A key feature of this model is the PEPPOL Access Points.
The PEPPOL network employs a 4-corner model, facilitating communication between four entities:
- Sender (Corner 1): The organization responsible for creating and sending the invoice.
- Sender’s PEPPOL Access Point (Corner 2): This entity handles the transmission of the invoice to the network.
- Receiver’s PEPPOL Access Point (Corner 3): This entity receives the invoice from the network.
- Recipient (Corner 4): The organization that ultimately receives the invoice.
A key feature of this model is the PEPPOL Access Points. These points are essential for the secure and reliable transfer of electronic documents within the PEPPOL network. They ensure that messages are correctly transmitted and received and offer services such as document validation against PEPPOL standards. Two primary components enable communication within the PEPPOL network: the Service Metadata Publisher (SMP) and the Service Metadata Locator (SML).
SMP: Stores information about participants, including their technical capabilities and supported document formats.
SML: Acts as a central directory, directing to the appropriate SMP for a given recipient.
Step-by-Step: Sending an Invoice via PEPPOL
Step 1: Prepare the Invoice (Corner 1)
The sender, such as a company in the Netherlands, creates an electronic invoice within their business system. This invoice must adhere to the PEPPOL BIS (Business Interoperability Specifications) standard.
Step 2: Transmit via PEPPOL Access Point (Corner 2)
The sender’s PEPPOL Access Point validates the invoice against PEPPOL standards and ensures it meets all technical requirements. The invoice is then sent to the PEPPOL network.
Step 3: Receipt by Receiver’s PEPPOL Access Point (Corner 3)
The PEPPOL network uses the SML to find the SMP with the recipient’s data. The recipient’s Access Point receives the invoice, performs additional validation, and ensures its accuracy and completeness.
Step 4: Invoice Received by the Recipient (Corner 4)
The recipient, for example a company in Germany, receives the validated invoice through their PEPPOL Access Point. The invoice is integrated into the recipient’s business system for processing and payment.
Benefits of the 4-Corner Model
The 4-corner model offers numerous benefits over traditional communication methods:
- Security and Reliability: All companies in the PEPPOL network have undergone a “Know Your Customer” (KYC) procedure, ensuring thorough screening and validation of all participants.
- Fraud Prevention: KYC procedures help prevent fraud and illegal activities by verifying company identities and ensuring compliance with relevant regulations.
- Trust and Confidence: Companies can confidently conduct business within the PEPPOL network, knowing their trading partners are legitimate and reliable.
By utilizing this model, PEPPOL enhances the security, efficiency, and reliability of electronic document exchanges across different regions.
