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Process description for ESAP 20.1

Retail supply chain business process version 1.7

2018-06-11


Contents

1 Introduction 4

1.1 Summary of business process ESAP 20.1 Retail supply chain . . . . . . . . . . . . . . . . . . . . . . . . 4

1.2 The collaboration processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2 Synchronise party information 7

2.1 Scenario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.2 Detailed description of Synchronise party information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.3 Business document specifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3 Synchronise contract information 14

4 Synchronise trade item information 15

4.1 Scenario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

4.2 Business document Trade item information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

5 Synchronise price information 18

5.1 Scenario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

5.2 Detailed description of Synchronise price information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

5.3 Business document specifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

6 Place order 27

6.1 Scenarios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

6.2 Detailed description of Place order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

6.3 Business documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

7 Deliver ordered trade items 42

7.1 Scenario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

7.2 Detailed description of Deliver ordered trade items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

7.3 Business document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

8 Issue invoice 56

8.1 Scenario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

8.2 Detailed description of Issue invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

8.3 Business document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

9 Pay invoice 64

10 Issue credit note 65

10.1 Scenario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

10.2 Detailed description of Issue credit note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

10.3 Business document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Appendix 1: Describing a business process 76

Appendix 2: Receipt of business document and exception handling 79

2.1 Receipt and technical validation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

2018-06-11 © Copyright GS1 Sweden


2.2 Handling exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Appendix 3: Archiving and retrieval of invoices 80

3.1 Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 803.2 General information on archiving and storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 803.3 Alternative ways of storing invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 803.4 Where should invoices be stored during the archiving period? . . . . . . . . . . . . . . . . . . . . . . 803.5 Other points on archiving of electronic invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813.6 References and links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

2018-06-11 © Copyright GS1 Sweden

Process description for ESAP 20.1Chapter 1. Introduction

1 IntroductionThis document describes the Retail supply chain business process, ESAP 20.1. It is meant to assist when ESAP 20.1 is implemented in a business. The audience for this document are:

• Experts from business operations where ESAP 20.1 is implemented, who can use the document to support the identification of changes to be made to those operations.

• Systems developers who will modify business systems, applications and other software.

The business process is clearly and completely described in this document together with the business document specifications.

The specifications state what information should be included in the electronic business documents exchanged between business systems. This document describes how the business documents are used in the business process and it provides the information needed to implement and use the busi-ness process. The description of the business process follows a set of rules that describe how business processes are developed and managed. This means that the documentation is consistent and coherent and that similar business requirements are described in the same manner in all business processes.

1.1 Summary of business process ESAP 20.1 Retail supply chainThe business process for Retail supply chain, ESAP 20.1, is a solution for exchanging business infor-mation, such as for example trade item information, order and invoice, electronically within retail.

ESAP 20.1 is used by suppliers, retailers and wholesalers in the grocery and food service sectors, but can also be used in other retail sectors. By using an established process, like ESAP 20.1, companies do not need to implement different solutions for different clients. This makes it quicker to introduce electronic commerce and reduces development costs.

In the food and other retail sectors, it is vital that the right item is ordered and delivered at the right time with the right quantity. ESAP 20.1 makes it easy to have control over the goods in the warehouse, fol-low the goods during transport and keep track of where they have been delivered. It reduces wastage, shortens lead times and provides traceability throughout the chain from manufacturer to end consumer.

Using ESAP 20.1 sellers and buyers have common and accurate information about the trade items’ dimensions, weight, durability and more. It makes it easier to optimize and streamline transport and get good stock control with optimal use of storage space.

By adapting operations to ESAP 20.1, all departments in the company can communicate with each other in the same way and the administration becomes more efficient. When a company integrates sys-tems such as logistics, finance and purchasing, resources can be utilized as well and efficiently as pos-sible.

ESAP 20.1 is developed and maintained continuously by GS1 Sweden together with the users.

The figure below shows the business transactions that are exchanged between the supplier and the buyer during the Retail supply chain business process, ESAP 20.1.

2018-06-11 © Copyright GS1 Sweden 4(83)

You may not copy and distribute the content of this guideline without the express written permission of GS1 Sweden.


Figure 1.1. Retail supply chain business process.

The process starts with the parties exchanging master data:

• Party information: GLN (Global Location Number) and associated information such as delivery address.

• Contract information such as, for example, delivery and payment terms.

• Trade item information: GTIN (Global Trade Item Number) for each contracted trade item and associated information such as dimensions and packaging type.




• Price information for the contracted trade items.

Both parties having the same, accurate master data in their business systems is a prerequisite for being able to order, deliver and invoice trade items in a secure and efficient manner. Correct master data also allows the buyer to administer and reconcile invoices automatically.

When both parties’ business systems have master data, the buyer can start ordering trade items from the supplier. Prices and trade item information, together with other master data, is used as a basis when the buyer creates the order. The supplier can respond with an order receipt acknowledgement to acknowledge receipt of the order, and/or with an order confirmation to confirm that the supplier has accepted the order. If the supplier cannot deliver the ordered items, an order confirmation with changes must be sent.

When the ordered items have been picked and are ready for shipment the supplier can send a des-patch advice to the buyer. This specifies exactly which items are being sent and contains information such as the items’ expiry date, serial number and batch number. Since the buyer receives the despatch advice before the ordered trade items arrive, the buyer can plan for their arrival.

