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a glimp into the future of electronic invoicing
1. A glimp into the future of Electronic Invoicing
the revised and updated edition
Be ready for green d®iving on the electronic business highway
November 2011
(originally published April 2009 )
2. DanGa
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My Vision on Electronic Invoicing is of an
electronic business highway in the cloud above us
E-merging technologies & growing business networksE-merging technologies & growing business networks
are shaping the future ofare shaping the future of Electronic BusinessElectronic Business intointo
an open and intelligent information service highwayan open and intelligent information service highway
whereinwherein Electronic InvoicingElectronic Invoicing fits as a tiny littlefits as a tiny little exchange instanceexchange instance
that enablesthat enables smart and fast reachsmart and fast reach toto connected partnersconnected partners
3. DanGa
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The focus of the electronic business highway is
on the Exchange Domain, … business exchange services in
the end-to-end trade process
Electronic Invoicing is part of the end-to-end trade process …
Business Services are provided in the Entity Domain, focus on automation of Buyer and Seller processes
Exchange Services are provided in the Exchange Domain, focus on interoperability between trading entities
(Purchase-2-Pay and Order-2-Cash cycle)
Six Actors in the trade process
Buyer (invoicee, payer)
Seller (invoicer, payee)
Seller’s Bank
Buyer’s Bank
Seller’s Tax Authority
Buyer’s Tax Authority
processes
data
4. DanGa
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The electronic business highway unlocks the wilderness
of business exchange processes & systems
Reducing complexity and risks while still being able to respond quickly (agile) to changes
in the market is one of the main objectives of most companies.
DanGa
Move core business functions into the inner circle
AND
guide non-core functions to the outer circle
Imagine what happens when you pull all the complexity
(functionality and technology) into the enterprise inner
circle
One can not reduce complexity and risks on its own, there are too many aspects involved.
Green driving on the electronic business highway requires business service connectors that bring you online for exchanging
information, let others worry about these complex exchange processes!
If everyone builds its own highway,
there will be chaos
5. DanGa
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Idea’s
&
concepts
R
ealSolutions
challenge
collaborate
THE PATH
SH
APE
TO
The electronic business highway enables real-time
business exchange services between trading partners
Multiple highways managed by intermediaries get
linked and transform into the super-highway that
enhances the reach of receivers and senders all
over the world
Leadership influences evolution of
electronic invoicing but does not
control it
Culture stimulates collaboration,
innovation and information
sharing
People made electronic invoicing happen, people took away all hurdles
6. DanGa
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Are you already motivated to start driving on the
Electronic Invoicing corridor ?
Are you still hesitating to get onboard of Electronic Invoicing ? Consider
the risks of not being prepared for the e-questions of tomorrow and
lacking the strategic advantage of Electronic Business, bear in mind
The European Commission cleared legal and fiscal hurdles recently
Technology and standardisation are well on the way to maturity
Have you been thinking recently to move your e-mail to G-Mail or alternatives ?
Now go green and think again about G-Invoicing or Y-Inv oicing !
Why pull complexity into your enterprise when exchange of invoices is
all you are after, just realize / think about
Electronic Invoice exchange is non-intrusive, why make it a core function
There are strong players that made Electronic Invoicing their Core Business
Need to hear and see how far you can get, continue reading !
7. Electronic Invoicing, the current reality.
Breaking through the hype into the realm of real business strengths
8. DanGa
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The journey of electronic invoicing
observations on the present and future
The thoughts & view on the evolution of
Electronic Invoicing,
the first steps towards the Electronic Business Highway
where
data integration & process collaboration becomes simple
Functionality
and
Technology
Operational and
Legal requirements
E-invoicing
E-business
Market
Models
Costs and
Benefits
challenge
sim
plify
journey
the
to
Stay tuned for this journey
9. DanGa
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The journey
1. Introduction
2. Communication / Exchange Models
3. Building blocks
4. Legal and regulatory compliance
5. Influencing the Business Case
6. Trends – Proposed scenario’s
7. Steering on-boarding
10. DanGa
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What is Electronic Invoicing?
Different people have different perceptions
Electronic
Invoicing
Electronic
Invoicing
Electronic invoicing is the
production of electronic
compliant documents
for customers, making the
(current) paper
invoicing redundant.
Electronic invoicing is the fully
integrated and electronic process of
order intake, processing measurements and
sending invoices to customers.
Electronic solution for invoices with the
customer being able to process
electronic invoices (in any
format) and advantages for the
customer are realized.
Being able to present digital invoices
is not the same as doing business
electronically.
Electronic invoicing is sending the invoice
electronically accordingly customer
requirements
Digital invoicing is offering
customers a PDF-File with
detailed lines digitally. Electronic invoicing is offering an
electronic invoice that is compliant with
relevant laws & regulations
E-invoice
E-invoicing
eInvoice
eInvoicing
Keep in mind electronic billing and invoicing is not the same , they have a lot in common but
there are less stringent rules for invoicing to consumers (billing)
11. DanGa
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Why is Electronic Invoicing important ?
