TriFinance - Seminar e-invoicing

Click to edit Master title styleClick to edit Master title style
Beyond e-Invoicing
A pragmatic approach to
optimize your financial processes
FROM INSIGHT
TO REALIZATION
optimize your financial processes

Click to edit Master title styleClick to edit Master title style1. Introduction
Team
• Walter Deprins
• Jos Feyaerts
• Christophe Van Olmen
• Benjamin Coumont
Timing
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Beyond e-invoicing
Timing
• 16h30 – 18h30: seminar
• 18h30 – 20h00: drink & bite
Slides
Q&A

1. Introduction
2. Facts, figures & trends
3. The new legal framework
4. Opportunities
Content
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
4. Opportunities
5. Building blocks
6. Our approach
7. Conclusion
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Beyond e-invoicing

By using our e-invoicing:
no envelopes or looking after your cup of coffee
between piles of invoices.
With our e-invoicing you will save time and eliminate input errors
You can simply download invoice data as a PDF or structured file
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TO REALIZATION
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TO REALIZATION
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You can simply download invoice data as a PDF or structured file
Afterwards you can load it into your ERP.
You can also view process related documents as orders and
transport documents on our portal. You can even download
them.
Beyond e-invoicing

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TO REALIZATION
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Beyond e-invoicing

“IS THIS REALLY
AN IMPROVEMENT
1. Introduction
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TO REALIZATION
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AN IMPROVEMENT
FOR THE RECEIVER?”
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Beyond e-invoicing

Why still a traditional invoice process?
Digital isn't “special” anymore - it’s the new “normal”
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Beyond e-invoicing

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Beyond e-invoicing

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Beyond e-invoicing

Click to edit Master title styleClick to edit Master title style2. Fact, Figures & Trends
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TO REALIZATION
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TO REALIZATION
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Why low market penetration?
• Chaos: formats, portals, …
• No clear concepts
• Complex legislation
• Focus on technology for authenticity
• Format wasn’t allowed to change
Beyond e-invoicing

PDF printed (80%) not included
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TO REALIZATION
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• B2B = ahead
• Scandanavian countries are market leader
Beyond e-invoicing

• Transaction Cost will erode quickly
• PDF-Invoices by email will increase
Fast by SME (In/Out) and in BtoC
• The role of scanning will decrease
2. Fact, Figures & Trends
eInvoice€/Pcs.
FROM INSIGHT
TO REALIZATION
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TO REALIZATION
• The role of scanning will decrease
• XML will break through
• Invoicing will become a multi-way solution
• Increase in use of integrators
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Trans.Cost/e
Beyond e-invoicing

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TO REALIZATION
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Beyond e-invoicing

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Beyond e-invoicing

E-invoice: "an invoice that contains the information required in the EU
Directive, 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 & Trends
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
P-invoice E-invoice
Printed and sent by post File Transfer by Ftp in XML format
Pc-fax directly printed on the fax Fax received at the pc-fax in PDF
Printshop Invoice by SMS and NFC
Mail (even when printed at customer)
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Beyond e-invoicing

New Rules, new possibilities:
• Fundamentals of the EU directive: 2010/45/EU
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TO REALIZATION
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• VAT Highlights
• Self-Billing
• Related laws and upcoming initiatives
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Beyond e-invoicing

The new Invoicing fundamentals of the EU-Directive:
2010/45/EU
1. Actual supplies
2. The auth-enticity
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2. The auth-enticity
3. The Integrity
4. Business controls as an reliable audit trails
5. Readability and Archiving
6. Paper invoices faces the same rules as an einvoice
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Beyond e-invoicing

It must reflect actual supplies
• It is up to each taxable person (issuer and receiver)
to ensure that the invoice information being
exchanged accurately reflects an actual supply.
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exchanged accurately reflects an actual supply.
• Clear description of the service /goods is
mandatory with the date of the taxable event.
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Beyond e-invoicing

Authenticity of the origin
• means the assurance of the identity of the
supplier or the issuer of the invoice
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• an obligation for the taxable person receiving
the goods or services and obligated for the
taxable person making the supply
• both can ensure the authenticity of the origin
independently of each other.
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Beyond e-invoicing

Integrity
• “Integrity of the content" means that the content required
according to this Directive and BE-Laws has not been altered
• The format is allowed:
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– 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 in
your 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 format
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Beyond e-invoicing

Business controls
can 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 be
FROM INSIGHT
TO REALIZATION
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TO REALIZATION
• The authenticity and integrity of electronic invoices can also be
ensured by using certain existing technologies
– such as Electronic Data Interchange (EDI) and advanced electronic signatures.
• taxable persons should not be required to use any particular
electronic-invoicing technology. As there exist different technologies
• The depth of detail of documentation depends on the size of your
company
• NB: p-invoice is subject to the same law
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Beyond e-invoicing