When the goods have been delivered the supplier sends an invoice to the buyer. In order to carry out invoice reconciliation automatically, all content must be linked back to master data, order, order receipt acknowledgement, order confirmation and despatch advice.

The process ends with the buyer paying the invoice. If there were errors in the invoice, these can be corrected with a credit note.

1.2 The collaboration processesThe model for describing a business process as used in this document is based on UN/CEFACT Modelling Methodology (see Appendix 1: Describing a business process). In the model a business pro-cess is divided into collaboration processes. Each collaboration process describes how the trading part-ners interact and exchange information within a certain area, for example the area of ordering goods.

The figure below shows an overview of the Retail supply chain business process, ESAP 20.1. The yel-low arrows represent the collaboration processes that the business process is divided into.

Note: The figure is intended to give an overview and does not show the exact order in which the colla-boration processes are carried out, since some collaboration processes can be used repeatedly and at different stages throughout the business processes.

Figure 1.2. Overviev of Retail supply chain business process, ESAP 20.1.

Each collaboration process is described in a separate section in this document. The sections describe how the parties should interact within each collaboration process in order to establish an efficient busi-ness process.



Process description for ESAP 20.1Chapter 2. Synchronise party information

2 Synchronise party information

Once the buyer and supplier have established a contract they must exchange contact information such as name, address, company number, VAT registration number, tax status declaration and account num-ber.

An ordering, delivery and invoicing precondition for both parties involved is to have exactly identical, correct and up to date party information.

In addition to information about the buyer and supplier, details of other roles within each organisation can be exchanged. These might include shipper, if the goods are not shipped from the supplier, or invoice recipient, if the invoice should be sent to other than the buyer's main address.

2.1 Scenario

Figure 2.1. Scenario - Synchronise party information.

The process starts when the parties have established a contract. Both supplier and buyer exchange party information. Both parties may acknowledge the exchange of information.

Both parties can, during the validity of the contract, if required:

• Exchange information on additional party roles.

• Advice that information about a party role should be changed, for example a new address for an invoice recipient.

• Advice that a previously transmitted party role and its associated data should be deleted from the other party's file.

• In addition, the recipient of a party information message can send a confirmation that the mes-sage has been received.

2.1.1 Initial conditionsFor the collaboration process to work in the best way, the following conditions must be fulfilled before the process starts:

1 A contract has been established between buyer and supplier.

2 Both parties have received by mail, fax or otherwise the other party's principal GS1 Global Loca-tion Number (GLN).

3 Both parties have analysed roles and responsibilities within their own organisation. This means being clear who is buyer, goods recipient, invoice recipient, invoicee, etc.

4 Both parties have a file of contracting parties and delivery addresses. Each such address must have a GLN with associated contact information.




2.1.2 Termination conditionsThe process runs until the following condition is satisfied:

• The contract has ended.

2.2 Detailed description of Synchronise party information

Figure 2.2. Synchronise party information.

The section is divided into the following sections:

• 2.2.1 Synchronise buyer’s/supplier’s party information describes how the buyer or supplier sends party information to the other party.

• 2.2.2 Acknowledge party information describes how an acknowledgement is sent to acknow-ledge receipt of party information.

2.2.1 Synchronise buyer’s/supplier’s party informationBoth buyer and supplier may exchange party information with the other party with the following data:

• Contact information for party roles to be added to the recipient's system.

• Changes to previously transmitted party information, for example that the buyer/supplier has changed his address. In addition to changing existing information, a change may also be used to add information for a given role. For example, if the supplier has already received information about the buyer's address, contact person, etc and the buyer wishes to add a telephone number.

• Roles, for example a goods recipient, that are no longer to be used. The entire record, i.e. all contact information, for this role is deleted (deactivated) in the recipient's system.

The figure below shows the steps that the parties should take before the business document Buyer’s party information/Supplier’s party information is sent and after it has been received.

Figure 2.3. Buyer’s and supplier’s steps when synchronising party information.

The steps shown in the figure are described below.




Sender’s step 1: Collect party informationThe buyer/supplier identifies which items of party information should be sent to the other party. It is essential that the various party roles in the company have been defined and that the individuals respon-sible have been identified.

The buyer may transmit contact information for the following roles:

• Buyer

• Invoicee

• Invoice recipient

• Consignee

• Delivery party

• Authorised orderer

The supplier may transmit contact information for the following roles:

• Supplier

• Shipper

• Payee

When party roles are to be added, all party information relevant for the other party is transmitted.

When previously transmitted party information is to be changed, only the party information to be changed is transmitted together with the associated GLN.

When previously transmitted party information is to be deleted, only the GLNs for the party roles to be deleted are transmitted.

The business document specifications Buyer's party information and Supplier’s party information show which information is included in the business documents, see sections 2.3.1 Buyer’s party information and 2.3.2 Supplier’s party information for an overview.

Sender’s step 2: Approve party informationAn authorised signatory approves the party information document.

Sender’s step 3: Validate contents of business documentThe following validations of the contents of the business document should be made before sending it:

1 When the document concerns transmission of party information for a new party role it must be checked that the GLNs have not already been transmitted to the buyer.

