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Updated on August 7th<\/sup>, 2023<\/em><\/p>\n A digital document is a readable document that is paperless in its original form. An example of this is an invoice that is received as a PDF via email. As either the sender or the receiver, you can easily interpret the data included in the document (e.g., line items). This makes it fairly easy to then enter this information into your organization\u2019s ERP or other system simply by looking at it.<\/p>\n Digital documents are very similar to paper documents. Although a digital document can only be viewed on an electronic device, it pretty much looks the same as it would on a piece of paper. Because of this, even when a company receives a digital document, it\u2019s common for it to be printed.<\/p>\n Putting the digital document on paper is often how documents are transferred internally. For instance, moving an invoice from operations to accounting. This often results in a room full of filing cabinets, which isn\u2019t ideal for records management.<\/p>\n However, it is very important to understand the difference between an electronic document and a digital one, especially when speaking of e-invoices.<\/p>\n Unlike a digital document, an electronic document is\u00a0pure data<\/strong>. This makes it difficult for the untrained eye to interpret. That\u2019s primarily because a document in an electronic form is meant to be understood by a computer. In other words, electronic data is meant to be transferred from one system to another without human intervention.<\/p>\n With an electronic document, all data is automatically available in the appropriate systems (internal and external) as soon as it has been sent or received. There\u2019s no need to waste time and resources on printing. All of that being said,\u00a0true electronic document exchange\u00a0can only be realized when you have an EDI solution.<\/p>\n If your company doesn\u2019t have an EDI solution or some sort of electronic document management system, you\u2019re almost certainly exchanging digital documents as opposed to electronic files. In that case, you\u2019re no stranger to passing paper documents around the office and monotonously typing digital document data into one or more business applications so that everything can be processed accordingly.<\/p>\n Now you have to remember that the ViDA project<\/a> is going to change the processing of e-invoices in the European Union. An e-invoice will be required for all B2B transactions, and companies will have to invest to be compliant with the law as no digital documents will be accepted.<\/p>\n Despite major differences, it\u2019s no surprise that many of us use the terms\u00a0digital<\/em>\u00a0and\u00a0electronic<\/em>\u00a0interchangeably when referring to document exchange. Industry jargon is partially to blame.<\/p>\n For example, SPS Commerce is committed to helping businesses achieve 100% supply chain digitalization<\/strong>. Considering the many advantages of electronic documents when compared with digital documents, a dedication to digitalization doesn\u2019t make much sense. After all, we sell\u00a0EDI solutions<\/strong>\u00a0which ultimately enable electronic document exchange.<\/p>\n As great as it would be to say that we help companies to reach a fully electronic supply chain, we can\u2019t say that for one major reason. The reason being, every business has a different level of\u00a0digital maturity<\/strong>. Supply chains are becoming increasingly complex. Any single business typically relies on a large number of trading partners of all sizes and varying technical capabilities.<\/p>\n Put simply, not everyone has an EDI solution. It\u2019s not realistic to assume that everyone is willing to invest in one.\u00a0However, given the new regulations that are to come in regards to e-invoicing, we can safely say that switching to an e-invoicing solution<\/a> is the first step into the right direction toward digitalization.<\/p>\n In a digital supply chain, it\u2019s a blurred line when it comes to electronic format vs. digital format. That\u2019s because while one company might want to receive all of their documents in an electronic format (i.e., in accordance with the\u00a0EDIFACT standard<\/strong>), any number of their trading partners might not be capable of sending or receiving EDIFACT documents. There\u2019s a high chance that these trading partners prefer to rely on PDFs or manual entry into a web-based portal.<\/p>\n For technically advanced companies\u2014those that already have an EDI solution and are looking to further optimize supply chain operations \u2014\u00a0a digital supply chain is the logical next step. That\u2019s because in order for any one company to send and receive all documents in an electronic format, they have to consider the trading partners that still rely on digital and paper documents. Meaning, they need to offer these trading partners a solution that\u2019s easy to adopt.<\/p>\n Regarding the specific case of e-invoicing, local regulations like in France<\/a> are enforcing specific standards and formats to comply with the law. The ViDA project<\/a> is built on the same logic; one of the goal being the standardization of exchanges between all companies. In that case, organizations will have to be aligned with the law and provide an electronic invoice accordingly. This means that in the end, European companies<\/a> will all have found a new way of communicating electronically.<\/p>\n In conclusion, the difference between an electronic document and a digital document lies in their underlying characteristics and applications. An electronic document refers to a pure data representation that can be read by a computer but has no vocation of being editable, it is structured for automated processing. On the other hand, a digital document includes data that is human readable, but not structured and easily processed by computers.<\/p>\n In the realm of e-invoicing<\/a>, this distinction is important as companies increasingly use electronic invoicing to streamline their financial processes. E-invoicing in a digital format ensures seamless and automated integration with accounting systems, reducing manual errors and increasing overall efficiency in the invoicing and payment cycle. As a result, the adoption of e-invoicing is essential for companies that are looking to streamline their financial operations and remain competitive in today’s technology-driven world.[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" AT A GLANCE Lorem ipsum dolor sit amet, consectetur adipiscing elit. Proin sit amet nulla vel tortor convallis tristique eget quis lectus. Sed porttitor leo in lectus eleifend, consectetur malesuada dui ultrices. Nunc sollicitudin quam sed velit viverra, quis porttitor orci aliquam. Morbi malesuada quam in rhoncus ultrices. Curabitur in ante in lectus suscipit dignissim. […]<\/p>\n","protected":false},"author":175,"featured_media":719286,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"Updated on August 7th<\/sup>, 2023<\/em>\r\n\r\nA digital document is a readable document that is paperless in its original form. An example of this is an invoice that is received as a PDF via email. As either the sender or the receiver, you can easily interpret the data included in the document (e.g., line items). This makes it fairly easy to then enter this information into your organization\u2019s ERP or other system simply by looking at it.