Quadira, e invoicing, digital signatures and document archiving

1,290 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,290
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
14
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Quadira, e invoicing, digital signatures and document archiving

  1. 1. E-Invoicing, Digital Signatures and Document Archiving Legislations and solutions – EU LaserNet WhitepaperThis whitepaper is based on common legislations and sources. These are subject to change. Version 1.2 1
  2. 2. Released November 2010Table of Contents1. General introduction .................................................................................................................... 32. LaserNet ........................................................................................................................................ 33. E-INVOICING, WHAT DOES IT MEAN .................................................................................. 4 3.1 THE TRADE PROCESS ............................................................................................................................. 4 3.2 DISTRIBUTION OF PHYSICAL INVOICES.................................................................................................. 4 3.4 E-INVOICING .......................................................................................................................................... 5 3.5 SAVINGS WITH E-INVOICING ................................................................................................................. 64. General legislations and issues around digital signatures ......................................................... 6 4.1. Which documents are relevant ............................................................................................................ 6 4.2. Legislation (EU and Scandinavia) .......................................................................................................... 6 4.3. Sending PDF Invoices as emails ............................................................................................................ 9 4.4. Sending XML/EDI Invoices .................................................................................................................. 10 4.5. About the LaserNet XML OUT Module ............................................................................................... 10 4.6. Electronic Archiving ............................................................................................................................ 11 2
  3. 3. 1. General introductionWith LaserNet Output Management is has come to the standard rather than the exception tocommunicate your business documents as electronic files in various formats rather than paperbases.Also in terms of archiving, it is now more natural than ever to store the business documents in aelectronic format.Although these options are very easy to implement with LaserNet Output Management, there are stillsome issues and legislations connected to these matters.For a general introduction to the power of LaserNet, please refer to www.lasernet.nl2. LaserNetCreate, transform and manage business documentsLaserNet is a suite of document and output management solutions. Each element tightly integrateswith your existing IT applications to support the migration from labor and paper intensive systemsto cost effective, faster e-enabled document processing.LaserNet captures output and transforms it into professional attractive documents, reports and labels,intelligently routing them for distributed print or electronic delivery by e-mail, fax, PDF, XML,EasyTrade etc. to customers and business partners: 3
  4. 4. This is achieved without complex and expensive programming via an entirely „point & click‟configurable interface; enabling the user to extend the functionality of core applications withoutmajor investment or upheaval.3. E-INVOICING, WHAT DOES IT MEANThe traditional invoicing process has always been part of a wider set of business processes including theplacing and acceptance of an order, fulfillment, delivery and payment. This process is the purchase-to-payprocess from a buyer‘s perspective, and order-to-cash from a seller‘s perspective. These processestogether are called the trade process. From a business process point of view the invoice is consequentlynever an isolated document but is always the result of, and linked to, other processes.The invoice is traditionally a commercial document used by buyers and sellers of goods and services. Ithas grown through custom and practice but usually it has a number of legal requirements imposed on it.In Europe, the most significant of these are tax requirements relates to Value Added Tax (VAT). Seefigures below that gives you a simple overview:3.1 THE TRADE PROCESS3.2 DISTRIBUTION OF PHYSICAL INVOICES 4
