[EN] Keynote Exchange Summit: Integration of E-Invoicing Into The Existing IT Landscape

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Exchange Summit

Integration of E-Invoicing Into The Existing IT Landscape Dr. Ulrich Kampffmeyer October 5 to 6, 2015 | Barcelona, Spain

PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH

P.O. Box 20 25 55 D-20218 Hamburg

www.PROJECT-CONSULT.com © PROJECT CONSULT 2015

Agenda

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Integration of E-Invoicing Into The Existing IT Landscape • Prologue • The format is only part of the story • The German approach to e-invoicing: the ZUGFeRD format • Processes and systems involved • A process map • Creation and delivery of electronic invoices • Reception and processing of electronic invoices • Storing and managing electronic invoices • Epilogue • Local, regional and global • The e-invoice – just the beginning The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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Prologue The format is only part of the story

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Prologue

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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The invoice is one of the most important documents in commercial life. A no-brainer: With the increasing digitalization of communication and commercial life, the invoice must obviously also become digital and be supported by digital processes.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Prologue

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The goal of the standardization of electronic invoice exchange is the extensive automation of invoice generation and processing with a simultaneous decrease in cost and effort, while ensuring that electronic invoices are legally valid.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Prologue

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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Discussion of electronic invoicing centers often only on questions of format and exchange.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Prologue

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Discussion of electronic invoicing centers often only on questions of format and exchange.

The technical format is irrelevant as long as all legally mandated information is complete and correct. You may use • paper • e-mail • text file • data record • PDF • a.s.o. The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Prologue

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The technical format is irrelevant as long as all legally mandated information is complete and correct. You may use •

paper

•

e-mail

•

text file

•

data record

•

PDF

•

a.s.o.

Electronic invoices are sent through various channels: • EDI / X.400 messages • e-mail with attachment • download from portal • web via service provider • fax • a.s.o. The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Prologue

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Electronic invoices are sent through various channels: •

EDI / X.400 messages

•

e-mail with attachment

•

download from portal

•

web via service provider

•

fax

•

a.s.o.

Three major principles compete: • e-invoice direct delivery • e-invoice provision for download • e-invoice via service provider The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Prologue

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Three major principles compete:

• Delivery i.E. by e-mail: not always reliable i.E. via service provider: controlled, but subject to trust and service level • Download i.E. from a portal: you can prove the receipt & • Hybrid i.E. a message with the download link

These are crucial processes on the e-invoice process map. The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Integration of electronic invoices into existing IT landscapes

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Prologue Excursion The German Approach

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

The German Approach

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• The current discussion on electronic billing in Germany concentrates on a specific form of exchange of electronic invoices: • Transmission by e-mail, via portals or provided by web services • Combined format made up of an XML data set and a displayable document of the invoice, bundled in a PDF/A-3 container

• This is just one of the possible accepted type of an electronic invoice – but recommended in current legislation and tax regulations. The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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ZUGFeRD © PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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• German standard for electronic invoices: “ZUGFeRD Zentraler User Guide des Forums elektronische Rechnung Deutschland” (central user guide of the Forum electronic Invoicing Germany) • Version 1.0, March 2014 • Issued by the association “FeRD Forum elektronische Rechnung Deutschland” (Forum electronic Invoicing Germany) • Consignment of standardized e-invoices as PDF with integrated XML data set for automated processing • Complements EDI standards like EANCOM • Matches international standards and can be used in European and international e-billing The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Positioning ZUGFeRD

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Formats and provision of invoices:

Paperr

The Integration of E-Invoicing

Image file via e-mail

PDF-/text -/… file via e-mail

Dr. Urlcih Kampffmeyer

ZUGFeRD PDF/A-3 incl. XML via e-mail

Web EDI

Exchange Summit, October 5 to 6

EDI

ZUGFeRD

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ZUGFeRD hybrid format Machine-readable 3 different XML schema available, including international standards

Eye-readable Document(s)

Use case Automated processing

Use case Manual processing

Container Standard ISO 19005-3 PDF/A-3 Use case Global availibility of viewer and suitable for retention/archiving

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Challenges for ZUGFeRD

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• The current German XML schema is not completely compliant with the planned European standard, but • Core invoice attributes and model are included in ZUGFeRD XML • CEN MUG was source for ZUGFeRD-XML • UN/CEFACT XML CII (Cross Industry Invoice) is included in ZUGFeRD-XML

• Special software is required to build an invoice object and to unpack the object at the receiving party • the current trend favours a simple XML format

• Three different processes needed for handling ZUGFeRD: (1) the PDF object, (2) the XML data, (3) the eye-readable document. But – which is the legally relevant part of the object to be retained as evidence record – 1, 2, 3 – or all? That depends … The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Status ZUGFeRD

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Alliance for the hybrid format •

French/German co-operation on a hybrid format: Intervention to the EUMSF eInvoices AGS; dated Sep. 18, 2015. France and Germany are jointly working on the hybrid format standard since end of September, 2015.

