What is Peppol? The basics
Business processes are constantly evolving. The way companies exchange business documents with each other is being revolutionized and modernized. From seamless connectivity to accelerated trade – this is where Peppol comes in. But what is Peppol, actually?
In this blog, we explore what makes Peppol a significant part of modern business.
What is Peppol?
Peppol (Pan-European Public Procurement On-Line) is an open network through which registered trading partners can exchange procurement documents electronically – even across borders.
Procurement documents include, for example, invoices, orders, delivery notes, confirmations, etc.
The Peppol network originated from a project launched by the European Commission and the Peppol consortium in 2008.
Today, the standards set by Peppol are used in numerous countries around the world, including European, Asian and Pacific countries.
All of them pursue the goal of making electronic data interchange faster, more secure and more economical. This is where OpenPeppol comes into focus – a non-profit international association.
OpenPeppol is responsible for the Europe-wide implementation and maintenance of Peppol specifications.
Peppol Access Points
Unter einem Peppol Access Point versteht man eine Schnittstelle zum Peppol-Netzwerk. Das Netzwerk folgt dem „4-Corner-Modell“, was bedeutet, dass sowohl Absender als auch Empfänger den Peppol Access Point nutzen. Elektronische Dokumente werden anhand einer eindeutigen Peppol-ID vom Access Point des Senders zum Access Point des Empfängers weitergeleitet und dann zugestellt.
To use the network, companies therefore need a Peppol ID. Each ID is unique and assigned exclusively to one company. It is important that both the sender and the recipient can be clearly identified.
For senders of invoices, the ID can consist of the VAT registration number (VAT ID) with the prefix “9930” or the Global Location Number (GLN) with the prefix “0088”. This ID is called the “sender ID”. In addition, a registration of the recipient in the SMP server is required.
- 9930:DE0123456789 (9930:VAT-ID)
- 0088:12E4T98A (0088:GLN)
Invoice recipients also need a Peppol ID. In Germany, it usually consists of the routing ID ("Leitweg-ID") and the prefix “0204”. This ID is called the “Receiver ID”.
Example of a Peppol ID from the invoice recipient:- 0204:99 -1234512345 -06 (0204:route-ID)
Some countries have additional requirements.
Find out more about electronic invoicing and Peppol.
Peppol Authorities (PA)
There are special organizations – the Peppol Authorities – for managing the Peppol network. When a country joins the Peppol network, it usually sets up its own PA, which is responsible for managing and operating the network in that country. In Germany, for example, this has been KoSIT – the Coordination Office for IT Standards – since 2019.
The tasks of the Peppol Authorities include:
- Maintenance of contracts and national requirements (PASR)
- Collaboration with service providers
- Monitoring of contract compliance
- Provision of support for members
- Representation of national interests in the Peppol network
- Acting as point of contact for national Peppol Access Points and end-users
Peppol: the standards
Not every standard or data format is suitable for communication via the Peppol network. We will present the most important ones below. In addition, Peppol allows the use of customized document types within a country, provided that they are officially recognized.
Peppol BIS
In principle, documents exchanged between Peppol Access Points must comply with the Peppol Business Interoperability Specifications ( (Peppol BIS). These specifications ensure that access points only process messages that comply with the standard formats.
Systems connected to an access point therefore only need to convert messages from BIS format to internal format and vice versa. This conversion can be set up once for all business partners.
The above approach is much simpler than creating a custom conversion for each affiliate connection.
UBL
UBL stands for Universal Business Language and refers to an XML-based data format. UBL documents are ideal for the electronic exchange of business documents, such as orders, invoices, etc., because they are standardized and have a high level of interoperability.
This standard is therefore favored by many Peppol users. UBL is maintained and managed by OASIS.
EDIFACT
Electronic Data Interchange for Administration, Commerce and Transport, or EDIFACT for short, is an internationally recognized standard for electronic data communication used by various industries, including trade and transportation. Peppol supports the exchange of EDIFACT messages for certain document types.
