eInvoicing is Coming: Get Ready! Department of Education and Skills - - PowerPoint PPT Presentation

eInvoicing is Coming: Get Ready!

Department of Education and Skills and eInvoicing Ireland Event Declan McCormack, eInvoicing Programme Manager

Office of Government Procurement

11 June 2018

Agenda

• Introduction to eInvoicing – background and definitions
• European Directive on eInvoicing requirements
• PEPPOL and the Irish national eInvoicing model
• eInvoicing from a Users Perspective
• eInvoicing Ireland

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“Member States shall ensure that contracting authorities and contracting entities receive and process electronic invoices which comply with the European standard on electronic invoicing” European Directive on eInvoicing in public procurement 2014/55/EU

eInvoicing - Countdown to Compliance

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COMPLIANCE DEADLINE 18th APRIL 2019

In excess of 4 million invoices are processed by the Public Sector each year.

Invoice processing: Public Sector Context

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(Note: Data not available for all Public Sector Bodies)

It is estimated that 90% of all invoices are delivered by post and received as paper to the Public Sector. Volume of invoices and turnaround payment times place high administration burden on staff Invoice volumes per annum: Health ~2m Local Gov ~1.2m Central Gov ~625k D/Ed(ETBs) ~300k Financial Shared Services initiatives in progress in Health, Education and Central Government. 4 4 Million lion 90% 90%

Health Ed Ed

Build d to Share

(Note: This is only a subset of invoice volumes in the Education sector)

“Switching to e-procurement, and particularly to e-invoicing, can bring significant savings and make life easier both for the governments and for the thousands of businesses active in the Internal Market.“

• Michel Barnier, European Commissioner for Internal Market and Services

(Commission Press Release June 2013)

eInvoicing – The Benefits

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Compliance Reduced administration Business intelligence Better access for SMEs Process efficiencies Environment Digital Agenda

eInvoicing – What is electronic invoicing?

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National Legislation & Standards

European Directive 2014/55/EU

• ALL Public Bodies
• NOT to contracts … declared to be secret/accompanied by special security

measures

• Compliance by April 2019 (2020 for Local Government)
• No requirement for Suppliers to submit eInvoices at this time
• Member States are obliged to:
• “… receive and process electronic invoices which comply with the European

standard”

eInvoicing - The Directive

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Why?

• Interoperability
• Mass market driven solutions

How?

• Member States/Standards expertise
• Business processes based design

What?

• Legal and commercial requirements
• Commonly used elements
• XML formats (x 2)

eInvoicing - The European Standard (EN-16931)

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Invoice Core Elements Invoice Note Process Controls Seller Buyer Document Totals VAT Breakdown Invoice Lines

PEPPOL – Pan-European Public Procurement Online

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Origins - EU Large scale project eDelivery Standards and Network Enables eProcurement processes OpenPEPPOL - Governance & development Network in 19 European countries, plus Canada, USA and Singapore

PEPPOL – The eDelivery network for eProcurement

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Connect nect Once ce – Connec nect t to all Access Point Access Point Access Point Access Point eDelivery Network Service Providers Shared Services Contracting Authority Supplier Contracting Authority

eInvoicing - Sector/Shared Services-led Solutions

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Suppliers Education Local Government Central Government Health

User’s Perspective: PEPPOL – The Four Corner Model

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Contracting Authority Service Provider Customer Interface PEPPOL Access Point Supplier Service Provider Customer Interface PEPPOL Access Point

European eInvoice Standard PEPPOL Network Standard

Common methods of generating eInvoices

• Directly from the ERP/Accounting system
• Internal format transformed into exchange format
• Through a web-portal
• Provided by the customer
• By supplier’s own choice
• Printer capture/Virtual printer
• Software installed as printer
• When printing, the data is rendered as an eInvoice
• Access to PEPPOL eDelivery network
• Common feature required for submission of European Standard

compliant eInvoices

User’s Perspective: Suppliers - Generating an eInvoice

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System/service of the customer System/service of the supplier

