Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

TriFinance - Seminar e-invoicing

2,990 views

Published on

Beyond e-invoicing - a pragmatic approach to optimize your financial processes

  • Be the first to comment

TriFinance - Seminar e-invoicing

  1. 1. Click to edit Master title styleClick to edit Master title styleBeyond e-InvoicingA pragmatic approach tooptimize your financial processesFROM INSIGHTTO REALIZATIONoptimize your financial processes
  2. 2. Click to edit Master title styleClick to edit Master title style1. IntroductionTeam• Walter Deprins• Jos Feyaerts• Christophe Van Olmen• Benjamin CoumontTimingFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION2Beyond e-invoicingTiming• 16h30 – 18h30: seminar• 18h30 – 20h00: drink & biteSlidesQ&A
  3. 3. Click to edit Master title styleClick to edit Master title style1. Introduction2. Facts, figures & trends3. The new legal framework4. OpportunitiesContentFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION4. Opportunities5. Building blocks6. Our approach7. Conclusion3Beyond e-invoicing
  4. 4. Click to edit Master title styleClick to edit Master title style1. IntroductionBy using our e-invoicing:no envelopes or looking after your cup of coffeebetween piles of invoices.With our e-invoicing you will save time and eliminate input errorsYou can simply download invoice data as a PDF or structured fileFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION4You can simply download invoice data as a PDF or structured fileAfterwards you can load it into your ERP.You can also view process related documents as orders andtransport documents on our portal. You can even downloadthem.Beyond e-invoicing
  5. 5. Click to edit Master title styleClick to edit Master title style1. IntroductionFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION5Beyond e-invoicing
  6. 6. Click to edit Master title styleClick to edit Master title style“IS THIS REALLYAN IMPROVEMENT1. IntroductionFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATIONAN IMPROVEMENTFOR THE RECEIVER?”6Beyond e-invoicing
  7. 7. Click to edit Master title styleClick to edit Master title style1. IntroductionWhy still a traditional invoice process?Digital isnt “special” anymore - it’s the new “normal”FROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION7Beyond e-invoicing
  8. 8. Click to edit Master title styleClick to edit Master title style1. IntroductionFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION8Beyond e-invoicing
  9. 9. Click to edit Master title styleClick to edit Master title style1. IntroductionFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION9Beyond e-invoicing
  10. 10. Click to edit Master title styleClick to edit Master title style2. Fact, Figures & TrendsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION10Why low market penetration?• Chaos: formats, portals, …• No clear concepts• Complex legislation• Focus on technology for authenticity• Format wasn’t allowed to changeBeyond e-invoicing
  11. 11. Click to edit Master title styleClick to edit Master title style2. Fact, Figures & TrendsPDF printed (80%) not includedFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION11• B2B = ahead• Scandanavian countries are market leaderBeyond e-invoicing
  12. 12. Click to edit Master title styleClick to edit Master title style• Transaction Cost will erode quickly• PDF-Invoices by email will increaseFast by SME (In/Out) and in BtoC• The role of scanning will decrease2. Fact, Figures & TrendseInvoice€/Pcs.FROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• The role of scanning will decrease• XML will break through• Invoicing will become a multi-way solution• Increase in use of integrators12Trans.Cost/eBeyond e-invoicing
  13. 13. Click to edit Master title styleClick to edit Master title style2. Fact, Figures & TrendsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION13Beyond e-invoicing
  14. 14. Click to edit Master title styleClick to edit Master title style2. Fact, Figures & TrendsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION14Beyond e-invoicing
  15. 15. Click to edit Master title styleClick to edit Master title styleE-invoice: "an invoice that contains the information required in the EUDirective, and which has been issued and received in any electronic format”.– Structured Invoice: the format is pre-defined and known to the parties involved(xml, edi, csv, …)– Unstructured Invoice: refers to any data that has no identifiable structure (tiff,pdf, …)2. Fact, Figures & TrendsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATIONP-invoice E-invoicePrinted and sent by post File Transfer by Ftp in XML formatPc-fax directly printed on the fax Fax received at the pc-fax in PDFPrintshop Invoice by SMS and NFCMail (even when printed at customer)15Beyond e-invoicing
  16. 16. Click to edit Master title styleClick to edit Master title styleNew Rules, new possibilities:• Fundamentals of the EU directive: 2010/45/EU3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• VAT Highlights• Self-Billing• Related laws and upcoming initiatives16Beyond e-invoicing
