Treasury Department Building

Financial Innovation & Transformation (FIT)

Electronic Invoicing (E-Invoicing)

Office of Management and Budget (OMB) Memorandum M-15-19, "Improving Government Efficiency and Saving Taxpayer Dollars Through Electronic Invoicing", directs agencies, by the end of Fiscal Year 2018, to transition to electronic invoicing for federal procurements.

One of the ways to achieve this goal is through migrating to a federal shared service provider (FSSP) and adopting the FSSP e-invoicing solution.

The e-invoicing initiative promotes more efficient and transparent processing of vendor invoices through government-wide adoption of electronic invoicing by a limited number of shared, multi-agency solutions.

  • Electronic invoicing supports the President's Campaign to Cut Waste by making government more efficient and more transparent (Executive Order 13576).
  • Shared, multi-agency electronic invoicing solutions make it easier for vendors to do business with the government by presenting a unified front through a common portal.
  • Maximizing the benefits of electronic invoicing to agencies and vendors requires a coordinated approach. This prevents inefficiencies from occurring by agencies deploying unnecessary IT solutions individually and independently.

What problem was FIT seeking to solve?

The Department of the Treasury was looking for a more efficient and transparent way for the federal government to handle invoicing for both federal agencies and commercial suppliers than continuing to receive and process paper invoices.

How does this solution help?

E-invoicing is a more cost-effective and transparent way for federal agencies and their commercial suppliers when processing invoices. It aids the federal government in the following ways:

  • Saves the federal government up to $450 million per year by moving from primarily paper-based to fully electronic invoicing (25%-45% savings per invoice).
  • Centralizes invoice information and related payment data, providing earlier and greater visibility into agency cash disbursements to improve Treasury cash management and allow more accurate reporting to citizens.
  • Supports Government Paperwork Elimination Act (GPEA) requirement to offer entities that deal with federal agencies the option to submit information electronically.
  • Increases invoice accuracy (vendors assume responsibility for invoice entry) and processing efficiency (fewer manual steps and routing of paper or e-mails for approval).

Quick References

OMB 16-11, Improving Administrative Functions Through Shared Services

Circular No. A-123 Appendix D, Compliance with the Federal Financial Management Improvement Act of l996

OMB M 13-08, Improving Financial Systems Through Shared Services

OMB M 10-26, Immediate Review of Financial Systems IT Projects

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