CII (Cross-Industry Invoice)
CII is also an XML-based data format that has been adopted by the European Union as the standard for electronic invoicing. It is also supported by Peppol and enables the exchange of invoices between companies and public administrations.
XRechnung
Experts from the federal, state and local governments have designed XRechnung as the German implementation of the EU standard EN16931. This standard aims to standardize invoicing to public administrations across Europe. Through the Peppol network, XRechnung invoices can be transmitted reliably and in a legally secure manner to any public authority or contracting authority within and, increasingly, outside the EU.
XRechnung uses the UN/CEFACT Cross Industry Invoice (CII), XML formatto transmit invoice information.
The German e-invoicing regulation E-Rechnungsverordnung contains detailed information on which information is mandatory and which is optional for the XRechnung.
ZUGFeRD
Another German specialty: ZUGFeRD is a German standard for electronic invoices that is based on a combination of structured PDF documents and embedded XML data. This data contains the invoice information in a standardized format, which facilitates automated processing.
Companies can send ZUGFeRD-compliant invoices to public authorities and other recipients via the Peppol network.
The Peppol network – the 4 Corner model
Communication in the Peppol network is based on the so-called 4-corner model. The sender (C1), the sender's access point (C2), the recipient's access point (C3) and the recipient (C4) form the four corners.
The best way to explain it is with an example:
- The sender (C1) sends its invoice to the access point (C2) of its choice.
- The sender's access point (C2) receives the invoice, which is then automatically transferred via the Peppol network to the recipient's access point (C3).
- The recipient (C4) can then receive the invoice from their access point (C3).
The whole thing works in both directions: if the recipient wants to send a document to the sender, they send the document to their access point (C3). The network then ensures that the document arrives at C2. The access point A2 then forwards the corresponding document to the C1 booking system.
There are no static connections in the Peppol network. The address of the receiving access point is queried when the document is sent.
Peppol in e-invoicing and e-procurement: the advantages
Peppol is not limited to the electronic exchange of invoices, but covers the entire electronic process from order to invoice.
The network offers companies a range of advantages:
- One interface is all you need: once you are connected to the network, you can exchange electronic documents with any member. You can easily work with a wide range of partners without having to worry about individual interfaces.
- Standardized, electronic data communication: the result is accelerated processing – this enables you to effortlessly exchange documents with both public and private organizations and significantly reduce processing times.
- High security: when sending business documents, data protection is maintained and the highest security standards are observed.
- Improved data quality: using Peppol standards helps companies to improve the quality of their data, which can lead to better decision-making and customer service.
- Easy implementation: access to the Peppol network is usually really easy to implement, which also makes it attractive for small and medium-sized enterprises (SMEs).
- Always up to date: Peppol is based on international standards and is an open and flexible network that is geared towards and adapts to future developments.
- Interoperability: thanks to the Peppol BIS specifications, global interoperability is guaranteed.
- Sustainability: electronic document exchange makes order processing more environmentally friendly by significantly reducing paper consumption.
Conclusion
The use of Peppol offers companies an efficient and standardized solution for electronic data communication. By using uniform specifications and formats, Peppol enables the seamless exchange of business documents such as invoices, orders and delivery notifications between companies and public institutions.
Peppol also makes it easier to work with business partners and customers, as the network – communication across national borders and industries will no longer be a problem in the future: this not only opens up new markets and business opportunities for companies, but also better prepares them for the demands of a globalized economy and helps them remain competitive.
What's more, using Peppol ensures security and compliance for businesses, as the network provides secure communication channels and encryption technologies to guarantee the confidentiality and integrity of business data. Peppol also supports compliance with legal requirements and regulatory standards for electronic invoicing and data exchange.
Given these advantages, it makes sense for companies of all sizes and in all sectors to use Peppol as part of their business strategy.
Peppol Features & Services
- Peppol Adapter
Connect to the Peppol network - Peppol Validation
Data format conformity check - Peppol SMP
Peppol participant registration and supported documents
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