Webinar: Shared Services - Latin America best practices for electronic invoicing

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Latin America is known for strict regulations when it comes to e-invoicing. Watch this informative webinar to learn the top five best practices for deploying electronic invoicing in Latin America and understand:

• The latest invoicing mandates in Mexico, Brazil, Chile and Argentina
• Differences between In-Country and Cross-Border Invoices
• Supplier Collaboration best practices
• Beyond invoicing: Supply Chain Finance and Electronic Payments

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  • New model coming in for 2013. this impacts the A/P and also the logistics.. You have to acknowledge.
  • So what is Tradeshift? And how do we approach e-invoicing enablement in a way that will yield better results than those we see in this survey?Well, 3-years ago we saw many of the same challenges revealed in this recent survey. That’s why we when we started Tradeshift we set out to do things differently: - WE started with a different Business model – no supplier fees -we focused on investing Innovative technologies and partnerships – this includes inventing new technology that converts paper-based suppliers to electronic connections and it also means partnering with the specific goal of fixing what’s broken – including one example of Intuit, which is part of todays discussion - A Open Platform - Platform Connects - Application framework (Think of Apple’s App store) - Open = rapid innovation – TS, Partners, EnterprisesThe Results are in: - Fastest growing network - In three short years . . . 196 countries, 5M businesses connected, 15 mil invoices a year and $200B of spend flowing through the platform. - Fortune 500 companies like Nike and DHL are working with us to roll out e-invoicing , workflow, supply chain finance, vendor management and over 20 other application. All of this on a global basis.
  • Tradeshift is not your father’s enterprise software. Its 100% cloudbased. Its purpose built, to be easy and useful – when and where you want to use it.The utility and useability also significantly enhance adoption – both internal to your enterprise but with suppliers as well.
  • Webinar: Shared Services - Latin America best practices for electronic invoicing

