SAP Business Network E-Invoicing


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E-Invoicing: Go beyond conversion of paper invoices to electronic formats

Электронное фактурирование:
от простого перевода бумажных счетов в электронный формат — к новым возможностям

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  • The first implementable step is ….
  • Outbound E-Invoicing (E-Billing)Payment information is taken from accounts receivable in your ERP system(FI-AR). In the past, this data could be made available via SAP Biller Direct (electronic bill presentment and payment) or would be sent out through a traditional paper bill.With SAP E-Invoicing for Compliance, the invoicing data is taken from the system and is turned either into a PDF document (which is subsequently digitally signed, if the legal requirement mandates) or into the EDI data format. This data is made available for archiving. Finally, the data (with or without PDF) is sent either directly via EDI and/or via email to your customer. Some customers may prefer to receive the information via a customer/vendor network, such as OB10 or Basware. This is no problem - SAP can route the invoice information through the network. Other customers want to receive the EDI data stream directly, or may have engaged an EDI to print service. Of course the data can still be made available to a portal solution.With the addition of SAP E-Invoicing for Compliance, SAP can now deliver invoices in any format your customers choose.
  • *audit trail refers to the improvement when we have paper documents – we don’t know what the source of the error was – keying errors, etc.The second implementable step addresses the need to automate and simplify Invoice Management. Looking at issues and problems which a accounts payable department faces, you can see that There is lack on adequate AP controls, There is lack on standardization, and consolidated viewsThese issues end up with limited visibility, excessive processing cost-per-invoice, and slow responses to vendor requests.Improvements to the process require greater automation, collaboration, and control to help dramatically improve Invoice Management. The result is significant workforce efficiencies, reduced errors, improved visibility into cash requirements, and optimized discount utilization.
  • As just mentioned, SAP Invoice Management by OpenText and SAP E-Invoicing for Compliance work together seamlessly to automate the entire processing chain for e-invoices. These products reside entirely inside the SAP software environment and works with SAP Business Workflow. The application was developed in the ABAP™ programming language with native SAP technology, including a development workbench, dialog programs, function groups, business objects, workflow definitions, roles, customizing tables, reports, and so on. Invoice metadata is validated to help ensure that it is complete and applicable. After validation, the data is processed according to a series of client-specific configured business rules. After validation and execution of the business rules, an attempt should be made to post the invoice automatically. The application includes 47 configurable rules for validation and process-exception handling. The rules include requirements for processing invoices in selected countries. Metadata can be revised, if required, during validation. If the implementation of a selected business rule fails – for example, if the PO shown on the invoice is not released for posting – then the metadata resolution screen is created and routed for review. When resolution is accomplished by the proper person, the invoice is posted. If it had been posted and blocked, appropriate action can be taken to change the transactional data, such as the PO or goods receipt. You can cancel the invoice, short pay the invoice, or pay the invoice as is. Comments are noted and a comprehensive record of activities is attached, including pertinent information such as who worked on it, when that work took place, and all of the supporting details. All individuals working on the transaction have a dashboard of information available with the header line item and full detail accessible with one click.
  • -CLOSING-Now that we have come to the end of this Webinar, I would like to thank our speakers for their time and the excellent insights they provided. Should you have any further questions, please do not hesitate to contact the Business Support Network.