Preferred option may depend on

• Volume of invoices
• Size of supplier
• Requirement from customer

Key aspects of receiving eInvoices

• Service for receiving eInvoices
• The ”inbox”/ or technical entry point (PEPPOL Access Point)
• Support for several formats
• Important: Connectivity with other service providers, logging,

validation and archiving

• Workflow for eInvoice/eProcurement solution
• For handling the eInvoices in an efficient manner
• Visualization, assessment/approval
• Sometimes ERP integrated but often a separate service
• ERP/Accounting solution
• For accounting and payment initiation

User’s Perspective: Buyers - Receiving an eInvoice

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System/service of the supplier System/service of the customer

1. The invoice is transmitted from the supplier 2. The invoice is received by the buyer 3. The invoice is routed automatically to the workflow 4. The supplier information is verified 5. The invoice has a reference to an order or a registered object (e.g subscription number, rent object id). Rules for approval is associated with the registered object 6. The invoice is automatically assessed and approved 7. Cost is booked into accounts and payment is initiated

Straight Through Processing – Reaping the Benefits

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1. Service provider eInvoice workflow Accounting system 2. 3. 4. 5. 7. 6.

Key Aspects

• Information in the invoice is used to automatically assess and

approve the invoice

• Only invoices deviating from what is expected are marked for

manual assessment

• Use of Order reference
• Refers to a purchase order previously issued by the seller
• Periodical invoices related to subscription, electricity, telecom
• r other invoice objects
• Requires an invoice object registry with approved max/min,

allowed variances

• Can result in positive side effects – such as identification of

unused phone subscriptions

Straight Through Processing – Buyer Reference is Key

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End to End & Automatic

• Generation
• Transmission
• Reception
• Processing

Straight Through Processing – Process Flow

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• Supplier & Buyer - Aligned capabilities
• Agreed electronic format to use
• How to find each other – party IDs?
• Transmission
• Security
• Reliability

Issuer´s responsibility Receiver´s responsibility

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Considerations for a Roadmap for eInvoicing

For the supplier/issuer – Internal perspective

• Suppliers have a diverse environment (such as different technical solutions,

processes, maturity level)

• Clear policy around standards helps
• Supporting tools can be provided – validation tools, presentation style sheets,

translations

• Aligned requirements on use of references and identifiers if possible

Interconnectivity – External perspective

• Minimum requirement on technology for how to connect and for service providers

to collaborate

• Publicly available strategy on how to handle the European standard – both

domestically and cross border (CIUS)

• Transmission cross border (eDelivery)

For the public sector – Internal perspective

• Up to each entity to tender for solutions or centrally provided?
• Maturity level of the public entities – are temporary solutions necessary?
• Mandate eInvoicing? Through law/contracts? Also below threshold?
• Centrally provided supporting tools, help desk, training and capacity building?

eInvoicing – The eInvoicing Programme

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PR PROGRAMME GRAMME AC ACTIVITIES VITIES

COMMUNICATIONS MUNICATIONS Awareness Understanding Plan & Action FRAMEW MEWORK ORK FOR PROCU CURE REMENT MENT

AVAILABLE Q4-2018 eInvoicing

• icing Solutions/Services

Shared Service Centres Sectoral/Local PSB Groups Transitioning PSBs

eInvoicing implementation eInvoicing implementation eInvoicing implementation

COMPLIANCE DEADLINE 18th APRIL 2019

eInvoicing – Next Steps (Path to compliance)

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Education

Awareness

Obligations Timeline National/Sector Approach Suppliers & eInvoicing Market

Understanding

Invoice Environment Systems Capabilities Business Processes Opportunities

Plan & Action

Sector Solution Systems Interfaces People & Processes Beyond Compliance

Compliance

eInvoicing – Watch this space - ogp.gov.ie/einvoicing/

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• Contact Us – einvoicing@ogp.gov.ie
• EU Directive - http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0055
• eInvoicing - https://ec.europa.eu/cefdigital/wiki/display/CEFDIGITAL/eInvoicing
• PEPPOL - https://peppol.eu/about-openpeppol/what-is-openpeppol/

eInvoicing – Contact & further reading

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Thank You! eInvoicing

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