    1. 1. INVOICEWARE INTERNATIONAL © 2013 Confidential Invoiceware International The Leader in Latin America eInvoicing Compliance Lower Total Cost of Ownership • One Platform, multiple countries – Brazil, Mexico, Argentina, Chile • Minimal Internal Resources • Simplified Architecture • Fixed, Predictable Cost Today & Through Changes Production Support • Invoiceware a phone call away for day to day calls • English, Spanish or Portuguese • End to End Support – including SAP issues Change Management • Ongoing Changes Included (including both software & consulting) • Local teams work with the governments (i.e. SEFAZ, SAT, AFIP, SII) • Remove dependency on Internal Resources to keep system updated
    2. 2. INVOICEWARE INTERNATIONAL © 2013 Confidential Latin America eInvoicing Understanding the Basic Differences to other Regions of the World  Different Types of Countries  Mandated electronic invoicing  Brazil  Mexico  Argentina  Expanding Countries  Chile  Guatemala, Uruguay, Costa Rica  Colombia  Domestic versus Cross Border • Domestic equals VAT tax and is subject to country mandates • Cross Border is predominately paper  Mandates Constantly Evolve • Can change 3-4 times per year as the tax regulations evolve • Average multinational spends 2600 hours a year managing Brazil issues versus an avg. of 80 hours a year in other countries
    3. 3. INVOICEWARE INTERNATIONAL © 2013 Confidential Latin America e-Invoicing Gov’t Mandates Eliminate Common Roadblocks Government in LATAM • Mandates the use of electronic invoices • Mandates that supplier must make e-Invoice available to Buyer • Mandates the Format of the Invoice • Requirement of Supplier Invoice: Approved and Accompany the Truck • Increases accuracy of what was ordered, shipped and invoiced • Invoice can arrive even before the Goods Paper Invoices Supplier Rollout Multiple Formats Accuracy Timing X X X X X
    4. 4. INVOICEWARE INTERNATIONAL © 2013 ConfidentialConfidential How to Approach Latin America Government Compliance vs. Commercial Compliance Compliance - Okay to Deduct  Avoid ~$250 fine per invalid invoice  The e-Invoice received must match the e-Invoice previously registered with the Tax Authority.  Valid invoice = Okay to Deduct VAT on remittances to Government. Account Payables Efficiency – Okay to Pay  If PO backed, does invoice = PO = Goods Receipt?  If not PO backed, does commodity manager or buyer approve?  Have the Goods Arrived and been processed? Working Capital Optimization  Inability to optimize cash flow (e.g., Missed Discounts)  Liquidity concerns for supplier operations  Short-term investment of Cash
    5. 5. INVOICEWARE INTERNATIONAL © 2013 ConfidentialConfidential Mexico eInvoicing Compliance Update December 31, 2013  CFD is Repealed  There is NO “Grandfather” clause – everyone must switch  Includes all current CFD Users  CBB (paper) allowed only for companies > $250K Peso (~20K US Dollars)
    6. 6. INVOICEWARE INTERNATIONAL © 2013 ConfidentialConfidential Mexico e-Invoicing: Mandated Inbound Validation Country Moves to CFDI Mexico SAT - Real-Time Compliance Mandates • Real time integration – legacy was a batch process • Invoices must be registered and approved before being sent • Printed CFDI is also a valid, legal invoice, XML must be archived for 5 Years • CFDI may be received electronically in advance. Must be validated as authentic before payment. • Each outbound e-Invoicing solution must also provide for inbound validation as well • IMPORTANT: Step 6 – You do not want to pay invalid invoices – Audit Risk & You Assume Tax Issue 5
    7. 7. INVOICEWARE INTERNATIONAL © 2013 ConfidentialConfidential Real-Time E-Invoicing Baseline Compliance Process Sets the Stage for Straight Through Processing Brazil Real-Time Compliance Mandates • Real time integration with Brazilian Tax Authority (SEFAZ) • For Accounts Payable – Goods Nota Fiscal, Service Invoices at City Level & CTe - Transporation • NF-e received electronically by recipient in advance. Must be validated and any returns accounted for via “return order process” • SEFAZ does not validate your taxes in real time but they do data-mine to check later • Brazilian companies are responsible for accurate taxes of their suppliers as well Paper Electronic Inbound A/P • Paper not authoritative for compliance • Suppliers must provide XML electronically • Step 6 (required) sets up opportunity for automated matching & “straight-though” processing. 5
    8. 8. INVOICEWARE INTERNATIONAL © 2013 Confidential NFE Events Bi-Directional Process Orchestration with SEFAZ as the Mediator Between Parties SEFAZ Solution – Two Way Process Orchestration via NFE “events” • NFE is acknowledged by the receiving CNPJ through event posted back to SEFAZ. • NFE must be acknowledged within 180 days initially, and eventually before shipment as phased roll-out progresses. • Greater burden on receiving CNPJ, but many large receiving CNPJ are pushing for these changes to guard against ghost transactions in the first place. • Solution very similar to EMCS for Alcohol/Tobacco/Energy within Europe Draft, subject to change
    9. 9. INVOICEWARE INTERNATIONAL © 2013 ConfidentialConfidential Multiple Local Vendors VAT Tax Remittance Domestic e-invoice & Cross Border  Different e-invoicing provider in each country  Complex legislation equals high internal support costs  Domestic Invoices subject to electronic mandates  Cross-Border – still predominately paper  Supplier VAT deductible only from gov’t valid invoices  Coordination of Credit/Debit notes to adjust gov’t registered taxes once goods accepted  PO usage on the rise but still low  E-invoice formats don’t support “Straight Through Processing” – need ability to append data Common Challenges for Multinationals PO Usage “STP” Capability Supplier Collaboration  Master Data & Onboarding Requirements  Payment Status, PO Append, Dispute Management, Supply Chain Finance
    10. 10. INVOICEWARE INTERNATIONAL © 2013 ConfidentialConfidential Regional Compliance  Multi-Country Support  Domestic Buyer Side Mandates: • Brazil – NFe, NFS, CTe, MDFe • Mexico • Chile • Argentina  Guaranteed e-invoice Compliance Automation & Workflow  Purchase Order & Goods Receipt Matching  Line Item Matching for Tax Rate Issues –to request need for Credit/Debit  Data Append: Suppliers add PO & Other Matching Info to Invoice (i.e. Mexico Addenda) Comprehensive  Support Electronic In Country Mandates  Cross-Border & In Country Paper (CloudScan)  No supplier fees to inhibit adoption  Onboarding and & Master Data Collection for Supplier Management  Supply Chain Finance Partnership with Tradeshift Regional Latin America Shared Services Platform
    11. 11. Tradeshift Business Cloud Connecting companies, creating value and empowering business Electronic Invoicing & Data Capture Workflow Financial Services Enterprise Management • There are no barriers to join, all companies can sign up and start sending business documents for free. • Buyers and sellers can interact and collaborate in real-time.  A rapidly growing eco-system of applications supporting electronic invoice presentment and payment (EIPP) processes.  Companies can extend business processes onto Tradeshift by installing or building their own apps.
    12. 12. Capturing both Electronic & Paper Invoices ERP Scanned & PDF invoices Validated e-Invoice Onboarding Learns invoice formats automatically Advanced heuristics with machine learning and discovery abilities to recognize and remember new invoice formats. Exceptional data quality, validated by suppliers Exceptions flagged by the Business Firewall. Suppliers corrects the exceptions and sign-off on the conversion prior to submission. First step to e-Invoicing It’s an onboarding tool to convert PDF and paper senders to submit electronically.
    13. 13. Tradeshift is Configurable… Entities Entities are legal business units and are the way in which we model enterprises on Tradeshift 1 Validation rules The rules that define what is required on a document in order to optimize processing - are typically branch and supplier group specific. 3 Supplier groups Predefined groups of suppliers, who have similar characteristics regarding the way in which they send documents 2
    14. 14. …Global
    15. 15. ...and Extensible TRADESHIFT BUSINESS CLOUD Invoicing Purchase Orders SupplyChain Financing Dynamic Discounting Compliance CloudScan® Collaboration &Workflow Vendor Management Yourown apps Supplier Buyer
    16. 16. Connect with all trading partners via one common business platform Deliver business documents electronically into ERP system Automate business processes Future-proof new business needs
    17. 17. INVOICEWARE INTERNATIONAL © 2013 ConfidentialConfidential Regional Compliance  Multi-Country Support  Domestic Buyer Side Mandates: • Brazil – NFe, NFS, CTe, MDFe • Mexico • Chile • Argentina  Guaranteed e-invoice Compliance Automation & Workflow  Purchase Order & Goods Receipt Matching  Line Item Matching for Tax Rate Issues –to request need for Credit/Debit  Data Append: Suppliers add PO & Other Matching Info to Invoice (i.e. Mexico Addenda) Comprehensive  Support Electronic In Country Mandates  Cross-Border & In Country Paper (CloudScan)  No supplier fees to inhibit adoption  Onboarding and & Master Data Collection for Supplier Management  Supply Chain Finance Invoiceware & Tradeshift Regional Latin America Shared Services Platform

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