Possibility to achieve cost savings & obtain benefits
Quantitative – direct and indirect costs
Sender: 3 – 5 € per Invoice
Receiver: 15 – 25 € per Invoice
Qualitative – expected effects
Less errors / disputes
Faster payments / better use of Early Payment Discounts
Possibility to achieve competitive advantages
Enable Customers to achieve savings in their processes
Faster invoicing to end-customers
Improve the quality of the invoicing process and realize higher customer value
Government demands electronic invoices from its suppliers
10% by the end of 2010
80% within 3 years
12. DanGa
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Traditional Exchange of Trade Documents
SUPPLIER
Issue Product
Catalog
CUSTOMER CUSTOMER
Issue
Forecast
Receive
Confirmation
Process
Shipment
Issue
Purchase Order
Issue
Partner Data
Process
Product Catalog
SUPPLIER
Process
Forecast
Confirm
Sales Order
Create
Sales Order
Submit
Shipment
Process
Partner Data
Issue
Product Catalog
Submit
Invoice
Process
Dispute
MRP
Inventory
Process
Product Catalog
Process
Forecast
Confirm
Sales Order
Create
Sales Order
Submit
Shipment
Process
Partner Data
Submit
Invoice
Process
Dispute
Process
Payment
Issue
Forecast
Receive
Confirmation
Process
Shipment
Issue
Purchase Order
Issue
Partner Data
Process
Invoice
Submit
Dispute
Submit
Payment
order
response
invoice
despatch
forecast
Process
Invoice
Submit
Dispute
Submit
Payment
forecast
order
response
invoice
despatch
Process
Payment
product
info
product
info
e-mail
fax
post
e-mail
fax
post
e-mail
fax
post
e-mail
fax
post
party info party info
Most enterprises operating in the business-to-business domain are still – even today – supporting their
trade processes by the exchange of information on paper, by fax or email. The data is manually taken
over by administrative people and entered in the business supporting systems.
13. DanGa
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EDIFACT-based Exchange of Trade Documents
SUPPLIERSUPPLIER
Issue Product
Catalog
CUSTOMER CUSTOMER
Process
Product Catalog
Process
Forecast
Confirm
Sales Order
Create
Sales Order
Submit
Shipment
Process
Partner Data
Submit
Invoice
Process
Dispute
Process
Payment
Issue
Forecast
Receive
Confirmation
Process
Shipment
Issue
Purchase Order
Issue
Partner Data
Process
Invoice
Submit
Dispute
Submit
Payment
ORDERS
ORDRSP
INVOIC
DESADV
SLSFCST
MRP
Inventory
Issue
Forecast
Receive
Confirmation
Process
Shipment
Issue
Purchase Order
Issue
Partner Data
Process
Product Catalog
Process
Forecast
Confirm
Sales Order
Create
Sales Order
Submit
Shipment
Process
Partner Data
Issue
Product Catalog
Submit
Invoice
Process
Dispute
Process
Invoice
Submit
Dispute
Submit
Payment
SLSFCST
ORDERS
ORDRSP
INVOIC
DESADV
Process
Payment
PRODAT PRODAT
PARTIN PARTIN
Several national and international standard bodies, accounting and industry associations
have long propagated the use of Electronic Data Interchange with XML or EDIFACT for
direct exchange of business documents between trading partners.
14. DanGa
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The evolution path of Electronic Invoicing
Traditional: Phone, fax, paper
Communication: e-mail, web
presentment
Integration: XML standards,
Web Oriented Architecture
Collaboration: Networked
organisations
Synchronisation: Pure Peer-
to-peer networking, Ecosystem
Oriented Architecture
Technology is shaping
the e-invoicing world !
Need to have a high awareness of technology, data security and control
From tightly coupled to loosely coupled systems
15. DanGa
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The journey
1. Introduction
2. Communication / Exchange Models
3. Building blocks
4. Legal and fiscal compliance
5. Influencing the Business Case
6. Trends – Proposed scenario’s
7. Steering on-boarding
16. DanGa
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Communication / Exchange Models – Evolution
There are 3 commonly accepted exchange models in the world:
bilateral models
three-corner models
four-corner models
Presentment Portals
Seller Direct Model / Sales Portal
Invoice Presentment over the Web
Buyer Direct Model /Procurement Portal
Invoice Entry over the Web
17. DanGa
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Seller Direct / Buyer Direct Models
Seller creates 1:N Connection with CustomersSeller creates 1:N Connection with Customers Buyer creates 1:N Connection with SupplierBuyer creates 1:N Connection with Supplier
Invoice Presentment – Seller Direct
Model
The seller/biller is the dominant party and makes the invoice data
available to customers over the web or through e-mail or EDI /
XML transmission.
Supplier Customer
Seller’s
Bank
Buyer’s
Bank
register
notification
receive & process
complaint handling
payment
P
O
R
T
A
L
e-mail / XML /EDI
Biller benefits most of Online Invoice Presentment:
• Lock-in of Customers
• Improve cross- and up-selling
• Reinforce Seller’s brand identity
• Invoice looks and feels the same as paper-based document
Buyer benefits most of Online Invoice
Entry
• Lock-in of Suppliers
• Reinforce Buyer’s brand identity
Invoice Presentment – Buyer Direct
Model
The buyer is the dominant party and requires their suppliers to
deliver the invoice via the web or through e-mail or EDI / XML
transmission.
Supplier Customer
Seller’s
Bank
Buyer’s
Bank
register
complaint handling
P
O
R
T
A
L
e-mail / XML /EDI
invoice
payment
18. DanGa
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Bilateral Models
Disadvantages of bilateral models:
An electronic connection need to be
established with each customer and
supplier.
Lack of common standards makes
alignment of processes and technology
difficult.
Small and medium-sized enterprises
(SME’s) find point-to-point connections
expensive.
Point-to-point connections demand
continuous changes in systems and
processes to keep up with trading
partners and these changes will have an
impact on all partner connections.
