"eInvoicing put to practice in The Netherlands and abroad."

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"eInvoicing put to practice in The Netherlands and abroad."

  1. 1. "eInvoicing put to practice in The Netherlands and abroad."
  2. 2. eInvoicing put to practice in The Netherlands and abroad <ul><li>Background </li></ul><ul><li>How ABB uses e-invoicing </li></ul><ul><li>ABB approach to meet local legislations </li></ul><ul><li>Implementation methodology </li></ul><ul><li>Benefits achieved </li></ul><ul><li>Lessons learned </li></ul>
  3. 3. Background <ul><li>Countries with solutions for Scanning & Workflow and e-invoicing are significantly more efficient as those that have not. Cost reductions of 50% or more are realistic. </li></ul><ul><li>In order to increase efficiency and reduce cost, ABB’s Shared Accounting Services Centers in 24 countries are implementing Scanning & Workflow and e-invoicing </li></ul>
  4. 4. How ABB uses e-invoicing <ul><li>Current focus lies on internal ABB invoices and external supplier invoices </li></ul><ul><ul><li>In total 5 million invoices, of which 1 million are internal ABB invoices </li></ul></ul><ul><ul><li>80% of supplier invoices are domestic </li></ul></ul><ul><ul><li>65% of internal ABB invoices are cross-border </li></ul></ul><ul><li>For internal ABB invoices, our common in-house system is used </li></ul><ul><ul><li>Commercially available software used for electronic signatures </li></ul></ul><ul><ul><li>Modern integration technology (Microsoft BizTalk, SAP XI) used to connect the multitude of ERP systems and invoice approval workflow systems </li></ul></ul><ul><ul><li>One common XML definition deployed for invoice message </li></ul></ul><ul><li>For external suppliers, external service providers are used </li></ul><ul><ul><li>Local players with strong position in the market </li></ul></ul><ul><ul><li>“ outsourcing” of (technical) supplier on-boarding to the extent possible </li></ul></ul>
  5. 5. ABB approach to meet local legislations for internal ABB invoices <ul><li>Streamserve’s Enhanced Security product is a key part of the Group e-invoicing Services solution </li></ul><ul><ul><li>To meet local laws and regulations, digital certificates (the smart cards in the picture below) from local Certification Authorities are used. </li></ul></ul><ul><ul><li>Which certificate to be used is determined by the buyers and sellers VAT code. This information is read directly from the XML message. </li></ul></ul><ul><li>The signed e-invoices are stored both by the buyer and the seller </li></ul>Local ERP Local ERP
  6. 6. <ul><li>Special attention is paid to VAT & legal aspect. </li></ul><ul><ul><li>Streamserve and Deloitte are used for the technical and VAT / legal assessment </li></ul></ul><ul><li>17 countries have gone through this process at the end of 2007 </li></ul>Implementation methodology 2. Roll - out  Increased participation of supply chain management  More units & suppliers are added 1. Establish e - invoicing capabilities 1. Preparation  Establish project  In - depth clarification of current situation with respect to VAT & Legal, Invoice flows, Technical set - up.  Initial solution design 2. Local and central implementation  Select local provider (if applicable)  Develop, test and deploy solution(s ) 3. First experiences & benefits  First e - invoices exchanged ABB Benelux is here 
  7. 7. Current status <ul><li>Currently, the ABB Group receives approximately 25’000 e-invoices per month. </li></ul><ul><ul><li>EDI with paper invoice in parallel has been excluded from numbers </li></ul></ul><ul><li>Target end 2008, 60’000 e-invoices per month. </li></ul><ul><ul><li>Deeper penetration of e-invoicing in SE, FI, DE, NL, BE and CH </li></ul></ul><ul><ul><li>First implementations in FR, DK, IT, ES, AT, US, CA and UK </li></ul></ul><ul><ul><li>More focus on external supplier invoices </li></ul></ul><ul><li>In northern Europe, 30% of all supplier invoices are now electronic </li></ul><ul><ul><li>In central Europe adoption is picking up rapidly </li></ul></ul><ul><ul><li>In southern Europe, legal situation and low market adoption in general is hampering adoption. </li></ul></ul><ul><li>In Netherlands, the current target of e-invoicing coverage is 25% </li></ul><ul><ul><li>Current rate of 5’000 invoices per annum </li></ul></ul><ul><ul><li>Target of 20’000 invoices annually </li></ul></ul>
  8. 8. Benefits achieved <ul><li>Efficiency increases of 20-40 % are fully realistic, especially if discipline with placing Purchase orders is high </li></ul><ul><li>Automatic matching and posting rates of > 70 % have been achieved at some locations. A step towards “lights out processing” </li></ul><ul><li>Instant delivery of invoices from supplier to buyer reduces problems at month end. </li></ul><ul><li>Due to automatic checks of invoice quality (are all mandatory fields filled?) a higher level of correct invoices has been achieved. </li></ul><ul><li>Harmonization of invoice layout within the ABB Group leads to further efficiency gains </li></ul>
  9. 9. Lessons learned <ul><li>A well functioning process, supported by a good invoice approval workflow, is key for achieving efficiencies </li></ul><ul><li>A high quality of master data (prices, article numbers, company identification scheme) is important </li></ul><ul><li>Involvement of the purchasing organization is key for supplier adoption, the complexity of on-boarding suppliers is most often underestimated </li></ul>

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