Which ERP supports e-invoicing and Peppol in Australia?
Which ERP supports e-invoicing and Peppol in Australia? Xero and MYOB support it directly, and larger ERPs connect through an accredited Peppol access point, so the ATO's eInvoicing Ready product register is the definitive check. E-invoice compliance software then needs to handle both channels: structured Peppol invoices and the PDFs that keep arriving by email.
E-invoicing compliance in Australia means connecting to the Peppol network through an accredited access point, so invoices move between your software and your trading partners' software as structured data. Commonwealth agencies now treat Peppol as the default channel for procurement invoices. No law requires Australian businesses to e-invoice each other.
What is Peppol e-invoicing? Peppol is an international framework for exchanging invoices and other procurement documents through a network of accredited service providers called access points. In Australia the ATO is the Peppol Authority. It sets the Australian invoice specification, accredits access points and cannot see the contents of any e-invoice.
This guide is for the CFO, finance manager or accounts payable lead in a mid-sized group that sells to government, runs several entities, or has an AP inbox that grows faster than the team. The rules below were checked against ATO, Department of Finance and state government pages on 25 October 2026.
Key takeaways
- Xero and MYOB let Australian businesses register for Peppol inside the product. Larger ERPs vary, so check the ATO's eInvoicing Ready product register before you assume either way.
- There is no business-to-business e-invoicing mandate in Australia. The pressure comes from government buyers and large customers.
- Commonwealth payment terms change on 1 January 2027 to 10 business days for all invoice types.
- Peppol will not empty your inbox. Good e-invoice compliance software runs the same ABN, duplicate, PO and bank detail checks across Peppol and PDF invoices.
- Clean supplier master data decides the result. Fix duplicate vendors and ABNs first.
How do Xero, MYOB and larger ERPs connect to Peppol?
You need two things: software that can produce or take in the invoice data, and an accredited access point to reach the network. Some accounting packages include the access point in the subscription.
| Platform type | How it connects to Peppol | What to check |
|---|---|---|
| Xero | Register for Peppol inside Xero using the entity's ABN. Received e-invoices land as draft bills. | Business name must match the Australian Business Register |
| MYOB | The ATO links to MYOB's own step-by-step guides for registering, sending and receiving | Which MYOB product and edition each entity runs |
| Mid-market and enterprise ERPs | A built-in connector in some products, or a separate access point provider plus an integration | Listing on the ATO eInvoicing Ready product register, version and localisation |
| Mixed groups (ERP at head office, Xero in subsidiaries) | Each entity registers through the system that holds its ledger | One ABN mapped to one ledger, before any registration |
The honest answer to "which ERP supports e-invoicing and Peppol in Australia" is that support depends on the product, the version and the access point arrangement. The eInvoicing Ready product register is maintained for exactly this question.
If your ERP needs an access point provider and an integration, that is connection work between your systems. Our system integration team builds and documents those connections so your IT team can own them afterwards.
What do the e-invoicing rules require as at October 2026?
What applies to you depends on who you sell to.
| Who | What applies | Source |
|---|---|---|
| Non-corporate Commonwealth entities (departments and most agencies) | Must be able to receive e-invoices (since 2022). E-invoicing is the default channel for procurement invoices. Target of 30% of invoices received via e-invoice by 1 July 2026. Automated processing and sending of e-invoices by December 2026. | ATO, eInvoicing for government |
| Commonwealth payment terms until 31 December 2026 | 5 calendar days for e-invoices where both sides use Peppol and agreed to it. 20 calendar days for other invoices. | Finance, RMG 417 (current) |
| Commonwealth payment terms from 1 January 2027 | 10 business days for all forms of invoice, Peppol or not. | Finance, Procurement Policy Note |
| NSW Government agencies | All agencies must accept e-invoices (from 1 January 2022). | buy.nsw |
| Other states and territories | All SA and ACT agencies can receive. Most Tasmanian agencies can receive. Many Queensland agencies can receive and send. WA is running a program. Victoria has committed. | ATO, eInvoicing for government |
| Business to business | No mandate. Adoption is voluntary. | ATO; Treasury consultations 2020 to 2022 |
Corporate Commonwealth entities are encouraged to follow both the e-invoicing and payment policies but are not bound by them.
Why does e-invoicing matter to a finance team right now?
The Australian Government has said it will make e-invoicing the default method for exchanging invoices in its procurement. ATO guidance tells agencies to ask high-volume suppliers to move to e-invoicing and to raise it at contract renewals. If you hold Commonwealth contracts, expect that conversation.