  • SAP Business Network E-Invoicing

    1. 1. E-Invoicing: Go beyond conversion ofpaper invoices to electronic formatsDidier MametBusiness DevelopmentSAP Business Network
    2. 2. Legal DisclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed without thepermission of SAP. This presentation is not subject to your license agreement or any other service or subscriptionagreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any relatedpresentation, or to develop or release any functionality mentioned therein. This document, or any related presentationand SAPs strategy and possible future developments, products and or platforms directions and functionality are allsubject to change and may be changed by SAP at any time for any reason without notice. The information in thisdocument is not a commitment, promise or legal obligation to deliver any material, code or functionality. This documentis provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties ofmerchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes andmay not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, exceptif such damages were caused by SAP´s willful misconduct or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmaterially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,which speak only as of their dates, and they should not be relied upon in making purchasing decisions. © 2012 SAP AG. All rights reserved. 2
    3. 3. Businesses Are More Reliant on Their Network of Partnersthan Ever BeforeTrend #1: Increasing Complexity of Network Interfaces  New markets, mergers and acquisitions, global supply chain  Increasing number of business partners and subsidiaries  Legal rules and compliance specificationsTrend #2: Accelerated Speed of Business 250 500 750 1,000 +  New product and services introductions; new suppliers and partners Partners  Rapid partner on-/off-boarding due to Forrester Consulting, Joint Industry EDI/B2B Survey, March 2010 changing market conditions © 2012 SAP AG. All rights reserved. External 3
    4. 4. Adapt your Business Network as your business grows Business Networks in Procurement Business Networks in Finance & Logistics Key element for a solid procurement and Aligning compliance rules with electronic supply chain strategy handling of invoicesSAP Information Interchange On Demand SAP E-Invoicing for Compliance On Demand © 2012 SAP AG. All rights reserved. 4
    5. 5. Drive efficiencies with a state-of-the-art platformSAP Cloud offering Affordability  No upfront license cost  Only a predictable quarterly subscription fee  Short contractual terms, minimum 1 year (up to 3 years with multi year discounts)  No internal hardware / software requirements Data security  World class data centers with third party certifications  Quality Management acc. to European Foundation for Quality Management  Service Management Processes acc. to IT Infrastructure Library (ITIL)  ISO 9001:2, ISO 27001, SAS 70 Typ II Scalability  A fault tolerant and easily expandable infrastructure  Virtualized systems using the latest virtualization technology.  Fast Scaling Scale out or Split off  No bottlenecks in system performance and availability. Technology  Latest technology accessible in order to provide contractual SLAs on the services.  24*7 services and support  Don’t care about upgrade  AP cloud solutions are always up-to-date and on the leading edge.© 2012 SAP AG. All rights reserved. 5
    6. 6. The “Extended Enterprise” OnDemandSAP Information Interchange On DemandRunning a Business Network Goes Beyond B2B : connect, transact, collaborate with real-time content and insights End customer Suppliers SAP Information Interchange Financial SAP Netweaver Services, Gov Warehouse ernment Orders In-/Outbound Process Integration Delivery JIT In-/Outbound Orders Ack. In-/Outbound Inventory Report In-/Outbound SAP ERP Financial Production Services, Gover sites Invoice In-/Outbound Self Billing Invoice In-/Outbound nment SAP SAP Logistics ASN In-/Outbound BusinessByDesign Shipment In-/Outbound Logistics Service Service Providers and Carriers Delivery Forecast In-/Outbound SAP Procurement Enterprise Service Providers and Carriers Remittance Advice In-/Outbound SAP Supply Chain Other Processes, Docs, etc. Outsourced Management Retailer Manufacturers 3rd Party Solutions … …© 2012 SAP AG. All rights reserved. 6
    7. 7. Simplify the process of adopting e-Invocing SAP E-Invoicing for Compliance On Demand Send and receive paperless invoices with any trading partner economically – regardless of compliance requirements and data standards© 2012 SAP AG. All rights reserved. 7
    8. 8. Automate for confident complianceUse of country specific certificates Global solution providing local compliance Using local certificates provided by Trust in over 40 Countries and legal Advisers partner Legal Advisers checks country specific (signature) requirements with local tax authorities and law offices Actively working in international organizations (CEN) to standardize and emphasis E-Invoicing Providing SAS 70 report on signature / validation services SAP explicitly warrants “compliance” defined as meeting a country’s requirements in VAT or GST law for guaranteeing integrity and authenticity of electronic invoices when signed with an advanced or qualified electronic signature© 2012 SAP AG. All rights reserved. 8
