Electronic Invoice Presentment and Payment (EIPP) is a digital accounts receivable solution that electronically delivers invoices to customers and enables them to view, review, and pay those invoices online. EIPP connects invoice presentment and electronic payment within a single workflow, helping businesses automate invoice delivery, accelerate collections, reduce manual processing, improve payment visibility, and enhance the customer payment experience.
Key Takeaway: EIPP connects electronic invoice delivery with digital payment capabilities so businesses can move from invoice creation to customer payment with less manual intervention and greater visibility.
EIPP at a Glance
| Question | Answer |
|---|---|
| What is EIPP? | Electronic Invoice Presentment and Payment |
| Primary purpose | Digitize invoice delivery and payment |
| Primary users | CFOs, controllers, finance, accounts receivable, collections, and shared services teams |
| Core workflow | Invoice → Presentment → Payment → Reconciliation |
| Payment methods | ACH, cards, bank payments, and other digital payment methods |
| Related processes | Accounts receivable and order-to-cash |
| Key benefits | Faster payments, lower manual effort, better visibility, and improved customer experience |
What Does EIPP Stand For?
EIPP stands for Electronic Invoice Presentment and Payment. It combines electronic invoice delivery with digital payment capabilities in a connected invoice-to-cash workflow.
How Does EIPP Work?
EIPP works by automating the invoicing process, enabling businesses to present invoices and receive payments electronically. Here’s how it typically works:
- Invoice generation: Invoice data is generated in the ERP, billing, or accounting system.
- Invoice validation: Invoice details, customer information, payment terms, and delivery preferences are validated.
- Electronic invoice presentment: The invoice is delivered through the customer’s preferred digital channel, such as email, portal, API, or electronic network.
- Customer access: Customers can view invoices, statements, supporting documents, and account information through a digital experience.
- Payment: Customers select an available electronic payment method and submit payment.
- Payment confirmation: The customer receives confirmation while payment status is updated for the business.
- Payment reconciliation: Payment and remittance information can be synchronized with accounts receivable and financial systems.
- AR visibility: Finance teams gain visibility into invoice delivery, payment activity, exceptions, and outstanding receivables.
This digital workflow can reduce reliance on paper, lower manual processing, improve payment visibility, and help shorten invoice-to-payment cycles.
EIPP process: ERP/Billing → Invoice → EIPP → Customer → Digital Payment → Payment/Remittance → Cash Application → Reconciliation
ERP/Billing → Invoice → EIPP → Customer → Digital Payment → Payment/Remittance → Cash Application → Reconciliation
Key Features of EIPP
EIPP systems offer several important features that help businesses optimize their invoicing and payment processes:
- Electronic Invoice Delivery: Invoices are sent directly to customers through digital means, reducing the need for paper-based billing.
- Secure Payment Gateways: Payments are processed securely through encrypted gateways, helping protect sensitive financial information.
- Self-Service Portals: Customers can view, download, and pay invoices online at their convenience, enhancing their experience.
- Integration with ERP Systems: EIPP solutions integrate seamlessly with existing accounting software, allowing businesses to manage their invoicing and payments within the same platform.
- Real-Time Updates: Both businesses and customers receive real-time updates on the status of invoices and payments, providing transparency and visibility.
- Payment Links: Customers can access payment options directly from digital invoices and payment communications.
- Multiple Payment Methods: EIPP can support electronic payment methods such as ACH, cards, and bank-based payments depending on the solution and region.
- Payment Reminders: Automated notifications can help customers act on outstanding invoices and reduce payment delays.
- Payment and Remittance Visibility: Finance teams can track payment status and access payment-related information.
- Payment Reconciliation: Payment information can flow into downstream AR and financial processes.
- Analytics and Reporting: Finance teams can monitor invoice delivery, payment activity, customer adoption, and receivables performance.
Benefits of EIPP
Implementing EIPP can provide numerous benefits for businesses of all sizes. Some of the most notable advantages include:
Benefits of EIPP for Finance Leaders
EIPP can create value across the finance organization by reducing invoice-to-payment friction and improving visibility across receivables.
