E-Invoicing: Go beyond conversion of paper invoices to electronic formats Didier Mamet Business Development SAP Business Network
Aug 20, 2015
E-Invoicing: Go beyond conversion of paper invoices to electronic formats
Didier MametBusiness DevelopmentSAP Business Network
© 2012 SAP AG. All rights reserved. 2
Legal Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without thepermission of SAP. This presentation is not subject to your license agreement or any other service or subscriptionagreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any relatedpresentation, or to develop or release any functionality mentioned therein. This document, or any related presentationand SAP's strategy and possible future developments, products and or platforms directions and functionality are allsubject to change and may be changed by SAP at any time for any reason without notice. The information in thisdocument is not a commitment, promise or legal obligation to deliver any material, code or functionality. This documentis provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties ofmerchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes andmay not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, exceptif such damages were caused by SAP´s willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmaterially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
© 2012 SAP AG. All rights reserved. 3External
Businesses Are More Reliant on Their Network of Partners than Ever Before
Trend #1: Increasing Complexity of Network New markets, mergers and acquisitions,
global supply chain Increasing number of business partners and
subsidiaries Legal rules and compliance specifications
Trend #2: Accelerated Speed of Business New product and services introductions; new
suppliers and partners Rapid partner on-/off-boarding due to
changing market conditionsForrester Consulting, Joint Industry EDI/B2B Survey, March 2010
1,000+
Interfaces
Partners
500250 750
© 2012 SAP AG. All rights reserved. 4
Business Networks in Procurement & Logistics
Key element for a solid procurement and supply chain strategy
SAP Information Interchange On Demand
Adapt your Business Network as your business grows
Business Networks in Finance
Aligning compliance rules with electronic handling of invoices
SAP E-Invoicing for Compliance On Demand
© 2012 SAP AG. All rights reserved. 5
Drive efficiencies with a state-of-the-art platformSAP Cloud offering
Affordability No upfront license costOnly a predictable quarterly subscription feeShort contractual terms, minimum 1 year (up to 3 years with multi year discounts)No internal hardware / software requirements
Data securityWorld class data centers with third party certificationsQuality Management acc. to European Foundation for Quality Management Service Management Processes acc. to IT Infrastructure Library (ITIL)ISO 9001:2, ISO 27001, SAS 70 Typ II
ScalabilityA fault tolerant and easily expandable infrastructure Virtualized systems using the latest virtualization technology.Fast Scaling Scale out or Split off No bottlenecks in system performance and availability.
TechnologyLatest technology accessible in order to provide contractual SLAs on the services. 24*7 services and supportDon’t care about upgradeAP cloud solutions are always up-to-date and on the leading edge.
© 2012 SAP AG. All rights reserved. 6
The “Extended Enterprise” OnDemand
3rd Party Solutions
SAP Netweaver Process Integration
SAP ERP
SAP SAP BusinessByDesign
SAP Procurement
SAP Supply Chain Management
Warehouse
End customer
…
Financial Services, Government
Logistics Service Providersand Carriers
Retailer
Financial Services, Government
Productionsites
Suppliers
LogisticsServiceProvidersand Carriers
Outsourced Manufacturers
Orders In-/Outbound
Orders Ack. In-/Outbound
Invoice In-/Outbound
ASN In-/Outbound
Delivery Forecast In-/Outbound
Remittance Advice In-/Outbound
Delivery JIT In-/Outbound
Inventory Report In-/Outbound
Self Billing Invoice In-/Outbound
Shipment In-/Outbound
Enterprise Service
Other Processes, Docs, etc.
SAP Information Interchange
…
SAP Information Interchange On DemandRunning a Business Network Goes Beyond B2B : connect, transact, collaborate with real-time content and insights
© 2012 SAP AG. All rights reserved. 7
Simplify the process of adopting e-Invocing
SAP E-Invoicing for Compliance On DemandSend and receive paperless invoices with any trading partner economically – regardless of compliance requirements and data standards
© 2012 SAP AG. All rights reserved. 8
Automate for confident compliance
Use of country specific certificates Using local certificates provided by Trust
and legal Advisers partner Legal Advisers checks country specific
(signature) requirements with local tax authorities and law offices
Actively working in international organizations (CEN) to standardize and emphasis E-Invoicing
Providing SAS 70 report on signature / validation services
Global solution providing local compliance in over 40 Countries
SAP explicitly warrants “compliance” defined as meeting a country’s requirements in VAT or GST law for guaranteeing integrity and authenticity of electronic invoices when signed with an advanced or qualified electronic signature
© 2012 SAP AG. All rights reserved. 9
Accounts Receivable
Going Paperless Can Improve Speed, Accuracy, and Compliance While Reducing Costs
Involves automating electronic invoicing to make financial operations processes faster, more accurate, and less costly to execute.
