XRechnung Explained: Structure, Fields, Mandatory Information
Digitalization has fundamentally changed the way businesses and public institutions operate. A key component of this transformation was (and remains) the introduction of electronic invoicing (also known as eInvoicing) in the form of XRechnung in Germany.
This electronic invoice format significantly simplifies the invoicing process between companies of all sizes and enables more efficient processing of business transactions—so far, this applies only to invoice exchanges with the public sector (B2G).
In this article, we will take an in-depth look at the XRechnung format and explain what it is, who uses it, how it is structured, and what information it contains.
Want to become an expert on XRechnung? Then hold on tight—here we go!
What is XRechnung?
XRechnung is a standardized format for electronic invoices. It was developed to establish a uniform standard for electronic invoicing, particularly for public sector clients in Germany. Unlike traditional paper invoices or simple PDF invoices, XRechnung is a structured XML data format. This structure enables automated and efficient processing of invoice data.
Who can use XRechnung—and who can’t?
The primary target audience for XRechnung is public contracting authorities and their suppliers. Since November 2020, federal public contracting authorities have been required to receive and process invoices in this format as receivers. This requirement stems from an EU directive mandating the introduction of electronic invoicing procedures in public administration. For small and medium-sized enterprises as well as IT experts, XRechnung offers the advantage of automated processing, which saves time and resources.
How is the XRechnung structured?
An XRechnung consists of various mandatory and optional fields.
Mandatory fields in the XRechnung
Mandatory fields include information such as the issuer, recipient, date, invoice number, payment terms, and a description of the goods or services provided.
Optional fields in the XRechnung
Optional fields may contain discounts, tax information, or additional references. The structure of the XRechnung follows a specific schema that ensures compliance with the standard and enables seamless integration into existing accounting systems.
The XRechnung in pure XML format looks like this (excerpt):
But where exactly in the XML document can we find the various mandatory informations that we’re used to seeing on a “traditional” paper or PDF invoice? We hope the following visualization will shed some light on this. Here, we’ve laid out the entire structure graphically and visually linked it to the corresponding locations in the XML code shown above.
Practical Handling and Reading an XRechnung
It doesn’t actually look that complicated, does it? However, there is one small drawback. In practice, an XML data set is unfortunately nowhere near as easy to visualize as in our example.
To read an XRechnung, you generally need appropriate software that can interpret the XML format. While some accounting and ERP systems are now capable of processing the XRechnung format directly, the vast majority of currently available industry, administrative, and accounting solutions for small and medium-sized businesses, the trades, many service providers, and other specialized vendors are significantly lagging behind in this development.
However, it is particularly important for small and medium-sized businesses as well as public administrations to use systems that enable the smooth processing and archiving of XRechnungs—and other permissible standards such as ZUGFeRD. Therefore, corresponding interfaces to specialized eInvoicing service providers play a key role; these providers, in turn, ensure the seamless conversion of invoice data into the required formats, as well as their targeted delivery or receipt and downstream processing in existing ERP systems.
Another advantage of this “division of labor”: Digital service providers—such as those in the TRAFFIQX® network—ensure that everything remains up to date at all times with a whole team of digital specialists.
With hundreds of eInvoicing standards worldwide—all of which undergo regular version updates, expansions, adjustments, and refinements—simply “keeping track of everything” is already a monumental task. It’s a good thing there are specialized eInvoicing networks like TRAFFIQX® that do exactly that—enabling their network members to focus on “more important things.”
Want to learn more? Schedule a free consultation with our expert, Lars Becher, today. Lars is a Key Account Manager and Subject Matter Expert for eInvoicing and CTC within the Traffiqx network at b4value.net. Call him at 06359-93790 or email him at lars.becher@b4value.net.
But that’s where we come in—we’re the most successful eInvoicing network for your electronic invoice exchange, supporting not only eInvoicing but virtually all common national and international eInvoicing standards. And we do it quickly, easily, and extremely cost-effectively.
Secure your consultation now!
Want to learn more? Schedule your free consultation with our expert Lars Becher, Key Account Manager and Subject Matter Expert for e-invoicing and CTC within the TRAFFIQX® network.
Not a fan of online meetings?
Give him a call: +49 (0)6359 – 9 37 90
or drop him a line at: lars.becher@b4value.net