Retailer
Production
Supplier
Government
Buyers
Staffing
Storage &
Distribution
Logistics &
Transport
Retailer
Production
Supplier
Government
Buyers
Staffing
Storage &
Distribution
Logistics &
Transport
Many enterprises, in the past, entered into bilateral agreements with their trading partners
and established point-to-point connections. With the growing number of electronic
trading partners the number of individual arrangements needed to reach all their
counterparties becomes hard to manage. From a technological point of view the bilateral
models almost always end up in “digital spaghetti”.
19. DanGa
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Three-Corner Models
Advantages of three-corner models:
Trading partners need to establish / build
only one connection with the Electronic
Communication Network to reach all their
trading partners
SME’s find the B2B ECN a low cost and
user-friendly solution and service.
Connection to the B2B ECN does not
require high investments and the B2B
ECN hides systems and processes from
the outside world.
Changes only impact the connections to
the B2B ECN and not those with all
trading partners
In the three corner model a service provider, consolidator, handles the process of distributing
and/or receiving business documents on behalf of sellers and/or buyers, or other trading
partners. The service provider manages the data translation and ensures that the processing
and transfer of data is compliant with all types of regulations.
CONSOLIDATOR - HUB
B2B
Electronic Communication Network
Retailer
Production
Supplier
Government
Buyers
Staffing
Storage &
Distribution
Logistics &
Transport
CONSOLIDATOR - HUB
B2B
Electronic Communication Network
Retailer
Production
Supplier
Government
Buyers
Staffing
Storage &
Distribution
Logistics &
Transport
20. DanGa
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Four-Corner Models
Advantages of four-corner models
Several connected hubs provide a virtual
electronic communication network
extending the total reach to more suppliers
and customers.
Interconnecting e-Hubs requires
Interoperability agreements
Addressing and routing
Standardised format
Format conversions
Roaming agreements
Inter-network roaming charges
Guarantee authenticity of origin and integrity of
content across networks
Operator Certification
Validation criteria for operators
Four corner models involve connections between service providers, consolidators, and these
multilateral networks naturally emerged from the efforts of consolidators to increase reach to
better serve senders and receivers using their networks. These models are currently actively
deployed and established between service providers through bilateral linkages between them or
the creation of multilateral network solutions.
CONSOLIDATOR - HUB
B2B Electronic Communication Network
CONSOLIDATOR - HUB
B2B Electronic Communication Network
CONSOLIDATOR - HUB
B2B Electronic Communication Network
CONSOLIDATOR - HUB
B2B Electronic Communication Network
CONSOLIDATOR - HUB
B2B Electronic Communication Network
CONSOLIDATOR - HUB
B2B Electronic Communication Network
21. DanGa
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Mapping Distribution Models on the evolution path
for Electronic Invoicing
There is no ONE-SIZE-FITS-ALL model because every buyer and seller has unique characteristics and demands
A combination of models is
more suitable for large
companies
Seller or Buyer Direct
model for presenting
business documents and
direct interaction with
trading partners
Consolidator model for
exchanges documents
using international
standards
Consolidator model is more
appropriate for small and
medium enterprises
Ecosystem model is still
experimental, digital
business ecosystem
projects started in 2003
and are still evolving.
22. DanGa
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Consolidators need to increase Interconnectivity among
Electronic Invoicing hubs to better serve senders and receivers
Interconnecting e-Hubs requires
Interoperability agreements
Addressing and routing
Standardised format
Format conversions
Roaming agreements
Inter-network roaming charges
Guarantee authenticity of origin and integrity of
content across networks
Operator Certification
Validation criteria for operators
e-networking
hub e-networking
hub
e-networking
hub
Emerging initiatives
Common eInvoice Address Registry (eGreen Pages)
Venture Hub Alliance
Adoption of the XML Advanced Electronic Signatures (XAdES)
by European countries
Roaming is interconnecting networks to provide real cross border reach, in a way that an operator can reach another operator’s users directly, nationally and internationally
23. DanGa
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The journey
1. Introduction
2. Communication / Exchange Models
3. Building blocks
4. Legal and fiscal compliance
5. Influencing the Business Case
6. Trends – Proposed scenario’s
7. Steering on-boarding
24. DanGa
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Building blocks for realizing electronic exchange
services
Message Broker
TRANSFORMATION
DISTRIBUTION
WEB
BPM
FORMATTING
E-Mail Server
DWH
RECEPTION
Transformation engines / ETL tools
Translate from internal to external message standard
Extract or load data from a database / ERP system
Distribution & reception
Distribute internal message from the transformation engine to the message broker or
the web.
Receive external message and deliver to the transformation engine
Message broker
Transport message to and from external parties using different transport protocols
Deliver or receive message to and from the transformation engine
Document Storage / Archive
7 years fiscal storage obligation
Business Process Management (BPM) & Workflow
Web presentment and online entry
Present in PDF or HTML
Enter or retrieve documents online
Download or upload as CSV, PDF or XML
E-Mail server
Send PDF to trading partner
Send e-mail notification or SMS message
Formatting
Reformat print file to the company style layout in PDF or AFP for print factory
OCR SCANNING
Scanning and Optical Character Recognition (OCR)
25. DanGa
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Building blocks from a Buyer Direct perspective
Web
Transformation
Distribution
Reception
Message Broker
Formatting
E-mail Server
Document Storage
BPM
Scanning & OCR
26. DanGa
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Building blocks from a Seller Direct perspective
Web
Transformation
Distribution
Reception
Message Broker
Formatting
E-mail Server
Document Storage
BPM
Scanning & OCR
27. DanGa
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Building blocks provided by the consolidator
(thin/thick)
Thick consolidator:
Processing and exchange
of a complete range of
documents
Multiple types of
presentment and
exchange services
Connect directly to the
business applications
through EAI
Exchange XML with
backend systems
Thin consolidator:
Processing limited number
of documents
Connect to internal
exchange components /
services
Exchange XML and/or
PDF
28. DanGa
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……but Investment is a Concern in this Economybut Investment is a Concern in this Economy
On-Premise Cloud
Hidden Costs Transparency….. no hidden costs
29. DanGa
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What kind of software is available and
where can we get the building blocks ?