2 When the document is about a change or deletion of previously transmitted party information it must be checked that the GLNs have already prevously been transmitted to the buyer.

Sender’s step 4: Send party informationThe business document is sent to the recipient. In those cases where the parties have agreed that the recipient of a party information document shall acknowledge receipt, the sender waits for an acknow-ledgement document.

Recipient’s step 1: Receive party informationThe recipient receives the business document. Read about receipt of business documents in appendix 2.1 Receipt and technical validation.

Recipient’s step 2: Validate contents of business documentOnce the business document has been received by the recipient’s system, the following validations of the contents of the business document should be made:

1 When the document concerns transmission of party information for a new party role it must be checked that the GLN is not already registered in the system. This is to ensure that several sets of contact information are not associated with the same GLN.




2 When the document is about a change or deletion of previously transmitted party information it must be checked that the GLNs sent in the party information are already input and active.

Read about exception handling when validating content in appendix 2.2 Handling exceptions.

Recipient’s step 3: Input party information to systemIf the business document validates correctly, the information is input to the system for further use.

When previously transmitted party information is to be changed, the old information which is to be replaced should be inactivated but saved for traceability purposes.

When previously transmitted party information is to be deleted, information associated with the GLN should be made inactive. Data which is legally required for accounting must be saved and filed (e.g. buyer’s/supplier’s name, VAT number, etc.

NextIf the parties have agreed to use acknowledgements, the next step is for the recipient to send an acknowledgement of receipt. See next section.

Throughout the contract period, both the buyer and supplier may send updated party information to the other party.

2.2.2 Acknowledge party informationWhen a buyer has received business document Supplier’s party information, he may send an acknow-ledgement to the supplier. When a supplier has received business document Buyer’s party information, he may send an acknowledgement to the buyer. The acknowledgement is transmitted using business document Party information acknowledgment.

The figure below shows the steps that the parties should take before the business document is sent and after it has been received.

Figure 2.4. Sender’s and recipient’s steps when transmitting party information acknowledgement.


Sender’s step 1: Send party information acknowledgementThe party – buyer or supplier – who has received party information creates and sends the acknowled-gement. This confirms that the party information message has been received and that its contents have been processed. The business document specification Party information acknowledgement shows which information is included in the business document, see section 2.3.3 Party information acknowled-gement for an overview.

Recipient’s step 1: Receive party information acknowledgementThe other party receives the business document. Read about receipt of business documents in appen-dix 2.1 Receipt and technical validation.

Recipient’s step 2: Stop monitoring receipt of acknowledgementThe recipient stops monitoring receipt of an acknowledgement.




NextThroughout the contract period the parties may exchange updated party information with each other.

2.3 Business document specificationsThis section gives an overview of the information contained in the business documents used for trans-mitting party information.

2.3.1 Buyer’s party informationThe business document Buyer’s party information is sent by the buyer to the supplier when one or more buyer party roles is to be added, deleted or changed in the supplier's system.

• When party roles are to be added, the business document contains information on one or more new roles at the buyer. A new role is one where the supplier has not yet stored any contact infor-mation in his system. The information is intended to be stored in the supplier's system and used in transactions between the buyer and the supplier.

• When party roles are to be changed, the business document contains information about one or more existing roles at the buyer. An existing role is one where the supplier has already stored contact information in his system. The information on a role, for example Consignee, sent with the change document is intended to replace the information which the supplier already has sto-red.

• When party roles are to be deleted, the business document contains information about the role(s) which are to be removed from the supplier's file.

Figure 2.5. Overview of the contents of business document Buyer’s party information.

The Header contains information that identifies the document and its sender (the buyer) and recipient (the supplier).

The subordinate records Buyer, Invoicee, Invoice recipient, Consignee, Delivery party and Autho-rized orderer are used as required to transfer information about one or more of these roles. However, at least one of the records must be present in the document. The records contain contact information such as Global Location Number (GLN) and address.

The term T0093 Party information status states whether the message concerns new, changed or dele-ted party roles.



http://www.gs1.se/esap91spec-en


• For new party roles (T0093=2) all relevant contact information, such as GLN and address, is transmitted.

• For changed party roles (T0093=4), only the GLNs for the changed party roles, together with the changed information is transmitted.

• For deleted party roles (T0093=3), only the GLNs for the deleted party roles are transmitted.

The party role Authorized orderer is new and has been added to enable orders for pharmaceuticals from county councils (hospitals) to Apoteket AB. Legislation and procedures require the pharmacy to verify that an order for prescription drugs has been placed by an authorised requestor within the buyer's organisation.

Business document specification for Buyer’s party informationThe business document specification for Buyer’s party information can be found on www.gs1.se/esa-p20spec-en (scoll down to Fundamental specifications).

2.3.2 Supplier’s party informationThe business document Supplier’s party information is sent by the supplier to the buyer when one or more supplier party roles is to be added, deleted or changed in the buyer's system.

• When party roles are to be added, the business document contains information on one or more new roles at the supplier. A new role is one where the buyer has not yet stored any contact infor-mation in his system. The information is intended to be stored in the buyer's system and used in transactions between the buyer and the supplier.