•

The German/French hybrid concept, based on the proposals of the national organisations FNFE (France) and FeRD (Germany), will be presented at the Governmental Meeting on Digitisation, Paris, Oct. 27, 2015.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

???

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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But: National - and even regional standardization does not make sense in a globalized world.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Integration of electronic invoices into existing IT landscapes

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Processes, and the systems involved

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Electronic invoice exchange

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generates

Sender

It looks quite simple  The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Recipient

receives, processes & … pays!

Exchange Summit, October 5 to 6

What can happen?

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The electronic invoice itself: Simple

Collective

The Integration of E-Invoicing

Corrected

Dr. Urlcih Kampffmeyer

Various

S Annulation

Pro forma

Copy

…

Exchange Summit, October 5 to 6

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A Process Map ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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This main part of the presentation does not deal with the exchange and the different formats, but with the processes before the invoice is transmitted and after it is received.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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A Process Map © PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

This main part of the presentation does not deal with the exchange and the different formats, but with the processes before the invoice is transmitted and after it is received.

Types of processing: • Manual processes • Manual / semi-automated processes • Automated processes

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

A Process Map

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Types of processing: •

Manual processes

•

Manual / semi-automated processes

•

Automated processes

The different types address different user groups and different use cases: • Automated processing • Large and midsize enterprises • Public sector organisations with high invoice volumes

• Manual (and semi-automated) processing • SME small size businesses • Consumers • Public sector organisations with low invoice volumes

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Topic

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Types of processing: The different types address different user groups and different use cases:

Different focus of processes: • Direct or concerning the invoice and its processing only • Indirect, supports working with the invoice and includes related processes

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Topic

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Type of process: •

Direct or only concerning the invoice and its processing

•

Indirect, supports working with the invoice

Objective of processing:

Generation Transmission

R Reception Processing

S R

& Management Retention

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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A Process Map ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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The big question: Who is the user?

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Complexity: everyone with anyone

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Small company Manual Word processing Accounting software

Freelancer Manual Word processing Tax accountant

Medium-sized company Manual Semi-automated Accounting software

Medium-sized company Semi-automated ERP

Corporation Semi-automated and automated Multiple ERP

Large Enterprise Automated full scale ERP

R The Integration of E-Invoicing

S Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Complexity: everyone with anyone

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+ (retarded) public sector organizations

Small company Manual Word processing Accounting software

+ consumers

Medium-sized company Manual Semi-automated Accounting software

+++

R Freelancer Manual Word processing Tax accountant Medium-sized company Semi-automated ERP

+ service providers

Corporation Semi-automated and automated Multiple ERP

The Integration of E-Invoicing

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Large Enterprise Automated full scale ERP

S Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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A Process Map © PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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The goal is preferably extensive and cost-effective automation … • In a company or administration the accounting normally is homogenous and thoroughly organized. Electronic invoice exchange raises the problem of different formats, processes and systems mainly with the receiver of the invoice.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Processes

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–

Creation and delivery of electronic invoices

–

Major Processes

–

Initialization

–

Creation

–

Checking & releasing

–

Provision for delivery & transmission

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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S The creator and sender © PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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Typically, the creator and sender of an electronic invoice defines the form in which the e-invoice is delivered. The sender must consider: • Are the receivers prepared to receive e-invoices or will they demand additional invoicing on paper? Or other format? Or other media? Or other channel? • A company- and industry-specific invoicing software solution requires attention on the efforts for on-boarding business partners and even the reduction of suppliers.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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The context of the invoice is known to the creator: • Subject of invoicing • Receiver of invoice • Master data • a.s.o. The surroundings are controlled: • Context • Invoice number • a.s.o. The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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S The creator and sender ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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One-man shows and small companies

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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S The creator and sender © PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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One-man shows and small companies • Manual creation of invoicing, even word processor • Manual booking • Single delivery channel via e-mail • Repository of invoice in a simple file system • Archiving of accounting data and documents (in-house or by a service company)

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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One-man shows and small companies •