Only a fraction of the players in the field of Business-2-Business IntegrationOnly a fraction of the players in the field of Business-2-Business Integration
Buyer Direct
Seller Direct
Consolidator
Own development Open Source Commercial
O
N
P
R
E
M
I
S
E
O
N
D
E
M
A
N
D
Two ways to install these building blocks:
On-premise solutions
Commercial software or
Open source software
On-demand solutions
Integrated or
External
Three types of software:
Own development
Open Source
Commercial
on-demand
on-premise
components total
30. DanGa
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Building blocks and distribution models mapped
on the evolution path
The componentization of these building
blocks allows for a staged implementation
approach alongside the evolution path of
electronic invoicing AND with the freedomof
choice for in-house or out-house solutions.
There is no ONE-SOLUTION, multiple channels are required
31. DanGa
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E-Invoicing Communication Channels
Direct integrations
EDI or XML Invoices
PO Flip
Supplier ‘flips’ purchase order into an e-Invoice in the Web Portal
Web Invoice (Web-based Forms)
Supplier submits Invoice via Web Portal
File Upload
Supplier uploads invoice data via Web Portal
Scan to e-Invoice
Paper Invoices are transformed into e-Invoices
PDF Invoices received via e-Mail are transformed into e-Invoices
32. DanGa
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Align Accounts Receivable Automation with your
broader sales strategy
When selecting technologies, remember the best solutions are often the
simple ones.
Take a strategic view – look at the whole procurement process
Look for a holistic solution – integrate, re-use and communicate.
Points to consider:
the interoperability needs of your technology. An integrated technology strategy will
need to fit with the components of your procurement processes. Limit your risk –
don’t use technologies that would be difficult or might not integrate.
scalability – make sure your solution fits your needs
open or modular products – look at all the possibilities. Ask the question – can you
use software that conforms to standards and supports the interchange of data
using open standards and formats?
33. DanGa
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Ensure all functions for the future are available
INTEGRATION
E-INVOICE
SERVICE
Communication Input Channels
integratedPOSTAL NETWORKS
SUPPLIERS EUROPE, US, ASIA-PACIFIC
AP Invoice Management
PO
SAP
INV
PARTNER MANAGEMENT
Integration
SELF-CARE ON-BOARDING
SCANNING & OCR
CORRECTION OF INVOICES
WEB / INTERNET
MESSAGING
EDI
PERFORMANCE ANALYSIS / KPIs
PARTNER COMMUNICATION
USER MANAGEMENT
DISPUTE HANDLING
LiveLink Archive
PO FLIP
XML / CSV UPLOAD
INVOICE ENTRY
INVOICE VALIDATION
SELF-BILL
PO XMLPDF
PDF VM
SELF-BILL
WEB
1. Multi-format
EDIFACT
HR-XML
UBL 2.0
UN/CEFACT
ISO 20022
RosettaNet
PAPER
…
1. Multi-channels
POSTAL
PAPER
E-MAIL PDF
WEB
NETWORKS
34. DanGa
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Current Players
Crossgate / Hubwoo
IBM Sterling Commerce
Ariba
Liaison
Descartes / interCommit
B2Boost
Certipost
E2Open
Bostecht – Chainbuilder
XAware
Talend
Jitterbit
35. DanGa
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The journey
1. Introduction
2. Communication / Exchange Models
3. Building blocks
4. Legal and fiscal compliance
5. Influencing the Business Case
6. Trends – Proposed scenario’s
7. Steering on-boarding
36. DanGa
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Electronic
Invoice
Authenticity of invoice
VAT Refund
Readability
Controllability by Tax Authorities
Technical Interoperability
Integrity of data
Storage
Acceptancein other European
jurisdictions
EDI Agreement or
Advanced Electronic Signature
EDI plus authenticity or
Electronic Signature
EDI Agreement or
Advanced Electronic Signature
Audit
requirements
7 – 11 years 7 – 11 years
Regulatory requirements for electronic invoicing in
Europe are developed iterative
European Council Directive 2001/115/EC
Supplier must ensure that an invoice is issued,
either by himself or by his customer or, in his
name and on his behalf, by a third party.
Acceptance (of the e-invoice) by the customer
Ensure Authenticity of origin (sender is the true
source) and Integrity of content (no alteration
of data) of the invoice is guaranteed by:
Electronic Data Interchange (EDI) with contracted
security processes
Advanced Electronic Signature (with or without a
qualified signatures)
Other means to be accepted by Tax Authorities
Place of storage and time period for secure
storage of electronic invoices.
Ten mandatory items of information with the
possibility of an additional four items in specific
circumstances
Different countries mean different regulations. To ensure a internationally compliant solution it is imperative
to understand the differences in order to overcome these differences.
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Good news, regulatory requirements are changing
on short notice!
