Digital receipt automates receipt data transfers because in a digital receipt the data is automatically combined with the transaction. To make this possible, the information on the receipt must be transmitted in structured format. Otherwise, different types of software and data analytics systems cannot use the information. In this manner, the customer can share information entered on the receipt with its partners, such as entrepreneurs, consumers, tax authorities and financial institutions.
Structured product details and the VAT rate of each product are integrated into the digital receipt. For example, when you are making purchases with a charge card, you no longer need paper receipts or to scan it to the system in which expenses are entered in bookkeeping accounts, checked and sent further for approval. This data contained on the digital receipt and the VAT specification are automatically transmitted to the system.
Concrete benefits of digital receipt
- Digital receipt reduces manual work in financial administration, which means that you have more time to produce detailed analyses, forecasts and other similar reports.
- Real-time financial information can be used to support decision-making.
- The receipts are always safe.
- Legibility of receipts remains unchanged.
- There is less potential for errors because you no longer need to enter information in more than one place manually.
- By introducing digital receipts, companies can benefit from automation in their financial administration.
- Digital receipts reduce the need for paper in financial administration and help companies to act in a more responsible and environmentally friendly manner.
The aim is to make digital receipts part of companies’ daily routines
One purpose of the Real-Time Economy project is to encourage companies to use digital receipts and make it part of their everyday routines. Companies can use the data contained in digital receipts in their own financial administration systems. The aim in the project is that at least 20% of receipts transmitted between companies in Finland are in digital format by the end of 2023. By the year 2025, at least 80% of all receipts transmitted between companies should be in structured format.
The four-corner model is a model for transmitting business documents in which both the sender and the recipient have their own e-invoicing operators. A conceptual non-technical four-corner model is shown below.
Central government organisations want to operate efficiently and remain at the forefront of development
The aim of government agencies is to get all receipts of their card purchases in digital format by the end of 2025. Central government organisations have more than 50,000 charge cards. Despite the COVID-19 pandemic, more than 380,000 purchases were made in 2021 and the same number of receipts were processed. Processing one receipt takes about five minutes (from purchase to bookkeeping) and we want to automate this manual process by means of digital receipts. The number of digital receipts is still low.
Companies play a key role in the achievement of the objectives. The capability of companies to send and receive digital receipts is ensured in the Real-Time Economy project in cooperation with the stakeholders. The changes that companies must introduce before they can send digital receipts or use them in their financial administration systems are described in the project.
One aim of the project is to determine, during the first quarter of 2022, the costs incurred by different parties from digital receipts so that the parties can assess their own costs in the future.