Benefits of electronic invoicing in Costa Rica

Benefits of electronic invoicing in Costa Rica

03/07/2018

Transitioning to electronic invoicing is advantageous because it offers indispensable elements of digital administration, which are paperless benefits.

In Costa Rica’s case, as in all Latin American countries, the adoption of electronic invoicing and the progressive implementation by electronic means of other tax obligations respond to the need to tackle tax fraud and improve the control processes over taxes and collection, to simplify procedures and to automate supervision processes.

The implementation of electronic invoicing offers benefits for companies and entities, both public and private, in the following aspects:

  1. Direct costs savings due to the elimination of paper, printing, sending invoices and storing them.
  2. Increased productivity in the administration department thanks to the automation of processes, which will allow for more time to perform other tasks.  
  3. Automation and integration in invoice reception processes. The electronic origin of the document allows for automatic integration into the system and usage of accounting processes, which makes invoices ready for payment practically without human intervention.
  4. Greater efficiency and elimination of human errors as a result of automation and full integration. Invoices can be generated and transmitted automatically. In the Costa Rican model, the electronic invoice’s communication flow is comprised of two key messages: the Ministry of Finance’s message and the receiver’s message. Click here to find out more about how electronic invoicing functions in Costa Rica.  Therefore, most of the economic benefits are not due to savings from printed materials or shipping costs but from the total automation and integration of the processes between the interlocutors who must intervene in the process.
  5. Shorter delivery and invoice collection times. The efficiency of the issuance and reception processes, their immediacy, and the practical elimination of errors in the generation and accounting of invoices combine to reduce invoice collection deadlines.
  6. Greater security. With digital signature systems, the integrity, origin and authenticity of these invoices are guaranteed.
  7. Agile, safe and legal storage. Original and signed documents are protected for the amount of time established by the current legislation. This reduces storage costs and facilitates the consultation of old invoices.
  8. Elimination of the risk of physically losing documents thanks to secure storage and the digital consultation of invoices.

In short, the implementation of electronic invoicing as a billing model offers numerous advantages for companies and ultimately cost savings. Therefore, the investment in technology that is required to incorporate this system is very profitable. 

In addition to its profitability, the adoption of the electronic invoice opens, in many cases, the door to the electronic data interchange system, EDI (Electronic Data Interchange). Companies not only assume a new billing management model but they take advantage of the digital leap to launch new communication solutions that will provide them with greater competitive advantages. 

EDICOM’s Electronic Invoicing Solutions

Given the complexity of the Costa Rican model, EDICOM offers a fully integrated and automated EDI solution with the business management system.

On one hand, through integration with its management system, EDICOM can automate the generation and sending of receipts to the Ministry of Finance and can also integrate acknowledgements received in the ERP system. At the same time, sending invoices to receivers is also automated.

For those non-issuing electronic receivers, the Suppliers Portal solution developed by EDICOM allows users to manage invoice receipts as well as the Receiving Message both to the issuer and to the Ministry of Finance.

In addition, through the Suppliers’ portal, users can manage any type of documentation from the electronic issuers such as the sending and receiving of purchase orders. This portal is designed for those electronic invoice receivers that do not have an integrated EDI system. 

EDICOM is a technological provider that specializes in the implementation of international EDI projects. In terms of electronic invoicing, EDICOM has developed the Global e-Invoicing Platform, which is adapted to the technical and legal specifications of each country and integrated into the company’s management system to automate the issuance and reception of documents. The platform is also responsible for verifying that each invoice meets the necessary requirements before it is sent or integrated into the internal management system.

The Global e-Invoicing Platform simplifies the processes of issuing and receiving electronic invoices in multinational environments. It is the solution for those companies that operate in different markets from a centralize management system and have to be able to process these documents is accordance with the legislation in force in each country.

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