B2G e-Invoicing

www.pwc.com

Pieter Breyne, Director Technology Consulting, PwC

PwC

Agenda

Problem statement

B2G e-Invoicing

And beyond

Slide 2March 2015

PwC

Problem statement

Slide 3March 2015

EU – 243 billion € *

e-Invoicing < 15%

Catch 22

PwC

Role of the EU

Slide 4March 2015

• VAT Directive 2010/45/EU

Simpler rules

• Standardisation – CEN/BII• B2G e-Invoicing Directive 2014/55/EU

Interoperability

• Public Procurement Directive • e-PRIOR

Leading by example

PwC

B2G e-Invoicing Directive 2014/55/EU

Slide 5March 2015

• To be developed by CEN• Semantic data model for the core elements of an invoice• CAs and CEs obliged to receive and process electronic

invoices compliant with the new standard

New European e-Invoicing Standard

• Generate savings for administrations and businesses & reduce payment processing times

• Create critical mass in terms of e-Invoicing volume

Opportunity for administrations and business

• CAs/CEs must comply by 27 November 2018• Minimum of 18 months from the publication of the standard• Possibility of a further extension of 12 months for regional and

local authorities

Timeline

PwC

e-PRIOR

March 2015Slide 6

Customer systems

• Traceability

• Integrity

• Non-repudiation

• Routing

• Archiving

Supplier Portal

Supplier SystemABAC WORKFLOW

Customer Portal

COUNCIL’s SAP system

Other BO systems …

e-invoicing servicese-ordering servicese-fulfilment servicese-catalogue servicese-submission services….

e-invoicing servicese-ordering servicese-fulfilment servicese-catalogue servicese-submission services….

PwC

Scope

March 2015Slide 7

e-Access(TED e-Tendering)

e-Request e-Ordering e-Fulfilment e-Invoicing

e-Notification(TED)

e-Submission

e-Evaluation e-Awarding

Post-Award modules

Pre-Award modules

e-Catalogue e-Payment

e-Notices / e-Senders Publications Office

DIGIT

Developed by

PwC

How does it work?

March 2015Slide 8

BUYERSUPPLIER

SERVICE PROVIDER

BACK OFFICE

BACK OFFICE

BACK OFFICE

InvoiceInvoice

<INVOICE>

<ID>

<IssueDate>

<Period>

UBL

Invoice

<INVOICE>

<ID>

<IssueDate>

<Period>

UBL

PwC

How does it work?

Slide 9

PwC

How does it work?

March 2015Slide 10

PwC

Invoice automation

March 2015Slide 11

Receive e-invoice

Encode header data

& attachment in the back-

office system

Review & complete invoice to check that invoice is

justified and correct

Approve invoice (Step 2)

Manage payment

request and payment

order

RECEIVE e-INVOICE

ePROCESS PAYMENT

DATA ENTRY INVOICE COMPLETION

& REVIEW

INVOICE APPROVAL

okSTEP 1

Register debt in the accounts

Create invoice

based on paper receipt advice

CREATE INVOICE

Manual workflow

Automated certified correct process

PwC

Invoice automation

March 2015Slide 12

Automated certified correct process

Receive e-invoice

Encode header data

& attachment in the back-

office system

Review & complete invoice to check that invoice is

justified and correct

Approve invoice (Step 2)

Manage payment

request and payment

order

RECEIVE e-INVOICE

ePROCESS PAYMENT

DATA ENTRY INVOICE COMPLETION

& REVIEW

INVOICE APPROVAL

okSTEP 1

Register debt in the accounts

Create invoice

based on paper receipt advice

CREATE INVOICE

Manual workflow

Automated step

Partially automated step - action based on automatically provided data

PwC

Invoice automation

March 2015Slide 13

Automated certified correct process

Receive e-invoice

containing e-receipt advice

information

RECEIVE e-INVOICE

eINVOICE

APPROVALSTEP 1

Automatic registration

of debt in the accounts

Automated workflow

Automatic generation of e-invoice based on e-

receipt advice

CREATE e-INVOICE

MATCHING & VALIDATION

Automatic matching of invoice and

order & business

rules validation

ok

Approve invoice (Step 2)

based on automated

checks

PROCESS PAYMENT

Manage payment based on

automatically generated

CCCF*

e-

Automated process

Process where human intervention is required but is based on automatically generated data

