer trade within the region
To address the cross-border issues, NSG&B has made a pilot project focused on cross-border eInvoicing.
The NSG&B pilot has shown that it is technically possible to send eInvoices from one Nordic country to another using Peppol BIS 3 if the ERP-system support the Peppol standard for data. The pilot demonstrated a path toward smoother, more unified financial transactions within the region.
Hallingplast sees significant potential in the ability to send cross-border eInvoices. If such a system were universally available and interoperable with other systems, it would streamline invoicing processes across all markets. Therefore, Hallingplast welcome the result of the NSG&B pilot: “It will be an advantage for us to send everything as eInvoice. But some of our customers are just not ready for it yet” says Peder Romslo.
Moreover, he highlights another valuable advantage that comes with eInvoicing: “We have a better dialogue with our customers because we quickly can check whether and when an invoice has been sent and whether it has been received by the customer. This strengthens our working relationships and mutual trust […] it will be advantage for us to send everything as eInvoice”.
The future of eInvoicing in the Nordic region
The future of eInvoicing in the Nordic region looks promising, but full efficiency and automation will require further work to bridge the gaps between national systems. The NSG&B’s pilot shows that with commitment and a coordination of standards, a fully interoperable eInvoicing ecosystem can be within reach.
Learn more about NSG&B’s pilots on cross-border eInvoicing and other digital business documents at https://nordicsmartgovernment.org/digital-business-documents