E- invoicing – practice of usage in Europe<br />ECR  Forum, June 2010<br />Inga Major<br />
Table of contents<br />Tieto<br />What is E-invoicing<br />Different data formats ; tax&legal requirements<br />Walki Case...
16 000 IT professionals in close to 30 countries<br />Customers on all continents<br />One of the leading IT service compa...
Listed in NASDAQ OMX Helsinki and Stockholm
Founded in 1968
Represented in EU expert commission on e-invoicing</li></ul>Tieto today<br />
E-invoicing – the whole process from creation to receiving of electronic invoice+ storage<br />4<br />
Definitions (Wikipedia)<br />E-invoice<br />An e-invoice is an electronic transaction document that contains billing infor...
Definitions (Wikipedia)<br />The process<br />E-invoicing provides seller’s with a method to submit invoices electronicall...
Corporate interface challenge:no single data formats<br />7<br />ECR Forum<br />2010-06-03<br />papiNet (paper and  pulp)<...
No over-regulation</li></li></ul><li>E-invoice Tax & Legal Compliance in a Roaming Connection<br />Other Service Provider<...
Tax & Legal Support in E-invoicing<br />2010-06-03<br />9<br />ECR Forum<br />
Walki case<br />
An Actual Case from Paper and Pulp<br />Customer locations<br />Production and sales locations<br />Tieto service signs e-...
The Process for Walki<br />Other Service Provider<br />Invoice in<br />papiNet<br />format<br />eInvoice Hub Service<br />...
Data flow with Digital Signature<br />Invoice sender (supplier)  sends data to Tieto in own format<br />Validation, conver...
Contractual relationships<br />14<br />ECR Forum<br />2010-06-03<br />1.Service agreement<br />(allows to create ORIGINAL ...
Practical situations for Digital Signature<br />Large Corporates operate and have subsidiaries in several countries and sh...
Current EU VAT directive<br />The  Directive on VAT invoicing establishes<br />a list of ten mandatory general items of in...
The New EU Directive Proposal<br />How will this proposal make electronic invoicing easier?<br />-	Equal treatment between...
This approach has support of Expert Group on e-Invoicing</li></ul>http://ec.europa.eu/taxation_customs/resources/documents...
e-invoicing platform – ”white-label”-own brandfor banks<br />
E-invoicing platform: bank provides e-invoicing services to clients<br />INVOICE SENDERS<br />INVOICE RECIEVERS<br />Inter...
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Tieto inga major_ecr_presentation english

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Tieto inga major_ecr_presentation english

  1. 1. E- invoicing – practice of usage in Europe<br />ECR Forum, June 2010<br />Inga Major<br />
  2. 2. Table of contents<br />Tieto<br />What is E-invoicing<br />Different data formats ; tax&legal requirements<br />Walki Case – demonstration of workflow with e-signature<br />Current EU VAT directive. New VAT directive<br />While label (own – brand) e-invoicing platform for banks<br />Future in Russia?<br />2010-06-03<br />2<br />ECR Forum<br />
  3. 3. 16 000 IT professionals in close to 30 countries<br />Customers on all continents<br />One of the leading IT service companies in Northern Europe and global leader in selected segments<br /><ul><li>Net sales approximately EUR 1.8 billion
  4. 4. Listed in NASDAQ OMX Helsinki and Stockholm
  5. 5. Founded in 1968
  6. 6. Represented in EU expert commission on e-invoicing</li></ul>Tieto today<br />
  7. 7. E-invoicing – the whole process from creation to receiving of electronic invoice+ storage<br />4<br />
  8. 8. Definitions (Wikipedia)<br />E-invoice<br />An e-invoice is an electronic transaction document that contains billing information in an electronic format. <br />An e-invoice may be <br />processed within an electronic invoice presentment and payment (EIPP) (B2B) or EBPP (B2C) workflow system or may be <br />uploaded directly into a user’s ERP or accounting system. <br />Standard types of workflow performed on an e-invoice include verification, coding, routing and approval. <br />By using e-invoices companies eliminate manual data entry, facilitate faster payments to their vendors and track invoices more easily<br />EIPP – normally it includes e-invoice exchange, portal and ERP integration<br />2010-06-03<br />5<br />ECR Forum<br />
  9. 9. Definitions (Wikipedia)<br />The process<br />E-invoicing provides seller’s with a method to submit invoices electronically to their customers. <br />The most effective e-invoice programsconnect the seller’s accounts receivable operations with their customer’s accounts payable operations.<br />The seller submits an e-invoice to the buyer's EIPP system. The buyer, then, examines and verifies the accuracy of the invoice, codes and routes it for payment approval.<br />E- invoicetypes<br />EDI – Also known as Electronic Data Interchange, is an electronic transfer of data from computer to computer using an agreed structured format that can be generated and read by a computer and processed automatically.<br />XML - Also known as extensible mark-up language, XML is a widely accepted way of sharing information over the Internet in a way that computers can use, regardless of their operating system.<br />Webforms - Allow users to enter data that is typically sent to a web serverfor processing.<br />6<br />2010-06-03<br />ECR Forum<br />