• When party roles are to be changed, the business document contains information about one or more existing roles at the supplier. An existing role is one where the buyer has already stored contact information in his system. The information on a role, for example Payee, sent with the change document is intended to replace the information which the buyer already has stored.

• When party roles are to be deleted, the business document contains information about the role(s) which are to be removed from the buyer's files.

Figure 2.6. Overview of the contents of business document Supplier’s party information.

The Header contains information that identifies the business document and its sender (the supplier) and recipient (the buyer).

The subordinate records Supplier, Shipper, and Payee are used as required to transfer information about one or more of these roles. However, at least one of the records must be present in the document. The records contain contact information such as location number (GLN) and address.



www.gs1.se/esap6spec-en



Supplier’s account number contains information on the supplier's bankgiro and/or postgiro numbers. The supplier does not have to provide an account number if a payee is specified.

Payee’s account number contains information on the payee's bankgiro and/or postgiro numbers.

The term T0093 Party information status states whether the message concerns new, changed or dele-ted party roles.

• For new party roles (T0093=2) all relevant contact information, such as GLN and address, is transmitted.

• For changed party roles (T0093=4), only the GLNs for the changed party roles, together with the changed information is transmitted.

• For deleted party roles (T0093=3), only the GLNs for the deleted party roles are transmitted. When an account number is to be deleted, the GLN of the supplier or payee must also be speci-fied.

Business document specification for Supplier’s party informationThe business document specification (at present only available in Swedish) can be found on www.gs1.se/esap20spec-en (scoll down to Fundamental specifications).

2.3.3 Party information acknowledgementBusiness document Party information acknowledgement is sent to confirm that a party information document has been received and validated. The received party information document can be one of the following:

• Supplier’s party information

• Buyer’s party information

The document consists only of a Header. It contains information that identifies the document and the parties (initiator and recipient) as well as a reference to the document being acknowledged.

Business document specification for Party information acknowledgementThe business document specification for Party information acknowledgement (at present only available in Swedish) can be found on www.gs1.se/esap20spec-en (scroll down to Fundamental specifications).





Process description for ESAP 20.1Chapter 3. Synchronise contract information



3 Synchronise contract information

Once the buyer and supplier have agreed on a contract they must ensure that the contract information is entered into their respective business systems.

There are no business document specifications for the transmission of contract information. The parties must ensure that all necessary information is exchanged in an appropriate manner. The following points should be covered:

1 Agreement on invoice charges, if any, such as freight charge and service charge.

2 Agreement on invoice discount, if any.

3 Payment discounts – rules for calculation of discounts, if any.

4 Whether the supplier can replace an ordered item with another.

5 Terms of delivery – for example when responsibility is transferred from the supplier to the buyer.

6 If partial deliveries are allowed, i.e. the supplier can deliver some trade items at a later date than what the buyer has stated as the delivery date in the order (back-orders).

7 If the supplier may deliver the ordered trade item later than the buyer’s requested delivery date.

8 Information on the account to which payment should be made.

9 Payment terms, e.g. number of days until due date and terms in case of late payment.

10 That the supplier is crediting trade items which have been invoiced wrong price or quantity accor-ding to the description in section 10 Issue credit note.

11 That the supplier is crediting charges which have been incorrectly invoiced according to the des-cription in section 10 Issue credit note.

12 That the supplier is paying accumulated volume discounts according to the description in section 10 Issue credit note.

13 That the supplier compensates the buyer for for sub-standard goods according to the description in section 10 Issue credit note.

14 That the supplier reimburses the buyer for deposits for returned returnable packaging according to the description in section 10 Issue credit note.

Process description for ESAP 20Chapter 4. Synchronise trade item information

4 Synchronise trade item information

Trade item information can be used by a purchaser to select and negotiate trade items offered by a supplier. Once the buyer and supplier have agreed on a contract the supplier must keep the buyer updated on the trade items of the contracted selection. It is important that trade item information always be up to date. Some examples of trade item information are: Global Trade Item Number (GTIN), dimen-sions and packaging type.

4.1 ScenarioThe process starts when the supplier provides trade item information via a data pool in the Global Data Synchronisation Network (GDSN).

Data pools in the network control, validate, store and forward product and logistics information. Interested parties to the supplier’s trade item information (recipient) can access the trade item informa-tion by being connected to any of the data pools.This means that when the supplier registers or updates trade item information, it becomes available simultaneously for all recipients.

High quality of the trade item information is achieved by the data pool checking and validating the trade item information based on a commonly set of rules with feedback to the supplier in case of errors.

The figure below illustrates the scenario for the synchronisation of trade item information, when the supplier and the recipient are connected to different data pools.

Global Data Synchronisation Network (GDSN) is a network of data pools for trade item information based on GS1 global standards for trade item information and connecting data pools, For more infor-mation see http://www.gs1.org./gdsn.

Figure 4.1. Scenario - Synchronise trade item information.

1 When new trade items are added or existing ones amended, the supplier updates the trade item information in his system. He then sends the updated trade item information to his data pool.

2 The supplier's data pool verifies and processes the trade item information. Then it is sent to GDSN.

3 GDSN transmits the trade item information to the recipients data pools.

4 The trade item information is received by the recipients data pools. Each data pool verifies, pro-cesses and makes the updated trade item information available.