  17. 17. Click to edit Master title styleClick to edit Master title styleThe new Invoicing fundamentals of the EU-Directive:2010/45/EU1. Actual supplies2. The auth-enticity3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION2. The auth-enticity3. The Integrity4. Business controls as an reliable audit trails5. Readability and Archiving6. Paper invoices faces the same rules as an einvoice17Beyond e-invoicing
  18. 18. Click to edit Master title styleClick to edit Master title styleIt must reflect actual supplies• It is up to each taxable person (issuer and receiver)to ensure that the invoice information beingexchanged accurately reflects an actual supply.3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATIONexchanged accurately reflects an actual supply.• Clear description of the service /goods ismandatory with the date of the taxable event.18Beyond e-invoicing
  19. 19. Click to edit Master title styleClick to edit Master title styleAuthenticity of the origin• means the assurance of the identity of thesupplier or the issuer of the invoice3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• an obligation for the taxable person receivingthe goods or services and obligated for thetaxable person making the supply• both can ensure the authenticity of the originindependently of each other.19Beyond e-invoicing
  20. 20. Click to edit Master title styleClick to edit Master title styleIntegrity• “Integrity of the content" means that the content requiredaccording to this Directive and BE-Laws has not been altered• The format is allowed:3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION– The change processes must be documented in an audit trail– Format relates to the presentation– The conversion of the format must be replicable (storage can be inyour own ERP system)– All mandatory fields must be available• You can freely switch between p –and e-invoices• We advise you to keep the original format20Beyond e-invoicing
  21. 21. Click to edit Master title styleClick to edit Master title styleBusiness controlscan be used to establish reliable audit trails linking invoices and supplies• thereby ensuring that any invoice complies with those requirements.(whether on paper or in electronic form)• The authenticity and integrity of electronic invoices can also be3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• The authenticity and integrity of electronic invoices can also beensured by using certain existing technologies– such as Electronic Data Interchange (EDI) and advanced electronic signatures.• taxable persons should not be required to use any particularelectronic-invoicing technology. As there exist different technologies• The depth of detail of documentation depends on the size of yourcompany• NB: p-invoice is subject to the same law21Beyond e-invoicing
  22. 22. Click to edit Master title styleClick to edit Master title style“The use of businesscontrols to ensureauthenticity”, whatdoes it mean?3. The new legal framework“The use of businesscontrols to ensureFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATIONdoes it mean?22controls to ensureauthenticity”, moreclear?Beyond e-invoicing
  23. 23. Click to edit Master title styleClick to edit Master title styleReadability and archiving• The mandatory content of an invoice must be able to bereproduced at any time in a readable way.• Period 7 years after revision period of VAT3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• Period 7 years after revision period of VAT• The applicable national archiving rules depend in generalon the place of delivery (localization rule)• p-invoices need to be kept within Belgian borders• e-invoices can be stored anywhere, must be accessible inBelgium at any time23Beyond e-invoicing
  24. 24. Click to edit Master title styleClick to edit Master title stylePaper invoice: same rules as e-invoice• EU Directive 2010/45/EU regarding the rules on invoicing aims to promote andfurther simplify invoicing rules by removing existing burdens and barriers.• It establishes equal treatment between paper and electronic invoices (thesame process for paper invoices can be applied for e-invoices) without3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATIONsame process for paper invoices can be applied for e-invoices) withoutincreasing the administrative burden on paper invoices and has the aim topromote the uptake of e-invoicing by creating the freedom of choice inensuring the authenticity of origin, integrity of content and legibility• The implicit agreement is the major remaining difference between p –and e-invoice• We advise for explicit agreements integrated in contracts and generalpurchase and sales conditions clarifying: format, fields, connection data,Spam filter, confirmations, login’s etc.24Beyond e-invoicing
  25. 25. Click to edit Master title styleClick to edit Master title styleVAT highlights• An invoice should be made at least the 15th calendar day following theperiod of VAT due• A clear description of the delivered service or goods must be used• Entrance of the VAT Cash-system: Conversion year 20133. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• Entrance of the VAT Cash-system: Conversion year 2013• VAT isn’t deductible because of the existence of an invoice, but onoccurrence of a taxable event• The are two taxable events:– The delivery of the goods or the execution of the service– The payment– Mandatory to mention: the date of execution if different of the invoicedate• Be aware of the impact on your ERP systems:– The point of VAT declaration is depending on your payments and receiptsand not only on your invoice registration25Beyond e-invoicing
