International e invoicing  seems like it should be the norm, given the growing use of digital technology in all areas of work. Surprisingly this is not the case in many advanced countries. There is uneven adoption of electronic invoicing across continents. Many businesses still send and receive invoices via email as PDFs or by post. This is a problem, especially as global procurement is increasing.

Peppol mandates a common set of standards for transport protocol and business document libraries that allow interoperability between public and private sector companies. Continue reading to learn more about Peppol and how it can help your business.

What does Peppol do?

Peppol, as mentioned, is used to secure the transfer and retrieval of electronic business documents. However, for the time being, most activity on the Peppol network relates to e-invoicing.

Peppol was funded initially by the European Commission in 2008. Peppol was initially funded by the European Commission in 2008. It was first used by public sector organizations. However, Peppol has become more popular in countries such as Norway, where it is being adopted for B2B purposes. Peppol's ease-of-use and cost-effectiveness in B2B and G e-invoicing has continued to grow. There is more saturation in Europe, as well as increased adoption in New Zealand, Australia, Singapore, and New Zealand. Peppol Access Points were certified by 31 countries as of mid-2020. More than 130 million transactions were conducted on the network for the year 2019-2020.

The components of the Peppol network

Four-corner Model - This central feature of the Peppol Network allows one party to easily reach the other. The Two-corner network is a direct link between two participants. The Three-corner network is a closed network in which one service provider handles all transactions. The Four-corner model combines different service providers via Access Points. This means that participants can still access any registered Peppol participant, regardless of which provider they choose to work with. This is why Peppol is referred to as a true connect-once-reach-everyone network.

Service Data Producer (SMP), and Service Metadata Locator

Peppol allows organizations to publish their electronic addresses and supported file types that they receive via e-documents. An is a form of an address book that contains the business' address (URL), and its receiving capabilities. An Access Point can bundle an SMP with it or provide the service as an individual service.

SML is a centralized component that stores all SMPs of each participant (receiver), within the Peppol network. SML is a centralized component that allows electronic documents to be sent to businesses on the network. It returns the address to SMP and all details necessary for a successful transfer.

BIS Documents

Business Interoperability Specifications (BIS) ensure standardization of documents sent through the Peppol network by stipulating certain components such as product catalogs, order/order confirmation/despatch advice. Peppol will validate the BIS if businesses follow it.

What's a Peppol Access Point?

Peppol Access Point allows you to send and get business documents of any type through the network.

As you can see, Access Points operate within the four-corner model. They send and receive e-documents following the Peppol formats. While e-invoicing is the most common format, Peppol supports many other formats such as product catalog, order, or order response.

Access Points can be set up by businesses themselves. However, registration must be done with a local Peppol authority or in case there is no local authority. After that, a long accreditation process will take place. This involves payment of Peppol membership fees, proofs of technical competency, hosting, and then a cycle for ongoing maintenance, development, and support.

Peppol edelivery network via a certified Peppol access point provider is a great option for small businesses. It's also easier and cheaper long-term.

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