PDF invoice processing is the conversion of PDF invoices received from suppliers into a standard digital format which can in turn be processed in the same way as electronic invoices received via EDI.

In terms of invoice processing it’s often the case that 20% of a company’s suppliers are responsible for 80% of the workload. A PDF invoice processing solution enables companies to instantly accept digital invoices from all their suppliers, regardless of their size or technical capability. This approach enables companies to incorporate the long tail of suppliers who do not have an invoicing solution, maximising the benefits of electronic trading.

A PDF invoice is a billing document created and saved in the Portable Document Format (PDF). This type of invoice includes essential details such as the goods or services provided, their costs, the total amount due, payment terms, and other relevant information. PDF invoices are widely used because they are universally readable, maintain their formatting across different devices and platforms, and can be easily shared electronically. 

A PDF invoice is not an e-invoice the two are entirely different. As outlined in Directive 2014/55/EU and Germany’s E-Invoicing Ordinance, an electronic invoice differs from a PDF invoice as is generated, transmitted, and received in a structured electronic format. This facilitates automated and digital processing.

Although PDF’s are electronic files they do not have a standardised structure in the same way EDI messages have. Consequently, receiving PDF invoices without a PDF invoice processing solution and automated workflow in place still poses a challenge to organisations.

Businesses that receive high volumes of PDF invoices will still experience many of the challenges associated with paper invoices. With no automation in place the processing of PDF invoices adds to their AP department’s workload as opening and processing the invoices will require human intervention, with the need to print and scan or rekey invoices into their accounts package.

Generating a PDF invoice can be done in several ways. The process typically involves selecting a template, entering invoice details, and saving or exporting the document as a PDF. Additionally, invoices can be created manually by using computer software to create an invoice using built-in templates, which can then be saved or printed as a PDF.

The term "invoice format PDF" refers to a predefined structure or template for invoices saved in PDF format. These templates include essential fields such as the invoice number, date of issue, seller and buyer information, description of goods or services, quantity and price, subtotal, taxes, and the total amount due, as well as payment terms and conditions.

An important distinction exists between an invoice PDF and a receipt PDF. An invoice PDF is issued before payment is made, requesting payment from the buyer for goods or services provided. It includes details about the items, prices, and terms of payment. Conversely, a receipt PDF is issued after payment is received, confirming that payment has been made for goods or services. It includes details about the items, prices, and confirmation of payment received.

You can edit a PDF invoice, but the ease of doing so depends on the tools used. PDF editors enable modifications to text, addition or removal of items, and changes to formatting. Some word processors, like Microsoft Word, can open and edit PDFs, although this may sometimes alter the formatting.