Essentially, invoices are commonly known to serve as a request for payment in contrast to receipts that highlight the evidence of payment. In retrospect, the European Commission defines e-invoicing as exchanging digital transaction documents between buyers and suppliers while electronic invoices – as described in Directive 2014/55/EU – are those created, sent, and retrieved in an organized format that permits automated analyses. Most electronic invoice processing systems operate according to the data on a complete electronic invoice which is usually not presented visually for ease of use. Nevertheless, they can be converted into graphical representations or momentarily shown during processing.

There are two primary types of e-invoice systems that business owners could take into consideration. The first one involves a point-to-point link between the customer and the merchant. This method can be commonly found when utilizing electronic data interchange (EDI) which is the most prevalent e-invoicing method. With the presence of a specialized, secure communication channel, it is where highly standardized data is sent in an XML data file that has already been created. Another alternative for e invoicing Malaysia is using a network with an efficient and scalable design to link numerous consumers and vendors on a single platform.