1. E- invoicing – practice of usage in Europe ECR Forum, June 2010 Inga Major
2. Table of contents Tieto What is E-invoicing Different data formats ; tax&legal requirements Walki Case – demonstration of workflow with e-signature Current EU VAT directive. New VAT directive While label (own – brand) e-invoicing platform for banks Future in Russia? 2010-06-03 2 ECR Forum
7. E-invoicing – the whole process from creation to receiving of electronic invoice+ storage 4
8. Definitions (Wikipedia) E-invoice An e-invoice is an electronic transaction document that contains billing information in an electronic format. An e-invoice may be processed within an electronic invoice presentment and payment (EIPP) (B2B) or EBPP (B2C) workflow system or may be uploaded directly into a user’s ERP or accounting system. Standard types of workflow performed on an e-invoice include verification, coding, routing and approval. By using e-invoices companies eliminate manual data entry, facilitate faster payments to their vendors and track invoices more easily EIPP – normally it includes e-invoice exchange, portal and ERP integration 2010-06-03 5 ECR Forum
9. Definitions (Wikipedia) The process E-invoicing provides seller’s with a method to submit invoices electronically to their customers. The most effective e-invoice programsconnect the seller’s accounts receivable operations with their customer’s accounts payable operations. 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. E- invoicetypes 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. 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. Webforms - Allow users to enter data that is typically sent to a web serverfor processing. 6 2010-06-03 ECR Forum
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12. Tax & Legal Support in E-invoicing 2010-06-03 9 ECR Forum
14. An Actual Case from Paper and Pulp Customer locations Production and sales locations Tieto service signs e-invoices with issuing country and receiving country certificates More countries expected to be added Customer requires all e-invoices to Germany, France and Austria to be signed 2010-06-03 11 ECR Forum
15. The Process for Walki Other Service Provider Invoice in papiNet format eInvoice Hub Service eInvoice Hub Service Tieto XML Conversion From Tieto XML to receiverformat InvoiceReceiver Attachment packaging Validation Conversion Tieto XMLformat Attachment separation PDF Rendering PDF Signing Verification Archive Signedpdf For archiving Signing PDF file With Digital Signature Receiver Country’s Certification Authority FRANCE AUSTRIA In co-operation with Issuer Country’s Certification Authority GERMANY 2010-06-03 12 ECR Forum
16. Data flow with Digital Signature Invoice sender (supplier) sends data to Tieto in own format Validation, conversion to Tieto format Tieto produces original document – pdf file Original document is signed with digital signature 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) Power of attorney is used to sign by the name of supplier Data files are sent to roaming partner or to e-inv receiver Signature verification is done by one of them Original documents (signed pdfs) are sent back to supplier, saved in electronic archive 2010-06-03 13 ECR Forum
17. Contractual relationships 14 ECR Forum 2010-06-03 1.Service agreement (allows to create ORIGINAL from data) Interchange agreement Other Service Provider 2. Power of attorney to sign ORIGINAL documents Business contract for support in meeting tax& legal requirements Agreements with several CA’s in different countries
18. Practical situations for Digital Signature Large Corporates operate and have subsidiaries in several countries and shall obey different local laws and authority instructions Harmonized business processes are often executed from centralized shared service centers that serve all countries and units Seller shall often align itself into buyer requirements Some Corporates require all purchase e-invoices to be digitally signed for such legal units operating in countries where digital signing is applied Problems raising due to the fact that CA’s are not connected with each other 2010-06-03 15 ECR Forum
19. Current EU VAT directive The Directive on VAT invoicing establishes 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, simplified arrangements for small companies and small-value invoices, 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). 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. EDI is a system of secure electronic information transmission used by businesses, the possibility in certain circumstances of outsourcing invoicing operations to a third party or to the customer (i.e. self-billing), 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 2010-06-03 16 ECR Forum
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21. This approach has support of Expert Group on e-Invoicinghttp://ec.europa.eu/taxation_customs/resources/documents/common/whats_new/memo_e-invoicing_en.pdf http://www.trustweaver.com/press/ECOFIN_16032010_analysis.pdf 17 ECR Forum 2010-06-03
23. E-invoicing platform: bank provides e-invoicing services to clients INVOICE SENDERS INVOICE RECIEVERS Internet bank Internet bank Single Sign On Single Sign On Bank White labeled e-Invoice service E-invoice Portal E-invoice Portal Payment initiation File integration ERP Standard File integration ERP StandardVirtual printers File integration ERP Individual File integration ERP Individual (file integrations) Paper to e-Invoice Scanning provider e-Invoice to Paper Printshops Bank Factoring Bookkeeping Supply Finance Billing & Statistics Supplier Financing Cash flow planning Factoring Payments Bank provides value added services Customer Administration Via Swedbanks ordinary systems Support & Maintenance Via secure webinterface 2010-06-03 19 ECR Forum
41. Sinature of data files – datafiles are treated as originals? -in Europe is is not common as it causes problems: 1) with auditors and tax authorities - they have no resources to work with data files incl producing hunman readable format etc. 2) it sets limitations for e-invoice operator in data processing =>To transfer data electronically, but to use electronic signature for human readable files, not for data!
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43. We believe that such changes in legislation will create a value added for many businesses – corporates big and small, banks, providers
Some quick facts about TietoOrganisation full of experts in delivering high quality IT services. Focus on serving large and medium-sized organizations in our main markets – Northern Europe, Germany and Russia.Long history of focusing on IT services