\r\n\r\nDigital documents are very similar to paper documents. Although a digital document can only be viewed on an electronic device, it pretty much looks the same as it would on a piece of paper. Because of this, even when a company receives a digital document, it\u2019s common for it to be printed.\r\n\r\nPutting the digital document on paper is often how documents are transferred internally. For instance, moving an invoice from operations to accounting. This often results in a room full of filing cabinets, which isn\u2019t ideal for records management.\r\n\r\nHowever, it is very important to understand the difference between an electronic document and a digital one, especially when speaking of e-invoices.\r\nWhat Is an Electronic Document?<\/strong><\/h2>\n
The Link Between Digital and Electronic<\/strong><\/h2>\n
Electronic Format vs. Digital Format<\/strong><\/h2>\n
Conclusion<\/strong><\/h2>\n
What Is an Electronic Document?<\/strong><\/h2>\r\nUnlike a digital document, an electronic document is\u00a0pure data<\/strong>. This makes it difficult for the untrained eye to interpret. That\u2019s primarily because a document in an electronic form is meant to be understood by a computer. In other words, electronic data is meant to be transferred from one system to another without human intervention.\r\n\r\nWith an electronic document, all data is automatically available in the appropriate systems (internal and external) as soon as it has been sent or received. There\u2019s no need to waste time and resources on printing. All of that being said,\u00a0true electronic document exchange\u00a0can only be realized when you have an EDI solution.\r\n\r\nIf your company doesn\u2019t have an EDI solution or some sort of electronic document management system, you\u2019re almost certainly exchanging digital documents as opposed to electronic files. In that case, you\u2019re no stranger to passing paper documents around the office and monotonously typing digital document data into one or more business applications so that everything can be processed accordingly.\r\n\r\nNow you have to remember that the ViDA project<\/a> is going to change the processing of e-invoices in the European Union. An e-invoice will be required for all B2B transactions, and companies will have to invest to be compliant with the law as no digital documents will be accepted.\r\n
The Link Between Digital and Electronic<\/strong><\/h2>\r\nDespite major differences, it\u2019s no surprise that many of us use the terms\u00a0digital<\/em>\u00a0and\u00a0electronic<\/em>\u00a0interchangeably when referring to document exchange. Industry jargon is partially to blame.\r\n\r\nFor example, SPS Commerce is committed to helping businesses achieve 100% supply chain digitalization<\/strong>. Considering the many advantages of electronic documents when compared with digital documents, a dedication to digitalization doesn\u2019t make much sense. After all, we sell\u00a0EDI solutions<\/strong>\u00a0which ultimately enable electronic document exchange.\r\n\r\nAs great as it would be to say that we help companies to reach a fully electronic supply chain, we can\u2019t say that for one major reason. The reason being, every business has a different level of\u00a0digital maturity<\/strong>. Supply chains are becoming increasingly complex. Any single business typically relies on a large number of trading partners of all sizes and varying technical capabilities.\r\n\r\nPut simply, not everyone has an EDI solution. It\u2019s not realistic to assume that everyone is willing to invest in one.\u00a0However, given the new regulations that are to come in regards to e-invoicing, we can safely say that switching to an e-invoicing solution<\/a> is the first step into the right direction toward digitalization.\r\n
Electronic Format vs. Digital Format<\/strong><\/h2>\r\nIn a digital supply chain, it\u2019s a blurred line when it comes to electronic format vs. digital format. That\u2019s because while one company might want to receive all of their documents in an electronic format (i.e., in accordance with the\u00a0EDIFACT standard<\/strong>), any number of their trading partners might not be capable of sending or receiving EDIFACT documents. There\u2019s a high chance that these trading partners prefer to rely on PDFs or manual entry into a web-based portal.\r\n\r\nFor technically advanced companies\u2014those that already have an EDI solution and are looking to further optimize supply chain operations \u2014\u00a0a digital supply chain is the logical next step. That\u2019s because in order for any one company to send and receive all documents in an electronic format, they have to consider the trading partners that still rely on digital and paper documents. Meaning, they need to offer these trading partners a solution that\u2019s easy to adopt.\r\n\r\nRegarding the specific case of e-invoicing, local regulations like in France<\/a> are enforcing specific standards and formats to comply with the law. The ViDA project<\/a> is built on the same logic; one of the goal being the standardization of exchanges between all companies. In that case, organizations will have to be aligned with the law and provide an electronic invoice accordingly. This means that in the end, European companies<\/a> will all have found a new way of communicating electronically.\r\n
Conclusion<\/strong><\/h2>\r\nIn conclusion, the difference between an electronic document and a digital document lies in their underlying characteristics and applications. An electronic document refers to a pure data representation that can be read by a computer but has no vocation of being editable, it is structured for automated processing. On the other hand, a digital document includes data that is human readable, but not structured and easily processed by computers.\r\n\r\nIn the realm of e-invoicing<\/a>, this distinction is important as companies increasingly use electronic invoicing to streamline their financial processes. E-invoicing in a digital format ensures seamless and automated integration with accounting systems, reducing manual errors and increasing overall efficiency in the invoicing and payment cycle. As a result, the adoption of e-invoicing is essential for companies that are looking to streamline their financial operations and remain competitive in today's technology-driven world.","_et_gb_content_width":"","footnotes":""},"categories":[32139],"tags":[],"class_list":["post-719908","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-invoicing-2"],"acf":[],"yoast_head":"\n