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Global e-Invoicing
The document discusses the significance of global e-invoicing in enhancing cross-border trade and compliance with varied regulations across countries. It highlights the benefits of e-invoicing, including cost savings, improved efficiency, and the facilitation of audit processes. Notably, Deutsche Bank's experience with invoice automation through the Ariba network illustrates the successful transition towards predominantly electronic invoicing, reducing processing costs and increasing operational efficiency.
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Global e-Invoicing
- 1. Global e-Invoicing CompliantCross-Border Trade © 2011 Ariba, Inc. All rights reserved.
- 2. Speakers Ariba Host: Chris Rauen Speakers Christiaan van der Valk, President, TrustWeaver Will Chen, Vice President, Global Transformation, Deutsche Bank © 2011 Ariba, Inc. All rights reserved.
- 3. Contribution to PublicRevenue © 2011 Ariba, Inc. All rights reserved. Approximately 30% of all taxes, which represent over 30% of GDP in OECD countries
- 4. Why the invoice?© 2011 Ariba, Inc. All rights reserved.
- 5. Objectives of MostBusinesses Cost-effective LEGAL CERTAINTY : know 100 percent for sure in advance that you are compliant MINIMUM AUDIT SURFACE : ensure quick, painless audits A UNIFIED APPROACH : use a single approach across all jurisdictions involved in your data flows INTEROPERABILITY with major market players, supply chains, etc. FREEDOM to change processes, people, systems, legal structures and operators without risk or audit costs © 2011 Ariba, Inc. All rights reserved.
- 6. Legally permitted? AllOECD member states except Japan 16 out of G20 members Very few other countries explicitly regulate conditions Huge difference in approaches © 2011 Ariba, Inc. All rights reserved.
- 7. No Simple RegulatoryFormula New Zealand 50% © 2011 Ariba, Inc. All rights reserved. Strong mandate Fully optional Prescriptive requirements Non-prescriptive requirements EU <10 % Brazil 70% Mexi co 60%
- 8. Tax Audit OptionsLatin America, Russia EU, Other countries Australia, Netherlands © 2011 Ariba, Inc. All rights reserved.
- 9. Automation Is Key,but Major Savings Can Be Achieved Without © 2011 Ariba, Inc. All rights reserved.
- 10. Average Risk ©2011 Ariba, Inc. All rights reserved.
- 11. Total Life CycleRisk Mitigation © 2011 Ariba, Inc. All rights reserved.
- 12. Takeaways Compliance hasmany facets that must be managed Change management is key Countries have different approaches Challenges can be overcome by focusing on common denominators and mature good practice definitions Risk-free global e-invoicing is not an abstract thing of the future Extremely cost-effective future-proof solutions exist Used successfully by thousands of companies already Tax administrations love it No company can afford to ignore the extraordinary benefits of e-invoicing © 2011 Ariba, Inc. All rights reserved.
- 13. Deutsche Bank WillChen – VP, Global Transformation Lead © 2011 Ariba, Inc. All rights reserved.
- 14. Deutsche Bank DeutscheBank AG is a global investment bank offering a range of investment, financial and related products and services to private individuals, corporate entities and institutional clients worldwide. The Company operates in three segments: Corporate and Investment Bank (CIB), Private Clients and Asset Management (PCAM) and Corporate Investments (CI). Implementing P2P solution in these key regions: U.S., U.K., Germany, Hong Kong, Singapore, Australia, New Zealand © 2011 Ariba, Inc. All rights reserved.
- 15. Deutsche Bank Challenge : High cost of paper-based, manual invoice processing Region-specific invoicing processes (no global standards) Interest in improving ease of use Approach : Target geographic regions with strong, growing presence Ariba Network for invoice automation as first step Move PO automation from SAP to Ariba Mandate use of electronic POs and invoices through policies © 2011 Ariba, Inc. All rights reserved.
- 16. Deutsche Bank On-boarded 3,700 suppliers onto the Ariba Network Reduced invoice processing headcount by 33% Invoice automation for improved efficiency Processing about 680,000 invoices/year Went from 100% paper to nearly 60% e-invoicing in target regions Goal to achieve 80% electronic processing PO automation to extend the value Consolidate PO and invoice processing on one (Ariba) system Improve ease of use on global basis Drive 70% of invoice transaction off POs © 2011 Ariba, Inc. All rights reserved.
- 17. Ariba e-Invoicing ChrisRauen © 2011 Ariba, Inc. All rights reserved.
