As digitalisation and automation continue to gain importance, e-invoicing is rapidly becoming the standard. One network in particular (Peppol) is seeing steady adoption by both businesses and government institutions. In this blog, we explain what PEPPOL is, which standards apply, how routing works, and why countries such as the Netherlands or Belgium have made it mandatory. We also explore the impact on ERP systems, sending logic, data formats, and the role of Advanced-Forms® in this process.
What Is PEPPOL?
PEPPOL stands for Pan-European Public Procurement Online. It is an international network that enables businesses and public organisations to exchange electronic documents such as invoices, purchase orders, and credit notes. PEPPOL itself is not an invoicing system; rather, it is a set of standards and an infrastructure that allows e-documents to be exchanged securely, in a standardised and compatible way.
One of PEPPOL’s key advantages is that it is not tied to any specific software. An invoice can be sent directly from any ERP system and received by a customer or supplier using an entirely different system. The network ensures that documents are delivered correctly and processed automatically, significantly reducing manual intervention.
PEPPOL consists of two core components: Access Points and document standards. Access Points act as digital “postmen” within the network, ensuring that documents are transmitted securely and reliably from sender to recipient.
The Standards Behind PEPPOL
PEPPOL’s success is largely driven by its strict standards. PEPPOL’s success is largely driven by its strict standards. Without them, seamless compatibility would not be possible. The most important standards include:
- UBL (Universal Business Language)
An international XML-based format for electronic invoices and other business documents. UBL ensures documents are structured and can be processed automatically by systems. - PEPPOL BIS (Business Interoperability Specifications)
These specifications define exactly how documents such as invoices, purchase orders, and credit notes must be structured, ensuring every system knows precisely where each data element belongs. - Document identifiers and metadata
Each document is assigned a unique identifier along with internationally recognisable metadata, enabling traceability, validation, and effective error handling.
Thanks to these standards, incorrect processing is virtually eliminated, greatly increasing the reliability of electronic invoicing. This is one of the key reasons why governments and large organisations worldwide are increasingly mandating PEPPOL.
How Routing Works Within PEPPOL
Routing is a crucial part of the PEPPOL network. It determines how an e-invoice is delivered from sender to recipient. The process works as follows:
- Generating the e-invoice
Your ERP system generates an invoice in the correct PEPPOL format, usually UBL. All mandatory metadata, such as VAT numbers, company registrations, and unique invoice numbers, are included. - Sending via an Access Point
The invoice is sent through a certified PEPPOL Access Point. Access Points validate, check, and forward documents. - Routing to the recipient
The sender’s Access Point identifies the recipient’s Access Point and routes the invoice accordingly. Compatibility and delivery are handled automatically by the network. - Receipt and processing
The recipient receives the document directly in their ERP system, where it is processed automatically. Validation and automated postings make manual processing largely unnecessary.
This approach ensures invoices are delivered securely, accurately, and with full traceability. Regardless of the software used by the recipient.
Why PEPPOL Is Becoming Mandatory
An increasing number of countries, including the Netherlands, are mandating PEPPOL for public-sector invoicing. There are several reasons for this:
- Efficiency and cost reduction
Electronic invoicing saves time and reduces errors associated with manual processing. Automated posting significantly lowers the risk of accounting mistakes. - Uniformity and standardisation
PEPPOL provides a single, internationally recognised invoice standard, simplifying cross-border trade and collaboration. - Transparency and compliance
Governments gain real-time insight into invoicing, payments, and tax reporting, supporting audits, regulatory compliance, and fraud prevention. - Sustainability and digital transformation
PEPPOL enables paperless invoicing, making organisations more environmentally friendly and accelerating digital transformation.
Since 2020, electronic invoicing via PEPPOL has been mandatory for invoices sent to the Dutch central government. More municipalities and large corporate customers are following suit, making PEPPOL-based invoicing the new standard rather than an option.
Impact on ERP Integrations, Sending Logic, and Data Formats
Adopting PEPPOL has clear implications for internal systems:
- ERP integration
ERP systems must be capable of generating and receiving PEPPOL invoices, often via a connector or middleware solution that preserves existing processes. - Sending logic
Traditional email or PDF invoices are replaced by structured electronic documents. Internal workflows must be adapted to support automated routing and status updates. - Data formats and validation
Compliance with UBL and BIS specifications is essential. Every field, from VAT numbers to payment terms, must be validated to ensure successful processing by the recipient.
Understanding this impact upfront is crucial to avoiding errors and delays during the transition to PEPPOL.
The Role of Advanced-Forms®
This is where Advanced-Forms® comes into play. Advanced-Forms® supports organisations by:
- Converting invoices into PEPPOL-compliant UBL documents
- Automating routing via PEPPOL Access Points
- Managing invoice logic, validation, and compliance checks
Advanced-Forms® enables organisations to connect their existing ERP systems to PEPPOL without major system changes, resulting in a fully automated e-invoicing workflow.
Practical Benefits of PEPPOL for Businesses
Using PEPPOL delivers several tangible benefits:
- Faster payments – Automated processing shortens the invoice-to-payment cycle
- Lower operational costs – Less manual handling means fewer errors and reduced labour costs
- International compatibility – One standard across multiple countries simplifies cross-border trade
- Improved compliance – All invoices meet legal and fiscal requirements
For organisations working internationally or with government bodies, PEPPOL has become virtually indispensable.
Conclusion
PEPPOL is transforming how businesses and governments exchange invoices. With strict standards, reliable routing, and international acceptance, the network is increasingly becoming mandatory. For organisations, this marks a major step forward in digitalisation and efficiency, with clear implications for ERP integrations, sending logic, and data formats.
Advanced-Forms® offers the ideal solution to make this transition smooth, compliant, and future-proof.
Start digitalising your invoicing today and join the PEPPOL revolution. It’s not just about efficiency. It’s a strategic move towards the future of digital business.
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