Michael Calikusu

Finance Director

Kraft Foods Rus

Electronic invoice: Kraft Russia experience

ECR annual forum

Moscow

June, 3rd 2010

Why are we doing this?

• Building stronger customer relations

– Dispute handling / Less customer-Kraft disputes

– Shortened processing cycle times and increased accuracy at

customer side

• Increased efficiency

– Virtually instant e-invoice data transmission to a customer

– Faster access to invoice base and quicker search

– Higher reconciliation rates both with customers and state tax

authorities

Why are we doing this? (cont.)

• Increased efficiency (cont.)

– Less invoice corrections

– Optimized working capital management and faster customer

payments

• Cost / waste reduction

– Reduced printing and paper costs

– Lower archive servicing costs

Watch-outs and concerns

• Solution should be flawless from tax & legal standpoints

• Solution should ease daily routine and increase work

efficiency/productivity

• Mind security & reliability

• A clear framework of e-invoices correction should be developed

• Principles of e-invoice circulation should include:– Taxpayer should be granted an opportunity to choose either paper or

electronic invoicing, or a mix of both– Should be legal for both customer-supplier and taxpayer-state

relations

– Unified e-invoice format