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Peppol International Network for Electronic Procurement Its mission, using open standards, is to make public procuring easier and more efficient. Let us find out what is peppol actually is.
Overview
Peppol is a cross-border electronic purchasing network. It integrates many components and specifications, including a central user directory and standards for e–invoicing and ordering. OpenPEPPOL governs the use of Peppol by means of multilateral contracts. Peppol, which is not a platform or network, is an open cross border network. Peppol members can link to each other and exchange digital procurement documentation. Peppol supports einvoicing, as well as the entire procurement process (eprocurement). It supports Directive 2014/55/EU regarding electronic invoicing in public procurement.
Peppol's success was largely due to interoperability and ease of on-boarding suppliers and customers. Peppol has been recognized for its immense potential and obvious advantages in Asia, Latin America, North America.
How does Peppol network operate?
Different message types are supported by Peppol (e.g. Open protocol allows orders and invoices to be exchanged. These e-invoicing regulations, given below guarantee interoperability.
PEPPOL uses the OASIS Universal Business Language format (UBL), as defined by ISO/IEC 19845.
Peppol eDelivery network allows communication to take place. This directory service, similar to the Yellow Pages, helps identify recipients and the support processes they use. It also provides access point providers.
The basic principle of the Peppol network is that the parties communicate using a 4-corner model. The outer edge is where the sender and the recipient are located, with the access points at the two inner corners. The sender transmits a document (e.g., an electronic invoice) to his Peppol access points. The document is sent to the counterpart's Peppol access point. His counterpart can then collect it. His counterpart can send a response document to the network. The network forwards the document to the recipient's access points, where it can then be pulled into the recipient’s internal invoicing system.
Peppol assigns dynamic addresses for access points. The receiver's PeppolID is used to request the Service Metadata Locator, (SML), for details about the address of the Service Metadata Provider(SMP). The SMP replies with the format supported by the receiver as well as the address of the receiving access points. The process begins to send files to the recipient access point if they are in the supported formats.
The benefits of Peppol
Peppol offers the following benefits to all registered organisations:
Higher turnover and better cash flow
Invoices and other procurement documents can be delivered instantly, which means that invoices can be settled faster, which is a positive for cashflow. All registered partners can use the open e delivery network to reach each other, and not just those who have signed up for one or another e-procurement platform.
Increased security and transparency
Through the Peppol access points, data can be securely exchanged within the edelivery network.
Global interoperability is guaranteed by the Peppol specifications.
Peppol does not require that you use different e-invoice formats, or partner-specific transfer protocol.
Faster ROI and Lower costs
It's easy to add suppliers and clients, as there are no bilateral e-invoicing agreements or the integration of two different systems and processes.
Peppol can do more than just integrate electronic procurement processes. This increases efficiency and allows documents to be transferred without roaming fees saves money. Peppol does not charge suppliers or clients the membership fees' that are often taken from clients or suppliers for accessing an e-procurement platform.
Future with Peppol expansion
It is possible to incorporate additional national procedures and stipulations.
Peppol's open network is expanding in global reach and participant numbers. The potential reach of a client or supplier increases automatically once they are connected to the network - globally.
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