Tackle fraud
Coincide the date of supply of intra-community transaction and the date of
chargeability of tax. Tax becomes chargeable on the date of supply (the
chargeable event)
The invoice has to be issued before the 15th of the month following the date of
supply.
Remove legal barriers
Treat the transmission of paper and electronic invoices equally by removing the
conditions for (advanced) electronic signatures and EDI.
Notification and acceptance by the receiver of the invoice and Tax
Authorities is no longer required instead normal commercial practice will apply.
Storage of invoices
Period of storage: Common storage period of 6 years within Europe for VAT
invoices.
Format of storage: Paper invoices may be converted into electronic form for
storage purposes. Storage of invoices in original format is no longer required.
Place of storage: No conditions for the place of storage other than that the
invoice must be available without undue delay. The invoice should no longer be
online available when held outside the Member State of the supplier or customer.
Notification of the place of storage is no longer required.
Translation of invoices
Translation of invoices may still be requested but for particular invoices only.
Reduce burdens on business, increase the use of e-invoicing, support small and medium sized enterprises (SMEs) and help Member states tackle fraudReduce burdens on business, increase the use of e-invoicing, support small and medium sized enterprises (SMEs) and help Member states tackle fraud
The proposal
COM/2009/21
simplifies,
modernises and
harmonises the
VAT invoicing
rules.
38. DanGa
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VAT Directive 2010/45/EU of 13 July 2010
On 13 July 2010 the Council adopted Directive 2010/45/EU amending Directive 2006/112/EC on
the common system of value added tax as regards the rules on invoicing. This Directive, which will
be transposed by 1 January 2013, sets out new VAT rules as regards e-invoicing and removes the
obstacles to the uptake of e-invoicing by creating equal treatment between paper and e-invoices,
while also ensuring that no additional requirements are imposed on paper invoices.
The authenticity of the origin, the integrity of the content and the legibility of an invoice, whether
on paper or in electronic form, shall be ensured from the point in time of issue until the end of the
period for storage of the invoice.
“Authenticity of the origin” means the assurance of the identity of the supplier or the issuer of the invoice.
“Integrity of the content” means that the content required according to this Directive has not been altered.
Each taxable person shall determine the way to ensure the authenticity of the origin, the integrity of
the content and the legibility of the invoice. This may be achieved by
any business controls which create a reliable audit trail between an invoice and a supply of goods or services.
using certain existing technologies, such as Electronic Data Interchange (EDI) and advanced electronic
signatures.
Note: Taxable persons should not be required to use any particular electronic-invoicing technology.
39. DanGa
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Adoption of e-Invoicing / VAT Directive in
European Member States
Denmark (2005)
Netherlands (February 2009)
Norway (2012)
By 1.7.2011 all state agencies and health authorities should be able to receive invoices
electronically in designated standard format.
By 1.7.2012 all members of the public sector (including municipal sector) must be able to
receive invoices in standard format.
By 1.7.2012 all suppliers (incl. SME’s and sole proprietors) must sent invoices to the public
sector electronically. The invoices must be sent in the national standard EHF (Elektronisk
handelsformat) which is based on the PEPPOL Business Interoperability Specifications (BIS)
Germany (September 2011 – Steuervereinfachungsgesetz 2011)
Belgium
Finland
…
40. DanGa
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The journey
1. Introduction
2. Communication / Exchange Models
3. Building blocks
4. Legal and fiscal compliance
5. Influencing the Business Case
6. Trends – Proposed scenario’s
7. Steering on-boarding
41. DanGa
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Cost drivers e-Invoicing with Customers
42. DanGa
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Cost drivers e-Ordering with Customers
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Cost drivers e-Invoicing with suppliers
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Cost drivers e-Ordering with suppliers
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Critical factors driving the Business Case for
Electronic Invoice Adoption
Technological readiness and process
maturity determine the cost of
implementation
‘Sustainability’ – the positive
economical, social and environmental
aspects influence the willingness to
adopt
External pressure (customers –
competitive pressure, government –
regulations) accelerate commitment
Pro-active On-boarding enables
success
On-boarding
Approach / Effort
Adoption
Time & Rate
Costs Savings & Expenses
Technological
Readiness
Willingness & Commitment
Incentives & Charges
Transaction
Volume
46. DanGa
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Perceived benefits are key determinants
for adopting Electronic Invoicing
Direct advantages: Increased internal efficiency of the organisation
Cost savings achieved by time savings, reduced paper usage and costs for postage
Freeing up staff resources for other tasks
Interest revenues and less invoice reminders
Risk and obstacles:
Possible high investments and
integrations costs
New competence requirements
Security and operational
reliability
Relocation of people or possible
made redundant
Perceived benefits: direct advantages are measurable and account for 4,5 €
Indirect advantages: Impact on business processes and relationships
Socially responsible business (care for people, animals, surroundings and environment)
Strengthening of customer relations
risk
indirect
advantages
perceived
benefits
adoption
direct
advantages
47. DanGa
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External pressure / Organisational maturity & readiness
are key motivators for adopting Electronic Invoicing
External pressure: Influence
from the organisational
environment
Bargaining power of strong
trading partners
Pressure from competitors or
market sectors (automotive,
chemical, health)
External pressure determines willingness & commitment
S o m e in d u s try s e c to rs e lim in a te d b a rrie rs b y p ro v id in g s ta n d a rd is a tio n (m e s s a g e s ,p ro to c o ls )
Technological and process maturity determines organisational readiness
Organisations with highly integrated,
computerised processes are better prepared
competitive
pressure
external
pressure
adoption
pressure from
trading partners
process
maturity
organisational
readiness
adoption
technology
maturity
48. DanGa
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Adopting Electronic Invoicing brings cost savings
and requires vision on future steps & ambitions
Setup and roll-out cost
External
Ambitions
Internal
Ambitions
Current Costs
Future Costs
Inhibitors
Maturity level
Company Structure
expenses
savings
Drivers
On-boarding Power
Number of invoices
Distribution costs decrease
Lower printing costs
Less paper spoilage
Lower postal costs
Cash flow acceleration
Immediate delivery
Faster processing
Less discrepancies
Faster dispute resolution
Better Customer experience
Reduction of queries
Internal and external ambitions
Most socially responsible company
Final goal is total electronic business
Most customer responsive and friendly
company
Cost savings result from the number of paper invoices that become electronic invoices
BUT these are driven by the number of customers that go green
49. DanGa
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Questions to be answered
Perceived benefits
External pressure
Maturity & readiness
Legislation & regulation
Costs & revenues
Interoperability
Important factors driving or inhibiting the adoption of electronic invoicing
What type of invoice-related information do your Customers receive and/or require ?