For CFOs and Finance Leaders
- Improve visibility into receivables and payment activity.
- Support faster cash conversion and working capital management.
- Reduce manual invoice and payment processing.
- Support broader finance and order-to-cash transformation initiatives.
For Controllers
- Improve transaction visibility and auditability.
- Reduce manual processing and duplicate data entry.
- Improve consistency between invoice and payment records.
For AR and Collections Teams
- Reduce invoice delivery delays.
- Make it easier for customers to pay electronically.
- Improve visibility into outstanding invoices and payment status.
- Reduce payment-related customer service inquiries.
For Shared Services Leaders
- Standardize invoice-to-payment processes.
- Reduce repetitive manual work.
- Support scalable transaction processing across business units.
- Faster Payments: By enabling customers to pay electronically through convenient digital channels, businesses can reduce payment friction and potentially accelerate collections.
- Cost Reduction: EIPP reduces the costs associated with paper invoicing, postage, and manual payment processing.
- Improved Accuracy: Automating the invoicing and payment process reduces human errors, such as incorrect billing amounts or lost invoices.
- Better Cash Flow Management: With EIPP, businesses have better visibility into outstanding invoices and can track payments in real-time, improving cash flow forecasting.
- Enhanced Customer Experience: Customers appreciate the convenience of being able to view and pay invoices online, which can lead to higher satisfaction and repeat business.
How Does EIPP Improve Cash Flow?
EIPP can improve cash flow by reducing friction between invoice delivery and customer payment. Digital invoice delivery helps customers receive invoices faster, while online payment options make it easier to pay electronically. Finance teams also gain better visibility into invoice and payment status, helping them identify overdue receivables and improve collections planning.
How Does EIPP Help Reduce DSO?
EIPP can help reduce days sales outstanding (DSO) by shortening the time between invoice creation, invoice delivery, customer engagement, and payment. Automated digital delivery reduces delays, while convenient payment options make it easier for customers to pay when invoices become due. Better payment visibility can also help AR teams identify exceptions and follow up on overdue receivables.
EIPP vs. Electronic Invoicing: What’s the Difference?
Electronic invoicing focuses primarily on creating, validating, exchanging, and storing invoices digitally. EIPP extends that digital workflow by connecting invoice presentment with electronic payment capabilities.
| Electronic Invoicing | EIPP |
|---|---|
| Digitizes invoice creation and delivery. | Combines invoice delivery with digital payment. |
| Primarily focuses on invoice exchange. | Focuses on the invoice-to-payment experience. |
| May not include payment functionality. | Includes or connects to electronic payment capabilities. |
| Can support tax and regulatory requirements. | Can support invoice-to-cash and AR automation. |
EIPP vs. EBPP: What’s the Difference?
EIPP is commonly used in B2B invoice and payment workflows, while EBPP is often associated with electronic billing and payment experiences in consumer-facing environments.
| EIPP | EBPP | |
|---|---|---|
| Primary audience | B2B | B2C |
| Typical use case | Business invoices and receivables | Consumer bills |
| ERP/AR integration | Often important | Generally less central |
| Invoice complexity | Often high | Generally simpler |
EIPP vs. Traditional Invoicing
| Traditional Invoicing | EIPP |
|---|---|
| Paper or manual invoice delivery | Digital invoice delivery |
| Manual payment processes | Digital payment options |
| Limited payment visibility | Real-time or near-real-time payment visibility |
| Higher manual effort | Greater process automation |
| Separate invoice and payment activities | Connected invoice-to-payment workflow |
Where Does EIPP Fit in the Order-to-Cash Process?
EIPP is an important component of the accounts receivable and order-to-cash process. It connects invoice presentment with digital payment and can provide the visibility needed to move from billing to payment and reconciliation more efficiently.
A typical order-to-cash process can include:
Order → Credit → Order Management → Billing → EIPP → Collections → Payment → Cash Application → Reconciliation
How Does EIPP Connect With Cash Application?