Outbound E-Invoicing (E-Billing)
How do I improve our financial operations processes?
How do I provide my customers with paperless bills?
How can I standardize and accelerate invoice receipt and retention?
• Improve productivity
• Compliant record keeping
• Complete audit trails
• Sustainability: paperless processes
• Gain control over business processes within the entire business network
• Cost per outgoing invoice
• Eliminate paper and postage
• Speed of integration compliant with customer format mandates
• Shorten customer-to-cash cycle times
• Reduce Days Sales Outstanding
• Elimination of manual data entry errors: cut number of disputes, rejections and re-submissions
• Eliminate manual reconciliation effort
• On-time payment percentage
• Storage cost per invoice
• Speed supplier on-boarding
CFO
CFO
Inbound E-Invoicing
Accounts Payable
© 2012 SAP AG. All rights reserved. 10
Outbound E-InvoicingObjectives, Issues, Capabilities and Benefits
Issues Key Business Capabilities Benefits
Objective: Reducing dependence on paper-based invoices
Best practice solution: Automated, standardized invoice transmission via EDI directly into customer systems
• Majority of invoices are still sent in paper format—driving higher handling costs
• Legal and tax requirements vary by country
• Costs associated with non-standard interfaces to digital signature and other service providers
• Send outbound PDF invoice via E-mail
• Send outbound EDI and/or PDF invoice via E-mail
• Digital signatures
• Legal and compliance checks, depending on country requirements
• Improved DSO through reduced number of missing invoices and streamlining of the customer’s internal review process
• Lower operating costs due to more efficient handling of high-volume processing; savings of handling cost, printer, toner and postage
• Compliance requirements met, regardless of country; no more fines or charges associated with paper-based invoices
© 2012 SAP AG. All rights reserved. 11
Outbound E-Invoicing
SAP Differentiators
SAP Solution
• Provide invoices to your customers in the format they demand
• Provide compliant digital signatures
• Improve productivity of A/R department or your accounting shared-service function
Integration: Integrates with SAP back-end systems for accounts receivables
Support: Solution is covered with enterprise support from SAP
Scalability: Ability to dispatch large volumes of invoices from shared-service centers
Outbound E-Invoicing
Digitally sign Invoice
Send PDF via email
Send EDI
Legal & Compliance Checks
© 2012 SAP AG. All rights reserved. 12
Outbound E-InvoicingProcess Overview
Outbound E-Invoicing provides accounts receivables teams a method to automate and standardize the end-to-end outbound invoicing process to improve productivity, reduce error rates and implement important compliance controls related to invoice processing and transmission.
Process Steps
Initial SetupValidate
E-InvoiceProcess
E-Invoice
• Receive data from ERP system
• Generate PDF (if necessary)
• Validate format (XML, iDOC, PDF)
• Content check (email address, country information)
• Digitally sign document
321
• On-board Business Partner, including creation of profile
• Update customer billing delivery preferences in ERP system
Outbound E-Invoicing
Digitally sign Invoice
Send PDF via email
Send EDI
Legal & Compliance Checks
• Send documents via EDI or email
• Self-archiving of signed documents in ERP system
4Transmit E-Invoice
© 2012 SAP AG. All rights reserved. 13
Accounts Receivable Process
ComplianceChecks
Archiving(optional) 2.
3.
3.
Digital Signature Validation
SAPE-Invoicing
for Compliance
1.
SAP
SAP ERP
Billing Data
Customer B
HubCustomer
A
Email + PDF EDIEDI
Archiving(optional)
multiple outbound options
© 2012 SAP AG. All rights reserved. 14
Inbound E-InvoicingObjectives, Issues, Capabilities and Benefits
• Error-prone manual data entry
• No audit trail
• Excessive cost-per-invoice
• Lost or missing invoices delay payment and hurt vendor relationships
• Receive digitally signed PDF invoice and EDI
• Validate invoice in terms of format and content
• Verify authenticity of digital signature
• Creation of document set which includes result of verification checks and original SAP business documents
• Transmission of document set to ERP for further processing and archiving
• Time savings due to automation
• Redeployment of personnel into higher value-adding activities
• Reduced error rate improves relationship with suppliers
• Improved data accuracy for fewer disputes
Issues Key Business Capabilities Benefits
Objective: Automation and standardization of the end-to-end inbound invoice processesBest practice solution: Automated, standardized invoice receipt via EDI directly from supplier system
© 2012 SAP AG. All rights reserved. 15
Inbound E-Invoicing
SAP Differentiators
SAP Solution
• Receive electronic invoices via standardized interfaces (PDF invoice, EDIFACT D96A, signature/verification file)
• Perform all required format, content and signature verification steps automatically
• Seamlessly transfer invoice data to ERP for further processing, approvals, and archiving
• Improve productivity of accounting department or your accounting shared-service function
Internal Control: Verify documents and signatures for all incoming invoices according to compliance requirements in over 40 countries
Direct Access to Global Partner Network: Leverage SAP’s world class network of business partners to accelerate adoption by your suppliers and increase percentage of electronically received invoices
Straight-through invoice management: Transmit invoices to ERP and invoice processing systems and archiving, improving quality by eliminating manual intervention
Receive Electronic Files
Verification and Compliance
Engine
InboundE-Invoicing
Transmit Data to ERP
© 2012 SAP AG. All rights reserved. 16
Inbound E-InvoicingProcess Overview
Inbound E-Invoicing harmonizes interfaces and processes for inbound invoices while helping companies retain their flexibility in terms of scale (number of invoices) and media (invoice format). This process enables A/P departments to process and prepare invoices for payment.