“The use of business
controls to ensure
authenticity”, what
does it mean?
“The use of business
controls to ensure
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TO REALIZATION
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does it mean?
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controls to ensure
authenticity”, more
clear?
Beyond e-invoicing

Readability and archiving
• The mandatory content of an invoice must be able to be
reproduced at any time in a readable way.
• Period 7 years after revision period of VAT
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• Period 7 years after revision period of VAT
• The applicable national archiving rules depend in general
on the place of delivery (localization rule)
• p-invoices need to be kept within Belgian borders
• e-invoices can be stored anywhere, must be accessible in
Belgium at any time
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Beyond e-invoicing

Paper invoice: same rules as e-invoice
• EU Directive 2010/45/EU regarding the rules on invoicing aims to promote and
further simplify invoicing rules by removing existing burdens and barriers.
• It establishes equal treatment between paper and electronic invoices (the
same process for paper invoices can be applied for e-invoices) without
FROM INSIGHT
TO REALIZATION
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TO REALIZATION
same process for paper invoices can be applied for e-invoices) without
increasing the administrative burden on paper invoices and has the aim to
promote the uptake of e-invoicing by creating the freedom of choice in
ensuring 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 general
purchase and sales conditions clarifying: format, fields, connection data,
Spam filter, confirmations, login’s etc.
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Beyond e-invoicing

VAT highlights
• An invoice should be made at least the 15th calendar day following the
period of VAT due
• A clear description of the delivered service or goods must be used
• Entrance of the VAT Cash-system: Conversion year 2013
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TO REALIZATION
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TO REALIZATION
• Entrance of the VAT Cash-system: Conversion year 2013
• VAT isn’t deductible because of the existence of an invoice, but on
occurrence 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 invoice
date
• Be aware of the impact on your ERP systems:
– The point of VAT declaration is depending on your payments and receipts
and not only on your invoice registration
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Beyond e-invoicing

VAT highlights
• Tax is only deductible at the client in the period that supplier has
declared it.
• Conversion year 2013
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TO REALIZATION
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TO REALIZATION
• Conversion year 2013
– In general: 2013 is a conversion year
– Be aware that no conversion period is granted for intra-
community transactions
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Beyond e-invoicing

Self-Billing
• The invoice is made by the recipient of the goods or services. It
enables to reduce the level of complexity of the incoming invoices to
the level of the outgoing.
• Useful areas
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO 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)
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Beyond e-invoicing

Related laws end upcoming initiatives
• Directive 2011/07/EU: on combating late payment in commercial
transactions should be converted in Belgian laws by 16/03/2013.
Still under construction
30 day rules with max 60 days as exemption
FROM INSIGHT
TO REALIZATION
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TO 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 on
movable 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.
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Beyond e-invoicing

From Insight to Opportunity
1. Savings
4. The Opportunities
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TO REALIZATION
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2. Efficiency Improvements
3. Financial Supply Chain process improvements
4. E-communication
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Beyond e-invoicing

Click to edit Master title style
For invoice recipients For invoice issuers
Cost savings: estimated saving potential
4. Savings
FROM INSIGHT
TO REALIZATIONBeyond e-invoicing

Why change your business to the concept of e-invoicing?
4. Efficiency improvements
68%
70%
80%
Efficiency gains
FROM INSIGHT
TO REALIZATION
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TO REALIZATION
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52%
47% 46%
41%
35%
28% 28%
25%
0%
10%
20%
30%
40%
50%
60%
Reduce overall
processing costs
Remove paper
from A/P
department
Better use of
finance team
resources
Speed up invoice
approval cycle
times
Fewer errors Better cash
management
Reduce lost
invoices
Reduced debtor
days
improve visibility
Beyond e-invoicing

4. Financial supply chain process
optimization Invoice
created once
booked
twice
Automated
invoice
matching (O&I)
Clear Payment
References
Better use of
cash discounts
Segregation of
duties
E-invoicing will
be the push to
e-
administration
Better visibility,
higher
efficiency, less
administration
FROM INSIGHT
TO REALIZATION
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Better visibility,
higher
efficiency, less
administration
Beyond e-invoicing

• Invoice Marketing
– Invoices could be an essential part of your
communication plan
– Use social media in your dunning process, e.g.:
rewards offered on social media for early payment
4. E-communication
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
rewards 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!
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Beyond e-invoicing

Click to edit Master title styleClick to edit Master title style5. The building blocks
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
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Beyond e-invoicing

