The future of invoicing in automotive businesses: How to master e-invoicing

Digitalization is also making its way into the workshop. While digital order processing and online appointment booking are already commonplace in many automotive businesses, another topic is rapidly gaining prominence: electronic invoicing (e-invoicing). Especially when working with public sector clients, it is no longer just an option, but a legal requirement. This article explains what automotive businesses need to know about e-invoicing and how the transition can be seamless using CATAMA software .

What is an e-invoice and why is it more than just a PDF?

Many people think of an electronic invoice as a PDF file sent via email. However, that's only half the story. A true e-invoice is one that is issued, transmitted, and received in a structured electronic format that allows for its automatic and electronic processing.

Unlike a simple PDF, which is often unsuitable for machine reading, an e-invoice contains the invoice data (such as invoice number, amounts, items) in a clearly defined, machine-readable structure.

The advantages are obvious:

  • Efficiency: Automated processing saves time and reduces manual effort.
  • Error reduction: No more typos when transferring data.
  • Faster payment: The invoicing process at the recipient's end is accelerated.
  • Cost savings: Lower costs for printing, paper and postage.
  • Legal certainty: Compliance with legal requirements for public contracts.

 

Invoicing software and workshop planner for car workshops and car dealerships

XRechnung vs. ZUGFeRD: Two standards for Germany

Two main formats have become established in Germany for the implementation of e-invoicing:

XRechnung: This is the national standard for electronic invoicing to public sector clients in Germany. It is a pure XML data format. An XRechnung is not directly readable by the human eye, but is designed exclusively for machine processing. Therefore, if you carry out a repair on a vehicle belonging to the local police or the municipal works department, the administration will very likely require an XRechnung.

ZUGFeRD (Central User Guide of the Forum for Electronic Invoicing Germany): This format is a hybrid approach. It consists of a PDF file (for human readability) and an embedded XML file (for machine processing). This makes ZUGFeRD flexible and suitable for both B2B (business-to-business) and B2G (business-to-government) applications.

The challenge for automotive businesses

Manually creating an XRechnung (e-invoice) is practically impossible. The XML structure is complex and requires specific information, such as the routing ID of the public contracting authority. This ID ensures that the invoice is digitally forwarded to the correct department within the administration.

For a car repair shop, this means that simple invoicing software or word processing is no longer sufficient for sending invoices to municipalities, state, or federal authorities. A software solution that can handle these formats is required.

The solution: Easily create e-invoices with the right industry software

This is where our modern workshop management system CATAMA comes into play. Software like CATAMA, specifically designed for the automotive industry, can map the entire process from order creation to invoicing and generate the necessary e-invoice formats at the touch of a button.

CATAMA was specifically developed for the needs of automotive businesses and seamlessly integrates e-invoicing into familiar workflows.

With CATAMA, automotive businesses can generate invoices containing all relevant data from the workshop order (such as labor costs, spare parts, and customer data) in both ZUGFeRD and standard XRechnung formats . The process is incredibly simple:

  1. Process the order as usual: All services and parts are recorded in the system.
  2. Create invoice: The software generates a standard invoice from the order.
  3. Select e-invoice format: When completing the invoice, the user can choose whether to create an XRechnung or a ZUGFeRD invoice.
  4. Enter routing ID: The field provided for this purpose is filled with the routing ID communicated by the contracting authority.
  5. Generate and send: The software creates the correct file, which can then be uploaded via the designated portals of the public administration or sent by email.

Integration into the workshop software ensures that all mandatory information is correctly transferred from the system, minimizing the risk of errors and ensuring compliance.

Conclusion

E-invoicing is an absolute necessity for automotive businesses that work with the public sector. What initially seems like a complex hurdle can be overcome simply and efficiently with the right technological support. Instead of relying on isolated solutions, we recommend using integrated industry software like CATAMA, which maps the entire process and makes creating XRechnungen and ZUGFeRD invoices incredibly easy. This not only ensures legal compliance but also optimizes your internal processes and prepares your business for the digital future.

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