What is XRechnung?
XRechnung is a standard for electronic invoicing that enables sending invoices in the form of an XML file containing all required invoice details.
It is maintained by the Coordination Office for IT Standards (KoSIT) in Germany to implement Directive 2014/55/EU.
From January 1st, 2025, XRechnung will become a mandatory format in Germany for e-invoicing. Companies will no longer be allowed to send paper or PDF invoices, with transitional regulations extending until 2028.
For more information on B2B e-invoicing in Germany and regional implementations, refer to the following links:
Why Are We Implementing XRechnung?
To support Germany’s shift to e-invoicing compliance, we are enabling customers to generate an XML file in EN 16931 bound to UBL format.
This file can be downloaded and sent via email or uploaded to other invoicing tools that support XRechnung.
Note: The XML file can also be uploaded to dedicated e-invoicing portals that certain federal states in Germany have set up for this purpose.
1) E-Invoicing Settings
You can set up e-invoicing by following these steps:
Go to Settings > Invoicing > e-Invoicing.
Select Your Subsidiary: From the list, choose the appropriate subsidiary.
Toggle on E-invoicing. This will automatically enable the option to download XML files.
In the E-Invoice format dropdown menu, select XRechnung.
XRechnung Format
For XRechnung, the following fields are mandatory:
Payment means: One of the following options from the dropdown: SEPA Credit Transfer or Credit Transfer
e-Invoicing email: Sender email
e-Invoicing phone number: Sender phone number
2) Client Company (Invoice Recipient) Settings
It is essential to configure your client’s details for e-invoicing:
Go to CRM > Companies.
Select the relevant client company and click Edit Company in the upper right.
Add the following mandatory details:
Leitweg-ID: This field is required when e-invoicing is enabled, and XRechnung is selected.
Tax ID: Must be in the format
DE123456789.Recommended: Add other details, like the Subsidiary, Tax Rate, Payment Terms, and Invoice Template to automatically pre-fill this information when creating new deals, invoices, and budgets for this client.
Note: This setup must be completed for every client receiving an e-invoice. If the required fields are not filled in or are incomplete, the e-invoice validation will fail during generation.
Email: This field is required for e-invoicing. The first "Work" email address entered will automatically be included in the XML invoice.
3) Subsidiary (Invoice Sender) Settings
Tax ID, Name, and Address
Enter the default following information in Settings > Company Info > Subsidiary, as these fields will be mandatory when downloading the e-invoice:
Full Company Name
Tax ID: Must be in the format
DE123456789Street, City, ZIP, State, and Country
Note: You can add or adjust this information manually when downloading the invoice. Here is where you set up your defaults for easier management.
Bank Accounts
To ensure all necessary bank details are included in the XML file, set up your bank account information for the appropriate subsidiary.
Note: If you set up multiple bank accounts for the same subsidiary, the system will use the first created bank account for generating the XML file.
Go to Settings > Company Info > Bank Accounts.
Use the following options to manage bank accounts:
Add a bank account
Edit an existing account
Archive bank accounts
Bank Account Fields
Name
Bank Name
Bank Address (optional).
Account Number
Currency
BIC/SWIFT Code
Subsidiary
Important: Ensure the BIC/SWIFT field is filled in. It is required for generating and downloading the XRechnung XML file.
Downloading the XRechnung Invoice
Once all settings have been configured:
You can proceed to download your XRechnung invoice.
For detailed steps, refer to this guide: E-Invoicing: Downloading an Invoice in the XML Format.