  26. 26. Click to edit Master title styleClick to edit Master title styleVAT highlights• Tax is only deductible at the client in the period that supplier hasdeclared it.• Conversion year 20133. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• Conversion year 2013– In general: 2013 is a conversion year– Be aware that no conversion period is granted for intra-community transactions26Beyond e-invoicing
  27. 27. Click to edit Master title styleClick to edit Master title styleSelf-Billing• The invoice is made by the recipient of the goods or services. Itenables to reduce the level of complexity of the incoming invoices tothe level of the outgoing.• Useful areas3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• Useful areas• Service suppliers (freelancers, subcontractors, outsourcing, …)• Consignment stocks (the consumption of)• Transportation bills (taxi’s, …)• Major changes• Implicit general agreement and not an agreement by invoice• Separate numbering for each supplier• Can also be used for corrections on invoices made by your supplier• Circular in preparation (by the tax authorities)27Beyond e-invoicing
  28. 28. Click to edit Master title styleClick to edit Master title styleRelated laws end upcoming initiatives• Directive 2011/07/EU: on combating late payment in commercialtransactions should be converted in Belgian laws by 16/03/2013.Still under construction30 day rules with max 60 days as exemption3. The new legal frameworkFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• New Circulaire about self-billing to adopt the old (Circulaire nr. AOIF 48/2005(E.T.110.313) dd. 08.12.2005) to the new VAT law• The proposal of modernizing the law about security rights onmovable assets :– retention and reservation of ownership– the installation of a register of all pledges– Mortgage on the commercial fund must be converted into a pledge.28Beyond e-invoicing
  29. 29. Click to edit Master title styleClick to edit Master title styleFrom Insight to Opportunity1. Savings4. The OpportunitiesFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION2. Efficiency Improvements3. Financial Supply Chain process improvements4. E-communication29Beyond e-invoicing
  30. 30. Click to edit Master title styleClick to edit Master title styleClick to edit Master title styleFor invoice recipients For invoice issuersCost savings: estimated saving potential4. SavingsFROM INSIGHTTO REALIZATIONBeyond e-invoicing
  31. 31. Click to edit Master title styleClick to edit Master title styleWhy change your business to the concept of e-invoicing?4. Efficiency improvements68%70%80%Efficiency gainsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION3152%47% 46%41%35%28% 28%25%0%10%20%30%40%50%60%Reduce overallprocessing costsRemove paperfrom A/PdepartmentBetter use offinance teamresourcesSpeed up invoiceapproval cycletimesFewer errors Better cashmanagementReduce lostinvoicesReduced debtordaysimprove visibilityBeyond e-invoicing
  32. 32. Click to edit Master title styleClick to edit Master title style4. Financial supply chain processoptimization Invoicecreated oncebookedtwiceAutomatedinvoicematching (O&I)Clear PaymentReferencesBetter use ofcash discountsSegregation ofdutiesE-invoicing willbe the push toe-administrationBetter visibility,higherefficiency, lessadministrationFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION32Better visibility,higherefficiency, lessadministrationBeyond e-invoicing
  33. 33. Click to edit Master title styleClick to edit Master title style• Invoice Marketing– Invoices could be an essential part of yourcommunication plan– Use social media in your dunning process, e.g.:rewards offered on social media for early payment4. E-communicationFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATIONrewards offered on social media for early payment– Invites / reminders by sms• Is this the end of the p-invoice?– NO important to segment your customer!33Beyond e-invoicing
  34. 34. Click to edit Master title styleClick to edit Master title style5. The building blocksFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION34Beyond e-invoicing
  35. 35. Click to edit Master title styleClick to edit Master title style5. The building blocksThe possibility to use different data-formats39%28%25%25%30%35%40%45%FROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION3518%13%8%0%5%10%15%20%25%As email invoices (PDFor equivalentattachments)As XML e-invoicesusing a serviceproviderThrough point-to-pointelectronic invoicing(EDI)Through a third-partyweb service or portalAs XML e-invoices notusing a sericeproviderwe do not send outany invoiceselectronicallyBeyond e-invoicing
  36. 36. Click to edit Master title styleClick to edit Master title style5. The building blocksScannerPDFArchivingp+ePortalsERPArchieveViewere-invoicing is a concept not a softwareOCRIntegratorARMaster DataFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION36PrintshopWork -Document flowXML + EDIFACTstructured formatPayment-platformPortalsAP/ARSelf-BillingAPSSCMaster DataBeyond e-invoicing
