Peppol is an international network used by companies and organisations. It allows buyers and sellers to securely exchange standardised electronic business documents, such as catalogues, order, order confirmations and invoices, securely and directly from one system to another. With data moving directly between different electronic systems, the need for manual work is reduced and doing business gets easier.

Peppol is most commonly used to transmit electronic orders, order confirmations, and e-invoices. Peppol’s data transfers are implemented through a networked model where each company’s system is connected to the Peppol network via a service provider.

Think of it this way: this approach is similar to how people connect to the phone network through a telecommunications operator.

Each company is connected to the Peppol network through a service provider. In the figure above, the vendor transmits a standardised electronic document to the buyer through a Peppol service provider. The document is transmitted directly from one system to another through the secure Peppol network, eliminating the need for retyping information or copying email attachments.

Currently, the bulk of information exchange between companies is done by sending emails or making calls. This is an inefficient approach: it forces people to retype information, and it can result in lost data or human errors. That is why many companies are seeking better solutions for making their operations more electronic.

Peppol is a cost-effective solution to making the exchange of information electronic – from orders to invoices.

Peppol’s most important benefits are related to how it can make the company’s business more electronic and automatic.

With Peppol, companies can make use of electronic catalogues, orders, order confirmations, and e-invoices in a cost-effective and internationally compatible manner.

Each company is free to choose which processes it wants to include in its selection of electronic Peppol services. The goal is to allow companies to spend less time on financial administration and more on their core business.

As an example, one of the benefits of the electronic ordering is how it makes it easier to manage orders and automate the processing of invoices.

Example 1. A construction company orders construction materials for a site

No electronic ordering used:
The construction company orders materials for its site. The materials supplier writes down the order that was placed by phone. However, they make a human error while writing down the materials, and the wrong types of materials are delivered to the site. This causes additional work, and work at the site cannot proceed as planned.

Electronic ordering is used:
The construction company sends an electronic order to its supplier, detailing all the products it needs. The order is based on the catalogue previously provided by the supplier. The supplier’s information system receives the order, and the supplier can automatically check whether the requested products are in stock. The supplier approves the order, and the supplier’s information system automatically transfers the information to the warehouse management system. The correct products are delivered to the site. Based on the order it received, the supplier can generate an e-invoice with the push of a button.

Did you know? In Finland, massive amounts of information are exchanged daily between and within companies and organisations. How efficiently this information is processed is a key issue for both companies and Finnish society. Finland could reallocate up to 2.7 billion euros worth of working hours every year – instead of processing orders manually, companies could do more with their valuable time.
However, this multi-billion-euro benefit can only be realised through close collaboration between the state, municipalities, wellbeing services counties, and the private sector.
The State Treasury envisions Peppol as the default method for transmitting electronic orders and order confirmations, both in Finland and across the globe, as the majority of Finland’s most vital trading partners are already promoting the use of Peppol in their national territories.

Peppol is designed for companies and organisations of all shapes and sizes. To get started with deploying Peppol in your company, you can contact your system supplier or Peppol service provider.

To make use of Peppol at your company, your company must have:

1. a service or system that can process Peppol-compliant electronic documents.

• These include invoicing, order management, and ERP systems, as well as other web services. In fact, many systems already have the basic in place to process Peppol documents.
• Different organisations have different priorities when it comes to electronic documents (e.g. catalogues, orders, invoices, shipping notices, etc.). As a result, different information systems may not support every type of Peppol document, and each organisation must think carefully about the information they need to transmit to their trading partners, as well as the types of Peppol documents their partners can send and receive as well. Both parties must be able to process Peppol documents in their respective information systems. Read more about different Peppol documents, i.e., messages.
• The State Treasury grants state aid to service providers and system suppliers for the costs of deploying Peppol’s application services. Entrepreneurs, remember that you can also tell your service provider or system supplier about the aid that is available! Read more about the support programme (in Finnish) >

2. be connected to the Peppol network via a Peppol service provider.

• You can join the Peppol network with the help of a Peppol service provider. For a list of all Peppol service providers, see this this. The list includes service providers from around the world, as Peppol is an international network, and it does not matter for the network which country your service provider is from.
• The majority of Finnish e-invoicing operators are also Peppol service providers, which means that you can ask your e-invoicing operator about using Peppol!

Think of it this way: the Peppol network’s operating model is similar to how we use phones; in order to make and receive calls, you need a phone (in Peppol, a system or service) and a phone plan with a telecommunications operator (in Peppol, a Peppol service provider). However, instead of calls, your Peppol service provider forwards the electronic documents created in your system to any recipient in the world, regardless of whether your recipient is in Finland or Australia.

The state introduced its own Peppol-compliant Advanced Ordering process on 1 April 2024. This change means that the Peppol-compliant Advanced Ordering process will be gradually introduced to applicable state procurements as part of the state’s tendering process. At first, the use of Peppol will be mandated in applicable framework agreements, and Peppol ordering will be introduced to other new procurement agreements by 2026. Please note that, due to the nature of some procurements, not all procurement agreements will mandate the use of Peppol. The use of Peppol’s Advanced Ordering process will be evaluated on the basis of the object to be procured and any related ordering practices.

In practice, this means that the state’s suppliers will receive their orders as Peppol-formatted electronic orders, which they respond to using electronic Peppol order confirmations. Any order-related changes or cancellations are also handled electronically through Peppol. While the process will require suppliers to review their own systems, it will ultimately benefit everyone, as it makes it much easier to exchange information when placing and receiving orders. Read more about how the state will make use of Peppol (in Finnish).

To get started with deploying Peppol in your company, contact your system supplier or Peppol service provider. Most Finnish e-invoicing operators are also Peppol service providers.

You can also get in touch with the national Peppol authorities: they can provide you with guidance and advice on matters related to the Peppol network, and they also serve as the links to the development of the international Peppol network. For a list of each country’s Peppol authority, see here. The Finnish Peppol Authority is the State Treasury, email address: peppol@valtiokonttori.fi.