E-Invoicing With Salesforce – What Are E-Invoices and How To Create Them Using Salesforce

E-invoice, XRechnung (XInvoice)*, XML invoice, PDF invoices, and … ZUGFeRD? E-invoicing is currently a hot topic in Germany. In this blog post, we’ll address the key questions: What is an e-invoice? What is an example of an e-invoice? What formats do you need to know? What are your obligations and when do they apply? Lastly, we’ll also discuss our favorite CRM: Salesforce. How can e-invoices be created using Salesforce? Let’s dive in!

* Note: To keep it simpler for English speakers, we refer to XRechnung as XInvoice in the following.

The best part? With our TestDrive, you can create a sample e-invoice in Salesforce in just six simple steps. If you’d rather watch a video explanation about e-invoicing (and e-invoices in Salesforce), here you go:

Table of Contents

• What is an E-Invoice?
• What are the key formats for e-invoices in Germany?
  • What is a ZUGFeRD invoice?
  • What is an XML invoice?
  • What is an XInvoice (XRechnung)?
• What is an example of an e-invoice?
• An example of a ZUGFeRD invoice
• An example of an XInvoice (XRechnung) (.xml)
• How to create an e-invoice in Salesforce?
• How can I receive e-invoices?
• What are the requirements and timelines?
• A great source for more details and updates

What is an E-Invoice?

First, let’s take a look at § 2 of the German E-Invoice Regulation (E-Rechnungsverordnung). According to this regulation, an invoice is considered an e-invoice if it is issued, transmitted, and received in a structured electronic format, and the format enables the automatic and electronic processing of the document.

Businesses* will need to be able to 1) issue, 2) transmit, and 3) receive invoices in specific electronic formats in the future**. This raises the question: Which formats meet the requirement for automated processing?

*Note: This requirement applies not only to legal entities (such as GmbHs) but also to self-employed individuals and sole proprietors engaged in business activities.

**Note: “In the future” means that transitional arrangements apply. The introduction will be gradual, as we’ll explain later.

What are the key formats for e-invoices in Germany?

Before we move on to creating an e-invoice in Salesforce, let’s have a look at the two most important formats in Germany (as of January 2025) that meet the requirements:

• ZUGFeRD
• XInvoice (XRechnung)

What’s already clear: PDFs without embedded XML (or formats like .docx) do not fulfill the requirement for automated processing as described in the second point above.

What is a ZUGFeRD invoice?

The ZUGFeRD invoice embeds machine-readable XML into a PDF file, making this hybrid solution easily readable by both humans and machines. Due to these characteristics, it is widely used in the B2B sector. It combines the advantages of both formats: .pdf and .xml. Starting with version 2.0.1, it is officially recognized as an e-invoice (see Question 7 of the FAQs of the Federal Ministry of Finance). For an example, check out our ZUGFeRD invoice example.

Additional Information: When opened with Adobe Acrobat, the XML portion is displayed under Attachments, in addition to the usual PDF view.

Note for Mac users: Apple Preview currently does not display the XML portion. (As of January 2025)

What is an XML invoice?

To understand what an XInvoice (XRechnung) is, let’s take a step back: What is an XML invoice? It could, for instance, be the embedded XML code of a ZUGFeRD invoice. However, such an XML file doesn’t necessarily have to come from a ZUGFeRD invoice. Technically speaking, XML is simply a data format that can be used to transmit structured data, such as invoice details. As such, the XInvoice (XRechnung), which we’ll discuss next, is a specific type of XML invoice that adheres to a defined standard. This ensures that the recipient of the invoice knows its structure, making it easier to process automatically.

And that brings us to the XInvoice, which we’ll explore next.

What is an XInvoice (XRechnung)?

An XInvoice is also XML-based. This standard has been mandatory for B2G (Business to Government) transactions since before 2025. As such both the XInvoice standard and the ZUGFeRD format provide a standardized solution. It makes sense to use these solutions in B2B transactions as well, although the XInvoice is not mandatory in the B2B sector (as of January 2025). One distinctive feature of the XInvoice standard is its ability to include the Leitweg-ID, which is required for transactions with government entities. This allows authorities to automatically process the entire invoice, including the Leitweg-ID. In the B2B sector, however, the Leitweg-ID is not required (see Question 6 in the FAQs on the introduction of the e-invoice).

What is an example of an e-invoice?

Now, let’s look at two examples of the most common formats.

An example of a ZUGFeRD invoice

In the screenshot, you can see a ZUGFeRD invoice. At first glance, it looks like a standard PDF file. However, if you check the attachments on the right, you’ll notice that XML is embedded within it. This allows machines to easily process the file. Additionally, you’ll see that the file format is already .xml.