• On-board Business Partner, including creation of profile
• Update supplier master records in ERP system
• Transfer document set to ERP for further processing in SAP Invoice Management by OpenText
• Transfer document set to archive system
Process Steps
Initial Setup Validate E-Invoice
Process E-Invoice
• Verify and completeinvoice
• Format validation (PDF invoice, EDIFACT D96A, signature file)
• Content validation (receiver information, global checks, country -specific checks)
321
• Verify PDF document
• Convert EDIFACT into target XML IDOC
• Create document set (XML IDOC, signature file, PDF invoice, verification protocol)
Transmit Data
4
Receive Electronic Files
Verification and Compliance Engine
InboundE-Invoicing
Transmit Data
© 2012 SAP AG. All rights reserved. 17
HUBHUB
Accounts Payables Process
EDIPDF/email
Digital Signature Validation
Invoice Recognition
InvoiceProcessing
Document Archiving
SAP Invoice Management by OpenText
Document Archiving & Viewinge.g. SAP Archiving by OpenText
ERP (FI/AP)
SAP
SAP
SAP SRM
Supplier
Hubs and Portals
Document Scan
Payment
iDOC + supporting docs (e. g. signature, verification protocol)
SAPE-Invoicing
for Compliance
Fax
Paper
HUB
SAP Invoice Management by OpenText,
option for OCR
© 2012 SAP AG. All rights reserved. 18
Explaining the different options and further requirements
Signature EDI Any other methods...
signed PDF
signed structured file
can be use with any type of trading partner
Straight forward in EU
further methods to prove integrity & authenticity required (recomm. 94/820/EG)
e. g. prior EDI agreement needed
e. g. requires secure data transfer (AS/2)
some countries require add. signatures or summary reports
Heterogeneous process rules in EU
to be adopted by EU member states by Jan 2013
Business Controls must provide a reliable audit trail between an invoice and a supply (to guarantee Integrity and Authenticity
currently adopeted by Germany and Poland
Unclear if all EU countries will have thesame rules for the audit trail
Technical controls Process controls Business controls
Electronic Invoicing - EU Options
initiated by Invoice Issuer
initiated by Invoice Issuer & Receiver
initiated by Invoice Receiver
Archiving requirements for the (original) electronic file
Receiver‘s acceptance needed
© 2012 SAP AG. All rights reserved. 19
Sample e-Invoicing LATAM Process Overview
© 2012 SAP AG. All rights reserved. 20
Proven Business Impact
24
standardized process interfaces replaced 655 point-to-point mappings
50%greater efficiency and improved customer satisfaction
600business partners connected for 8 processes and 4 million documents
100% paperless within the first 8 weeks with 1,000 suppliers
Over 3 000 SAP customers with 60 000 trading partners in many countries or industries are exchanging business processes and electronic invoices through SAP Business Network.
© 2012 SAP AG. All rights reserved. 21
Speed
3...5xAutomatic adjustment to change, integration or exclusion of business partners
Flexibility
+20...60%Simple adoption of new processes and change of existing processes
Fast integration and consolidation in mergers and acquisitions
Efficiency
+20%Reduced integration effort Standardize Business Processes for B2B
Compliance
Fulfill global Compliance Requirements.
Built-in response to most legal changes – we take care of that
Best Run Businesses run SAP Enabled Business Networks
Thank You!Didier MametSenior Director EMEA Business DevelopmentSAP Business [email protected]+33 6 77 32 45 56
Learn moreCall your SAP representative today, or visit us online at www.sap.com/solutions/technology/cloud/e-invoicing