Manual creation of invoicing, even word processor

•

Manual booking

•

Single delivery channel via e-mail

•

Repository of invoice in a simple file system

•

Archiving of accounting data and documents (in-house or by a service company)

Integration into the IT application environment: • Invoicing templates for word processing; subject on the interest and style of the sender • Automated output format for the accounting system; dependent on the software vendor • Automated delivery and filing from the accounting system; dependent on the software vendor The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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One-man shows and small companies

Text processing

Accounting

The Integration of E-Invoicing

E-mail

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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Medium-sized and large companies • Due to the variety of solutions and processes, we can consider only examples here.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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Medium-sized and large companies Direct invoicing processes • Manual or automated trigger for creation of invoice • Automated creation of invoices from accounting data / ERP with configuration of invoice via master data, process data and case data • Automated provision of invoice by • Push Delivery of invoice (e-mail, X.400) • Pull Delivery of notification that the invoice is ready to download (e-mail, SMS, social etc.) The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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Medium-sized and large companies Different complexities of invoicing require different forms of integration: • Standardized off-the-shelf products and services with general electronic order and transaction processes. • Invoicing is initiated by these processes and generally doesn‘t require manual action.

• Individual or specially configured services and products that also involve individual accounting. • The invoice is generally initiated manually and typically requires verification and approval processes; possibly even reconciliation processes with the invoice recipient.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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Medium-sized and large companies Indirect processes within the scope of invoicing • Manual examination of match with order, fullfillment status and contractual conditions • Automated verification against master data and case data, residing outside of the financial system, with which the invoice is created (i.E. project management system, stock management, time recording, CRM)

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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Medium-sized and large companies Integration into the application environment • Primarily for the software creating the invoicing • Creation of accounting records that use master data to create automated and parameterized invoices in the recipients’ required formats, ready for delivery/ provision and organized for filing

• This functionality is generally provided by the vendor/ systems integrator of the ERP, accounting or financial software

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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Medium-sized and large companies Integration into the application environment • Secondary for the software used for handling and processing the invoice outside the financial applications: • Notification of the responsible auditor with direct link to the accounting records and any invoicing document that may already have been created that will be delivered to the recipient • Notification of accounting records and documents, and release and annotation functionality; if necessary auditable This functionality generally has to be provided via access authorization, inclusion of notification systems or separate workflow/ collaboration solutions. The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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Medium-sized and big companies: internal Client

Service

CRM Other Project management Rechnung Time tracking

contracts

Accounting/ERP

Other

Product

Resource planning Order database Other

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S The creator and sender

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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Medium-sized and big companies: output Data

Data & document

Accounting/ERP

Invoice

Master data

SMS Notation

Portal

Document

E-Mail Data/document

Converter Data/document

et al.

Data

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Fax

EDI / X.400

Exchange Summit, October 5 to 6

Processes

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– Reception

and processing of electronic invoices

–

Major Processes

–

Identification & Pre-Processing

–

Booking

–

Releasing

–

Post-processing for procurement

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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R The recipient and processor © PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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• Regardless of how and in what format invoices reach a recipient, they are basically processed in the same manner, with the same methods and with the same quality. (at least “should” be processed in this way)

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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•

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Regardless of how and in what format invoices reach the company, they are basically processed in the same manner and in the same quality.

• The receiver is driven from the outside. • The receiver can seldom refuse receipt of an electronic invoice. • Should the receiver use own solutions or portals for electronic invoices, these must be equipped for the reception and processing of different external formats.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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•

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Regardless of how and in what format invoices reach a recipient, they are basically processed in the same manner, with the same method and in the same quality.

• First, the context of the invoice is only partially known: • Order • Delivery note/performance report • Master data • Contract • Sometimes, the invoicing and vendor history

• The necessary information for releasing and paying the invoice is gathered throughout a multi-step process involving different systems and even media gaps.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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â&#x20AC;˘

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Regardless of how and in what format invoices reach a recipient, they are basically processed in the same manner, with the same method and in the same quality.

It is of importance, wether (1) the invoice is a) only structured data (i.E. EDI), b) data plus document (i.E. ZUGFeRD) as attachment of an e-mail; or c) document only (fax, scan, PDF attachment) via e-mail or download (2) the invoice was already a digital original or if it was transferred by the recipient into an electronic format (i.E. scanned paper with OCR, classification and extraction of invoice data) Processing (2) may relate to the processing of images, fax, pdf, a.s.o. with (1c) The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

â&#x20AC;˘

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Regardless of how and in what format invoices reach a recipient, they are basically processed in the same manner, with the same method and in the same quality.

