System and method for collecting, enhancing and distributing invoices electronically via the internet

The present invention is a central invoicing system. Payors and invoicers can use the central invoicing system by connecting to it by a network, such as the Internet, and using an interaction device, such as a personal computer with web browsing software. Payors can create, on the central invoicing system, a list of invoicers from whom they wish to receive invoices. The system sends invitations, including a user name and password, to the selected invoicers to enroll with the central invoicing system. The system provides invoicers with a facility to enroll with the central invoicing system over the Internet. Payors can also customize the format of the invoices they are to receive from the selected invoicers. The central invoicing system stores each payor's particular invoicing format on a server. The system allows an invoicer to connect to the system through the Internet to create invoices. The invoicer can then submit that invoice to the payor through the system. The system formats the invoice according to the payor's desired invoice format and transmits the invoice to the payor's financial system. The system may also retain the invoice on the server and notify the appropriate payor. Once notified, the payor may access the central invoicing system to view, process, and approve the invoice. If the payor approves the invoice, the invoice is transmitted to the payor's financial system.