  5. 5. Because there are many senders and receivers, both in the B2B and in the B2C context, thedelivery of invoices is a vast logistic operation based on the capabilities of the postal systemand courier services.The mail is an open network par excellence. On the receiver‘s side, everybody can be reached,because they all have a physical mail address or make arrangements for a post office box orsimilar. The sender can deliver invoices (in an envelope with the correct address format) to anymail service provider of his choosing, confident that every receiver can be reached.3.3 DRAWBACKS OF THE PHYSICAL INVOICING PROCESSPaper remains stubbornly entrenched in the invoicing process among entities of all sizes. This is perceivedby all parties to result in:— High operational cost for processing the invoice for both the sender and receiver:— Protracted invoice-to-pay cycle time: there is often a lack of integration between allsystems interacting with the supply chain, such as accounts payable and receivable, ordermanagement, financial systems and inventory management systems.3.4 E-INVOICINGFirst summarize some of the key aspects of the development of e-invoicing starting with the invoicedocument itself, then the process of exchanging it and finally the impact on the end-to-end trade process.When it comes to automating the end-to-end trade process, many (but not all) consider the invoice as a‘good place to start‘.With e-invoicing, the traditional paper invoice is replaced by an electronic version, which removes manyof its disadvantages whilst maintaining the invoice as an intact datasetThe following types of the e-invoice exist:— Unstructured invoice document (e.g. Text, PDF, JPEG, TIFF, HTML or email): with this type the invoiceis created manually or automatically from a system and instead of printing it for submission on the spot orsending out in an envelope, it is compiled into an electronic document. As an alternative, a traditionalpaper invoice can also become electronic by scanning the invoice into an electronic document. `— Structured invoice document (e.g. XML (UBL XML)or EDIFACT): with this type the invoice creationconsists of the compilation of the required data into an agreed e-invoice message with a known structure,format and content such as is the case with XML (UBL AML) and EDIFACT messages. This means thatunlike a paper document, where the receiver may well be unfamiliar with the format, the format of astructured invoice message is pre-defined and known to the parties involved.We as part of the European committee in e-invoicing standards, believe in a combination of structuredinvoices accompanied by unstructured invoices, send by email. Both are needed to fulfill the completeprocess for B2B and B2C. 5
  6. 6. 3.5 SAVINGS WITH E-INVOICINGThe complete process of invoice-to-pay can easily cost up to 7 Euro per invoice, in a normal B2Benvironment.For B2C the complexity is different and the cost is lower up to 4 Euro per invoice.Besides the smaller payment cycle, the handling cost is drastically lower.And last but not the least the environment will be suffer far less with e-invoicing. (1.000.000 paperinvoices will cost approximately 700 trees)4. General legislations and issues around digital signatures4.1. Which documents are relevantThe business documents that typically are affected by legislation are VAT documents such as:  Invoices.  Credit notes.In this whitepaper we will discuss issues in regard to:  Storing and related demands.  Sending electronic business documents in electronic formats.  Different levels of security and verification.4.2. Legislation (EU and Scandinavia)It is mandatory to archive incoming as well as outgoing invoices for a number of years:In Denmark it´s 5 years.In Sweden it´s 10 years.In Norway it´s 10 years.In most EU Member States, the storage period for VAT purposes for items other than purchases of capitalgoods varies between 5 and 10 years.It is legally approved to send electronic Invoices and credit notes. Typically these documents will be sendas PDF or XML/UBL/EDI.Internationally there are different levels of security for handling these documents in terms ofsending/transferring the document and the content of the document. 6
  7. 7. EuropeIf you check the EU Directives on VAT-accounting for invoices, you will find that one of the requirementfor e-invoices is that they need to be digitally signed with an advanced electronic signature. Manycountries also have diligently taken up this requirement in their respective national legislation. However,suffice to say, you will still find different types of behavior across the EU:  Some countries - like France and Germany - strictly sign e-invoices. (from July 2011, Germany will change its regulations like the Netherlands)  Others like the Nordic countries are frontrunners in e-invoicing but do not digitally sign their e- Invoices.  The Netherlands changed its regulations from signing e-invoices to not needing to sign e-invoices in the beginning of 2009.On January 28, 2009, the European Commission adopted a proposal to change the VAT Directive(2006/112/EC) in respect to the invoicing rules, and published a Communication on the technologicaldevelopments in the field of electronic invoicing.Two main conditions must be fulfilled:  the customer must accept receipt of invoices by electronic means; and  guarantees need to be provided for: o the authenticity of the invoices origin; and o the integrity of the invoices contents.Member States cannot impose any other obligations or formalities relating to e-invoicing.For a complete explanation please visit : http://ec.europa.eu/taxation_customs/taxation/vat/traders/invoicing_rules/article_1733_en.htm#item_2.2And the FAQ : http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/04/15&format=HTML&aged=1&language=en&guiLanguage=enQuadira is a member of the European e-invoicing committee to achieve a general accepted legislationfor invoicing in and between European countries. The goal of the committee is to create a generalacceptation of e-invoices throughout Europe in the same way as for paper invoices. Quadira already hasthe official mark which guarantees that you will be dealing with a trustworthy partner in e-invoicing.For long term archiving of these documents there are only 3 formats that are generally accepted whichare un-editable:  TIFF  PDF  PDF/A, PDF/A is an ISO Standard for using PDF formats for long-term archiving of electronic documents.  Paper 7