The government's stated reasons are productivity and disrupting payment redirection scams. A Peppol invoice travels between accredited access points and is routed by ABN, so there is no emailed PDF for someone to alter on the way.
The payment term picture changes on 1 January 2027. Under the current Supplier Pay On-Time or Pay Interest Policy, an e-invoice gets a 5 calendar day maximum and anything else gets 20. Under the updated policy, every eligible invoice gets 10 business days, however it arrives.
The clock only starts once the agency holds a correctly rendered invoice and has accepted delivery. A Peppol invoice is validated by the sending and receiving access points, so missing fields are caught before it lands. With PDFs, the gap often shows up only when the agency sends the invoice back.
| PDF by email | Peppol e-invoice | Impact | |
|---|---|---|---|
| How it reaches the buyer | Email attachment to a shared inbox | Access point to access point, routed by ABN | No inbox step |
| Getting data into the system | Keyed by hand or read by OCR or AI | Arrives as structured data | No rekeying |
| Tax invoice format | Depends on the supplier's template | Australian A-NZ specification supports GST | Consistent fields |
| Altered bank details risk | PDF can be edited or spoofed in transit | Sent between accredited providers | Lower exposure |
| Commonwealth term to 31 Dec 2026 | 20 calendar days | 5 calendar days (if both agreed) | Faster for now |
| Commonwealth term from 1 Jan 2027 | 10 business days | 10 business days | Same term |
Is there a B2B e-invoicing mandate in Australia?
No. As at 25 October 2026 we found no law that requires Australian businesses to send or receive e-invoices with each other.
Treasury consulted on options for mandatory business adoption in 2020 and 2021, and then on a proposed Business eInvoicing Right in 2021 and 2022. That right would have let a business require its trading partners to accept e-invoices. We could not find legislation that followed from either consultation.
The ATO describes e-invoicing as "not a compliance or revenue measure" and says it receives no copy of any e-invoice. The pressure on private businesses comes from customers: government buyers are asking suppliers to move to Peppol, and any private buyer already receiving through Peppol can ask the same.
How do you set up Peppol e-invoicing?
Setup has four parts, and the ATO's own guide for medium and large businesses follows the same order.
- Count what you send and receive. List your top suppliers and customers by invoice volume and how each invoice arrives today. Note which use purchase orders and whether you match two or three ways. The ATO suggests starting with a few high-volume partners with simple requirements.
- Choose how you connect. Use the table above. Confirm your product on the eInvoicing Ready register.
- Register every entity that invoices. The ABN routes e-invoices in Australia, so each trading entity registers under its own ABN. Once registered to receive, your access point lists you in the Peppol Directory, which only lists receivers.
- Onboard trading partners in waves. Use the Peppol Directory to see which partners can already receive. Start with high-volume partners, then those with high error rates. Keep the old channels open while each wave moves across.
Running several Xero organisations or a mix of ERP and Xero? Each entity's Peppol registration sits with the system that holds its ledger. Our guide to consolidating multiple Xero organisations covers keeping entity data consistent across them.
Which pressure is costing you most this quarter?
- A Commonwealth or state buyer has asked for e-invoicesRegister to send first, from the entity that holds the contract
- Thousands of supplier invoices arrive each monthRegister to receive, onboard top suppliers, then add AI for the PDFs left over
- Several entities on different systemsMap each ABN to its ledger before registering anything
- Few invoices and one accounting packageSwitch on Peppol in your existing software and stop there
What should e-invoice compliance software do?
E-invoice compliance software, or e-invoice regulatory compliance software as some vendors call it, should do four jobs: send and receive through an accredited access point, validate invoices against the Australian specification, run your payment controls, and keep an audit trail. An AI-driven e-invoice compliance platform adds one more: reading the PDFs that do not arrive through Peppol.
Peppol will not empty your inbox. The Commonwealth's own target was 30% of invoices received by e-invoice by 1 July 2026, which assumes most invoices will still arrive some other way for a while.
For example, a hypothetical group with four trading entities, an ERP at head office and Xero in two acquired subsidiaries receives about 3,000 supplier invoices a month. Even if a fifth moved to Peppol within a year, 2,400 a month would still arrive as PDFs.
For those, AI extraction reads the PDF into the same fields a Peppol invoice would carry. The same checks then run on both channels, and a person approves before anything posts.