What do your Customers want and how ready are your Customers ?
How much pressure do you want to put on your Customers to adopt e-Invoicing ?
How willing are your Customers ?
How much effort do you want to put in on-boarding ?
50. DanGa
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The journey
1. Introduction
2. Communication / Exchange Models
3. Building Blocks
4. Legal and fiscal compliance
5. Influencing the Business Case
6. Trends – Proposed scenario’s
7. Steering on-boarding
51. DanGa
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The B2B Electronic Communication Network
Approach
ECN
SUPPLIER
Issue Product
Catalog
CUSTOMER
Process
Product Catalog
Process
Forecast
Confirm
Sales Order
Create
Sales Order
Submit
Shipment
Process
Partner Data
Submit
Invoice
Process
Dispute
Process
Payment
Issue
Forecast
Receive
Confirmation
Process
Shipment
Issue
Purchase Order
Issue
Partner Data
Process
Invoice
Submit
Dispute
Submit
Payment
ORDERS
ORDRSP
INVOIC
DESADV
SLSFCST
PRODUCT
DATA POOL
WEB
Due to the large variety of solutions and
standards implemented by business
partners it becomes impossible to reach and
meet the demands of trading partners in the
near future. Besides the technological
diversity some business partners have not
yet, or insufficiently, automated their
business processes.
Establish a multi-channel communication
network with your business community,
complementing the traditional
communication channels.
Target a FULL multi-channel
communication strategy via your B2B
Electronic Communication Network (ECN)
provider offering EDI – based documents
(EDIFACT and XML) and PDF via the web
triggered by e-mail.
52. DanGa
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The Electronic Communication Network is
breaking down technological barriers
The Electronic Communication Network is breaking down the technological barriers to
enterprise-wide information exchange and business process collaboration between enterprises
in- and outside Europe.
The E-networking Hub takes another approach in establishing connections between enterprises,
processes and applications.
The E-networking Hub connects enterprise business processes in a similar way that the Enterprise
Service Bus connects applications.
The Electronic Communication Network enables seamless information exchange between
enterprises in and across any value chain.
Enterprises competing in today’s world business environment are forced to
collaborate with multiple business partners AND business processes are spanning
multiple enterprises
Such collaborative business processes require exchange of different kinds of information between
heterogeneous enterprises and applications.
Opportunities and Challenges for Enterprises and Governments in a
Changing Global Business Environment
The answer is the Electronic Communication Network !
53. DanGa
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Logistics &
Transport
Storage &
Distribution
Buyers
Staffing
Government
Transport
Buyers
Sellers
Retailer
Supplier
Material
Supplier
Components
Production
Products
Head Office
Sales & Purchasing
E.C.N.
Head Office
Sales & Purchasing
transformation
distribution
reception
formatting
scanning & ocr
message broker
e-mail server
Data Warehouse
BPM
The Electronic Communication Network
Connected Business & System- wide Interoperability
Connected Business
processes & information
Integration
&
Interoperability
Systems
&
Services
collaboration
based on
Open
eXchange Standards
54. DanGa
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Fully electronic exchange using Product Data
Pools (GS1 GDSN) + Web Portal + Direct
ECNECN
SUPPLIERSUPPLIER
Issue Product
Catalog
CUSTOMER CUSTOMER
Process
Product Catalog
Process
Forecast
Confirm
Sales Order
Create
Sales Order
Submit
Shipment
Process
Partner Data
Submit
Invoice
Process
Dispute
Process
Payment
Issue
Forecast
Receive
Confirmation
Process
Shipment
Issue
Purchase Order
Issue
Partner Data
Process
Invoice
Submit
Dispute
Submit
Payment
ORDERS
ORDRSP
INVOIC
DESADV
SLSFCST
MRP
Inventory
Issue
Forecast
Receive
Confirmation
Process
Shipment
Issue
Purchase Order
Issue
Partner Data
Process
Product Catalog
Process
Forecast
Confirm
Sales Order
Create
Sales Order
Submit
Shipment
Process
Partner Data
Issue
Product Catalog
Submit
Invoice
Process
Dispute
Process
Invoice
Submit
Dispute
Submit
Payment
SLSFCST
ORDERS
ORDRSP
INVOIC
DESADV
Process
Payment
PRODUCT
DATA POOL
WEB
PRODUCT
DATA POOL
WEB
EPCGlobal Network – Track and Trace
55. DanGa
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EPCGlobal Network / GS1 GDSN
GS1 Global Data Synchronization Network
GTIN = Global Trade Item Number – standardized product identification
Identifies a particular kind of product.
