ORDERS Received
Buyer's ERP stores PO reference, prices, and quantities
EDIFACT Electronic Invoice Message
Electronic Invoice INVOIC
The electronic invoice — replacing paper billing with structured, automated financial data exchange between supplier and buyer, enabling straight-through processing and faster payment cycles.
Key Segments & Structure
| Segment | Description | Status |
|---|---|---|
| BGM | Invoice number, document type (380=Invoice, 381=Credit Note) | M |
| DTM | Invoice date, payment due date, tax point date | M |
| PAI | Payment Instructions — payment means, terms | C |
| RFF | Reference — PO number, despatch advice number | M |
| NAD | Seller, Buyer, Remit-to address, tax authority | M |
| TAX | Duty / Tax / Fee — VAT rate, tax category | C |
| CUX | Currencies — invoice currency, exchange rate | C |
| LIN | Line Item — GTIN, supplier article number | M |
| QTY | Invoiced quantity | M |
| PRI | Price — unit net price, gross price | M |
| MOA | Monetary Amounts — line total, tax amount, invoice total | M |
M
Mandatory segment
C
Conditional segment
Message Overview
What is an INVOIC message?
The INVOIC message is the UN/EDIFACT standard for electronic invoicing. Sent from the supplier to the buyer after goods have been dispatched (or services rendered), it contains a complete financial billing statement — invoice number, invoice date, line-level amounts, taxes (VAT/GST), discounts, payment terms, and bank details.
When the INVOIC is matched against the original ORDERS and the DESADV in the buyer's ERP (a process called "three-way matching"), payment can be approved automatically without human intervention — this is straight-through processing and is the primary financial benefit of EDI in procurement.
Information commonly included
- Invoice number
- Invoice date
- Line-level amounts
- Taxes (VAT/GST)
- Discounts
- Payment terms
- Bank details
- ORDERS and DESADV references
Invoice Matching Workflow
3-Way Matching Process
DESADV Received
ERP records actual quantities delivered
INVOIC Received
Invoice quantities and prices checked against PO and GR
Auto-Approval
If all three match within tolerance, payment is approved automatically
Common Applications
Use Cases
Retail Invoice Processing
Retailers process thousands of supplier invoices daily via EDI with no manual keying
GST / VAT Compliance
Tax authorities in many countries (India GST, EU e-invoicing) accept EDI INVOIC as a legally valid tax document
Credit Notes (INVOIC 381)
BGM type 381 creates credit memos for returns, price adjustments, and short deliveries
Consolidation Billing
Multiple deliveries billed on a single consolidated invoice with RFF references to each DESADV
INVOIC Message FAQ
Frequently Asked Questions
How is a credit note sent in EDI INVOIC?
A credit note uses the same INVOIC message structure but with BGM document code 381 (instead of 380 for an invoice). Quantities and amounts are typically expressed as negative values or with appropriate sign qualifiers.
Is EDI INVOIC legally valid for tax purposes?
In many jurisdictions, yes — provided the message meets local tax authority requirements. The EU's e-invoicing directive, India's GST e-invoicing mandate, and several national standards accept UN/EDIFACT INVOIC or derived formats as legally binding tax documents.
What payment terms fields does INVOIC support?
The PAI and PAT segments handle payment terms, including payment means (bank transfer, cheque, direct debit), due date, discount terms for early payment, and IBAN/BIC bank details.
Odoo EDI Finance Automation