PwC

PEPPOL

March 2015Slide 14

Buyer

• e-PRIOR and PEPPOL are fully interoperable thanks to CEN/BII

• Successful test with EHF of Norway

PwC

Open e-PRIOR

March 2015Slide 15

https://joinup.ec.europa.eu/software/openeprior/home

Adoption of e-PRIOR e-Invoicing by Belgium: o First invoice in Production received in March

2015

o Adoption by the Federal Government, followed by the Region of Flanders

Pilot installations in Portugal, Ireland (pilot with 7 Service Providers), Norway, Croatia, …

Other Member States interested to implement Open e-PRIOR : o Malta

o Greece

o Cyprus

PwC

e-PRIOR in Belgium

March 2015Slide 16

PwC

B2G e-Invoicing in Belgium

March 2015Slide 17

B2G Project initiated via the B2G Working Group of the Belgium e-Invoicing Forum

Based on e-PRIORo Managed by FEDICT

o Connected with FEDCOM (SAP), via Federal Service Bus (FSB)

« Mercurius »o First invoice in production received in July

2014 (Electrabel)

o 3 Public Administrations in pilot

o FPS for Budget and Control, FEDICT, Chancellery of the Prime Minister

o Region of Flanders also connected

o Via “MAGDA”, the Flemish Service Bus

o 22 different back-office systems

o In production with 2 suppliers and 3 back-offices, incl. ORAFIN

PwC

B2G e-Invoicing in Belgium

March 2015Slide 18

Lessons learnto Pilot has demonstrated that the chosen

approach works

o To allow for a large-scale roll-out, we need to

o Manage the applied message formats (CEN/BII)

o Standardise the on-boarding procedures

o Within the federal government

o Towards the regions

o Towards the suppliers / service providers

o Set up a governance cell for B2G e-Invoicing in Belgium

o Define a contact centre

PwC

B2G e-Invoicing in Belgium

March 2015Slide 19

Political supporto Coalition agreement of the federal government (2014):

o e-Invoicing will be made mandatory for public administrations as of 2016.

o To cater for the needs of the economic operators, they will be able to send their invoices via one single platform, whether their client is a federal, regional or local public administration.

o Flanders already decided to connect to Mercurius in 2013o Receiving of electronic invoices by all Flemish entities should

be possible by 1/1/2015o E-Invoicing should be common practice as of 1/1/2017

Support of the Service providers

PwC

Adoption – mandatory or not?

March 2015Slide 20

2010 2011 2012

Mandatory for specific Framework Contracts

Number of e-Invoices sent to the EU Institutions

PwC

B2G e-Invoicing is trending

March 2015Slide 21

• B2G e-Invoicing mandatory for suppliers in 2005

• 70% after 3 years• Close to 100% today

Denmark

• e-Invoicing mandatory for administrations since 2008

Sweden

• Central government: mandatory for administration as from 1/1/2012

• Mandatory for suppliers, per category, as from 1/1/2017 – 1/1/2020

France

BE

FR

ESPT

NLDE

IT

LU

PL

CZ

UK

AT

LT

LV

BG

CY

DK

EE

EL

MT

HR

HU

IE

RO

SK

SI

FI

SE

Not mandatoryMandatory Partially mandatory

Planned

Contacts

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Pieter BreynePwC | Director Technology ConsultingDirect: +32 9 268 82 55| Mobile: +32 473 91 06 91Email: pieter.breyne@be.pwc.com