GLIN = Global Location Item Number – standardized location identification
ensure the accuracy of master data throughout the supply chain
EPCGlobal Network
EPC = Electronic Product Code is a unique number that identifies a specific item in the supply
chain using RFID tags.
Identifies each individual instance of a product within the Supply Chain.
EPCGlobal Network allows Track and Trace
Track = manufacturers know when a product has been delivered to trading partners
Trace = manufacturers get a big-picture view of how their products move through the Supply Chain
The combination of GTIN and a unique serial number = Serialized GTIN (SGTIN) or
EPC
56. DanGa
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Trends in business functions and processes
The Convergence of – business functions crawling towards each other
AP Automation and Electronic Procurement
AR Automation and Electronic Commerce
The Rise of automating the value chain
E-Q2C – Quote to Cash
E-R2P - Requisition to Pay
Employee Portal
• Internal requisitioning using Catalogue or Free Form Buying
Supplier Portal
• Presentment of Purchase Orders
• Delivery of invoices via Upload or PO Flip functionality
• Maintenance of Catalogues
Integrated channel – XML/EDI messaging
The Renewed attention for EDI
EDI is HOT. No, really! By Benoit Lheureux | March 25, 2011
57. DanGa
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AP Automation
does / can not happen in isolation
Source: Deliver on the promise, Deloitte Consulting
Spend Performance
Management
58. DanGa
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Trends in the European Government sector
Increased attention for Public Procurement platforms
PEPPOL = Pan-European Public Procurement On Line (www.peppol.eu)
Large Scale Pilot project under the European Commission Competitiveness and
Innovation Programme (CIP) ICT Policy Support Programme (ICT-PSP)
Open e-PRIOR (electronic PRocurement, Invoicing and Ordering) is an open-
source e-procurement platform that allows practical implementation of
interoperable electronic services within any public administration.
e-PRIOR is a service-oriented platform that has been developed by the Directorate-
General for Informatics (DIGIT) of the European Commission and allows the European
Commission, the European Union Agencies and Institutions and their suppliers to
exchange post-award documents by using web services or over the PEPPOL network.
Launch of the European Multi-Stakeholder Forum (EMF) on e-Invoicing
(Launched 13 September 2011 in Brussel) and chaired by the European
Commission, brings together delegates on a national level and key
stakeholders from the user side of the market with the goal of broad-scale
adoption of e-invoicing in the European Union.
59. DanGa
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Trends – consolidation of service providers in the
marketplace.
Formation of the European E-invoicing Service Providers Association
(EESPA)
EESPA’s purpose will be to represent the supply side of the industry and its
customer interests in an area of increasing public policy advocacy and the ongoing
roll-out of a number of European-led initiatives to foster adoption.
Consolidation of service and solutions providers
Automatic Data Processing Inc.: Acquisition of DO2 Technologies (January 2010)
Bottomline Technologies: Acquisition of SMA Financial (Oktober 2010)
IBM: Acquisition of Sterling Commerce (August 2010)
Ariba: Acquisition of Quadrem (January 2011)
Ariba: Acquisition of b-process (October 2011)
SAP: Acquisition of Crossgate (November 2011)
Dun & Bradstreet: Acquisition of SupplierForce (November 2011)
Descartes System Group: Acquisition of InterCommitIT bv (November 2011)
60. DanGa
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Emerging trends in Cloud:
B2B Integration in the Cloud
Cloud Services Brokers and Cloud Integration Solution providers
Liaison Technologies
Hubspan – B2B Cloud Integration
GXS – Trading Grid
SnapLogic – Cloud to Cloud
IBM Cast Iron
Microsoft AppFabric
Babelway B2B Integration
Jitterbit Enterprise Cloud Edition
Cloud Services Brokers will aggregate, monitor, and manage multiple cloud
services.
61. DanGa
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The journey
1. Introduction
2. Communication / Exchange Models
3. Building blocks
4. Legal and fiscal compliance
5. Influencing the Business Case
6. Trends – Proposed scenario’s
7. Steering on-boarding
62. DanGa
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Key facts to know before starting with customer
on-boardingIdea’s
&
concepts
Strategy
&
Solutions
integrate
consult
operate
Business
Analysis
Shared Vision
Technical
Analysis
Technical
Impact
Cost / Benefit
Analysis
Blue Print
Support / SLA
System
Administration
On-boarding
Roll-out
Business Case
Legal
Fiscal
Proof of
Concept
Project
Management
Pilot
Helpdesk
B2B platform
Message
Standards
RFI / RFP
Transport
Protocol
m
any
com
petencies
high
diversity
Drivers and enablers:
Readiness and willingness for change
Preparedness to make and implement the business
case
Maturity levels of People (organisation), Processes
(business), Technologies (applications & systems)
and Information (data)
Issues:
Certain trading partners or industries impose
mandatory communication standards.