    9. 9. Going Paperless Can Improve Speed, Accuracy, andCompliance While Reducing CostsInvolves automating electronic invoicing to make financial operations processesfaster, more accurate, and less costly to execute. CFO Accounts Receivable Accounts Payable Outbound E-Invoicing CFO Inbound E-Invoicing (E-Billing) How do I improve our financial How do I provide my customers How can I standardize and accelerate operations processes? with paperless bills? invoice receipt and retention? • Improve productivity • Cost per outgoing invoice • Elimination of manual data entry • Compliant record keeping • Eliminate paper and postage errors: cut number of disputes, rejections and re- • Complete audit trails • Speed of integration compliant with submissions • Sustainability: paperless customer format mandates • Eliminate manual reconciliation processes • Shorten customer-to-cash cycle effort • Gain control over business times • On-time payment percentage processes within the entire • Reduce Days Sales Outstanding business network • Storage cost per invoice • Speed supplier on-boarding© 2012 SAP AG. All rights reserved. 9
    10. 10. Outbound E-InvoicingObjectives, Issues, Capabilities and Benefits Objective: Reducing dependence on paper-based invoices Best practice solution: Automated, standardized invoice transmission via EDI directly into customer systems Issues Key Business Capabilities Benefits• Majority of invoices are still • Send outbound PDF invoice via • Improved DSO through reduced sent in paper format—driving E-mail number of missing invoices and higher handling costs streamlining of the customer’s • Send outbound EDI and/or PDF internal review process• Legal and tax requirements invoice via E-mail • Lower operating costs due to vary by country • Digital signatures more efficient handling of high-• Costs associated with non- • Legal and compliance volume processing; savings of standard interfaces to digital handling cost, printer, toner and checks, depending on country signature and other service postage requirements • Compliance requirements providers met, regardless of country; no more fines or charges associated with paper-based invoices© 2012 SAP AG. All rights reserved. 10
    11. 11. Outbound E-Invoicing SAP Solution • Provide invoices to your customers in Digitally sign Invoice the format they demand Send PDF via email Outbound • Provide compliant digital signatures E-Invoicing Send EDI • Improve productivity of A/R department Legal & Compliance or your accounting shared-service Checks function SAP Differentiators Integration: Integrates with SAP back-end systems for accounts receivables Support: Solution is covered with enterprise support from SAP Scalability: Ability to dispatch large volumes of invoices from shared-service centers© 2012 SAP AG. All rights reserved. 11
    12. 12. Outbound E-InvoicingProcess Overview Digitally sign Outbound E-Invoicing provides accounts receivables Invoice teams a method to automate and standardize the end- Send PDF via email to-end outbound invoicing process to improve Outbound productivity, reduce error rates and implement important E-Invoicing Send EDI compliance controls related to invoice processing and transmission. Legal & Compliance Checks Process Steps 1 2 3 4 Validate Process Transmit Initial Setup E-Invoice E-Invoice E-Invoice • On-board Business • Receive data from • Content check • Send documents Partner, including ERP system (email via EDI or email creation of profile • Generate PDF (if address, country • Self-archiving of • Update customer necessary) information) signed documents billing delivery • Digitally sign in ERP system • Validate format preferences in ERP (XML, iDOC, PDF) document system© 2012 SAP AG. All rights reserved. 12
    13. 13. Accounts Receivable Process SAP SAP Billing Data E-Invoicing 1. Digital for Signature 3. Compliance Validation SAP ERP Archiving (optional) 2. Archiving Compliance (optional) Checks 3. multiple outbound options Email + PDF EDI EDI Customer Customer Hub A B© 2012 SAP AG. All rights reserved. 13
    14. 14. Inbound E-InvoicingObjectives, Issues, Capabilities and Benefits Objective: Automation and standardization of the end-to-end inbound invoice processes Best practice solution: Automated, standardized invoice receipt via EDI directly from supplier system Issues Key Business Capabilities Benefits• Error-prone manual data • Receive digitally signed PDF • Time savings due to entry invoice and EDI automation • Validate invoice in terms of• No audit trail format and content • Redeployment of personnel • Verify authenticity of digital into higher value-adding• Excessive cost-per-invoice signature activities • Creation of document set which• Lost or missing invoices includes result of verification • Reduced error rate improves delay payment and hurt checks and original SAP relationship with suppliers vendor relationships business documents • Transmission of document set • Improved data accuracy for to ERP for further processing fewer disputes and archiving© 2012 SAP AG. All rights reserved. 14
