At Alunta we have decided to createa a dictionary for words and important terms related to running a subcription busniess. You are now reading about “EAN number”.
An EAN number, short for European Article Number, is a standardized identifier used globally to distinguish products, services, or entities within supply chains and billing systems. In the context of subscription-based businesses, an EAN number plays a crucial role in ensuring that invoices and transactions are routed correctly, especially when dealing with corporate clients, public institutions, and international partners.
An EAN number typically consists of 13 digits, though variations exist depending on the region or system. Each part of the number has a specific function, identifying the country code, company prefix, product reference, and a check digit. This structure helps automate identification and reduces manual errors in financial and logistical processes.
In subscription businesses, EAN numbers are often used on digital invoices to ensure smooth and compliant billing. Many organizations, particularly public sector customers, require EAN numbers to process electronic invoices through their procurement systems. For businesses offering recurring services or digital subscriptions, having the correct EAN number allows invoices to be delivered and paid without delay.
This system is especially important in B2B subscription models. When a company subscribes to a software platform, for example, the supplier may need to send electronic invoices through an EAN gateway. Without a valid EAN number, the invoice could be rejected, leading to delays in payment and administrative complications.
The EAN number is part of a broader family of identifiers governed by GS1, the global organization responsible for standardizing barcodes and supply chain identifiers. While EAN numbers are widely used in retail and logistics, their role in electronic invoicing has grown significantly with the digitalization of business transactions across Europe. In Denmark, for instance, all public institutions require suppliers to use EAN numbers on invoices. This ensures that the invoice reaches the right department and can be automatically processed in the institution’s payment system.
For subscription companies, EAN management becomes an operational consideration when scaling to enterprise clients. Each client may have one or several EAN numbers depending on internal departments or billing locations. Maintaining an updated record of these numbers helps prevent invoicing errors and supports a professional and compliant billing workflow.
In addition to B2G (Business-to-Government) transactions, EAN numbers are increasingly used in B2B subscription models where automation and compliance are key. Integrating EAN handling into billing software or subscription management platforms helps streamline the entire lifecycle—from subscription creation to renewal and payment reconciliation.
In summary, an EAN number is not just a random code but a fundamental part of the digital infrastructure that supports automated billing and identification in modern subscription businesses. It contributes to transparency, accuracy, and trust between suppliers and clients while ensuring invoices flow smoothly through electronic systems across borders and industries.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It is a financial metric used to evaluate a company’s operational performance without the impact...
An EAN Invoice is a type of electronic invoice used primarily for business-to-government (B2G) transactions and large corporate clients who require standardized billing formats. The...
After-posting refers to the process that occurs once a financial transaction or accounting entry has been posted to the books. In the context of subscription-based...
Self-declaration refers to a process where a company, service provider, or individual formally states compliance with certain standards, policies, or terms without the need for...
An external annual financial statement is a formal report prepared at the end of a fiscal year to present a company’s financial performance and position...
Contribution margin is a fundamental financial concept that helps subscription-based businesses understand how much of their revenue is available to cover fixed costs and generate...