Special attention for the work:
Internally:
Trading partner selection and invitation,
Grouping partners,
Status feedback
Externally: Guiding on-boarding in the stages: visit,
education, connection, testing & certification
process, trading partner acceptance, Go Live
A Structured On-boarding Approach is the key for successA Structured On-boarding Approach is the key for success
63. DanGa
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Successful on-boarding requires flexible teams
with specific competences
On-boarding strategies for three
types of Customer Groups
Persuaded On-boarding
sales oriented pressure
on customers
Self-Care On-boarding
web based registration
Guided On-Boarding
client oriented methodology
Trading partners differ in characteristics, willingness and readiness, product groups, level of
authorisation, culture, geographic presence, IT landscape, … and
Therefore, successful on-boarding requires that each customer group receives it’s own on-boarding strategy and
communication approach, … and
Requires a proven methodology and a readily available team with all required skills, competencies and backgrounds
Manager
Admin
Sales
Force
Tool
Technician
Project
Manager
Business
Analyst
System
Architect
Software
Engineer
Domain
Expert
QA
On-boarding Team
64. DanGa
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Guided and persuasive on-boarding
accelerate the evolution of costson-boarding
adoption
validate
challenge
connect
persuade
release
On-boarding rate determines adoption rate:
Ensure a perfect fit with ambitions and capabilities
Establish a corporate vision
Stimulate internal and external stakeholders
Obtain commitment from upper and lower levels
Paperless trade is common business 3 months after customer
starts on-boarding
100% adoption is a dream, between 75% and 85% is more realistic
Adoption time & rate determines cost savings:
Validate feasibility before starting
Ask customers for their preferred choices
Utilise incentives to promote positive behaviour
Early payment discounts
Lower transaction costs (impact on savings)Ask money for the paper invoice and donate a fraction to
the rain forest
65. DanGa
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Example of three types of customer groups and
linked strategies for on-boarding
Need trust & persuasive power
eg. Sales oriented pressure on
Self-care
eg. Web based registration
External domain
Client domain
e-mail web services
web
enablement
Mid term Long termShort term
paper Communication
Integration
Collaboration
Synchronisation
ecosystem
ValueCapture
Maturity Level
edi
interconnected
networks
Traditional
Seller Direct Model
Consolidator Model
Ecosystem
Model
1
2
34
5
6
On-boarding
strategy
In doubt Believers or starters practitioners
Types of
customer
Guided on-boarding
eg. Client integration strategy
66. For more information please contact:
Danny Gaethofs | Consultant / Adviseur
Business to Technologies
Email: Danny.Gaethofs@danga.biz
Private: +31(0)6 288 02 106 | Mobile: +31(0)6 515 40 255
LinkedIn: www.linkedin.com/in/danga/ | XING: http://www.xing.com/profile/Danny_Gaethofs
Twitter: @DannyGaethofs | Weblog: www.danga.biz | SLIDESHARE: http://www.slideshare.net/danga/
67. DanGa
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Establishment of strong Cloud Integration
providers
IBM acquired Cast Iron Systems in May 2010
Cast Iron's OmniConnect cloud integration platform is designed specifically to
integrate public- and private-cloud services with on-premise applications. Cast Iron
will be integrated into IBM's WebSphere business.
GXS acquired RollStream in March 2011
RollStream is a SaaS provider of enterprise community management services and
deepens GXS’s commitment to the Social Supply Chain, a vision that brings
together information flows and information workers to radically break down long-
terms barriers hampering supply chain efficiency.
Liaison Technologies acquired nuBridges in April 2011
nuBridges is a company that provides enterprise data security, managed file
transfer (MFT), B2B integration, and compliance management solutions.
68. DanGa
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Process Flow Diagram
Sales Order Management / Delivery Forecasting / Delivery / Billing
CustomerSales
Administrator
Business-Ready
NetworkProvider
Warehouse
Clerk
Billing
Administrato
Create/Send
Purchase Order
Message
Mapping
ORDERS ->
ORDERS05
Receive/Check
Sales Order
Create
Delivery
Create/Send
Sales Order
Confirmation
Message
Mapping
ORDERS05
-> ORDRSP
Receive
Purchase Order
Confirmation
Create/Send
Purchase Order
Change/Cancellation
Receive
Shipping
Notification
Receive
Billing
Document
Create/Send
Delivery
Forecast
Message
Mapping
ORDCHG ->
ORDERS05
Message
Mapping
DELVRY03
-> DESADV
Message
Mapping
INVOIC02
-> INVOIC
Message
Mapping
DELFOR ->
DELFOR02
Receive/Check
Sales Order
Change/Cancellation
Picking
(Optional)
Post
Goods Issue
Create/Send
Billing
Document
Create
Scheduling
Agreement
Receive/Check
Delivery
Forecast
69. DanGa
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Process Flow Diagram
Procurement / Delivery Forecasting / Goods Receipt / Incoming Invoice
VendorPurchasing
Manager
Business-Ready
NetworkProviderPurchaserWarehouse
Clerk
Receive/Check
Sales Order
Message
Mapping
ORDERS05
-> ORDERS
Create
Purchase
Order
Receive
Purchase
Order
Confirmation
Message
Mapping
ORDRSP ->
ORDERS05
Send
Sales Order
Confirmation
Receive
Sales Order
Change/Cancellation
Create/Send
Shipping
Notification
Create/Send
Billing
Document
Receive
Delivery Forecast
Message
Mapping
ORDERS05
-> ORDCHG
Message
Mapping
DESADV ->
DELVRY03
Message
Mapping
INVOIC ->
INVOIC02
Message
Mapping
DELFOR02
-> DELFOR
Create/Send
Purchase Order
Change/Cancellation
Post
Goods Receipt
Receive/Check
Shipping
Notification
Receive/Check
Incoming
Invoice
Create
Scheduling
Agreement
Create/Send
Delivery
Schedule
AccountsPay
Accountant
Approve/Send
Purchase Order