5 The recipients of the supplier’s trade item information retrieve the trade item information from his data pool and imports it into his internal IT system. To achieve effective administration, logistics

Supplier Recipient

Manage

trade item

information

Utilize

trade item

information

Trade item information

Data pool Data poolGDSN

Trade item information

1

2 4

3

5

Administer

trade item

information

Utilize

trade item

information

Data poolData pool




and traceability, the trade item information is used for example to select and negotiate articles, ordering, receipt of goods and billing.

4.1.1 Initial conditionsFor the collaboration process to work in the best way, the following conditions must be fulfilled before syncronisation of trade item information starts:

1 An agreement to exchange trade item information is established between the supplier and the rcipient of the supplier’s trade item information.

2 The supplier and the recipient are respectively connected to a data pool in GDSN.

3 Recipient announce its data pool to get access to the supplier's article information.

The process runs until the following condition is satisfied:

1 The agreement between the supplier and the recipient of the supplier’s trade item information to exchange trade item information has ended.

4.2 Business document Trade item information All data pools use the same standard for describing each trade item The standard is called Trade Item Information. The technical documentation can be found on www.gs1.se/tradeiteminfospec. More infor-mation on GDSN andTrade Item Information can be found on www.gs1.se/en/GS1-in-practice/Trade-Item-Information/.

This section gives an overview of Trade Item Information.

Figure 4.2. Overview of Trade Item Information.

Trade item information headerThe header contains for example:

• Identity of the information provider, information receiver, manufacturer, brand owner and other parties.

• Date of trade item information, such as first validity date, latest change date and publication date.

• The identity of the trade item (GTIN) and target market.

• Trade item product classification according to such as GPC (Global Product Classification).



http://www.gs1.se/tradeiteminfospec

http://www.gs1.se/tradeiteminfospec

http://www.gs1.se/en/GS1-in-practice/Trade-Item-Information/

http://www.gs1.se/en/GS1-in-practice/Trade-Item-Information/


• Trade item hierarchy of the trade item.

ModulesOther information, divided into modules that apply to articles in a specific product range, such as:

• Alcoholic beverages (vintage, alcoholic strength)

• Animal feed (e.g. feed type and feeding recommendation)

• Fish and seafood (e.g. fish species, catch method)

Trade item information used in transport, storage, handling and recycling, for example:

• Dimensions (e.g. depth, height, width and gross weight of the trade item)

• Packaging (e.g. packaging weight, packaging material, deposit)

• Dangerous goods (classification of dangerous goods etc.)

• Hazardous substances (information in which way the article is dangerous)

Information about the trade item used at purchase as well as for retailers and consumers, for example:

• Marketing information (e.g. key words for e-commerce, marketing messages)

• Nutritional information(e.g. serving size, nutrient)

• Allergens (e.g. allergen type and level of containment)

• Ingredients (Ingredient list and additives)

• Instructions to the consumer (how to keep and use the trade item)

• Preparation and serving (e.g. preparation method, number of servings per package, serving sug-gestion)



Process description for ESAP 20.1Chapter 5. Synchronise price information

5 Synchronise price information

‘Synchronise price information’ covers the processes by which the supplier keeps the buyer updated on the prices for the contracted selection. The supplier sends price information to the buyer to confirm that both systems have the same information on the contracted selection and prices in their databases. This is a prerequisite for orders and deliveries to work correctly and efficiently and for invoices to be adminis-tered and checked automatically.

Note that prices in the price lists are only contracted prices. A price list may not be used to send price announcements or proposals.

5.1 ScenarioThe process starts when the supplier sends the first price list to the buyer following the establishment of a contract between the parties. During the entire contract period the supplier can send further price lists to update price information. A price list contains information about trade item prices and conditions under which any charges or discounts should be calculated and invoiced. There are three different types of price list: initial price list, replacement price list and changed price list.

Figure 5.1. Scenario - Synchronise price information.

The following applies for the different price list types:

• Initial price list is used for the first transmission of contracted prices and conditions following the conclusion of a new contract. When prices or conditions are changed during the contract's vali-dity period, this is communicated using replacement price list and or changed price list, see below.

• Replacement price list is used to exchange information on prices and conditions which have changed since the most recently transmitted price list. Replacement price list contains informa-tion on all contracted trade items and terms - both those which have changed and any which are unchanged since the most recently transmitted price list. The information sent in the previous price list is replaced in its entirety with information in the replacement price list. A replacement price list should always be sent soon after changes have been agreed.

• Changed price list is used to exchange information on prices which have changed since the most recently transmitted price list. Changed price list contains only those trade items where price information has changed since the most recently transmitted price list. The information sent in the previous price list is updated with information in the changed price list. A changed price list should always be sent soon after changes have been agreed.

Which of the three types of price list should be used in a business relationship depends partly on what has been agreed between the parties and partly on fixed rules as follows:

1 An initial price list must always be used for the first transmission of contracted prices and condi-tions following the conclusion of a new contract.




2 The parties must decide which type(s) of price list - replacement price list and/or changed price list - are to be used in the business relationship to send information about changes at trade item level.

3 The parties must decide if terms for calculation of charges and discounts can be changed during the contract's validity period.- If the terms can be changed during the contract's validity period, replacement price list is used to send changed information.- If the terms cannot be changed during the contract's validity period, the contract must be ter-minated and a new contract signed in order to change the terms. The new contract information will then be sent using initial price list according to item 1 above.