Already with the reception and interpretation of incoming invoices a bundle of different, interacting and even iterative sub-processes are involved, to prepare the invoice for further (automated) processing. The capture and preparation process should generate the same quality independently of the original medium of the invoice.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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R The recipient and processor ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

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One-man shows and small companies

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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One-man shows and small companies • Entry in the e-mail inbox as an e-mail with attachment (fax as well) • Indirect reception in the e-mail inbox as a link to the invoice download portal. Download to file system.

• (Scanning of paper invoice) • Filing in special e-mail-folders, file system folder, data registers and/ or document management system (and/ or even print) etc. • Booking by own accounting staff or forwarding to a service provider for booking and processing The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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One-man shows and small companies •

Entry in the e-mail inbox as an e-mail with attachment (fax as well)

•

Indirect reception in the e-mail inbox as a link to the invoice download portal

•

(Scanning of paper invoice)

•

Filing in special e-mail-folders, file system folder, data registers and/ or document management system (and/ or even print) etc.

•

Booking by own accounting staff or forwarding to a service provider for booking and processing

Integration into the application environment is mainly an organizational issue, because… • Entry is primarily by standard e-mail, • Booking is manual or through third parties, • Dedicated approval and release processes are rarely necessary.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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R The recipient and processor ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

One-man shows and small companies

Fax

E-mail upload

E-mail

Accounting

Service provider

Download

Scan

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies • Due to the variety of solutions and processes, we can consider only examples here.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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R The recipient and processor ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies Reception and import â&#x20AC;˘ EDI Automated reception, logging, transformation, validation, import to booking system, releasing, archiving. Manual processing only if inconsistencies or mistakes are recognized.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies Reception and import •

EDI Automated reception, logging, execution, validation, import to booking system, archiving. Manual processing only if inconsistencies or mistakes are found

• e-mail with attachment if automatically recognized as invoice, directed to invoice capture process. Manual or partially automated processes.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

Logo 2

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies Reception and import •

EDI

•

e-mail with attachment if automatically recognized as invoice, directed to invoice capture process. Manual or partially automated processes.

• Paper invoice Scanning, quality and completeness check, OCR/ICR, classification, verification with existing master and process data, preparation for export to ERP and archive, automated or manual processing according to company practice The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies Reception and import •

EDI

•

E-mail with attachment

•

Paper invoice Scanning, quality assurance, OCR/ICR/ classification, comparison with master data, automated or manual processing according to company practice

• Workflow-based invoice exchange (for example via portals with known partners or intelligent self-contained invoice objects): Automated reception of standardized data/documents, download, examination, verification, automated processing with import to the finance system The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies Invoice processing: a classic process in two versions •

Integrated In the accounting/finance/ERP solution the verification and approval process is implemented with an internal, integrated workflow. The invoice transaction data set under examination is linked to the associated documents and these can be displayed through a viewer inside the financial application.

•

Autonomous A separate software is used to link the documents under examination to the associated data and transfer the correct data to the accounting/ finance/ERP solution based on the result. The documents are kept in the separate system,

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies Processing • For efficient automated invoice processing the correct entry data, policies for processing (e.g. discounting, contract management et al.) and payment are necessary (in future direct e-payment). • Documents are not required for the booking, accounting and payment processes, but are only linked as record to these transactions.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies Integration into application environment • Special software applications are necessary for EDI processing. • With EDI invoice processing can be completely automated. • Its use is limited to large companies and to industry-specific solutions. This raises the question for companies already using EDI: why do we need an other e-invoice format and process?

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies Integration into application environment •

EDI

• Capture systems for processing different types of information. Special systems are available for the invoice capture processing: • Scanning with OCR/ICR/classification, data extraction, even recalculation • Interpretation of electronic invoice based on e-mail, word, pdf or other formats with classification and data extraction • Creation and provision of consistent in-house document and data formats for further processing • Connection to mailbox systems, invoice approval and release applications and ERP systems The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies: processing

Portal

E-mail

Fax

Paper

EDI / X.400

The Integration of E-Invoicing

Data

Classification

Data/document

Data

Master data Invoice evaluation Invoice approval

Document

Data

Scan QS

OCR/ ICR

Accounting/ERP

Data

et al. Daten

Converter

Dr. Urlcih Kampffmeyer

Data

Exchange Summit, October 5 to 6

R The recipient and processor

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

General Challenges for Automation • Identifying the invoice being an invoice • False and missing data: • VAT ID • VAT / reverse charge issues • Incomplete references • First time invoice submission of a new business partner • External identification and numbering systems

• Changes in identification, product or address data yet unknown to the ERP or master data systems • Multilinguality • Fraud

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

R The recipient and processor

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Medium-sized and large companies: follow-up Analytics Finance/ERP

Cashflow Management Approval and release process

Payment Transfer e-Banking Currency Management

Retention

Audit trails

Procurement The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

et. al.

