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 2

eInvoicing - Countdown to Compliance COMPLIANCE DEADLINE 18th APRIL 2019 “ 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 3

Invoice processing: Public Sector Context Ed Ed Build d to Share 4 4 90% 90% Health Million lion In excess of It is estimated Volume of Financial Invoice volumes 4 million that 90% of all invoices and Shared per annum: invoices are invoices are turnaround Services Health ~2m processed delivered by payment initiatives in Local Gov ~1.2m by the post and times place progress in Central Gov ~625k Public received as high Health, D/Ed(ETBs) ~300k Sector each paper to the administration Education (Note: This is only a subset of invoice year. volumes in the Education sector) Public Sector. burden on and Central (Note: Data not available for staff Government. all Public Sector Bodies) 4

eInvoicing – The Benefits Process Business Compliance efficiencies intelligence Reduced Better access for Environment administration SMEs Digital Agenda “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) 5

eInvoicing – What is electronic invoicing? National Legislation & Standards 6

eInvoicing - The Directive 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” 7

eInvoicing - The European Standard (EN-16931) Invoice Note Why?  Interoperability Process Controls  Mass market driven solutions Seller How? Invoice  Member States/Standards expertise Core Buyer Elements  Business processes based design What? Document Totals  Legal and commercial requirements VAT Breakdown  Commonly used elements  XML formats (x 2) Invoice Lines 8

PEPPOL – Pan-European Public Procurement Online 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 9

PEPPOL – The eDelivery network for eProcurement Connect nect Once ce – Connec nect t to all Shared Supplier Services eDelivery Network Access Access Point Point Access Access Point Point Service Providers Contracting Contracting Authority Authority 10

eInvoicing - Sector/Shared Services-led Solutions Suppliers Education Health Central Local Government Government 11

User’s Perspective: PEPPOL – The Four Corner Model Contracting Supplier Authority Customer Customer Interface Interface Service Provider Service Provider European eInvoice Standard PEPPOL PEPPOL Access Point PEPPOL Network Standard Access Point 12

User’s Perspective: Suppliers - Generating an eInvoice Common methods of generating eInvoices Preferred option may depend on System/service of the supplier • Directly from the ERP/Accounting system - Volume of invoices - Internal format transformed into exchange format - Size of supplier • Through a web-portal - Requirement from customer - 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 System/service of the customer • Access to PEPPOL eDelivery network - Common feature required for submission of European Standard compliant eInvoices 13

User’s Perspective: Buyers - Receiving an eInvoice Key aspects of receiving eInvoices System/service of the supplier • 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 System/service of the customer • ERP/Accounting solution - For accounting and payment initiation 14

Straight Through Processing – Reaping the Benefits Accounting eInvoice workflow system Service provider 6. 2. 5. 4. 7. 1. 3. 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 15

Straight Through Processing – Buyer Reference is Key Key Aspects • Information in the invoice is used to automatically assess and End to End & Automatic approve the invoice • Generation • Only invoices deviating from what is expected are marked for • Transmission manual assessment • Reception • Use of Order reference • Processing  Refers to a purchase order previously issued by the seller • Periodical invoices related to subscription, electricity, telecom or 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 16

Straight Through Processing – Process Flow • Supplier & Buyer - Aligned capabilities • Agreed electronic format to use • How to find each other – party IDs? • Transmission Issuer ´ s responsibility • Security • Reliability Receiver ´ s responsibility 17

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? 18

eInvoicing – The eInvoicing Programme PR PROGRAMME GRAMME AC ACTIVITIES VITIES AVAILABLE Q4-2018 COMMUNICATIONS MUNICATIONS FRAMEW MEWORK ORK FOR PROCU CURE REMENT MENT eInvoicing oicing Solutions/Services Awareness Sectoral/Local Shared Transitioning Service PSB Understanding PSBs Groups Centres Plan & Action eInvoicing eInvoicing eInvoicing implementation implementation implementation COMPLIANCE DEADLINE 18 th APRIL 2019 19

eInvoicing – Next Steps (Path to compliance) Education Awareness National/Sector Suppliers & Obligations Timeline eInvoicing Market Approach Understanding Invoice Systems Business Opportunities Environment Capabilities Processes Plan & Action Systems People & Sector Beyond Interfaces Processes Solution Compliance Compliance 20

eInvoicing – Watch this space - ogp.gov.ie/einvoicing/ 21

eInvoicing – Contact & further reading • 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/ 22

eInvoicing Thank You! 23