2 Trade item information for all trade items in the price list has been previously sent.

3 The parties have agreed which charges and discounts for an order are included in the contract. The following charges and discounts can be included:- Freight charge- Service charge- Order discount- Reduction for pick-up of goods

4 In the case where the parties have agreed that freight charge, service charge, order discount and/or reduction for pick-up of goods are included in the contract, they have agreed:

- The conditions for how these are to be calculated. For example how the freight charge rela-tes to the weight of the ordered trade items.

- Whether the conditions for how these are to be calculated can (or cannot) be changed during the contract's validity period.

5 The parties have agreed which type(s) of price list can be used to send changes at trade item level from one of the following:- Replacement price list- Changed price list- Replacement price list and Changed price listIf the parties have agreed that both replacement and changed price list can be used, they should also agree how each should be used, for example for which product selection.

6 The parties have agreed on the conditions which allow a trade item price to be changed, for example changed raw material price or changed exchange rate.

7 The parties have agreed on the conditions for choice of trade item price to be used when ordering different volumes of a trade item; full layer, quantity increment for price, small order, etc.

8 The parties have agreed on how frequently price information can be changed at trade item level.

9 The parties have agreed on how each trade item should be ordered. For example, should a vari-able measure item be ordered by each or by weight?

10 The parties have agreed if the prices in the price list apply from order date or delivery date.


• The contract has ended.




5.1.3 To consider when choosing price list typeAs described above, the parties must agree in their business relationship which type(s) of price list should be used to exchange information about agreed changes at trade item level: changed price list, replacement price list or a combination of changed and replacement price lists. It can be advantageous if the recipient can handle both replacement and changed price lists. The supplier then has the option to choose replacement or changed price list based on economic aspects, amongst other things.

The recipient can provide support in his system which sorts out those things that have changed since the most recently transmitted price list. This makes it easier for the recipient's category managers to check changes in the contracted selection and prices. This applies especially when the supplier has chosen to send replacement price list.

5.1.4 Essential to identify all trade items with GTINAll orderable units of a product should be uniquely identified using GTINs (Global Trade Item Num-bers). This is essential for the customer to be able to place correct orders and also to avoid delivery errors and misunderstandings.

5.2 Detailed description of Synchronise price information

Figure 5.2. Synchronise price information.

This section is divided into the following sections:

• 5.2.1 Synchronise initial price information describes how the initial price information following the conclusion of a contract is sent to the buyer.

• 5.2.2 Update price information by synchronising entire selection describes how previously exchanged price information is updated by sending a replacement price list, which contains the entire contracted selection, i.e. information on both changed and unchanged prices is included.

• 5.2.3 Update price information by synchronising changes only describes how previously exchanged price information is updated by sending a changed price list, which contains only information that has changed since the last transmitted price list.

5.2.1 Synchronise initial price informationOnce the parties have established a contract, the supplier sends the business document Initial price list to the buyer. The initial price list contains the price information agreed by the parties in the contract. Ini-tial price list is used only once in a business process in order to exchange initial price information to the buyer following the conclusion of a contract. To update price information during the contract's validity period, Replacement price list and/or Changed price list are used instead. The figure below shows the steps that the parties should take before the business document Initial price list is sent and after it has been received.




Figure 5.3. Buyer’s and supplier’s steps when synchronising initial price information.


Supplier’s step 1: Collect initial price informationThe supplier identifies which price information should be sent to the buyer according to the contract. The information is extracted from the file.

The business document specification Initial price list shows which information is included in the busi-ness document, see section 5.3.1 Initial price list for an overview.

Supplier’s step 2: Approve price informationThe price informaton must be verified and approved in order to secure that the price information is in accordance with the contract.

Supplier’s step 3: Validate contents of initial price listThe following validations of the contents of the business document should be made before sending it:

• That prices correspond to those specified in the contract.

Supplier’s step 4: Send initial price listThe supplier sends the initial price list to the buyer.

Buyer’s step 1: Receive initial price listThe initial price list is received by the buyer.

Read about receipt of business documents in appendix 2.1 Receipt and technical validation.

Buyer’s step 2: Validate contents of initial price listOnce the business document has been received by the buyer’s system, the contents of the business document should be validated. The validation points are the same as for the supplier, see Supplier’s step 3: Validate contents of initial price list above.


Buyer’s step 3: Associate prices with item entriesIf no errors in the price list are reported from validation, the information is entered in the buyer's system. Each item record includes a reference to the initial price list.

Buyer’s step 4: Sign-off pricesAn authorised person approves the transmitted price information. The selection is then made available for ordering. An indication that the information has been checked, approved, and locked against unau-thorised changes enables invoices to be processed fully automatically at a later stage.




NextThroughout the contract period the supplier may send updated price information to the buyer. The supplier does this by sending either a Replacement price list or a Changed price list. These are descri-bed in the following sections.

5.2.2 Update price information by synchronising entire selectionIf the parties have agreed on changes to previously exchanged price information, the price information needs to be updated in the partie’s systems. The supplier may in that case send a Replacement price list to the buyer. This information replaces the price information previously sent.