  8. 8. It is NOT illegal to store the invoices in raw text or XML or other editable formats, but it´s NOTRECOMMENDED nor usable for law and trial purposes.For more information about PDF/A, please view : http://www.pdfa.org/doku.php?id=vorgaben:enAlso have a look at PWC´s “A Study on the Invoicing Directive (2001/115/EC) now incorporated intothe VAT Directive (2006/112/EC) “ athttp://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/invoicing_rules/phase_4_final_report_en.pdfDenmark and ScandinaviaIn Denmark it is mandatory to send electronic Invoices in XML format to the municipalities andGovernmental institutions. No paper is allowed since 2005.For business to business exchange the general rules apply, although most electronic invoices aresent without the Digital ID today.LaserNet uses the installed mail program (Exchange or Notes) to send the electronic invoices. Thesesupport Digital ID´s on a single account. Also LaserNet can encrypt and password protect thecontent of the PDF Document as created by LaserNet using a 3rd party PDF Converter (e.g. Amyuni)Thirdly LaserNet support not only PDF, but also the PDF/A format as standard.Germany and FranceIt´s mandatory to sign the content of the invoice as well as the transfer of the invoice, if you are usingemail as a carrier.For these countries we propose to our customers to use local signing applications or the add-on toolNeeviaPDF.LaserNet generates the PDF output and by using the laserNet process modifier (standard LaserNetmodifier) the file can be signed with your digital signature. Digital signatures can be bought and renewedat e.g. verisign.comLaserNet makes use of an external tool from NeeviaPDF.com, which needs to be purchased separately,for signing PDF-files with a digital signature. http://www.neeviapdf.com/download/?prodid=PDFSIGN The customer will need the mandatory licenses for creating and sending emails, no extra LaserNetlicenses for signing the PDF-files are required. The customer will instead have to buy a license for theNeeviaPDF product itself.When using digital signatures in LaserNet, it is required that the signature file is installed as a personalcertificate, so it doesn’t prompt for a password when signing PDF-files. The NeeviaPDF solution willbe able to sign PDF-files created both by LaserNet and PDF-files received from any other externalapplication. 8
  9. 9. 4.3. Sending PDF Invoices as emailsUsing the LaserNet Communication module in LaserNet, any existing mail server or client software willbe enabled to send the business documents electronically as attachments to an email (MAPI,SMTP)Digital IDs help to validate your identity, and they can be used to sign important documentselectronically. To find services that issue digital IDs for your use, or services that complement Officeand use digital IDs, check out the services listed here.http://office.microsoft.com/en-gb/marketplace/EY010504841033.aspxExample of setting up digital Signatures in Outlook 2007:Click on “Certificates” 9
  10. 10. Here´s a list of installed certificatesThis is an example of a certificate from VersignHere´s a list of Digital ID providers:http://office.microsoft.com/en-gb/marketplace/EY010504841033.aspxLink to acquire Digital ID :http://www.verisign.com/microsoft-markeplace/index.html4.4. Sending XML/EDI InvoicesLaserNet is capable of transferring almost any structured print or file format to any XML format. Alsoa large number of EDI formats can be handled by LaserNet.Normally these files are transferred to the destination using HTTP/s, FTP/s or a mailserver. In someinstances there´s a need for a transfer program, like the Danish EasyTrade client or the use of a VAN(Value Added Network) operator.4.5. About the LaserNet XML OUT ModuleThe LaserNet XML Output Module helps you to create advanced XML output files. The user of thesoftware deploys the same intelligent and flexible editing features, compared to working with graphicaloutput such as forms. This is a unique feature, and the preferred choice of many users when convertingfrom any other format to XML. 10
  11. 11. The LaserNet XML Output Module contains support for loading pre-defined XML templates, receivedfrom customers and partners, in order to achieve significant benefits and saving time when workingwith the design and setup of the XML files. The XML files can be produced in any necessary encoding,and LaserNet can be configured to remove white spaces and many other useful features.The LaserNet Communication Module is designed to integrate with common mail applications andMicrosoft Fax Services. Apart from that, the LaserNet Communication module also offers support forHTTP, HTTP/S, FTP and FTPS as well as MSMQ (Microsoft Message Queuing).4.6. Electronic ArchivingThe LaserNet File module and database module are able to store the business documents in afiledirectory, database, LaserNet Archive or 3rd party Electronic Archive in combination with theConversion module. File formats usually are PDF or PDF/A. 11

×