E-invoicing in Local Government Boosting back office resilience - - PowerPoint PPT Presentation

E-invoicing in Local Government

Boosting back office resilience through e-invoicing

UNCLASSIFED – E-INVOICING IN LOCAL GOVERNMENT – WEBINAR - 28 MAY 2020

Peppol e-invoicing in Australia

Mark Stockwell Director E-invoicing, ATO

Drivers for change

3

Reducing cost & inefficiencies associated with

manual & semi-automated processing

Over 1.2 billion invoices are exchanged annually in Australia Australian small businesses are collectively owed $26 billion in unpaid invoices at any one time Too many complex, proprietary EDI standards Delays due to incorrect information (21.4%) sent to wrong person (21.9%) $30.87 and $27.67 estimated cost per invoice to process paper and PDF invoices manually, and only $9.18 to process an e-invoice

Late payments AP inefficiencies

Creating an open market to

enable small and medium business participate in digital trading LGO AP inefficiencies

1 in 3 spend more than 400 hours processing invoices a month 61% spend at least $10,000 a month No visibility of invoice data 89% of SME invoices are processed manually

Government response and e-invoicing milestones

4

A-NZ common approach

03/2018 02/2019

ATO Australian Peppol Authority access point accreditation 5 day payment terms for e-invoicing

01/2020

Major software providers to small and medium, and large businesses are Peppol ready Peppol Framework the basis of A-NZ common approach ATO driving e-invoicing adoption

Why should Local Government adopt e-invoicing?

5

Increased efficiency and productivity Improved visibility and regulatory compliance Strong supplier and community relations Secure transactions Environmentally friendly and no touch

5

Why Peppol and what is Peppol?

6

Why Peppol?

> Proven and secure framework used in 34 countries over 12 years > Open standards and interoperability > Comprehensive and established governance > Supports expansion into procure to pay suite

• f services

> Wide network of existing service providers with broad experience Uses open, international

standard specifications for

trading messages such as invoices Is an open network where buyers and sellers can exchange messages Supported by a legal framework that defines the network

governance

ATO’s role in e-invoicing in Australia

7

We are strong advocates for business – we want to support business to thrive We collect high level aggregate data, but we cannot view invoices We manage the framework and governance in Australia We have legislation allowing the ATO to administer the e-invoicing framework We have experience with similar initiatives (eg, Single Touch Payroll) We are providing the framework – not the solution We support local service providers – we have experience with this We are well positioned to influence Government policy and adoption

> Peppol Authority > Driving adoption across Australia

How Peppol works in practice

8

SUPPLIER’S NATURAL BUSINESS SYSTEMS SUPPLIER’S ACCESS POINT GOVT ENTITY’S ACCESS POINT GOVT ENTITY’S NATURAL BUSINESS SYSTEMS

TRANSLATE and SEND PREPARE PROCESS RECEIVE and TRANSLATE

ADDRESSING SERVICE

Native format Native format Peppol format

Date: 28-05-2020 Presented by: Bertrand Gauch & Sagie Shaposhnykov Information class: Public

THE PAGERO NETWORK

eBusiness for Local Government

One connection – global reach

PAGERO’S VISION

We are committed to building the world’s largest,

• pen business network so

that our customers can connect with any business partner, anywhere in the world. PAGERO CUSTOMERS OFFICES

WHAT IS AN E-INVOICE?

BUSINESS-TO-BUSINESS

Smart Business Network Manual Document Flow E-Document Flow EDI

Text goes here Text goes here Text goes here Text goes here Achieved 92% eInvoice rate 75% of total invoice volume processed with no manual intervention Within short time, 40% of vendors switched to e-invoice 30% reduction in invoice processing cycle times and costs Uses Pagero in 29 countries Over 10,000 customers connected through Pagero Invoice turnaround decreased from 7 days to 2 hours

WHY E-BUSINESS?

Achieved 86% eInvoice flow 218,000 invoices processed fully electronically.

GETTING STARTED WITH E-BUSINESS

SUPPLIER S CUSTOMERS ANY ORGANISATION

Data accuracy Global reach Format independent Local compliance Real-time visibility

THE PAGERO NETWORK

PURCHASE-TO-PAY

Simplify operations • Automate processes • Spend smarter

ORDER-TO-CASH

Harmonise order peaks • Improve customer service • Reduce cycle times

PAGERO FOR COUNCILS

YOUR COUNCIL

PAGERO NETWORK

Setup validation rules to validate inbound invoice data and stop errors.

Validation

Enrich invoice data on inbound invoice data required in your system.

Enrichment

Capture all inbound non-electronic invoices

• n row and header level.

Data Capture

VALUE ADDED SERVICES

SUPPLIERS

100% DIGITAL FLOW

Supplier Onboarding

Our team will help with onboarding your suppliers.

SUPPLIER S RECEIVER

Automated eDocument Flow

RECIPIENT FORMAT INTERNAL FORMAT VALIDATION & DEVIATION HANDLING SUPPLIER FORMAT

• eDocuments
• Format Conv.
• Web portal
• Data Capture
• Deviations
• Authorisations
• 3-way matching
• Data accuracy
• Validation
• Deviation handling

WORKFLOW

THE VALUE OF OUR NETWORK

Efficiency Track and Traceability Compliance Reach

THE VALUE OF DATA

Line-level Correct Actionable Real-time

MAKE BETTER DECISIONS

Sagie Shaposhnykov Account Executive – Local Government sagie.shaposhnykov@pagero.com 0410 047 942

Next steps

UNCLASSIFED – E-INVOICING IN LOCAL GOVERNMENT – WEBINAR - 28 MAY 2020

Government adoption and next steps for councils

Mark Stockwell Director E-invoicing, ATO

Australian Government adoption of e-invoicing

21

Federal Government Agencies are progressively adopting e-invoicing (2 agencies are operational and 5 projected to be ready shortly). ‘Pay on time or pay interest policy’ is in force from 1 Jan 2020 State Government NSW are rolling out e-invoicing Other states are onboard & calling for quicker payments to small business to lessen the impacts of Covid-19 Australian Data & Digital Committee Ministers are driving widespread state government adoption Foundation elements Localised standards Peppol network & accreditation Governance Expanding on message types, eg purchase order & dispatch advice

When can local government adopt?

22

> Adopt now via an access point

• Visit https://www.ato.gov.au/Business/E-invoicing/In-detail/E-invoicing-

accredited-provider-list/

• Translation, transport and web portal services may be required

> Adopt through your accounting software provider when they are ready

• Speak to your accounting software provider to find out about their plans

regarding e-invoicing and whether they will connect you to the Peppol network

• You may still need to get an access point

The Access Point provider manages the secure exchange of the documents between your accounting system and the Peppol network

ATO’s support for Local Government adoption

23

>Expanding the network & availability of e-invoicing ready solutions >Establishing a whole-of-government e-invoicing procurement services panel >Supporting local government adoption >E-invoicing survey is closing on 5 June 2020.

Key next steps for councils

24

Prioritise e-invoicing & become a early adopter Get your business ready Champion e-invoicing adoption within your networks and alliances Contact us e-Invoicing@ato.gov.au Talk to accredited service providers Find out your ERP providers’ plans regarding e-invoicing Make e-invoicing a mandatory requirement if you are procuring an ERP solution

https://www.ato.gov.au/Business/E- invoicing/In-detail/E-invoicing- accredited-provider-list/

UNCLASSIFED – E-INVOICING IN LOCAL GOVERNMENT – WEBINAR - 28 MAY 2020