How Do SAP Users Set Up e-Invoicing?

Melasoft
5 hours ago
4 min read

What Is e-Invoicing in the Context of SAP?

If you’re running your business on SAP, you’ve probably asked this question recently: “How do I connect our SAP system to mandatory e-invoicing requirements?”

That question is becoming more urgent by the day. Governments across Europe and beyond are making e-invoicing mandatory not just for public procurement but for B2B transactions as well. Countries like Germany, France, Poland, and Malaysia have introduced strict formats, digital signature rules, and real-time validations. And SAP users are under growing pressure to comply.

But here’s the challenge: SAP was built for flexibility, not for e-invoicing compliance out of the box. There’s no single plug-and-play solution in the standard system. Instead, SAP users are left navigating a complex landscape of XML formats, legal validations, Peppol networks, and government portals all while keeping their core ERP workflows stable.

This guide is written for SAP users who are looking for a clear, structured path to e-invoicing. Whether you’re using ECC or S/4HANA, managing international operations, or just need to stay compliant in one country, you’ll find everything you need to know right here.

What Does e-Invoicing Mean in SAP?

E-invoicing in SAP refers to the ability to generate, validate, and transmit structured electronic invoices (usually in XML or UBL format) directly from your ERP system to government platforms or trading partners.

Depending on the country, this could mean:

Generating XRechnung for Germany,
Submitting invoices via FatturaPA in Italy,
Using Peppol for pan-European communication,
Or adopting country-specific formats like CTI XML (Romania), LHDN XML (Malaysia), and more.

Connecting SAP to the World of e-Invoicing

In all cases, your SAP system needs to transform standard invoice data into compliant formats and ensure secure, traceable delivery.

Why Is This a Pain Point for SAP Users?

Because SAP doesn’t offer a one-size-fits-all solution for e-invoicing. Out of the box, SAP lacks:

Ready-to-use XML invoice formats,
Built-in government integrations (like SDI or Peppol gateways),
Local compliance validations.

So what happens? SAP users start looking for solutions:

Internal ABAP developments (which take time and cost money),
External consultants for each country,
Third-party platforms that may or may not integrate well with SAP.

The result: scattered tools, rising complexity, and potential non-compliance.

That’s why more and more SAP users are looking for integrated, future-proof solutions preferably something that works inside SAP and adapts quickly to new mandates.

What Does a Complete e-Invoicing Setup in SAP Look Like?

To implement e-invoicing in SAP successfully, here’s what you need:

1. Legal & Technical Requirement Analysis

Understand what your target country requires:

What invoice format is mandatory?
Is Peppol or another transmission channel required?
Are digital signatures or QR codes necessary?
Is real-time clearance or post-audit validation in place?

2. Output Configuration in SAP

Use NACE or BRF+ depending on your SAP version to define:

When and how invoices are triggered,
Which fields are mapped,
How invoice data is structured.

3. Format Mapping and Transformation

Convert SAP invoice data into the legally required XML format. This includes:

Buyer and seller IDs (VAT, company codes),
Line items, tax codes, totals,
Legal references and document metadata.

4. Validation and Transmission

Validate the invoice against local rules and submit via:

Peppol (e.g., in Belgium, the Netherlands, Finland),
National portals (e.g., ELSTER in Germany, SDI in Italy),
Direct API integration (e.g., Malaysia, Poland).

5. Monitoring and Compliance Logs

Keep an audit trail of:

Submission status,
Error responses from tax authorities,
Internal approval workflows,
Archive versions for tax audits.

What Are My Integration Options as an SAP User?

Option A: SAP Document Compliance (eDocument Framework)

Suitable for large enterprises with SAP Globalization Services.
Requires activation, licenses, and specific country versions.
Works well, but may require custom extensions.

Option B: Middleware Integration via SAP PI/PO or SAP CPI

Great flexibility and control.
Requires in-house SAP Basis and Integration teams.
Time-intensive to build and test.

Option C: SAP-Certified Add-Ons (Like Melasoft)

For companies looking for a faster, simpler, and fully compliant way to integrate e-invoicing directly into SAP, Melasoft offers SAP Add-Ons that:

Support multiple formats (XRechnung, FatturaPA, UBL, etc.),
Seamlessly plug into ECC and S/4HANA,
Include built-in validations and country-specific rules,
Connect to Peppol, national portals, or direct APIs,
Are continuously updated with legal changes.

With Melasoft, you can avoid scattered solutions and long development cycles. You get everything in one place fully embedded in SAP.

Best Practices for a Smooth Implementation

Clean up your master data before starting.
Focus on one country first, then scale.
Work with partners who understand both SAP and international regulations.
Monitor country-specific timelines (e.g., 2025 mandates in Germany and France).
Automate validation and logging as much as possible.

Common Mistakes SAP Users Make

Common e-Invoicing Mistakes in SAP Projects

Why More SAP Users Choose Melasoft for e-Invoicing

When it comes to e-invoicing, most SAP users face the same three problems:

SAP doesn’t offer a complete, ready-to-use e-invoicing solution.
Local regulations change constantly, and SAP systems can’t adapt fast enough.
Managing custom developments for each country quickly becomes unsustainable.

This is exactly where Melasoft steps in.

We’ve built a modular, SAP-certified e-invoicing Add-On designed specifically for companies that want:

Seamless integration with SAP ECC or S/4HANA
Full compliance with local e-invoicing formats (XRechnung, FatturaPA, UBL, LHDN XML, and more)
Peppol and national tax portal connectivity out of the box
Real-time validation, error handling, and monitoring directly within SAP
Continuous updates aligned with new legal mandates

Whether you’re operating in a single country or across multiple jurisdictions, Melasoft helps you manage everything from one place with one solution, fully embedded in your SAP system.

No more fragmented tools. No more last-minute compliance updates. Just one platform built for e-invoicing success.

Let’s Make e-Invoicing Easy

Thousands of SAP users are already simplifying e-invoicing across Europe, Asia, and beyond using Melasoft’s solutions. Want to see how it works in your system? Book a demo. Stay compliant. Stay in control. Go digital with Melasoft.