2014.06.23 expert session electronic invoicing @ expertum - electronic invoicing - a low...

EDI Expert Session

June 23rd, 2014

Order

Management

Shipping

Billing

Accounts

Receivable

Purchasing

Receiving

Accounts

Payable

Request for Quote

Quote

Purchase Order

Order Acknowledgement

Purchase Order Change

Shipment Notice

Invoice

It’s all about communication

Vendor Customer

Communication Challenges

3

Time consumption

Cost of manual

manipulation

Efficiency of file

management

Not meeting Business partners

“e”-standards

Errors

Document loss

Risk of Paper invoice fraud …

Challenges with paper invoices

Cost of Paper based invoicing

Visibility & cash flow forecasting

Mis-communication

between business partners

Laborious dispute management

69% of companies still

print invoices in-house

Invoice processing may take from

30 days up to 120 days in large

organizations

24% of companies report

avoidable invoice issues as a

key driver of cost and cash

problems

81% of invoices are

scanned for invoice

processing

Source: Basware

Every exception delivers a

300% increase in invoice

handling costs

E-invoicing in Belgium:

E-Invoicing in the Belgian market

Total amount of invoices in Belgium : +/- 1 billion

Potential burden reduction if all 1 billion invoices = electronic

+/- 3,5 billion euros

Paper E-mail Electronic Savings

Outbound € 4,44 € 2,02 € 1,20 -€ 3,24

Inbound € 8,04 € 7,68 € 2,27 € 5,77

Total € 12,48 € 9,70 € 3,47 -€ 9,01

Why e-invoicing:Government is calling…

European objective:

“e-invoicing should become the predominant method of invoicing by 2020”

Belgian objectives:

“25 % of all invoices should be electronic by the end of this legislature (2014)”

“30% administrative burden reduction!”

Bron: Dienst Administratieve Vereenvoudiging

EDI is the solution

Electronic Data Interchange

Electronic exchange of documents

Repetitive transactions

Determining a communication protocol between 2 parties over a channel and a carrier

Channel: FTP, SFTP, HTTP, HTTPS,...

Carrier: standardized file format

7

EDI Maturity: one step further

8

PDF Invoices

• One-to-many

• Delivered via email

• For SMEs

PDF Invoices

• One-to-many

• Delivered via email

• For SMEs

EDI Invoices

• One-to-one

• Based on Supply Chain automation

• Business criticaldata

• Only for strategiccustomers/suppliers

EDI Invoices

• One-to-one

• Based on Supply Chain automation

• Business criticaldata

• Only for strategiccustomers/suppliers

E-Invoices

• Many-to-many

• For all business partners

• Outsourcing effort

E-Invoices

• Many-to-many

• For all business partners

• Outsourcing effort

“Highly

automated,

integrated but

non-scalable”

“Automated,

flexible, scalable

and secure”

“No automation,

unsecure… but

cheap”

BASWARE:Who are we?

History

• Founded 1985

• Consistently Ranked #1/ # 2 by analysts in P2P

• 11 offices around the world

Corporate Performance

• Net sales EUR 123,3m in 2013

• 1400+ employees

• Partners in 100+ countries

• >1m users in 1,600 customers

Our Network

• 1.9MILL suppliers listed

• >70m e-Invoices/POs in last 12 month

• $500 BILL annual spend

• 170+ partners

• 99.6% invoices automated in 50 formats

BASWARE:What does it mean for the customers?

BASWARE:The Basware Commerce Network

1.9 Million

Suppliers

Listed

Over 1600Global Clients

320,000Thousand

Active

Buyers/Supp

liers

70mE-Invoices over

last 12 months

>50Formats

supported

$500Billion

Annual

spend on

Basware

Network

110Interoperabil

ity partners

Assisting you with the E-invoicing Challenge

12

Many customers demand e-

invoices and they have special

needs…

Large customer base demands

standardized processes and

advanced e-invoice delivery

network!

Not all can receiver e-invoices

– paper is still needed or

perhaps on-line solution…?

How to tackle with all the

format conversions and invoice

routing globally…

Different legal and fiscal

requirements

How to on-board and activate

customers to e-invoicing?

High costs of paper invoices

No proof of delivery of

the invoice

Electronic invoice adoption remains at

a fairly low level

Basware : SAP integration offering

Document Routing

Document Routing

Scan & Capture Scan & Capture

Printing servicesPrinting services

ArchivingArchiving

Incoming Invoices: From paper to IDOC

Incoming invoice: from IDOC to posting

SAPR/3

BASWARE• comp code

• VAT number

• account

number

• tax code

• cost center

Invoice

MM

Invoice

FI

MM invoice

FI invoice

IDOC

Mapping

Outgoing invoices

Source: Basware

Billing

system

Receivers

Integrated

e-invoices

Email notification & invoice

view/retrieval from portal

Paper invoice via global

printing partners

Sender

E-invoices via

Basware Portal

Paper invoices

Integration to

billing system or

ERP – structured

data

Basware

Activation Service

Invoice processing system

or ERP

Outgoing invoice: from IDOC to ?

SAPR/3

BASWARE

IDOC invoice

PDF

Paper

EDIPartner function

Customer Output

format in

Customer Master

Results of integrated E-invoicing

One single connection betweenBasware and your SAP solution

All invoices are delivered to receiver in one single data format independently of the channel or format used by your customers

All invoices are received fromsender in one single data format

independently of the channelor format used by your vendor

Results of integrated E-invoicing

Your customers/vendors can choose between multiple delivery channels, ranging from:

• manual to automatic

• paper to electronic

• free of charge to paid service

Your customers/vendors canevolve or migrate from onedelivery channel to another

Automation – reducing time & effort

Outsourcing of printing & folding effort

Outsourcing of communication change management

Reduced configuration complexity

Low cost, high efficiency

Setting up e-invoicing

Project Approach

Project Approach PrerequisitesPrerequisites

Master Data set-up

Master Data set-up

Incoming EDI invoicing

configuration

Incoming EDI invoicing

configuration

Output master record

configuration

Output master record

configuration

Customer communication

on requirements

Customer communication

on requirements

Project Lead Time

Project Lead Time

Legal Requirements

Legal Requirements

Key benefits of e-invoices

Benefits for sending e-invoices

Get paid faster

Keep customers happy

Cut admin costs by 40-60%

Reduce carbon footprint

Benefits for receiving e-invoices

Enable automated invoice

processing

Get rid of manual processes

Cut admin costs by 90%

Benefit from early pay discounts

E-invoicing reduces

spend by 1.3 - 5.5%

10% increase in e-invoicing

reduces DSO by 3 days.

E-invoicing cuts down

collection costs by 10%E-invoicing enables discounts

on 50% of invoices processed

E-invoicing cuts invoice processing

time by 5-30 days

Source: Basware

Thanks for listening!

Any questions?

Philippe Despierre / Steve Debruyne

Senior Financials Consultant

+32 496 808943

philippe.despierre@expertum.net