If you want to take a closer look at the XML part of such an invoice, a simple text editor (Windows: Notepad, Mac: TextEdit) will suffice. We’ll also show you later how you can easily create a ZUGFeRD file in our TestDrive, without any installation or registration.

An simplified example of an XInvoice (XRechnung) (.xml)

The XInvoice, like any XML file, contains various tags that act as labels, indicating what each piece of information represents. For example, the VAT amount, the invoice total, the VAT ID, etc. Let’s start by looking at a simplified section of an invoice. In this case, we’ll examine the description of a single item, along with the net amount, VAT amount, and gross amount of the entire invoice. The labels are marked in purple:

        <ram:Description>Service: Web Design</ram:Description>
        [...]*
        <ram:TaxBasisTotalAmount currencyID="EUR">1000.00</ram:TaxBasisTotalAmount>
        <ram:TaxTotalAmount currencyID="EUR">190.00</ram:TaxTotalAmount>
        <ram:GrandTotalAmount currencyID="EUR">1190.00</ram:GrandTotalAmount>

*Additional Information: The description (ram:Description) refers to the individual item (line 1), while the amounts below it pertain to the entire invoice (lines 3 to 5). The description is encapsulated in other parent tags, which we have omitted here for simplicity.

How to create an e-invoice in Salesforce?

There are numerous programs available to help you create e-invoices. To comply with the GoBD, it’s generally recommended to use suitable accounting software (e.g., not Excel or Word). We’ll now show you how you can test this yourself and create a sample e-invoice in Salesforce in six simple steps. For this, we use the TestDrive, a free test environment where you can try out our app, Finblick.

Prefer videos? You can also watch the exact moment in the video where we create the e-invoice in Salesforce. Otherwise, follow these six simple steps:

Step 1: Go to AppExchange, search for Finblick, or simply click this link.

Step 2: Click “Try It Free.” Then choose “Try in a test drive org” and click “Start Test Drive.” In this instance, our accounting app is already pre-installed.

Step 3: Under “Invoices” (German: “Rechnungen”) create a new invoice.

Step 4: Fill in all the necessary details. You can create a new account or use the pre-existing “MjölFit Beratung”. Simply search for “Mjölfit B” under “Account,” and it will appear. This will be the customer the invoice is addressed to.

Scroll down and add the invoice date, start and end of the service period, due date, and choose a language, e.g., DE for German.

Step 5: What services will you invoice? Simply click “+ Add multiple line items” (German: “+ Mehrere Positionen hinzufügen”) select “Standard Price Book” and add items such as books and seminars, as shown in the screenshot below. Don’t forget to save.

Step 6: Select the format (e.g., ZUGFeRD) in which you want to generate your invoice, save, and then click “Generate Invoice” in the top-right corner. Voilà! 🥳 Your e-invoice is ready! (Of course, this only works if you’ve selected a valid format such as “ZUGFeRD” or “XInvoice.”) You’ll find the generated file under “Notes & Attachments” (German: “Notizen & Anhänge”) ready for download.

How can I receive e-invoices?

There are no specific requirements for this. In principle, an email address is sufficient. However, it is also conceivable to set up an interface where invoices can be uploaded, or even to transfer them via a USB stick. For more details, take a look at Question 8 in the FAQs of the German Federal Ministry of Finance on the topic of e-invoicing.

What are the requirements and timelines?

For B2B transactions in Germany, the following applies: As of January 1, 2025, you must be able to receive e-invoices.

From January 1, 2025, to December 31, 2026, you can still decide as an invoice issuer whether to issue e-invoices or other types of invoices (e.g., paper invoices). And if your prior year’s revenue is below 800,000 euros, you have until December 31, 2027. This is summarized in the following graphic (it will be translated to English soon):

A great source for more details and updates

Official information about the mandatory introduction of e-invoicing and potential exemptions from the requirements can be found in the FAQs of the German Federal Ministry of Finance on the introduction of e-invoicing. Since this topic is evolving and many are still learning, this page is highly recommended – consider bookmarking it. And feel free to bookmark our blog post as well; we strive to keep it up to date!

Conclusion

E-invoicing offers businesses the opportunity to make their processes more efficient and modern. With formats like ZUGFeRD and XInvoice (XRechnung), practical solutions are available to meet diverse requirements – not only for the public sector but also for the B2B market.

From 2025 onwards, businesses must be able to receive e-invoices, and by 2028, issuing e-invoices will be mandatory. Those who prepare for these new requirements early can not only meet the legal deadlines but also save time and costs in the long run.

For anyone wanting to test the transition to e-invoices firsthand, our Finblick TestDrive offers an easy way to create e-invoices in Salesforce. This makes getting started with e-invoicing a breeze.

If you’re already using Salesforce, get in touch with us! With Finblick, we offer a versatile and scalable accounting solution that we’re happy to customize to your specific needs.

Marco Zander

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