  37. 37. Click to edit Master title styleClick to edit Master title styleIPAAS is the ETL of data management5. The building blocks: IPAASExtract data, Transform the formats, Load data in the target systemMajor ChallengeFlexible management ofmulti-flows and multi-formatsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATIONSaaS: Software as a ServiceIpaaS: Information Platform as a Service37formatsFormat standardizeThe different formatsattempt hasn’t beenreally successfulBeyond e-invoicing
  38. 38. Click to edit Master title styleClick to edit Master title styleIntegratorArchiefAR/AP5. The building blocks : Integrator modelspecifiedformatstructureddata–allformatsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION38BtoB, BtoG,BtoCPrintshopStructuredData–specifiedUnstructured&structuredIntegratorBeyond e-invoicing
  39. 39. Click to edit Master title styleClick to edit Master title styleThe building blocks : Routing-issueInvoicing address announced by KBO• Changes possible, transition periodwith automatic re-routing as it iswith the Post• Easy to apply• No extra hurdles for SME byobligating him going to a portal• In the Post-world we weren’t usingFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION39Invoicing e-mail outbound: AR.invoicing@trifinance.be;AR.Trifinance@TheIntegratorB.comInvoicing e-mail Inbound: AP.invoicing@trifinance.be;AP.Trifinance@TheIntegratorA.com• In the Post-world we weren’t usingregistered mails for invoices.• FTP and other means still possibleBeyond e-invoicing
  40. 40. Click to edit Master title styleClick to edit Master title styleConclusions• Need for an integrated concept, covering multiple flows andformats• Segment your debtors and creditors depending:5. The building blocksFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• Segment your debtors and creditors depending:size, technological skills, payment habits, etc.• Integrator tools will become important to give every partner amaximum flexibility• Paper invoices will remain and have their relevance for specificsegments and situations40Beyond e-invoicing
  41. 41. Click to edit Master title styleClick to edit Master title style6. e-invoicing - our approachFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION41Beyond e-invoicing
  42. 42. Click to edit Master title styleClick to edit Master title style• Don’t deny the use of good enough technologies for lowersegments (PDF-Text, XML, Excel-Templates, are allowed) – thedigital supply chain will become the new normal…• Pushed and supported by EU and government initiativesConclusionsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION• Have a holistic view of the whole fin. supply chain andmarketing aspects. Take the opportunity to optimize youroperational processes• Look at the fiscal differences between EU member states.• There’s a lot of new legislation coming up in 2013 about thefinancial supply chain: take it as an opportunity42Beyond e-invoicing
  43. 43. Click to edit Master title styleClick to edit Master title style• For implementation– Segment your suppliers and clients and keep the boarders low forPME partners– Master data is important for the automation in the invoice process– Enforce the e-invoice from the beginning and support the changeprocess at your partners– Communicate with your business partnersConclusionsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION– Communicate with your business partners– Do not go for a 100% solution but get started– Use the 80/20 Pareto, the possibilities of multi ways and the allowedformat conversion• Use flexible solutions – agility is important43“think big, start up small, scale up fast!”Beyond e-invoicing
  44. 44. Click to edit Master title styleClick to edit Master title style• E-invoicing based on management theorie:• Mintzberg: Destructive innovations:The new Legal frame work versus digital signature for authenticity, theopportunity of the change of format• Dr. Deming : CIP, Kaizen, MudaCreating an invoice once booking it twice• Goldratt: The Goal: Theorie of constraints, ThroughputClear vision on the global cash conversion cycleeInvoicing: by the management classicsFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATIONClear vision on the global cash conversion cycleThe bottelnecks for a general application are brought down• Chris Anderson: The long tail The term long tail as describing the invoicingstrategy of invoicing a large number to different partners with relatively smallamounts– usually in addition to EDI invoicing to fewer popular large accounts.• Management by exceptions:Workflow and PtoP ERP-process will become an e-invoicing processanaged by exceptions/deviations.• Peter Hinssen: The new normal and good enough thechnology:E-invoicing makes it possible to communicate with afocused invoicing through the enterprise social networking44Beyond e-invoicing
  45. 45. Click to edit Master title styleClick to edit Master title style“THANK YOUFORFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION45Beyond e-invoicingFORYOUR PRESENCE!”
  46. 46. Click to edit Master title styleClick to edit Master title styleTriFinanceFROM INSIGHTTO REALIZATIONFROM INSIGHTTO REALIZATION46Beyond e-invoicing

×