Basic Order Fulfillment Processing Guide

Part 6: Invoicing and Payment

This B2B process enables a supplier to send an electronic invoice to the buyer defining payments for one or more purchase orders.  The buyer may be required to send a response to the invoice to provide specific payment (remittance) information.

Business Process Management

The B2B invoice process allows a supplier to send a message to the buyer defining the amount of payment required for each purchase order. 

The electronic invoice may include partner identifiers, currency codes,  billing amounts, PO or shipment references and payment terms.

The buyer must arrange for the financial payments to be made to the supplier.  The buyer may be required to send a remittance advice that describes the payment amount, method and date.

Total Quality Management

The B2B invoice and payment process improves these business measures:

• Reduces the amount of time spent to reconcile invoices to payments received.

• Payment of invoices by the buyer provides a closure for basic order fulfillment process.

• For suppliers offering lines of credit, the quicker payments are applied to customer accounts, the greater their available credit for purchasing more products.

Information Technology

Invoice information should be reconciled with physical shipments and purchase orders.

Issuing financial payments may require additional electronic communications between the buyer and their financial institution.

Reconciling actual payments received with invoices and remittance advice can be complicated by financial-fee deductions from total deposits.

Legal and tax requirements for invoicing and payments processes vary by country.

B2B Standards

This table identifies standards supporting the B2B process for Invoicing and Payment.