SAP e-invoicing: XRechnung or ZUGferD? The right choice for retail

The e-invoicing obligation has been a reality since January 1, 2025 - and presents large retail companies in particular with strategic decisions. As a decision-maker in an SAP-based retail company with hundreds or thousands of suppliers, you are faced with the question: Which e-invoice format is optimal for our complex processes? XInvoice or ZUGferD?

This article provides you with a sound basis for decision-making with concrete use cases from retail practice.

What does the e-invoicing obligation mean for retailers?

Since January 2025, all B2B companies in Germany must be able to receive and process electronic invoices. For large retail companies, this means

• Immediate obligation to receive: Your systems must already process e-invoices from suppliers
• Gradual dispatch obligation: From 2028, you will also have to send e-invoices (from 2027 if your turnover exceeds 800,000 euros)
• High transaction volumesWith thousands of suppliers and millions of goods movements per year, a robust technical solution is essential

XRechnung vs. ZUGferD: The fundamental differences

XRechnung - The XML standard

FormatPure XML file (machine-readable)

Advantages:

• Maximum automation through pure data structure
• Direct integration into SAP ERP/S/4HANA without media disruptions
• Standard format for B2G transactions (public authorities)
• Mandatory format for public clients since 2020
• Faster processing thanks to dark processing
• Less file size and memory requirements

Disadvantages:

• Not human readable without special viewer software
• Higher acceptance hurdle for smaller suppliers
• Requires complete system integration on both sides
• Visualization of the Invoice requires additional tools

ZUGferD - The hybrid format

FormatPDF with embedded XML file (hybrid)

Advantages:

• Double readability: human (PDF) and machine (XML)
• Greater acceptance with various supplier structures
• Smoother migration of existing PDF invoices
• Flexible use in B2B, B2G and B2C
• Several profiles (BASIC, COMFORT, EXTENDED) for different requirements
• From version 2.1 also XRechnung-compliant

Disadvantages:

• Larger files through PDF+XML combination
• Potentially higher storage and archiving costs
• Risk of inconsistencies between PDF and XML
• Slightly more complex processing

Optimize the reception process

For ZUGferD:

1. Input channel: E-mail gateway or supplier portal
2. Automatic extraction of XML data from PDF/A-3
3. Validation against ZUGferD schema (2.1/2.2)
4. Mapping to SAP field structure (BAPI, IDoc)
5. Optional OCR check between PDF and XML in the event of discrepancies
6. Automatic posting when matched with Order

For XInvoice:

1. Input channel: PEPPOL Access Point, central invoice receipt portal or e-mail
2. XML validation against XRechnung standard (CEN/EN 16931)
3. Direct mapping to SAP documents
4. Automatic error check (mandatory fields, routing ID for B2G)
5. Workflow trigger for release processes
6. Dark processing without manual intervention

Best practices for SAP implementation

Recommendation for most retail companies:

• On the receiving endAccept both formats (format-independent solution)
• Shipping sideSet primarily to one format, depending on your supplier structure

Mastering challenges in the retail sector

Challenge 1: Thousands of suppliers with varying degrees of digitalization maturity

Solution: Format flexibility through hybrid approach

• Main format: ZUGferD for broad acceptance
• XRechnung for digitized partners and B2G
• Conversion services for transition phase
• Supplier management: training and onboarding support

Challenge 2: Millions of transactions per year

SolutionHigh-performance SAP integration

• Batch processing for mass documents
• Parallel processing in SAP
• Automated error handling with exception management
• Dashboard for monitoring and KPIs (dark processing rate, error rate)

Challenge 3: Complex approval workflows

Solution: Intelligent approval processes

• Rule-based release according to product group managers
• Automatic release with three-way match
• Escalation mechanisms in the event of deviations
• Mobile release for decentralized decision-makers

Challenge 4: Archiving and compliance

SolutionGoBD-compliant archiving

• Audit-proof storage of XML and PDF
• 10-year Retention period
• Full-text indexing for fast searches
• Linking with orders and goods receipts

Strategic recommendation for large retail companies

Pragmatic approach for 2025-2028:

Phase 1: Ensure reception

• Implement a solution that both formats (XRechnung and ZUGferD) can receive and process
• Priority: Your SAP systems must be able to process e-invoices with immediate effect
• Tool recommendation: CICS (Cloud Invoice Conversion Service)

Phase 2: Enable suppliers

• Communicate your preferred shipping format to suppliers
• For a broad supplier structure: Recommend ZUGferD as primary format
• For digitized partners: Offer XInvoice
• Offer training and testing environments

Phase 3: Convert your own shipping

• Sending invoices to customers and partners on E-bill convert
• B2G (public authorities, public institutions): XInvoice
• B2B (business customers): ZUGferD for maximum compatibility
• B2C: PDF still possible (with consent)

The role of CICS and CBCS in your e-invoicing transformation

The changeover to E-bill is not just a technical challenge - it is a change management project that affects your entire accounts payable, purchasing management and IT infrastructure.

With CICS, we support you in the strategic planning and implementation of your e-invoicing transformation in the Invoice receipt

• Process consultingAnalysis of your current invoicing processes and supplier structure
• Format strategyJoint development of your format strategy (XRechnung, ZUGferD or hybrid)
• Supplier managementConception and implementation of supplier onboarding programs
• Compliance assuranceCheck for compliance with all legal requirements (UStG, GoBD, EN 16931)
• Change ManagementAccompanying your internal stakeholders (accounting, Purchasing, IT)

With CICS, we support you in the strategic planning and implementation of your e-invoicing transformation in the Outgoing invoice

• Format conversionAutomatic conversion between ZUGferD, XRechnung, PDF
• SAP integrationSeamless connection to standardized interfaces
• ValidationAutomatic checking of incoming invoices for format conformity and mandatory fields
• Scalable cloud solutionProcessing millions of documents without any loss of performance

With the combination of CICS for strategic consulting and CBCS for technical implementation, we offer you a End-to-end solution for your e-invoice compliance - specially tailored to the requirements of large retail companies.

To summarize: The right choice for your retail business

There is no one-size-fits-all answer to the question "XRechnung or ZUGferD?". The optimal strategy depends on your specific situation:

Select ZUGferD if:

• You have a heterogeneous supplier structure with many SMEs
• Your suppliers have different degrees of digitization
• you prefer a smooth migration path from PDF invoices
• you maintain international business relationships
• Flexibility is a priority for you

Select XInvoice if:

• Your core suppliers are highly digitized
• you work primarily with public sector clients
• Maximum automation and efficiency Your goal is
• you already use EDI infrastructure
• You want to process high transaction volumes with minimal costs

Our recommendation for the practice: Rely on a hybrid approachReceive both formats and choose the optimal shipping format depending on your business partner. Modern SAP add-ons and cloud platforms such as CBCS enable this flexibility without additional complexity.

The E-billing obligation is more than just compliance - it is an opportunity to digitize and accelerate your financial processes and reduce costs. With the right strategy, the right tools and experienced partners like Consult-SK, your e-invoicing transformation will be a success.

Would you like to find out more about introducing e-billing in your retail business?

Contact our experts for a free initial consultation. We will analyze your current situation and work with you to develop a tailor-made e-invoicing strategy - technically sound, practical and compliance-compliant.