Best Practice Approaches for the Implementation of E-invoicing

Best practices –
for the implementation of E-Invoice
Peter Fels | SEEBURGER AG

© SEEBURGER AG 2019 2
What and who are the main drivers
for the Electronic Invoice Delivery?
Customer requests
 Recipient requires electronically readable formats (EDI/XML/ZUGFeRD/Xrechnung/PEPPOL)
 Electronic invoice receipt workflow
Internal requirements
 Process standardization
 Legal requirement EU Directive/2014/55
 EU-GDPR for data privacy
 Savings potential (envelope, print, port, shipping)
Companies with offices and subsidaries abroad
 Connection of the various portals of the tax authorities
 Special compliance guidelines of the respective country e.g.
CFDI (Mexico) (B2B/B2G)
DEMAT (France (B2B))
Chorus Pro France (B2G)
NAV Hungary (B2T)
SII (Spain) (B2G)
Facturae Spain (B2G)
FatturaPA (Italy) (B2G/B2B)
PEPPOL Europe (B2G)

for Electronic Invoice Receipt?
Transmission of invoices
 Transmission of the invoice often only as PDF by email
 Invoice transmission via supplier portal
 Future format change to ZUGFeRD
Legal requirements & Compliance
 VAT Tax Regulation (UK MTDfB, Germany §14 UstG)
 EU Directive 2014/55
 International Accounting Standards (IFRS, US-GAAP….)
• Audit-proof archiving
 Standardize and accelerate invoicing processes
• Automated invoice receipt
(EDI, PEPPOL, Email-+ PDF, Email +-ZUGFeRD/xInvoice)

for e-invoicing?
With the electronic invoice you make an active
contribution to climate and environmental
protection.
Data from the eco-institute Freiburg show that the
environmental impact of postal invoices is five times
higher than that of electronic invoices.
In numbers this means:
By using electronic invoicing, Europe could save up to
400,000 tons of paper per year
(equivalent to 12 million trees),
2,700 tons of ink, 165 million liters of diesel
and 1,350 GWh of energy.

Stumbling Blocks for e-invoicing
1. Formats
2. National and international laws
3. Master data
4. Onboarding
5. In-house
6. Market demand of the Trading Partners

Welcome to the Format and Conversion Jungle
EANCOM
EDIFURN EDIWHEEL
EDITRANS
EDITEX
RINET
ebxml
OFTP
paper
CEN PC434
EDIFICE
ETIS
CEFIC
AS2 ENX
paper
EDIFACT
RFC
EDI@ENERGY XÖV
HTTPS
SOAP
cross industry
invoice
EDILEKTRO
ODETTE
X400
OFTPII
TRAIn
(S)FTP
EDIPAP EDIGAS
VDA4938
email
XINVOICE

Positioning of document types
Paper, PDF, Fax
ZUGFeRD-Basic
ZUGFeRD-EN16931
ZUGFeRD-Extended
WebEDI
EDI
electronic workability
depthofintegration
low high
high
6
5
4
3
2
1

Stumbling blocks for e-invoicing
1. Formats
3. Master data
4. Onboarding
5. In-house
6. Market demand of the trading partners

Guidelines and legislation
Germany (German)
 §14 Value Added Tax Act
 GoBD (The principles for the proper keeping
and storage of books, records and documents
in electronic form and for data access)
 Tax laws
 EU Directive/2014/55
 DSGVO (outgoing invoices)
International
 Value added tax law of the respective
country (compliance rules)
 EU Directive/2014/55
 EU-GDPR (outgoing invoices)
 Archiving obligations
(Location of the archive servers)

Example: Archiving of Invoice Retention Periods
5years
e.g. Greece
6years
e.g. Cyprus, Malta,
United Kingdom
7years
e.g. Austria, Belgium,
Netherlands
8years
e.g. Hungary
10years
e.g. Czech Republic, France,
Germany, Netherlands
(for real estate), Italy, Poland,
Portugal, Romania, Slovenia,
Spain, Sweden, Switzerland
11years
e.g. Croatia
15years
e.g. Belgium (for capital
goods)
20years
e.g. Slovenia (for real estate)

Stumbling Blocks for E-Invoicing
1. Formats
3. Master data
4. Onboarding
5. In-house