Exchange Summit, October 5 to 6

Processes

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

–

Storing and managing electronic invoices

–

Major Processes

–

Archiving

–

Retention management

–

Auditing

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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S & R Administration and retention ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Invoices are subject to retention requirements. They are also subject to legal requirements. â&#x20AC;˘ Structured data The management of bookings and transactions generally takes place in an accounting, finance or ERP system. These systems ensure correctness and compliance with software controls. As long as data subject to retention requirements is not migrated from this primary system, its correct retention is generally assured.

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S & R Administration and retention

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Invoices are subject to retention requirements. They are also subject to legal requirements. •

Booking and accounting data

• Evidence records If booking data and evidence record are not identical (e.g. in EDI), the evidence record for a transaction must be retained and be permanently linked to the transaction data set (same index for both for retrieval and access purposes)

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S & R Administration and retention

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•

Booking and accounting data

•

Evidence records

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

• Evidence records and unstructured documents are often stored separately in a records management and/or auditable electronic archive system. The architecture differs depending on: • Access is possible only through the ERP system, which manages the metadata and access pointers to the repository (HSM approach) • Access is possible via an own database of the Records Management or Archive solution, independent of the ERP system, (integrated approach). This allows the use of archived data and documents by other systems, and the relief of the ERP from older unnecessary information. The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

S & R Administration and retention

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ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

HSM

auditable archiving

ERP

HSM Archive

Capture

E-mail

BPM

et al.

Retention & Archiving

Retention management only via ERP, the index is part of the ERP database.

The Integration of E-Invoicing

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Retention and other services usable via all connected applications, since the archive has its own access, metadata, administration and retrieval information.

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

What needs to be retained? • Data from accounting/ERP and other related systems in machine-readable form • Evidence (documents, datasets) in direct accessible form. If originally machine-readable, this ability must be preserved • Context of the complete business transaction (this is much more than only the invoice and the invoice data) • Audit trails of the processing and the retention operations • Descriptions of systems, processes, operating procedures used

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Logo 2

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Process security and auditability The integration of electronic invoices into existing system landscapes often affects many systems, directly or indirectly. Two requirements need to be considered: • Consistent process security This can be controlled and secured via appropriate process or workflow software. • Consistent auditability This can be secured through audit trails that record all process transactions concerning the invoice end to end. The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

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Integration of E-Invoicing Into The Existing IT Landscape ÂŠ PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH 2011

The Integration of E-Invoicing

/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 3

Epilogue

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Epilogue

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Conclusions • Get rid of paper • The process is more important than the format • Automation is the key • All finance and ERP software products MUST support electronic invoicing, generation and reception, both ways

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

Epilogue

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/ Autorenrecht: <Vorname Nachname> 3/3/16 / Quelle: PROJECT CONSULT 2

Local, regional and global • International business transactions require international standards • Government requirements cannot be the only measure for invoice standards, because public sector organisations act mainly on a national level • Further legal harmonization is needed; i.E. retention criteria and periods, identification a.s.o. • Get rid of old proprietary technologies • e-invoicing is only the first step of business automation – lets go for procurement and other processes!

The Integration of E-Invoicing

Dr. Urlcih Kampffmeyer

Exchange Summit, October 5 to 6

PROJECT CONSULT

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Unternehmensberatung

Dr. Ulri ch Kampffm eyer GmbH

Have a great conference! Dr. Ulrich Kampffmeyer E-Mail: Ulrich.Kampffmeyer@PROJECT-CONSULT.com Presentation, further information... Visit: www.PROJECT-CONSULT.com PDF-Handout http://bit.ly/EInvoice2015-Kff The documents are exclusively designated for private, non-commercial use.

PROJECT CONSULT Unternehmensberatung Dr. Ulrich Kampffmeyer GmbH

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[EN] Keynote Exchange Summit: Integration of E-Invoicing Into The Existing IT Landscape | Dr. Ulrich