The figure below shows the steps that the parties should take before the business document Replace-ment price list is sent and after it has been received.

Figure 5.4. Buyer’s and supplier’s steps when synchronising replacement prlce list.


Supplier’s step 1: Prepare replacement price listThe supplier identifies which price information should be sent to the buyer. Since a replacement price list completely supersedes any information transmitted previously, the entire contracted selection must be included. This means that a replacement price list contains information on both changed and unchanged prices.

The business document specification Replacement price list shows which information is included in the business document, see section 5.3.2 Replacement price list for an overview.

Supplier’s step 2: Approve replacement price listThe price informaton must be verified and approved in order to secure that the price information is in accordance with the contract.

Supplier’s step 3: Validate contents of replacement price listThe following validations of the contents of the business document should be made before sending it:

1 That there is a reference to the immediately preceding pricelist.

2 That the replacement price list has been sent at a time and with a frequency consistent with the agreed terms for price changes.

3 That prices and price changes correspond to those specified in the contract.

Supplier’s step 4: Send replacement price listThe supplier sends the replacement price list to the buyer. When and how often a replacement price list can be sent is specified in the contract.

Buyer’s step 1: Receive replacement price listThe replacement price list is received by the buyer.





Buyer’s step 2: Validate contents of replacement price listOnce the business document has been received by the buyer’s system, the contents of the business document should be validated. The validation points are the same as for the supplier, see Supplier’s step 3: Validate contents of replacement price list above.


Buyer’s step 3: Replace pricesIf the document validates correctly, the information is input to the buyer’s system. For each trade item in the replacement price list a reference is made to the replacement price list, the previous price list, the contract, the supplier and validity period.


NextThroughout the contract period the supplier may send updated price information to the buyer. The supplier does this by sending either another Replacement price list, or a Changed price list, described in the following section.

5.2.3 Update price information by synchronising changes onlyIf the parties have agreed on changes to previously exchanged price information, the price information needs to be updated in the partie’s systems. The supplier may in that case send a Changed price list to the buyer. This information updates the price information previously sent. Changed price list includes only price information which is changed since the most recently transmitted price information.

The figure below shows the steps that the parties should take before the business document Changed price list is sent and after it has been received.

Figure 5.5. Buyer’s and supplier’s steps when synchronising changed prlce list.


Supplier’s step 1: Prepare changes to price listThe supplier identifies which price information should be sent to the buyer. A changed price list shall only include information on prices which have changed since the last price list was transmitted. The information is extracted from the file.

The business document specification Changed price list shows which information is included in the business document, see section 5.3.3 Changed price list for an overview.

Supplier’s step 2: Approve changes to price listThe price informaton must be verified and approved in order to secure that the price information is in accordance with the contract.




Supplier’s step 3: Validate contents of changed price listThe following validations of the contents of the business document should be made before sending it:

1 That there is a reference to the immediately preceding pricelist.

2 That the changed price list has been sent at a time and with a frequency consistent with the agreed terms for price changes.

3 That prices and price changes correspond to those specified in the contract.

Supplier’s step 4: Send changed price listThe supplier sends the changed price list to the buyer. When and how often a changed price list can be sent is specified in the contract.

Buyer’s step 1: Receive changed price listThe changed price list is received by the buyer.


Buyer’s step 2: Validate contents of changed price listOnce the business document has been received by the buyer’s system, the contents of the business document should be validated. The validation points are the same as for the supplier, see Supplier’s step 3: Validate contents of changed price list above.


Buyer’s step 3: Update pricesIf the document validates correctly, the information is input to the buyer’s system. Each updated item record should include a reference to the changed price list, the previous price list, the contract, the supplier and validity period. This also applies to non-contracted trade items included in the same price list.


NextThroughout the contract period the supplier may send updated price information to the buyer. This is done by sending either another Changed price list, or a Replacement price list, described in the pre-vious section.

5.3 Business document specificationsThe following sections give an overview of the information contained in the business documents used for transmitting price information. The sections also include links to examples, as well as links to the complete specifications.

5.3.1 Initial price listBusiness document Initial price list is sent from the supplier to the buyer and contains contract prices. Note that Initial price list is only used the first time the supplier sends price information to the buyer for a given contract. In order to update price information during the contract's validity period one or both of the business documents Replacement price list and Changed price list are used.




Figure 5.6. Overview of the contents of business document Initial price list.

Some of the content of the business document is explained below.

PriceFor each trade item the price shall be specified as one of the following types:

1 Contract price (use term “T0029 Contract price”).

2 Contract price, discounted (use term “T3288 Contract price, discounted”).

3 Current price (use term “T0203 Current price”).

4 Current price, discounted (use term “T0238 Current price, discounted”).

Read more about the different price types and how they are used on www.gs1.se/244-en.

When using Current price, the following is recommended:

• That price list changes are not made for each and every price change but rather an appropriate frequency is agreed between the parties.

• That the buyer defines specific rules for price checks in the invoice for such trade items. For example by specifying a limit on how much the invoiced price may vary from the current price in the valid price list.

In addition to the list price, only one price per orderable trade item shall be given with the exception of step based pricing (see below). In such cases, a price is specified for each step.