EIPP and cash application address different stages of the accounts receivable process but can work together to accelerate the invoice-to-cash cycle. EIPP helps customers receive and pay invoices electronically, while cash application matches incoming payments and remittance information to the appropriate invoices and customer accounts.
This creates a connected workflow from invoice presentment → payment → remittance → cash application → reconciliation.
How Does EIPP Support Payment Reconciliation?
EIPP can provide payment and remittance information that helps finance teams connect customer payments with outstanding invoices. When integrated with accounts receivable and ERP systems, payment data can support downstream reconciliation and reduce the need for manual data entry and matching.
This can help reduce manual reconciliation effort and improve visibility between customer payments, remittance information, invoices, and receivables records.
How to Implement EIPP
A successful EIPP implementation requires more than adding an online payment page. Finance teams should consider invoice delivery, customer experience, payment methods, system integration, security, reconciliation, and adoption.
- Assess the current invoice-to-payment process.
- Identify customer payment and delivery requirements.
- Define ERP, billing, AR, and payment integrations.
- Select supported payment methods and channels.
- Configure customer self-service and digital invoice experiences.
- Establish security, compliance, and access controls.
- Pilot the solution with selected customers or business units.
- Measure adoption, payment performance, and operational impact.
- Expand deployment across customers, entities, and regions.
Common EIPP Implementation Challenges
- ERP and billing system integration
- Customer adoption of digital invoice and payment channels
- Payment method and regional requirements
- Security and compliance requirements
- Payment and remittance reconciliation
- Multi-entity and multi-country deployment
How to Choose EIPP Software
Finance leaders evaluating EIPP software should look beyond electronic invoice delivery. The solution should fit into the broader accounts receivable and order-to-cash environment and support the organization’s payment, integration, security, and scalability requirements.
| Evaluation Area | What to Look For |
|---|---|
| ERP integration | Integration with ERP, billing, and AR systems |
| Invoice delivery | Email, portal, API, and other digital channels |
| Payment methods | ACH, cards, bank payments, and regional options |
| Customer experience | Self-service invoice and payment capabilities |
| Automation | Automated delivery, reminders, and payment workflows |
| Reconciliation | Payment and remittance integration with AR |
| Security | Authentication, encryption, access controls, and auditability |
| Analytics | Invoice, payment, adoption, and receivables reporting |
| Scalability | Support for enterprise transaction volumes and multiple entities |
How Much Does EIPP Cost?
EIPP costs vary based on transaction volume, payment methods, ERP and billing integrations, implementation requirements, geographic coverage, customer portal capabilities, and the level of automation required. Finance teams should evaluate both technology costs and potential savings from reducing manual invoice and payment processing.
What KPIs Should Companies Use to Measure EIPP?
- Electronic invoice adoption rate
- Digital payment adoption rate
- Invoice delivery success rate
- Invoice-to-payment cycle time
- Days sales outstanding (DSO)
- Cost per invoice
- Cost per payment
- Payment success rate
- Customer self-service adoption
- Payment exception rate
- Manual processing rate
- Payment reconciliation rate
How Emagia Supports EIPP and the Invoice-to-Cash Process
Emagia helps finance organizations connect electronic invoicing and payment processes with broader accounts receivable automation. Instead of treating invoice delivery and payment as isolated activities, organizations can connect digital customer experiences with collections, cash application, reconciliation, and receivables visibility.
- Automate Invoice Generation: Emagia’s system allows businesses to automatically generate and send invoices, reducing manual labor and increasing accuracy.
- Facilitate Secure Payments: With Emagia’s secure payment gateway, customers can easily and securely pay invoices online, speeding up cash collections.
- Enhance Customer Self-Service: Emagia’s self-service portals give customers the ability to manage their invoices and payments with ease, improving their experience and reducing customer service workload.
- Gain Insights into Cash Flow: Emagia’s real-time tracking provides businesses with valuable insights into their payment cycles, helping them improve cash flow management.