- Invoice arrivesBy Peppol as structured data, or as a PDF in the AP inbox
- Fields readAI extracts supplier, ABN, invoice number, lines, GST and PO from the PDF
- Coded and routedAI suggests the GL code, entity and approver from past invoices
- Checks runABN, duplicate, PO match and bank detail rules on every invoice
- Person approvesAP reviews flagged fields; the budget holder approves within their limit
- Posted and paidBill posts to the ERP or Xero and pays on the agreed term
The AI step runs on your infrastructure in Australia (your cloud or your own servers), connected to the ledger you already run. Our data sovereignty guide explains why that matters for supplier bank details and pricing. For extraction mechanics and accuracy testing, see our complete guide to automating invoice processing.
Which controls catch duplicates, wrong ABNs and changed bank details?
Two channels create a new failure mode. A supplier moves to Peppol but its old template still emails a PDF copy, and the same invoice arrives twice by different routes. Your controls need to run across both channels, after extraction, on the same fields.
| Control | What it checks | What happens when it fails |
|---|---|---|
| ABN check | Supplier ABN is active and matches the vendor master, using the Australian Business Register's ABN Lookup | Invoice held, AP asked to confirm the supplier |
| GST registration | Supplier is registered for GST if GST is charged | Held for review before any GST credit is claimed |
| Duplicate detection | Same supplier, invoice number and amount, plus near matches across Peppol and email | Second copy blocked and linked to the first |
| PO and receipt match | Two or three way match against the purchase order and goods receipt | Variance routed to the buyer who raised the PO |
| Bank detail change | Remittance details differ from the vendor master | Payment held until AP confirms by phone on a number already on file |
| Approval limits | Amount sits within the approver's delegation | Routed up to the next delegate |
Get the bank detail rule right first. It protects you from payment redirection on the PDF channel, which is the risk Peppol was meant to reduce.
Selling to government as well as buying? Tender and contract obligations often specify invoicing requirements. Our post on AI for government contractors and tender compliance covers keeping those obligations visible after award.
How does AI handle invoices safely before it goes live?
The risk with AI on accounts payable is a wrong field reaching a payment run. The control is a staged rollout: the AI runs alongside your team until it proves accurate, and nothing pays until it meets an accuracy threshold you set.
First, the AI reads every PDF and proposes fields and codes while your team keeps processing as normal. Each week you compare its output with what your team entered, field by field. When it meets your threshold, it drafts and a person approves every invoice. Lighter review for low-risk invoices from known suppliers stays a later decision for your finance team, never part of a pilot.
- Phase 1 (3 to 4 weeks)Discovery and DesignBaseline invoice volumes by channel and entity, map ABNs to ledgers, choose the access point path, set the accuracy threshold
- Phase 2 (6 to 8 weeks)Build and Run AlongsideRegister entities on Peppol, onboard the first supplier wave, run AI extraction beside the team with weekly side-by-side scoring
- Phase 3 (4 to 6 weeks)Approve and Hand OverAI drafts, a person approves every invoice, controls go live on both channels, code and runbooks handed to your IT
Each phase is a fixed fee, agreed before we start, and ends at a decision point. You can proceed, pause or stop, and you keep everything delivered so far.
Master data decides the result. If one supplier sits in the vendor master twice with different ABNs, no extraction model and no Peppol connection will fix the duplicate payment risk. Phase 1 cleans that first.
What should you measure before and after?
Start with a baseline so the result is a number your CFO can check. The figures below are a worked example for the hypothetical group above, not a forecast.
- Supplier invoices received per month (assumed)3,000
- Moved to Peppol in the first year (assumed 20%)600
- Still arriving as PDF or paper2,400
- Your baseline: minutes to key and check one PDFMeasure it
- PDF invoices read by AI and approved by a person2,400 a month
Track four numbers from the first week: invoices by channel, invoices sent back as incorrectly rendered, duplicates caught before payment, and days from receipt to approval. The last matters most for Commonwealth suppliers, because the agency's clock starts only when it holds a correct invoice. For where invoice automation pays off and where it does not, read our honest guide to invoice automation.
How Solve8 can help
Our consultants and engineers map your entities to ledgers, connect your ERP or Xero to Peppol, and build AI extraction for the PDFs that remain, with a person approving every invoice. See our process automation service, or contact us to scope the first phase.
Sources: ATO, About eInvoicing, About Peppol, eInvoicing for government, eInvoicing for businesses and Getting started with eInvoicing for medium and large businesses (accessed 25 October 2026); Department of Finance, Supplier Pay On-Time or Pay Interest Policy (RMG 417) and the Procurement Policy Note on Updated Commonwealth Supplier Payment Terms (accessed 25 October 2026); buy.nsw, e-Invoicing help page; Treasury, Supporting business adoption of electronic invoicing consultation paper (December 2021); Xero, Send and receive eInvoices with Xero (accessed 25 October 2026).
