ZUGFeRD Architecture

 ZUGFeRD (Zentraler User Guide des Forums elektronische Rechnung Deutschland) is a hybrid electronic invoice format developed in Germany that combines the PDF/A-3 format for human-readable invoices with embedded XML data for machine processing. Here’s an overview of its architecture:

ZUGFeRD Architecture

1. Document Structure:

   • PDF/A-3: The invoice is a PDF/A-3 document, which is an ISO-standardized format ensuring long-term archiving. It allows for the embedding of other files, such as XML.
   • Embedded XML: Inside the PDF/A-3 document, an XML file compliant with the ZUGFeRD data model is embedded. This XML file contains structured invoice data for automated processing.

2. Data Model:

   • ZUGFeRD Profiles: ZUGFeRD defines different profiles for varying levels of complexity and data requirements, such as Basic, Comfort, and Extended. Each profile specifies the mandatory and optional data elements.
   • CII (Cross Industry Invoice): The embedded XML adheres to the CII standard, a part of the UN/CEFACT (United Nations Centre for Trade Facilitation and Electronic Business) framework, ensuring international interoperability.

3. Data Elements:

   • Header: Contains general invoice information, such as invoice number, date, and parties involved.
   • Line Items: Detailed information about each item or service billed, including description, quantity, unit price, and total amount.
   • Summaries: Totals for the invoice, including tax breakdowns, grand total, and payment instructions.

4. Interoperability:

   • Hybrid Format: Combining PDF for human readability and XML for machine readability ensures that both manual and automated processes can be supported.
   • Compliance: ZUGFeRD is designed to comply with EU directives and German tax regulations, facilitating cross-border and domestic invoicing.

5. Security and Authenticity:

   • Digital Signatures: The PDF/A-3 document can be digitally signed to ensure the authenticity and integrity of the invoice.
   • Encryption: Sensitive data within the XML can be encrypted to protect confidentiality.

6. Integration and Workflow:

   • Creation: Invoices can be generated by ERP systems, accounting software, or other invoice generation tools that support ZUGFeRD.
   • Transmission: The hybrid invoice can be sent via email, uploaded to a web portal, or exchanged through electronic data interchange (EDI) systems.
   • Processing: Recipients can view the PDF for manual processing or extract the embedded XML for automated processing in their systems.

Workflow Example

1. Invoice Creation:

   • A seller creates an invoice using an accounting system that supports ZUGFeRD.
   • The invoice is saved as a PDF/A-3 document with embedded ZUGFeRD XML data.

2. Invoice Sending:

   • The seller sends the invoice via email or uploads it to an invoicing platform.

3. Invoice Reception:

   • The buyer receives the PDF/A-3 invoice.
   • The buyer can view the PDF for human-readable information and extract the XML for automated data entry into their accounting system.

4. Invoice Processing:

   • The buyer’s system reads the XML data and processes the invoice automatically, updating their accounts payable system.
   • The PDF can be archived for legal and auditing purposes.

Benefits of ZUGFeRD

• Efficiency: Streamlines invoicing processes by combining human-readable and machine-readable formats.
• Interoperability: Adheres to international standards, facilitating cross-border transactions.
• Compliance: Meets regulatory requirements for electronic invoicing in Germany and the EU.
• Flexibility: Supports multiple profiles to cater to different business needs and complexity levels.
• Security: Ensures data integrity and authenticity through digital signatures and encryption.

ZUGFeRD’s hybrid approach provides a versatile solution for electronic invoicing, balancing the needs of human users and automated systems while ensuring compliance and interoperability.