By adopting Emagia’s EIPP solution, businesses can optimize their invoicing and payment processes, leading to improved financial efficiency and enhanced customer satisfaction.
See How Emagia Can Modernize Invoice-to-Cash
See how Emagia can help finance teams connect invoicing, payments, collections, cash application, and reconciliation across the accounts receivable process.
Key Takeaways
- EIPP combines electronic invoice presentment and payment in a connected digital workflow.
- EIPP can reduce manual invoice delivery and payment processing.
- Digital payment options can reduce payment friction and support faster collections.
- EIPP is most valuable when connected with ERP, AR, cash application, and reconciliation workflows.
- For enterprise finance teams, EIPP can form part of a broader order-to-cash automation strategy.
Frequently Asked Questions About EIPP
What is EIPP?
Electronic Invoice Presentment and Payment (EIPP) is a digital accounts receivable technology that electronically delivers invoices to customers and enables them to view and pay those invoices through digital payment channels.
What does EIPP stand for?
EIPP stands for Electronic Invoice Presentment and Payment.
How does EIPP work?
EIPP connects invoice generation, electronic invoice delivery, customer access, digital payment, payment confirmation, and downstream receivables processes such as reconciliation.
What is the difference between EIPP and electronic invoicing?
Electronic invoicing primarily focuses on creating and delivering invoices digitally, while EIPP combines electronic invoice presentment with electronic payment capabilities.
What is the difference between EIPP and EBPP?
EIPP is generally associated with B2B invoicing and payments, while EBPP is more commonly associated with electronic billing and payment for consumers.
What are the benefits of EIPP?
EIPP can help businesses reduce manual processing, improve invoice delivery, simplify digital payments, increase payment visibility, and enhance the customer payment experience.
How does EIPP help reduce DSO?
EIPP can help reduce DSO by shortening the time between invoice delivery and payment, reducing payment friction, and improving visibility into invoice and payment status.
Does EIPP integrate with ERP systems?
Yes. Enterprise EIPP solutions can integrate with ERP, billing, accounts receivable, payment, and other financial systems to support consistent invoice, customer, payment, and remittance data flows.
How does EIPP connect with cash application?
EIPP enables customers to pay invoices electronically, while cash application matches incoming payments and remittance information to invoices and customer accounts. Connecting these processes can help accelerate the invoice-to-cash cycle.
What payment methods can EIPP support?
Depending on the provider and region, EIPP solutions can support payment methods such as ACH, credit and debit cards, bank payments, and other electronic payment options.
How secure is EIPP?
Enterprise EIPP platforms typically use security controls such as encryption, authentication, access controls, audit trails, and secure payment processing. Organizations should evaluate the specific security and compliance capabilities of each provider.
How do companies implement EIPP?
Implementation typically involves assessing current invoicing and payment processes, defining system integrations, selecting payment methods, configuring digital customer experiences, establishing security requirements, piloting the solution, and measuring adoption and payment performance.
What KPIs should companies use to measure EIPP?
Common EIPP KPIs include electronic invoice adoption, digital payment adoption, invoice delivery success, invoice-to-payment cycle time, DSO, payment success rate, cost per invoice, customer self-service adoption, and payment exception rates.
Is EIPP suitable for enterprise organizations?
Yes. EIPP can support enterprise organizations that need scalable electronic invoice delivery, digital payment options, customer self-service, ERP integration, payment visibility, and connections to broader accounts receivable and order-to-cash processes.
Conclusion
Electronic Invoice Presentment and Payment (EIPP) connects electronic invoice delivery with digital payment, helping businesses create a more efficient invoice-to-cash experience. For enterprise finance teams, the greatest value comes when EIPP is connected with accounts receivable, collections, cash application, reconciliation, and broader order-to-cash automation.
As organizations modernize finance operations, EIPP can provide the digital foundation for faster payments, better receivables visibility, lower manual effort, and a more convenient customer payment experience.
