Finance • Module glossary
This glossary explains common words and fields you’ll see when using E-Invoicing (EU) in XFatora.
Also known as: E-Invoicing – European Invoicing
What it is: Buyer details are the customer’s legal information used for e-invoicing validation and routing.
When you use it: Use correct buyer details so invoices reach the right department and pass validation.
Example: The buyer’s legal address and VAT ID are included for B2B invoices.
Common fields (and what they mean):
Related terms: Customer, VAT ID
What it is: Buyer reference is a customer-provided reference code required in some e-invoicing flows.
When you use it: Use buyer references to ensure the customer’s AP team can route and approve the invoice correctly.
Example: The customer asks you to include their internal PO number as buyer reference.
Common fields (and what they mean):
Related terms: Purchase Order, Accounts Payable (AP)
What it is: Compliance archiving means keeping e-invoices in a legally acceptable way for the required retention period.
When you use it: Use archiving to stay compliant and to retrieve documents quickly during audits.
Example: You retrieve a 2-year-old e-invoice for a tax audit in seconds.
Common fields (and what they mean):
Related terms: Audit Trail, Security
What it is: A credit note in e-invoicing is the structured equivalent of a refund/correction document.
When you use it: Use credit notes to correct invoices while keeping compliance and clean records.
Example: You issue an e-credit note for an overbilled quantity and link it to the original invoice.
Common fields (and what they mean):
Related terms: Credit Note, E-Invoice
What it is: An e-invoice is an invoice created in a structured electronic format that can be validated and processed automatically by systems and authorities.
When you use it: Use e-invoicing to meet EU regulations, reduce manual data entry, and speed up invoice processing.
Example: Instead of sending a PDF only, you generate an e-invoice that your customer’s accounting system can read directly.
Common fields (and what they mean):
Related terms: Core Accounting, VAT Number, Credit Note
What it is: E-invoicing standards are the formats and rules used across EU regions and industries.
When you use it: Use the correct standard required by your customer or country to ensure acceptance.
Example: A public sector customer requires a specific EU-compatible standard for invoices.
Common fields (and what they mean):
Related terms: Structured Format, Compliance
What it is: Electronic delivery is the method of sending an e-invoice through the required channel (customer network or platform).
When you use it: Use the correct delivery method to avoid invoice rejection and delays.
Example: Invoices are delivered electronically according to the customer’s required network.
Common fields (and what they mean):
Related terms: Validation, Accounts Receivable (AR)
What it is: Invoice numbering is the policy for creating unique invoice numbers in the correct sequence.
When you use it: Use consistent numbering to meet compliance requirements and simplify auditing.
Example: Invoices follow a series like 2026-INV-000123.
Common fields (and what they mean):
Related terms: Audit Trail, Period Closing
What it is: Invoice rejection happens when the receiver or validation rules refuse an e-invoice due to missing or incorrect information.
When you use it: Use rejection reasons to fix issues fast and resend without delaying payment.
Example: Invoice is rejected because buyer VAT ID is missing; you update and resend.
Common fields (and what they mean):
Related terms: Validation, Accounts Receivable (AR)
What it is: Structured format means the invoice data is organized in a standardized way so systems can read it reliably.
When you use it: Use structured invoices to reduce errors from manual retyping and to enable automation.
Example: Your customer imports the invoice automatically into their accounting system without typing amounts.
Common fields (and what they mean):
Related terms: E-Invoice, Validation
What it is: Supplier details are your legal business information shown on e-invoices (name, address, registration numbers).
When you use it: Use accurate supplier details to avoid rejection and compliance issues.
Example: Your legal name and VAT ID appear exactly as registered.
Common fields (and what they mean):
Related terms: VAT ID, Compliance
What it is: Tax point date is the date used for VAT/tax timing in some jurisdictions.
When you use it: Use it when required to ensure VAT is reported in the correct period.
Example: Services delivered on Jan 28 may have a tax point date different from invoice date depending on rules.
Common fields (and what they mean):
Related terms: VAT, Compliance
What it is: Validation checks that an e-invoice contains the required data and follows the correct rules for the selected EU standard.
When you use it: Use validation before sending to reduce rejections and payment delays.
Example: The system flags a missing buyer VAT ID before you send the invoice.
Common fields (and what they mean):
Related terms: Structured Format, Compliance
What it is: VAT ID is the tax identification number used for VAT reporting and validation in many EU countries.
When you use it: Use VAT IDs on invoices to ensure they are compliant and accepted by customers and authorities.
Example: A B2B invoice includes both supplier and buyer VAT IDs.
Common fields (and what they mean):
Related terms: Tax, E-Invoice