  10. 10. Corporate interface challenge:no single data formats<br />7<br />ECR Forum<br />2010-06-03<br />papiNet (paper and pulp)<br />chemXML (Chemical)<br />VDA/Odette (automotive)<br />Rosettanet (Electronics)<br />Tieto has<br />any-to-anyconversionserviceNo need to waitfor standards(ISO 20022)!<br />UN/Edifact<br />ETC.<br />ANSI X.12<br />EANCOM<br />Advantage:<br /><ul><li>Flexibility for different businesses & freedom to use any formats
  11. 11. No over-regulation</li></li></ul><li>E-invoice Tax & Legal Compliance in a Roaming Connection<br />Other Service Provider<br />e-Invoice platform<br />eInvoice Hub Service<br />Invoice<br />Issuer<br />InvoiceReceiver<br />Inter-mediate<br />format<br />Conversion<br />to roamingpartner<br />format<br />Attachment<br />packaging<br />Validation<br />Conversion tointermediateformat<br />Conversion toreceiverformat<br />Attachment<br />separation<br />PDF<br />Rendering<br />PDF Signing<br />Verification<br />Compliance Map<br />Signing and Validation Service<br />Digital Document<br />Archiving Service<br />SupplierServices<br />BuyerServices<br />AuditServices<br />In co-operation with<br />Receiver<br />Country’s<br />Certification<br />Authority<br />Issuer<br />Country’s<br />Certification<br />Authority<br />2010-06-03<br />8<br />ECR Forum<br />
  12. 12. Tax & Legal Support in E-invoicing<br />2010-06-03<br />9<br />ECR Forum<br />
  13. 13. Walki case<br />
  14. 14. An Actual Case from Paper and Pulp<br />Customer locations<br />Production and sales locations<br />Tieto service signs e-invoices with issuing country and receiving country certificates<br />More countries expected to be added<br />Customer requires all e-invoices to Germany, France and Austria to be signed<br />2010-06-03<br />11<br />ECR Forum<br />
  15. 15. The Process for Walki<br />Other Service Provider<br />Invoice in<br />papiNet<br />format<br />eInvoice Hub Service<br />eInvoice Hub Service<br />Tieto<br />XML<br />Conversion <br />From Tieto XML <br />to receiverformat<br />InvoiceReceiver<br />Attachment<br />packaging<br />Validation<br />Conversion Tieto XMLformat<br />Attachment<br />separation<br />PDF<br />Rendering<br />PDF Signing<br />Verification<br />Archive<br />Signedpdf<br />For archiving<br />Signing PDF file<br />With<br />Digital Signature<br />Receiver<br />Country’s<br />Certification<br />Authority<br />FRANCE<br />AUSTRIA<br />In co-operation with<br />Issuer<br />Country’s<br />Certification<br />Authority<br />GERMANY<br />2010-06-03<br />12<br />ECR Forum<br />
  16. 16. Data flow with Digital Signature<br />Invoice sender (supplier) sends data to Tieto in own format<br />Validation, conversion to Tieto format<br />Tieto produces original document – pdf file<br />Original document is signed with digital signature<br />No data files are signed! (if data would be signed –it would be a problem with auditors and tax authorities : they treat data as original and have no resources to convert data to visualised format; for e-invoice provider signed data sets limitation for conversion services, ie presentment etc)<br />Power of attorney is used to sign by the name of supplier<br />Data files are sent to roaming partner or to e-inv receiver<br />Signature verification is done by one of them<br />Original documents (signed pdfs) are sent back to <br /> supplier, saved in electronic archive<br />2010-06-03<br />13<br />ECR Forum<br />
  17. 17. Contractual relationships<br />14<br />ECR Forum<br />2010-06-03<br />1.Service agreement<br />(allows to create ORIGINAL <br />from data)<br />Interchange<br />agreement<br />Other<br />Service<br />Provider<br />2. Power of attorney to sign <br />ORIGINAL documents<br />Business contract for support in<br />meeting tax& legal requirements<br />Agreements with several CA’s<br />in different countries<br />
  18. 18. Practical situations for Digital Signature<br />Large Corporates operate and have subsidiaries in several countries and shall obey different local laws and authority instructions<br />Harmonized business processes are often executed from centralized shared service centers that serve all countries and units<br />Seller shall often align itself into buyer requirements<br />Some Corporates require all purchase e-invoices to be digitally signed for such legal units operating in countries where digital signing is applied<br />Problems raising due to the fact that CA’s are not connected with each other<br />2010-06-03<br />15<br />ECR Forum<br />
  19. 19. Current EU VAT directive<br />The  Directive on VAT invoicing establishes<br />a list of ten mandatory general items of information that must be included on every invoice, plus four additional items that may be required in specific circumstances, <br />simplified arrangements for small companies and small-value invoices, <br />the requirement for Member States' tax authorities to recognize the validity of electronic invoices without any notification or authorization system, on condition that the authenticityof origin and integrityof data are guaranteed through the use of electronic signatures or Electronic Data Interchange (EDI). <br /> Electronic signatures allow someone receiving data over electronic networks to determine the origin of the data and to check that it has not been altered. <br />EDI is a system of secure electronic information transmission used by businesses, <br />the possibility in certain circumstances of outsourcing invoicing operations to a third party or to the customer (i.e. self-billing), <br />free choice of the place and method of storage of invoices and the acceptance of electronic storage, including on-line storage in a Member State other than the Member State in which the firm in question is located<br />2010-06-03<br />16<br />ECR Forum<br />