Master Data inconsitencies at invoice receipt due to bad OCR scans
Invoice data from suppliers is not the same as the supplier master data
 Address
 bank account
Duplicates exist in the customer master record e.g.
 Street, P.O. Box
 AG, formerly GmbH
Article data of the invoice are not identical with the order data
 item number
 packaging unit
Delivery Note (or Advnaced Shipping Notification) is posted too late
 Delays in receiving related invoice verification

master data quality
Vendor master data from the FiBu/ERP system
Which master record is the right one?
Supplier no. supplier name Item No. Supplier Street supplier location bank account
4562 Hifi Total AG 5737 Lerchenweg 1
24662 Example
location
IBAN 3003330132165498
5757 Hifi Total GmbH 2672 Lerchen Way 1
24662 Example
location
IBAN 3003330132174372
1321 Hifi Total AG 5737 Hillmannplatz 45 35626 Steinbach IBAN 3003330132165498
Article -No Description
5737 Television 50 inch
HiFi Total GmbH
people's bank
IBAN 3003330132165498

master data quality
Open order data from the FiBu/ERP system
Which master record is the right one?
order number position article description order quantity unit unit price
32622018 1 Television 50 inch 1 pallet 1.000,00 €
32622019 1 Television 50 inch 1 slice 1,00 €
32622019 2 Television 50 inch 2 slice 1.000,00 €
Order number 32622018

1. Formats
3. Master data
4. Onboarding
5. In-house

Onboarding suppliers - a must for success
What kind of onboarding can you afford?
1. As cooperation
 Supplier letter with the request from date X, invoices to a specific email address,
in a particular form. (ZUGFeRD or at least PDF by mail)
2. By obligation
 Supplier letter and enforcement of the new terms and conditions of purchase.
• Invoice exclusively in PDF form by mail, ZUGFeRD or EDI.
• Cost share for processing paper invoices

Onboarding suppliers – Typical success rates
Supplier (Invoice Issuer) Customer (Invoice reciever)
Cooperative roll-out
approx. 1 to 10 %
with a very dynamic customer base
approx. 5 to 50 %
with a stable custoemr base
approx. 40 to 75 %
in the case of strong market power
approx. 1 to 10 %
in the case of low market power
Obligationary Roll-Out approx. 50 to 90 % Not applicable
Roll-out initiator

Steps of the SEEBURGER Supplier-Onboarding Service
Onboarding strategy
Customer &
SEEBURGER
Initialization of Onbording
SEEBURGER
Organizational Onboarding
SEEBURGER
Reporting
SEEBURGER
supplier takeover
client
input
analysis
 partner
 demands
planning
ruling
 drain
 responsibilities
Setup & Configuration CMP
Initial communication
with suppliers
Implemenation Webcast
(max. 2 x EN / 2 x local
language)
Start e-mail campaign
Integration of the Key Account
Management (KAM) of the
customer
Coordination with KAM
campaign tracking
First reminder after 14
days
Escalation to Key
Account Management
after 28 days
Transfer of Onboarding
Customer to SAP System
acceptance test
tracking
by KAM
output
Onboarding strategy
Campaign plan
Milestones
CMP ready
All data for onboarding
campaign available
Onboarding list
for further prosecution
Supplier list with
results
Info about onboarding
results
Sucessful master data
import
planning onboarding onboarding check check

Stumbling Blocks for e-invoicing
1. Formats
3. Master data
4. Onboarding
5. In-house

Savings through electronic processing of incoming and outgoing invoices
 Minimization of cash discount losses
 Minimization of the dunning volume
Standardize and accelerate invoicing processes
 Formats in Invoice Receipt
• EDI
• Eail + PDF
• Email + ZUGFeRD/xinvoice
 Legal requirements (archiving / GoBD)
Creation of transparency in incoming and outgoing invoices
Implementation of new flexible workplace models in the accounting department

1. Formats
3. Master data
4. Onboarding
5. In-house
6. Market demand of the trading
partners

Market requirements of the most diverse trading partners
Portals
 Portals of
tax authorities
 Portal of
customer (Invoice
recipient)
(e.g. SAP ARIBA)
1
Single invoice /
collective invoice
4
EDI Formats
(EDIFACT, ANSI
X.12, PEPPOL,....)
 Customers EDI-Guidlines
3
Communication
Type
 AS/2
 AS/4
 OFTP2
 SFTP
 Email
2

Solution Portfolio for the Challenges
smart-eInvoice
Outbound
SEEBURGER
purchase-to-pay

Thank you very much
Questions or remarks?
We are here for you!
www.seeburger.com

© Copyright 2019 SEEBURGER AG. All rights reserved.
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