Invoice automation with AI: e-invoices and PDFs
E-invoicing is becoming mandatory across Europe, but invoices still arrive in every format. Here is how AI handles the whole incoming invoice process, from inbox to approval.
- In Germany, all businesses must be able to receive e-invoices since 1 January 2025.
- Issuing e-invoices becomes mandatory in Germany from 2027 for larger and from 2028 for all businesses.
- AI reads PDF invoices and e-invoices alike and matches them against purchase orders.
- Your team only reviews exceptions instead of typing every invoice.
E-invoicing is coming
Across Europe, structured electronic invoices are replacing PDFs. In Germany, for example, domestic B2B e-invoicing is being phased in: an e-invoice is a structured format such as XRechnung or ZUGFeRD, and a plain PDF does not count.
| From | What applies in Germany |
|---|---|
| 1 January 2025 | All businesses must be able to receive e-invoices |
| 1 January 2027 | Issuing e-invoices is mandatory for businesses with more than €800,000 turnover in the previous year |
| 1 January 2028 | Issuing e-invoices is mandatory for all businesses in domestic B2B trade |
Other EU countries have their own timelines. Check the rules for your country with your tax adviser.
Why incoming invoices are still manual work
In practice, invoices will arrive in mixed formats for a long time: e-invoices, PDFs, scans and photos. An XRechnung is an XML file that is hard to read without suitable software. And even a perfectly structured invoice still needs checking: does it match the purchase order, has the goods receipt been posted, is the price right?
How AI automates incoming invoices
1. Collect
Invoices from your inbox, supplier portals or the scanner land automatically in one place.
2. Read
For e-invoices, the structured data is taken over directly. For PDFs and scans, AI reads supplier, invoice number, date, line items, amounts, tax and bank details, without a template per supplier.
3. Check and match
The data is matched against your master data, purchase orders and goods receipts. Duplicate invoices, wrong prices or missing goods receipts are flagged immediately.
4. Approve and hand over
If everything matches, a posting proposal goes to approval or straight to your ERP or accounting system. Exceptions go to the right person with a clear reason.
What you gain
- Less typing: your team reviews exceptions instead of every invoice.
- Faster approvals and fewer missed early-payment discounts.
- One process for every format, e-invoice or PDF.
- A full audit trail of who approved what and when.
How to get started
Collect 20 to 50 typical invoices from last month, including the difficult ones. A pilot on these shows how much can run automatically. With us, that pilot is free. Get in touch or see our AI automation.
FAQ
Common questions
Is a PDF invoice an e-invoice?
No. An e-invoice is a structured electronic format such as XRechnung or ZUGFeRD. A plain PDF does not count as an e-invoice.
Can AI process PDF invoices too?
Yes. AI reads PDFs, scans and photos and feeds the data into the same process as e-invoices.
Does it work with SAP or other ERP systems?
Yes. The checked data is passed to your ERP or provided as an export for your accounting system.
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