E-invoicing in Local Government Boosting back office resilience through e-invoicing
Peppol e-invoicing in Australia Mark Stockwell Director E-invoicing, ATO UNCLASSIFED – E-INVOICING IN LOCAL GOVERNMENT – WEBINAR - 28 MAY 2020
Drivers for change Reducing cost & Creating an open market to inefficiencies associated with enable small and medium business participate in digital trading manual & semi-automated processing AP inefficiencies LGO AP inefficiencies Late payments Australian small Over 1.2 billion businesses are 61% spend at least invoices are collectively owed $26 billion in unpaid exchanged annually $10,000 a month in Australia invoices at any one time 1 in 3 spend more Delays due to Too many complex, incorrect information than 400 hours proprietary EDI (21.4%) processing standards sent to wrong person invoices a month (21.9%) $30.87 and $27.67 estimated cost per 89% of SME invoice to process No visibility of invoices are paper and PDF processed invoice data invoices manually, manually and only $9.18 to process an e-invoice 3
Government response and e-invoicing milestones ATO Major software Australian providers to small and Peppol Authority medium, and large Peppol access point businesses are Framework accreditation Peppol ready A-NZ the basis of common A-NZ common 5 day payment approach terms for e-invoicing approach 03/2018 02/2019 01/2020 ATO driving e-invoicing adoption 4
Why should Local Government adopt e-invoicing? Increased efficiency and productivity Improved visibility and regulatory compliance Strong supplier and community relations Secure transactions 5 Environmentally friendly and no touch 5
Why Peppol and what is Peppol? Why Peppol? > Proven and secure framework used in 34 Uses open, international standard specifications for countries over 12 years trading messages such as > Open standards and interoperability invoices > Comprehensive and established governance Is an open network where buyers and sellers can exchange > Supports expansion into procure to pay suite messages of services Supported by a legal framework > Wide network of existing service providers that defines the network with broad experience governance 6
ATO’s role in e-invoicing in Australia > Peppol Authority > Driving adoption across Australia We are strong advocates We support local service for business – we want to providers – we have support business to experience with this thrive We have experience We have legislation with similar initiatives allowing the ATO to (eg, Single Touch Payroll) administer the e-invoicing framework We are well positioned We collect high level to influence aggregate data, but we Government policy and cannot view invoices adoption We manage the We are providing the framework – not the framework and governance in Australia solution 7
How Peppol works in practice SUPPLIER’S NATURAL GOVT ENTITY’S NATURAL BUSINESS SYSTEMS BUSINESS SYSTEMS PREPARE PROCESS ADDRESSING SERVICE Native Native format format TRANSLATE RECEIVE and and SEND TRANSLATE Peppol format SUPPLIER’S GOVT ENTITY’S ACCESS POINT ACCESS POINT 8
THE PAGERO NETWORK eBusiness for Local Government Date: 28-05-2020 Presented by: Bertrand Gauch & Sagie Shaposhnykov Information class: Public
PAGERO’S VISION One connection – global reach We are committed to building the world’s largest, open 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 Manual Document Flow EDI E-Document Flow Smart Business Network
WHY E-BUSINESS? Text goes here Text goes here Achieved 92% eInvoice rate Achieved 86% eInvoice flow 75% of total invoice volume 218,000 invoices processed fully processed with no manual electronically. intervention Uses Pagero in 29 countries Within short time, 40% of vendors switched to e-invoice Over 10,000 customers connected Text goes here Text goes here through Pagero 30% reduction in invoice Invoice turnaround decreased from processing cycle times and costs 7 days to 2 hours
GETTING STARTED WITH E-BUSINESS
THE PAGERO NETWORK Data accuracy Global reach Format independent Local compliance Real-time visibility PURCHASE-TO-PAY ORDER-TO-CASH Simplify operations • Automate processes • Spend smarter Harmonise order peaks • Improve customer service • Reduce cycle times SUPPLIER ANY CUSTOMERS S ORGANISATION
PAGERO FOR COUNCILS 100% DIGITAL FLOW VALUE ADDED SERVICES PAGERO NETWORK Data Capture Capture all inbound non-electronic invoices on row and header level. Validation Setup validation rules to validate inbound invoice data and stop errors. Enrichment Enrich invoice data on inbound invoice data required in your system. Supplier Onboarding Our team will help with onboarding your suppliers. SUPPLIERS YOUR COUNCIL
VALIDATION & DEVIATION HANDLING Data accuracy • Validation • Deviation handling • RECIPIENT FORMAT SUPPLIER FORMAT eDocuments Deviations • • Format Conv. Authorisations • • WORKFLOW Web portal 3-way matching • • RECEIVER Data Capture • INTERNAL FORMAT SUPPLIER S Automated eDocument Flow
MAKE BETTER DECISIONS THE VALUE OF DATA Real-time Line-level Correct Actionable THE VALUE OF OUR NETWORK Track and Efficiency Compliance Reach Traceability
Next steps Sagie Shaposhnykov Account Executive – Local Government sagie.shaposhnykov@pagero.com 0410 047 942
Government adoption and next steps for councils Mark Stockwell Director E-invoicing, ATO UNCLASSIFED – E-INVOICING IN LOCAL GOVERNMENT – WEBINAR - 28 MAY 2020
Australian Government adoption of e-invoicing Foundation elements Federal Government State Government Localised standards Agencies are progressively NSW are rolling out adopting e-invoicing (2 e-invoicing Peppol network & agencies are operational accreditation and 5 projected to be Other states are onboard & ready shortly). calling for quicker Governance payments to small ‘ Pay on time or pay business to lessen the Expanding on message interest policy’ is in force impacts of Covid-19 types, eg purchase order from 1 Jan 2020 & dispatch advice Australian Data & Digital Committee Ministers are driving widespread state government adoption 21
When can local government adopt? > 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 22
ATO’s support for Local Government adoption > 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. 23
Key next steps for councils Champion e-invoicing Prioritise e-invoicing & Talk to accredited service Contact us adoption within your become a early adopter providers e-Invoicing@ato.gov.au networks and alliances Get your business ready 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/ 24
UNCLASSIFED – E-INVOICING IN LOCAL GOVERNMENT – WEBINAR - 28 MAY 2020
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