How to simplify electronic document exchange between companies

Discover how to simplify electronic document exchange between companies and stay compliant with AgID’s retention guidelines

Electronic document exchange between companies is the process by which purchase orders, invoices, and delivery notes are transmitted between two or more trading partners’ management systems in a structured digital format, rather than by post or as a plain email attachment. When this exchange follows a shared technology standard, such as EDI, documents can be retained in compliance with AgID’s guidelines.

In brief

In B2B supply chains, purchase orders, invoices and delivery notes are exchanged constantly: manual handling carries a high risk of errors and lost documents
EDI is the technology that connects two companies’ management systems, translating documents into a shared standard format
Electronic invoices and other fiscal documents must be retained in compliance with AgID’s guidelines, in force since 1 January 2022
Intesa’s EDI platform combines document exchange with 10-year compliant retention, in a single web interface
In Italy only 25% of companies adopt EDI solutions, while 55% still exchange documents by email or certified email (PEC)

In this article:

What is electronic document exchange between companies

Today, paper documents physically mailed between companies are rare. Yet in many organisations, exchange still happens in a disorganised way, with documents in the most disparate formats, often as plain email attachments that a member of staff then has to manually log and file correctly in the company’s management systems. With this approach, the risk of human error and lost documents is inevitably high.

In the digital era, several services make it easier to exchange electronic documents between companies — such as Electronic Data Interchange — some of which are also required by regulations on the retention of electronic documents.

AgID’s guidelines on the retention of electronic documents

Electronic invoices — probably the most frequently exchanged type of electronic document between companies — are among the documents that must be retained in compliance with the law, following AgID’s guidelines on the management and retention of electronic documents. AgID’s guidelines specify which formats, technology standards and metadata must be used to retain documents in compliance, whether fiscal or otherwise, as well as how to retain scans of paper documents.

AgID renewed its retention guidelines in September 2020, aiming to unify the regulatory framework into a single core text, supplemented by more technical, flexible annexes that can be updated more easily to keep pace with fast-moving technological innovation. The guidelines only became binding, after a deadline extension, on 1 January 2022.

In short, most commercial documents must still be carried in precise formats and languages to be legally retained in compliance. But retention itself becomes far simpler when document exchange happens in a structured language and format from the start — as is the case with EDI.

How an EDI platform works

Electronic Data Interchange is a technology built specifically to simplify the exchange of commercial electronic documents between companies, preventing purchase orders and invoices from getting lost in email exchanges. In practice, an EDI platform “connects” two companies’ management systems, translating documents into a standard language pre-agreed between the two trading partners, which can vary by sector. Documents and the related information are then automatically “recorded” by each partner’s own systems. A web interface lets users monitor the status of documents sent and received.

To simplify the exchange of electronic documents between companies, it therefore makes sense to adopt an EDI platform, relying on an outsourced provider.

EDI and digital retention: Intesa’s solution

Intesa’s EDI platform combines the convenience of EDI with regulatory compliance: every document exchanged via EDI is then automatically sent for compliant retention for 10 years.

Sending and receiving commercial documents can be managed from a single web interface, supported by all common browsers and accessible to multiple users with different authorisation levels. No additional software or hardware installation is required, nor specialist technical support.

The portal also makes it easy to manage the exchange of commercial documents with multiple partners, flagging any transmission or reception errors.

Why choose to implement an EDI system

EDI is the most widely used system for simplifying electronic document exchange between companies. With an EDI platform, all commercial documents related to the supply chain can be managed and retained in compliance automatically, cutting human error to zero and saving significant time for staff.

Despite these benefits, EDI adoption in Italy still has significant room to grow: only 25% of Italian companies use EDI solutions, while 55% still exchange commercial documents by email or certified email (PEC).

Furthermore, thanks to EDI, the information contained in electronic documents is standardised and turned into readable data that is highly valuable for the business, via a control tower.

Glossary

EDI (Electronic Data Interchange): technology that enables the automated exchange of commercial documents between two companies’ management systems, in an agreed standard format
Compliant retention: a regulated process that guarantees the authenticity, integrity and readability of an electronic document over time, in line with AgID’s guidelines
Delivery note: a document accompanying goods during transport, certifying their delivery
AgID: Italy’s Agency for Digital Italy, the body that sets the technical rules on the creation, management and retention of electronic documents in Italy
Metadata: information attached to an electronic document (date, type, sender, etc.) that supports its retrieval and compliant retention
Management system (ERP): the software a company uses to manage its internal processes, including orders, invoices and delivery notes

Conclusions

The benefits of an EDI platform combined with compliant retention are numerous: beyond dematerialising the entire cycle and eliminating paper, EDI also automates document exchange and information flow between companies, automatically linking delivery notes and invoices. Documents also become easier to retrieve. Finally, when combined with a control tower, an EDI platform can support business performance analysis and data-driven decisions.

What is Electronic Data Interchange (EDI)?

It’s a technology that connects two companies’ management systems, translating commercial documents into a shared standard language, automating sending, receiving and recording.

Which documents must be retained in compliance with AgID’s guidelines?

Electronic invoices, and more broadly fiscal and commercial documents, must follow AgID’s guidelines on formats, technology standards and metadata to be retained in compliance.

How does an EDI platform work?

An EDI platform connects two trading partners’ management systems, translates documents into an agreed standard format, and automatically records sending and receiving, trackable through a web interface.

How long does Intesa’s EDI platform retain documents?

Every document exchanged through Intesa’s EDI platform is automatically sent for compliant retention for 10 years.

What are the benefits of an EDI platform combined with compliant retention?

It dematerialises the entire document cycle, automates exchange between companies by linking delivery notes and invoices, makes documents easier to retrieve, and, combined with a control tower, supports data-driven analysis and decisions.