- 18. How Ariba NetworkSolutions Work Buyer PO Automation Invoice Automation Payment Automation Ariba Collaborative Finance Mgt Buyer Benefits 70% process cost savings $2 Million discount savings on every Billion in spend $9 Million in contract leakage savings per Billion in spend Rapid supplier participation from matched suppliers, Ariba Supplier Enablement, and self-service technology Improved visibility and control over cash commitments and on-time payment S upplier Benefits Improved administration and visibility from self-service portal Reduced collections time (DSO) through process acceleration options Lower cost from exception avoidance with “smart” invoicing Increased revenue from new customers Broad value proposition drives virtually 100% renewal rate ERP AP Network Adapter Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier cXML EDI Email CSV Portal Fax AS2 Paper Payment Pro Discount Pro Scan & Workflow PO & Inv Auto Catalogs & Services
- 19. Ariba Global e-InvoiceCompliance © 2011 Ariba, Inc. All rights reserved. Suppliers Authentication Supplier Portal E-Signature cXML / EDI VAT Field Validation E-Archival 130 countries use the Ariba Network for B2B collaboration in 70 currencies with over 350,000 global trading partners. Buyer Enterprise Apps Supplier Supplier Supplier Paper Supplier CSV Procurement Applications Finance AP Sourcing Applications
- 20. Questions © 2011Ariba, Inc. All rights reserved.
- 21. “Safe Harbor” andConfidential Information Statement This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. © 2011 Ariba, Inc. All rights reserved.
- 22. Ariba Collaborative FinanceManagement Solutions Make Business Commerce Better © 2011 Ariba, Inc. All rights reserved.
Editor's Notes
- #19 So how does the Ariba Network enable collaborative business commerce? The Ariba Network is used in over 130 countries in 70 different currencies, with over 350,000 registered companies. Our platform is SAS 70 Type II certified and PCI compliant, the same level of compliance banking networks go through. 2. We provide buy-side customers a single point of integration with their back office systems enabling them to collaborate with all their suppliers regardless of the suppliers location, size or technical sophistication. 3. Our customers enjoy the benefits of dedicated account and Network program managers that help with integration, configuration, strategic planning, and periodic performance reporting. 4. We also are the only e-Invoice Network to offer unlimited supplier enablement with the largest team of professionals dedicated to supplier targeting and onboarding. The reason we can do this, is we believe supplier participation is THE key to P2P and e-Invoicing initiatives, and Ariba treats suppliers as customers providing them training, 24x7 support, and no technical barriers to participation in the Ariba Network. 5. [click] We also offer a broad set of on-demand solutions to expand automation capabilities across the source-to-settle process including capabilities like punch through catalogs, PO Delivery, PO-Flip™, Invoice Automation, Scanning, Workflow, and Discount Professional, for example. [next page] This means with the Ariba Network you you with a broad document collaboration WebTrust WebTrust is an Internet security certification administered by the AICPA (Association of International Certified Public Accountants) to Service Providers who pass in four key areas: availability, confidentiality, processing integrity, and security. Ariba undergoes an intense re-certification every six months. Further information about Ariba WebTrust certification can be found at: https://cert.webtrust.org/ariba.html. For more information, see their site at http://www.webtrust.org SAS70 SAS 70 certification is awarded to Service Providers who disclose their activities to SAS 70 auditing services, and have standardized audit reports produced. A SAS 70 compliant organization has been certified to follow best practices in IT management and the control and reporting of its systems. PCI Ariba has adopted and adheres to the Payment Card Industry (PCI) Data Security Standard (DSS) Level 1, a set of comprehensive measures for enhancing payment account data security. The measures were developed by the founding payment brands of the PCI Security Standards Council, including American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. to facilitate the broad adoption of consistent data security measures on a global basis. The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design, and other critical protective measures. Ariba’s certification as Mastercard and Visa Compliant Service Providers can be found at: http://www.mastercard.com/us/sdp/serviceproviders/compliant_serviceprovider.html http://usa.visa.com/merchants/risk_management/cisp_service_providers.html
- #20 So how does Ariba help companies achieve global invoice compliance? First off, Ariba Network solutions are used in 130 countries collaborating in 70 different currencies with over 350,000 global trading partners. With respect to the European Union, t he EU’s invoicing Directive states that all EU countries must allow electronic Invoices. There are four key requirements for successful electronic Invoicing: (1) e-signature, (2) authentication, (3) VAT Field Level Validation, and (4) Invoice Archival eSigning and signature authentication in domestic and intra-EU trade scenarios is provided by Ariba through TrustWeaver on behalf of the party submitting the invoice, we refer to them as the supplier, and we verify the e-signature on behalf of the buyer. This provides i ntegrity protection to both parties. With respect to VAT specific Field Level Requirements - Ariba maintains its Tax Compliance Country Guides, which are written and signed by KPMG Who advises Ariba on interpretation of tax compliance requirements based on analysis of e-invoicing legislation for specific countries in regards to domestic, cross-border and intra-EU trade. The resultant “Guide for creating VAT-compliant electronic invoices”, is provided to Ariba customers, both buyers and suppliers, and summarizes the VAT legislation applicable in their country and a summary of the technical process used by Ariba to achieve these requirements. With respect to archival and support for audit requirements - Ariba e-Archival is a joint service available through our partnership with Logica that provides customers a scalable, flexible and secure digital archival of documents. Ariba includes a human readable copy (PDF) of its legal cXML invoice in the archive file. The customer may also view the PDF document in the Ariba Network portal. So with this process in place, customers have the confidence to know that they are e-invoice compliant with trading partners regardless of where they are located.