  20. 20. The New EU Directive Proposal<br />How will this proposal make electronic invoicing easier?<br />- Equal treatment between paper and e-invoices by removing specific VAT conditions for e-invoicing <br /> By creating equal treatment between paper and electronic invoices the Commission believes the VAT obstacles that hamper the use of electronic invoicing will be removed –<br /> The current rules for e-invoicing requiring either use of an advanced electronic signature or EDI, along with the various options and interpretations afforded to Member States, makes electronic invoicing difficult to implement, especially cross border.<br />These conditions will be removed. <br />Authenticity requirements can be achieved by <br />business controls that provide audit trail between supply and invoice (in same way as businesses do for paper invoices) <br />EDI or advanced e-signatures based on qualified certificate -only examples – not mandatory<br /><ul><li>Technology neutral approach - Member States can not prescribe the use of any particular technology
  21. 21. This approach has support of Expert Group on e-Invoicing</li></ul>http://ec.europa.eu/taxation_customs/resources/documents/common/whats_new/memo_e-invoicing_en.pdf<br />http://www.trustweaver.com/press/ECOFIN_16032010_analysis.pdf<br />17<br />ECR Forum<br />2010-06-03<br />
  22. 22. e-invoicing platform – ”white-label”-own brandfor banks<br />
  23. 23. E-invoicing platform: bank provides e-invoicing services to clients<br />INVOICE SENDERS<br />INVOICE RECIEVERS<br />Internet bank<br />Internet bank<br />Single Sign On<br />Single Sign On<br />Bank White labeled<br />e-Invoice service<br />E-invoice<br />Portal<br />E-invoice<br />Portal<br />Payment initiation<br />File integration<br />ERP Standard<br />File integration<br />ERP StandardVirtual printers<br />File integration<br />ERP Individual<br />File integration<br />ERP Individual<br />(file integrations)<br />Paper to e-Invoice<br />Scanning<br />provider<br />e-Invoice to Paper<br />Printshops<br />Bank<br />Factoring<br />Bookkeeping<br /> Supply Finance<br />Billing &<br />Statistics<br />Supplier Financing<br />Cash flow planning<br />Factoring<br />Payments<br />Bank provides value added services<br />Customer Administration<br />Via Swedbanks ordinary systems<br />Support & Maintenance<br />Via secure webinterface<br />2010-06-03<br />19<br />ECR Forum<br />
  24. 24. Why it is beneficial for a bank to become a e-invoicing service provider?<br />20<br />ECR Forum<br />2010-06-03<br /><ul><li>Ready customer base
  25. 25. Additional income from existing customers :
  26. 26. Add income e-invoice transactions
  27. 27. Opportunity to use business information to create new value added services
  28. 28. Cash flow forecasting
  29. 29. Factoring
  30. 30. Supplier financing
  31. 31. Billing and statistics
  32. 32. Customers require this service from banks
  33. 33. Customers want to have value added services (as bank service surveys show)
  34. 34. Benefits for banks’ clients
  35. 35. Invoices are integrated with payments
  36. 36. No need to have additional e-invoice provider
  37. 37. Simple interface, no need to invest in complex system for SMEs
  38. 38. Integration with ERP for big customers
  39. 39. Possibility to buy additional services like cash flow forecast
  40. 40. Access to cheaper finance</li></li></ul><li>Future in Russia?<br />21<br />ECR Forum<br />2010-06-03<br /><ul><li>Coming changes in legislation will allow to use electronic VAT invoices</li></ul>Questions:<br /><ul><li> Mandatory data format? </li></ul> – e-invoices not only required to tax authorities but most of all it is in the interest of business. Mandatory data format may not support / take into account the interests of businesses<br /><ul><li>Technology neutral approach?
  41. 41. Sinature of data files – datafiles are treated as originals? </li></ul> -in Europe is is not common as it causes problems:<br />1) with auditors and tax authorities - they have no resources to work with data files incl producing hunman readable format etc.<br />2) it sets limitations for e-invoice operator in data processing<br />=>To transfer data electronically, but to use electronic signature for human readable files, not for data!<br />
  42. 42. Future in Russia?<br />22<br />ECR Forum<br />2010-06-03<br /><ul><li>We believe that everybody needs the new legislation wich will allow to deal with electronic VAT invoices
  43. 43. We believe that such changes in legislation will create a value added for many businesses – corporates big and small, banks, providers
  44. 44. Electronic communications, B2B and B2C have big future in Russia
  45. 45. Banks will have a special role in e-invoicing - such as it is typical in Europe
  46. 46. This is new business segment in Russia
  47. 47. Large business opportunities for banks</li></li></ul><li>Inga Major<br />Financial Value Chain Services Director<br />Tieto, Russia<br />inga.major@tieto.com<br />

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