    15. 15. Inbound E-Invoicing SAP Solution • Receive electronic invoices via standardized Receive Electronic interfaces (PDF invoice, EDIFACT D96A, Files signature/verification file) • Perform all required format, content and Verification and Inbound Compliance E-Invoicing signature verification steps automatically Engine • Seamlessly transfer invoice data to ERP for further processing, approvals, and archiving Transmit Data to ERP • Improve productivity of accounting department or your accounting shared-service function SAP Differentiators Internal Control: Verify documents and signatures for all incoming invoices according to compliance requirements in over 40 countries Direct Access to Global Partner Network: Leverage SAP’s world class network of business partners to accelerate adoption by your suppliers and increase percentage of electronically received invoices Straight-through invoice management: Transmit invoices to ERP and invoice processing systems and archiving, improving quality by eliminating manual intervention© 2012 SAP AG. All rights reserved. 15
    16. 16. Inbound E-InvoicingProcess OverviewInbound E-Invoicing harmonizes interfaces and processes for inbound Receive Electronic Filesinvoices while helping companies retain their flexibility in terms of scale Verification and Inbound(number of invoices) and media (invoice format). This process enables Compliance Engine E-InvoicingA/P departments to process and prepare invoices for payment. Transmit Data Process Steps 1 2 3 4 Validate Process Transmit Initial Setup E-Invoice E-Invoice Data • On-board Business • Verify and complete • Verify PDF • Transfer document Partner, including invoice document set to ERP for creation of profile • Format validation • Convert EDIFACT further processing • Update supplier (PDF into target XML in SAP Invoice master records in invoice, EDIFACT IDOC Management by ERP system D96A, signature file) • Create document OpenText • Content validation set (XML • Transfer document (receiver IDOC, signature set to archive information, global file, PDF system checks, country - invoice, verification specific checks) protocol)© 2012 SAP AG. All rights reserved. 16
    17. 17. Accounts Payables Process HUB HUB HUB SAP E-Invoicing Digital Hubs and Portals for Signature EDI Compliance Validation PDF/email Supplier iDOC + supporting SAP docs (e. g. signature, verificatio Fax n protocol) Document Invoice Invoice Payment SAP Scan Recognition Processing Paper SAP Invoice ERP (FI/AP) Management SAP Invoice by Management OpenText, opti by OpenText SAP SRM Document on for OCR Archiving Email Document Archiving & Viewing e.g. SAP Archiving by OpenText© 2012 SAP AG. All rights reserved. 17
    18. 18. Explaining the different options and further requirements Electronic Invoicing - EU Options Signature EDI Any other methods...  signed PDF  further methods to prove to be adopted by EU member states integrity & authenticity required by Jan 2013  signed structured file (recomm. 94/820/EG)  Business Controls must provide a  can be use with any type of  e. g. prior EDI agreement needed reliable audit trail between an trading partner invoice and a supply (to guarantee  e. g. requires secure data transfer Integrity and Authenticity (AS/2)  currently adopeted by Germany and  some countries require add. Poland signatures or summary reports Straight forward in EU Heterogeneous process rules in EU Unclear if all EU countries will have the same rules for the audit trail Technical controls Process controls Business controls initiated by initiated by initiated by Invoice Issuer Invoice Issuer & Receiver Invoice Receiver Archiving requirements for the (original) electronic file Receiver‘s acceptance needed© 2012 SAP AG. All rights reserved. 18
    19. 19. Sample e-Invoicing LATAM Process Overview© 2012 SAP AG. All rights reserved. 19
    20. 20. Proven Business Impact Over 3 000 SAP customers with 60 000 trading partners in many countries or industries are exchanging business processes and electronic invoices through SAP Business Network.50% 100% 600 24greater efficiency and paperless within the business partners standardized processimproved customer first 8 weeks with connected for 8 interfaces replaced 655satisfaction 1,000 suppliers processes and 4 million point-to-point mappings documents© 2012 SAP AG. All rights reserved. 20
    21. 21. Best Run Businesses run SAP Enabled Business Networks Speed Flexibility Efficiency Compliance3...5xAutomatic adjustment to +20...60% Simple adoption of new processes +20% Reduced integration effort  Fulfill global Compliancechange, integration or and change of existing processes Standardize Business Requirements.exclusion of business Processes for B2Bpartners Fast integration and consolidation Built-in response to most in mergers and acquisitions legal changes – we take care of that© 2012 SAP AG. All rights reserved. 21
    22. 22. Thank You!Didier MametSenior Director EMEA Business DevelopmentSAP Business 6 77 32 45 56Learn moreCall your SAP representative today,or visit us online at