What is the XRechnung?
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XRechnung and the future of B2B invoicing
Electronic invoicing is becoming increasingly important in the business world. XRechnung plays a central role in this, particularly in public procurement in Germany, where it was introduced as a mandatory format in 2020. One reason why interest in the X-bill is also growing among companies: E-invoicing, which includes formats such as XRechnung and ZUGFeRD, will be mandatory in the B2B sector from 2025.
Definition:
What is the XRechnung?
Learn more about E-Rechnung (E-Invoice) The XRechnung is a structured electronic invoice in XML format, structured according to a standardized schema. As XML, it is designed for processing by computer systems and is not directly readable by humans. Since 2020, XRechnung has been the German standard for electronic invoices in the context of public authorities and therefore also for business relationships between companies and public authorities (G2C).
The structure enables the content of the invoice to be processed automatically and electronically. For companies, this means greater efficiency in invoice management. Systems such as document management systems (DMS) can record the content, process it automatically and also immediately validate whether the invoice has been issued correctly, as the content is available as XML and therefore in a standardized form.
Is the X invoice an e-invoice?
Yes, XRechnung is always an e-invoice. Together with ZUGFeRD, it is one of the two most important e-invoice standards in Germany. It is also the official German data standard for electronic invoices.
What does an XRechnung consist of?
Contains general information about the invoice, such as invoice number, invoice date and reference numbers.
Information about the biller, including name, address, tax number and contact information.
Information about the invoice recipient, including name, address and possibly a reference number of the customer.
Detailed list of the goods or services supplied, including item description, quantity, unit price and total price.
Information on the tax rates and amounts applied, including the respective tax category.
The total invoice amount including all taxes and fees.
Supplier’s bank details, terms of payment and due date.
Since 2020 in public administration,
also mandatory in the B2B sector from 2025
XRechnung has been firmly established in the B2G (Business to Government) sector for several years. Since 2020, all federal states, municipalities and authorities have been obliged to be able to receive, process and archive invoices in XRechnung format. In the B2B sector, too, only electronic invoice formats that comply with EU standard EN 16931, such as XRechnung and the ZUGFeRD standard, may be used in future. Currently, around 4/10 of German companies already use XRechnung.
With the adoption of the Growth Opportunities Act, the obligation to use electronic invoices will therefore also be introduced in business-to-business transactions. Certain transitional periods apply. From January 1, 2025, B2B companies will already be obliged to be able to receive and process e-invoices.
Transition periods for the e-bill
Advantages of XRechnung at a glance
X Invoices (and e-invoices in general) can be created with just a few clicks using the appropriate software and sent directly to customers, partners or public authorities.
The automatic analysis of incoming invoices and the extraction of relevant data enable invoices to be processed quickly.
Legal certainty
XRechnung fulfills all EU regulations for electronic invoices. Companies therefore benefit from legally compliant invoice management.
Optimized and automated processes reduce the workload and costs for the company’s accounting department.
Revision security for secure archiving
XInvoices can be saved in the ECM system in an audit-proof manner, making them unalterable and protected against manipulation.
Paperless process for invoicing
All processes relating to incoming and outgoing invoices are handled completely digitally. This avoids full filing cabinets and manual effort, e.g. to process invoices manually or find them in the archive.
Integration into existing systems
Software solutions for X-billing can usually be seamlessly integrated into the existing IT infrastructure.
How the XRechnung works
The XRechnung can be created manually via a web form, via an ERP system such as SAP or by external service providers. It can be sent flexibly between companies, e.g. by email, while there are specific transmission channels for public clients. After receipt, the invoice can be automatically integrated into the digital processing procedure and archived in an audit-proof manner. Here is an overview of the individual functional steps:
There are several methods for creating them:
Manual creation via web form: This can be done via a portal such as the ZRE of the federal government.
Use of an external service provider: A service provider can take over the creation.
Direct creation from an ERP system: Systems such as SAP enable direct creation.
Manual creation via a web portal is sufficient for companies with few invoices. For higher invoice volumes, it is advisable to use an ERP system such as SAP or to commission an external service provider.
There are no fixed specifications for the way invoices are sent between companies. For example, they can simply be sent to the recipient by email. When sending invoices to public clients, there are various transmission options, whereby there are differences as to whether the invoice is sent to the federal government or to a state authority.
XRechnung invoices can be received via the ZRE or the OZG-RE portal (online access law-compliant invoice receipt platform), for example. Alternatively, they can also arrive directly in a company’s e-mail inbox. As XRechnungen are in XML format, no OCR text recognition is required, which makes the documents machine-readable. This avoids errors that could arise due to inaccurate OCR results.
All information from the XRechnung can thus be automatically integrated into the digital invoice processing process as well as into the verification and approval workflow, for example with the dataglobal Group solution.
After automated processing, XRechnung invoices can be archived in an audit-proof manner using a document management system (DMS). Outgoing invoices must also be archived in a legally compliant manner, which is also supported by the DMS.
Conclusion
Download FactsheetIn summary, it can be said that XRechnung plays a key role in digital invoice management and also offers companies benefits that go beyond the mandatory introduction of e-invoicing. Thanks to its standardized structure, it enables efficient, automated and legally compliant processing of invoices, which significantly reduces manual effort.
The mandatory introduction of XRechnung in the B2B sector from 2025 therefore marks another important step towards fully digitalized and paperless business processes. Companies that switch to XRechnung at an early stage will benefit from optimized workflows, cost savings and better integration into existing IT systems.
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