The possibility to use different data-formats
39%
28%
25%
25%
30%
35%
40%
45%
FROM INSIGHT
TO REALIZATION
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35
18%
13%
8%
0%
5%
10%
15%
20%
25%
As email invoices (PDF
or equivalent
attachments)
As XML e-invoices
using a service
provider
Through point-to-point
electronic invoicing
(EDI)
Through a third-party
web service or portal
As XML e-invoices not
using a serice
provider
we do not send out
any invoices
electronically
Beyond e-invoicing

Scanner
PDF
Archiving
p+e
Portals
ERP
Archieve
Viewer
e-invoicing is a concept not a software
OCR
Integrator
AR
Master Data
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TO REALIZATION
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Printshop
Work -
Document flow
XML + EDIFACT
structured format
Payment-
platform
Portals
AP/AR
Self-Billing
AP
SSC
Master Data
Beyond e-invoicing

IPAAS is the ETL of data management
5. The building blocks: IPAAS
Extract data, Transform the formats, Load data in the target system
Major Challenge
Flexible management of
multi-flows and multi-
formats
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TO REALIZATION
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TO REALIZATION
SaaS: Software as a Service
IpaaS: Information Platform as a Service
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formats
Format standardize
The different formats
attempt hasn’t been
really successful
Beyond e-invoicing

Integrator
Archief
AR/AP
5. The building blocks : Integrator model
specifiedformat
structureddata–allformats
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TO REALIZATION
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BtoB, BtoG,
BtoC
Printshop
StructuredData–specified
Unstructured&structured
Integrator
Beyond e-invoicing

Click to edit Master title styleClick to edit Master title styleThe building blocks : Routing-issue
Invoicing address announced by KBO
• Changes possible, transition period
with automatic re-routing as it is
with the Post
• Easy to apply
• No extra hurdles for SME by
obligating him going to a portal
• In the Post-world we weren’t using
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TO REALIZATION
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Invoicing e-mail outbound: AR.invoicing@trifinance.be;
AR.Trifinance@TheIntegratorB.com
Invoicing e-mail Inbound: AP.invoicing@trifinance.be;
AP.Trifinance@TheIntegratorA.com
• In the Post-world we weren’t using
registered mails for invoices.
• FTP and other means still possible
Beyond e-invoicing

Conclusions
• Need for an integrated concept, covering multiple flows and
formats
• Segment your debtors and creditors depending:
5. The building blocks
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
• Segment your debtors and creditors depending:
size, technological skills, payment habits, etc.
• Integrator tools will become important to give every partner a
maximum flexibility
• Paper invoices will remain and have their relevance for specific
segments and situations
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Beyond e-invoicing

Click to edit Master title styleClick to edit Master title style6. e-invoicing - our approach
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
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Beyond e-invoicing

• Don’t deny the use of good enough technologies for lower
segments (PDF-Text, XML, Excel-Templates, are allowed) – the
digital supply chain will become the new normal…
• Pushed and supported by EU and government initiatives
Conclusions
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
• Have a holistic view of the whole fin. supply chain and
marketing aspects. Take the opportunity to optimize your
operational processes
• Look at the fiscal differences between EU member states.
• There’s a lot of new legislation coming up in 2013 about the
financial supply chain: take it as an opportunity
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Beyond e-invoicing

• For implementation
– Segment your suppliers and clients and keep the boarders low for
PME partners
– Master data is important for the automation in the invoice process
– Enforce the e-invoice from the beginning and support the change
process at your partners
– Communicate with your business partners
Conclusions
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO 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 allowed
format conversion
• Use flexible solutions – agility is important
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“think big, start up small, scale up fast!”
Beyond e-invoicing

• E-invoicing based on management theorie:
• Mintzberg: Destructive innovations:
The new Legal frame work versus digital signature for authenticity, the
opportunity of the change of format
• Dr. Deming : CIP, Kaizen, Muda
Creating an invoice once booking it twice
• Goldratt: The Goal: Theorie of constraints, Throughput
Clear vision on the global cash conversion cycle
eInvoicing: by the management classics
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
Clear vision on the global cash conversion cycle
The bottelnecks for a general application are brought down
• Chris Anderson: The long tail The term long tail as describing the invoicing
strategy of invoicing a large number to different partners with relatively small
amounts– usually in addition to EDI invoicing to fewer popular large accounts.
• Management by exceptions:
Workflow and PtoP ERP-process will become an e-invoicing process
anaged by exceptions/deviations.
• Peter Hinssen: The new normal and good enough thechnology:
E-invoicing makes it possible to communicate with a
focused invoicing through the enterprise social networking
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Beyond e-invoicing

“THANK YOU
FOR
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
45
Beyond e-invoicing
FOR
YOUR PRESENCE!”

Click to edit Master title styleClick to edit Master title styleTriFinance
FROM INSIGHT
TO REALIZATION
FROM INSIGHT
TO REALIZATION
46
Beyond e-invoicing

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