IDeA:marketplace eInvoicing

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IDeAmarketplaceeInvoicing

• 21st May 2007

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Agenda

• What is e-Invoicing?
• E-Invoicing in IDeAmarketplace
• The buyers perspective
• The suppliers perspective
• Who is already using it?
• Why is our e-Invoicing different?
• How are we introducing e-Invoicing?

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What is e-Invoicing?
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e-Invoicing is

• Electronic transmission receipt of invoices
• Avoiding the need to scan paper
• For the buyer one connection to your suppliers
• For the supplier one connection to your
  customers
• A means of reducing data entry work in finance
• A means of improving accuracy speed of payment
• Enhanced communication with your suppliers
• A cost-saving measure, especially for buyers
• A key link in the purchase to pay automation
  cycle
• A natural extension to electronic purchasing

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e-Invoicing in IDeAmarketplace
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IDeAmarketplace

• We enable end to end business integration between
  buyers and suppliers
• We are a supplier network for buyers, a buyer
  network for suppliers

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Looking a little deeper
Invoice Matching
Invoice Routing
EGS eInvoicing module

• Format validation
• Content validation
• Invoice batching

• 2 3 way matching
• Approvals workflow
• Account distribution
• Payment status

Purchasing
Catalogue exchange
Portal
Transaction hub
Document exchange
Reporting

• Transport
• Routing
• Mapping

IDeAmarketplace platform

• E-Invoicing is integrated into the existing
  IDeAmarketplace
• Invoice Routing Finance system matches
  approves invoices
• Invoice Matching Finance system used for
  commitment payment only

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eInvoicing Interface
Supplier eBis
Supplier XML
Supplier cXML
Supplier xCBL
REFORMAT
FIREWALL
Council FMS
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The buyers perspective
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Two services for buyers

• Invoice Routing
• Buyer matches invoices in finance system (FMS)
• We ensure presented invoices are valid (format,
  limited content)
• Delivers limited process efficiency itself, but
  enables more efficient use of the FMS for invoice
  processing
• Avoids need to integrate to each supplier
  separately
• Invoice Matching
• Automatic matching of invoices with PO and/or
  receipt wherever possible
• Configurable workflow set up for buyers
  business process
• Delivers significant process efficiencies
• Includes advantages of Invoice Routing

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Invoice Routing service

• Validate invoices
• Check message is properly formed (not corrupted)
• Check message format is correct against XML
  schema
• For zip files, check internal validity of batch
  (no. of files)
• Business rule validations
• Duplicates/supplier id/currency/PO/totals/unique
  line refs
• Manually entered VAT at header and line level
• Manual or automatic export to buyer
• Buyers system requests invoices
• Single transaction delivers all requested
  invoices
• Interface to suit buyers FMS invoice import
  specification
• Invoices do not fail for trivial reasons
• We reject invalid invoices and inform the
  supplier
• Only valid invoices reach the FMS

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Invoice Matching service

• Configurable workflow rules and actions
• Requires detail knowledge of business processes
• Enables buyer to set up processes that meet their
  business requirements
• Apply a rule if (e.g. Invoice exactly matches
  PO and receipt)
• Apply an action then (e.g. Do not process any
  more rules)
• Examples of rule action definitions
• Identification
• Tolerances
• Partial invoices
• Account code distribution
• VAT calculation
• FMS receives matched invoices ready for payment

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(No Transcript)
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The suppliers perspective
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Three services for suppliers

• PO flip
• Supplier creates invoice online from PO
• Simple to use for small volumes
• Aimed at low volume users and SMEs
• Manual XML import
• Manually initiated transfer of invoices or
  batches
• Used by suppliers able to create invoice/billing
  files
• Suitable for medium invoice volumes
• Auto-connect
• Automatic delivery of invoices or batches
• High volume suppliers
• Typically supplier will also integrate XML orders
• All popular standards eBIS-XML, cXML, xCBL
• Suppliers can view payment status of invoices

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Research into supplier attitudes

• Undertaken with 150 of our suppliers in
  March-April 2007
• Independent market research company
• Plus EGS meetings with some large suppliers
• Key findings are
• 85 are aware of e-Invoicing
• Over 60 are thinking about, or doing,
  e-Invoicing
• 32 are doing it but only 15 are sending gt10 of
  invoices electronically
• Main benefits cited are more efficient, quicker,
  less paper, more accurate, faster payment,
  guaranteed delivery
• Most suppliers find public sector good payers
  (compared with private sector customers)
• but 30 dont think you are efficient in ordering
  and invoicing and 15 are critical about payment
  on time and information needed on invoices
• Integrated electronic orders save more in costs
  than e-Invoices
• Would like online access to payment status
  (Cleared? How soon?)

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Who is using e-Invoicing?
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Phase one users

• Essex CC
• Developed matching specification with EGS
• Supplier adoption programme underway
• Involved in specifying additional functions
• Derbyshire CC, Isle of Wight
• Review and inputs to requirements
• Others currently being implemented
• Kirklees MBC
• Woking DC
• Stoke City Council

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Why is IDeAmarketplacee-Invoicing different?
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Key points

• Integrated with IDeAmarketplace
• Full purchase to pay solution - not just
  e-Invoicing
• Enables full 3 way matching
• Enables business validation of incoming invoices
• Enhanced financial/purchasing reporting
• Single connection reaches all suppliers
• Supports online and integrated buyers
• Invoice matching complements our P2P service
• Invoice routing avoids FMS processing invalid
  invoices
• Developed specifically for public sector
• In collaboration with Essex, Derbyshire and IoW
  councils
• We will continue to collaborate in phase two

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How are we introducinge-Invoicing?
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Phase two project

• A collaborating group of councils
• Shared understanding of invoice and payments
  issues
• Assist in defining enhancements
• We will implement eInvoicing for each
  participant
• Marketplace implementation
• Supplier adoption
• Integration
• Likely enhancement areas include
• Complex purchasing and billing such as social
  care services, highways/environment, utilities,
  agencies
• Self-billing and similar arrangements
• Enhanced integration options to buyer FMS
• Enhanced service offering for suppliers
• Preferential terms for Phase 2 participants