Peppol e-invoicing gets a supplier's invoice into your software as structured data instead of a PDF, so nobody has to type it in. But for most growing businesses the e-invoice lands in the accounting software, while the purchase order, the job it belongs to and the goods received record live somewhere else: a job management system, an inventory or warehouse system, an ERP, or a spreadsheet. Receiving Peppol invoices doesn't match them to any of that by itself. To get the real benefit, you need a reliable reference on each invoice (usually the PO number), a way to look that reference up in the system that holds the order, and a clear rule for what happens when the invoice and the order disagree.
What Peppol e-invoicing actually changes
The ATO describes Peppol eInvoicing as "the digital exchange of invoice information between suppliers' and buyers' software through the secure Peppol network" (ATO). Instead of a PDF arriving by email, the invoice arrives as data, with each field (supplier ABN, invoice number, lines, quantities, prices, GST) in a known place. According to the ATO, more than 430,000 Australian businesses are on the network (ATO).
A few points the ATO makes that matter for your processes:
- You connect through your existing eInvoicing-ready software, an eInvoicing service provider, or a low-cost online option (ATO).
- eInvoices don't go through the ATO, and it can't see them.
- You still need to apply your existing checks before paying an eInvoice. The data arriving cleanly doesn't mean the invoice is right.
At the time of writing, the ATO's guidance for businesses is about how to get started and the benefits, and we couldn't find a date by which businesses must use it. Check the ATO's eInvoicing pages for the current position before you plan around it.
What e-invoicing removes is the typing. What it doesn't remove is the checking: is this invoice for something we ordered, did we receive it, is the price what we agreed, and which job or cost centre does it belong to?
Why receiving e-invoices doesn't match them to anything
In many businesses, the information needed to check an invoice is split across systems:
- Purchase orders are raised in a job system, an inventory system or an ERP, not in the accounting software.
- Goods received are recorded by the warehouse or on site, sometimes on paper.
- Jobs and cost codes live in the job or project system.
- Approvals happen by email, or in a separate approval tool.
So the e-invoice arrives, nicely structured, in the one system that doesn't know what was ordered. Someone then opens the job system in another window, finds the PO, checks the quantities and prices, and codes the invoice by hand. The typing has gone, but the double data entry (the same information handled twice in two systems) has just moved to the checking step. This is the classic picture of data silos: information stuck in separate systems that don't share it.
The reference number is what makes matching possible
The single most useful field on an e-invoice is the reference that links it to your order. The ATO's guide to receiving and processing eInvoices says it is mandatory to include either a PO number or a buyer reference with a Peppol eInvoice, and that reference numbers are used for data matching and to route invoices to the right person to confirm receipt and approve (ATO guide).
That only helps if the reference is a good one:
- Tell suppliers which reference to use. A PO number is best. If you don't use POs for some purchases, agree a job number or site code instead.
- Make the format consistent. "PO-10452", "10452" and "po 10452" should all find the same order. Clean this up at the start.
- Search more than one field. Suppliers' software doesn't always put the reference where you expect. The ATO's guide suggests your systems should be able to search all fields of an eInvoice for the reference.
How to match e-invoices to POs, jobs and stock
Once the reference is reliable, matching can be done in a small number of steps, most of which can run automatically:
- Look up the order. Use the reference to find the PO in the system that holds it, whether that's the job system, inventory system or ERP.
- Compare the lines. Check quantity and price on each invoice line against the PO. This is two-way matching.
- Check what was received. For stock and materials, compare the invoice against the goods received record as well. This is three-way matching: PO, delivery and invoice all agree. It also clears items from your goods received not invoiced list.
- Code it from the order. Take the job, cost code and account from the PO, not from someone's memory, so the cost lands on the right job.
- Send only exceptions to a person. Invoices that match within agreed tolerances go through for approval. Invoices with a price difference, an extra line, a missing PO or a short delivery go to a named person with the reason shown.
This works best when e-invoices and PDF invoices go down the same path. Not every supplier will send e-invoices, so the matching step should treat both the same way: our post on AI reading dockets, orders and invoices covers turning PDFs into data, with a person approving the result.
What it looks like when it's fixed: the accounts team opens a short list each morning of invoices that didn't match, each with the reason (price up on line 3, PO not found, quantity more than received), and everything else is already coded to the right job and waiting for approval.
Before you switch e-invoicing on
- List your top suppliers by number of invoices. The ATO suggests this as a starting point. They are where e-invoicing and matching pay off first.
- Find where your POs actually live. If they're in three places, matching will be hard however the invoice arrives.
- Agree tolerances. Decide how much of a price or quantity difference is acceptable without a second look.
- Decide who handles exceptions, and how quickly.
- Check your purchase approvals. Our post on purchase order approvals across systems covers getting approvals in one place.
Frequently asked questions
How do I receive Peppol invoices?
You register on the Peppol network, either through accounting or business software that is eInvoicing-ready, through an eInvoicing service provider, or through a low-cost online option. The ATO lists ready products on its eInvoicing Ready product register.
Do e-invoices automatically match purchase orders?
Not on their own. The e-invoice carries a PO number or buyer reference, but something has to look that reference up in the system that holds your POs and compare the lines. If your POs are in a different system from your accounting software, that matching step needs to be set up.
What is three-way matching?
Checking that the purchase order, the delivery or goods received record, and the supplier's invoice all agree on what was ordered, received and charged before the invoice is approved for payment.
What if a supplier sends an e-invoice without a PO number?
The ATO's guide says a Peppol eInvoice must carry either a PO number or a buyer reference. If what arrives isn't one you can match, send it to a person to look up and ask the supplier to use your PO number next time.
Can e-invoices go straight into our job system?
Often, yes. Depending on your software, the e-invoice can be received by one system and passed to another, or the matching can happen between them. The right setup depends on where your orders and jobs live.
Where to start
If you're not sure where your purchase orders, receipts and invoices really meet, the $5,000 Process & Systems Audit maps it and gives you a written report on what to connect first. Our invoice processing automation page explains how we set up the matching. Or book a free initial chat.