Dictionary
Structured data
Updated
- Structured data
- Structured data is information organized in a fixed format, allowing machines to read it directly without scanning or manual interpretation.
Also known as: machine-readable data
What is structured data?
Structured data is information organized according to a predefined schema, so that both humans and machines can find and understand individual data points without ambiguity. Think of it as the difference between a well-ordered table and a free-text email: the table has columns and rows that make it trivial to look up a value, while the email requires someone to read and interpret it. In digital invoicing, structured data means that fields such as amount, VAT rate, tax ID, and payment date are clearly labeled in a format like XML. This allows the recipient's ERP system to import the content automatically.
Structured vs. unstructured data
Unstructured data – such as a scanned paper invoice or a PDF without an embedded data layer – requires OCR software or manual entry to be transformed into usable information. This process is slower and more prone to error because the system has to "guess" where the invoice total is located and whether a field represents VAT or shipping. Structured data eliminates the guesswork. When an e-invoice is sent in a standard format, every field is in its correct place from the start. This significantly reduces error rates and makes it possible to process hundreds of invoices per minute.
Structured data in practice
In international invoicing, you encounter structured data through standards such as UBL, Peppol BIS, and EDIFACT. These are all based on formats like XML and define exactly which fields must be filled and in what order. This allows both the sender and the recipient to validate data automatically before the invoice reaches the accounting department.
Benefits of structured data
The benefits go far beyond simple speed: Fewer errors: No manual typing errors or OCR misunderstandings. Better compliance: Modern bookkeeping laws require traceability, and structured data makes audit trails simple. Faster payment: When data matches instantly, payment terms can be met, and the supplier gets paid on time. Scalability: Businesses can grow without hiring more staff to manually enter vouchers.