Quantity steps - step based pricingWhen the price of a trade item depends on the ordered quantity, this is specified in the price list with quantity steps. One price per step is given. The terms “T0079, Quantity threshold” and “T0080, Quantity ceiling” are used to define the step.

Quantity steps can be used in two ways:

1 Consecutive intervals, e.g. 1-100, 101-200, 201-300.The price given for an interval applies only to that portion of the ordered quantity that falls within the interval.



http://www.gs1.se/244-en


2 Overlapping intervals, e.g. 1-100, 1-200, 1-300.The ordered quantity determines which of the alternative intervals applies. The price in this inter-val applies to the whole quantity ordered.

When using quantity steps a unit of measure must always be specified, even if this is ‘each’. The unit of measure is given in term “T0081 Unit of measurement for range” and shall be the same as that used for ordering or pricing.

5.3.2 Replacement price listBusiness document Replacement price list is sent from the supplier to the buyer. It contains information on the trade item prices which is to replace previously transmitted information.

The structure of and business terms in Replacement price list are very like the business document Ini-tial price list. Since a replacement price list shall completely replace previously transmitted information, it must include prices for the entire contracted selection. This means that a replacement price list inclu-des both changed and unchanged prices. The differences from Initial price list are as follows:

• ”T0002 Price list status”. To indicate a replacement price list, use code ‘5’.

• ”T0006 Reference to price list”. Identity of the previous price list which this is replacing.

5.3.3 Changed price listBusiness document Changed price list is sent from the supplier to the buyer. It is used to update price information. Only information that has changed since the last price list is transmitted.

The structure of and business terms in Changed price list are very like the business document Initial price list. The differences from Initial price list are as follows:

• ”T0002 Price list status”. To indicate a replacement price list, use code ‘4’.

• ”T0006 Reference to price list”. Identity of the previous price list which is being changed.

• “T0056 Price list line action code” is used to indicate what action is to be taken for this trade item price: addition, deletion or change. The information included for a given price depends on the action to be taken as follows:a) For addition i.e. a price regarding a new trade item, all information is included as in Initial price list.b) For deletion of a trade item, only the trade item identification need be transmitted.c) For change, i.e. price adjustment of a trade item, all information is included, i.e. both changed and unchanged data.

5.3.4 Business document specification for Price listThe business document specification for Price list can be found on:

http://www.gs1.se/globalassets/esap/esap20/version1.6/bds_200101_en160.pdf.

The complete specifications for ESAP 20.1 can be found on www.gs1.se/esap20spec-en.

5.3.5 ExamplesAt www.gs1.se/250-en are some examples of how price list is used



http://www.gs1.se/globalassets/esap/esap20/version1.6/bds_200101_en160.pdf



Process description for ESAP 20.1Chapter 6. Place order

6 Place order

The buyer sends an order to the supplier to order trade items. Using order and order response (order acknowledgement and/or order confirmation), the buyer and supplier agree what trade items should be delivered and on what terms.

6.1 ScenariosThe process starts when the buyer sends an order to the supplier. The supplier may respond to the order with an order acknowledgement and/or an order confirmation. The order responses allow the supplier to inform the buyer of the progress of the order. The parties can agree to use one of the fol-lowing combinations of order and order response:

• Scenario 1 - Order.

• Scenario 2 - Order and Order acknowledgement.

• Scenario 3 - Order and Order confirmation.

• Scenario 4 - Order, Order acknowledgement and Order confirmation.

An Order acknowledgement gives the result of the supplier's technical validation of the order document. Validation checks that the general information of the order is correct, for example that the order number has not been used previously by the buyer and that party information for the buyer and supplier is correct. If validation shows that the general information in the order is correct, an order acknowledgement is sent to advise that the order has been received by the supplier and will be proces-sed further. If validation shows that the information in the order is in some way invalid, an order acknow-ledgement is sent to advise that the order has been rejected and that the supplier and will not process it further. Note that this step does not comprise validation of ordered trade items and quantities.

An Order confirmation gives the result of the supplier's assessment of his stock situation, that is to what extent the supplier can deliver trade items as ordered. The supplier can confirm the entire order and commits to delivering the trade items as ordered. The supplier can also confirm the order with changes and commits to delivering with certain changes in the order, such as a different delivery date. The parties agree in a contract what changes the supplier is permitted to make. If the supplier is unable to deliver anything, an order confirmation can be used to reject the entire order.

6.1.1 Scenario 1 - Order

Figure 6.1. Scenario 1 - Order.

1 The buyer places an order with the supplier.

2 The supplier performs a technical validaton of the general information in the order document.

3 Any exceptions arising from the technical validation are handled by the supplier contacting the buyer by telephone, e-mail or website.

4 The supplier compares the requested order quantity with the available inventory level.




5 Any exceptions arising from the assessment of the stock situation are handled by the supplier contacting the buyer by telephone, e-mail or website.

The following sections apply for scenario 1: 6.2.1 Create order, 6.2.3 Check stock levels.

6.1.2 Scenario 2 - Order and Order acknowledgement

Figure 6.2. Scenario 2 - Order and Order acknowledgement.



3 The supplier sends an order acknowledgement to the buyer with the results of the technical vali-dation.


5 Any exceptions arising from the assessment of the stock situation are handled by the supplier contacting the buyer by telephone, e-mail or website.

The following sections apply for scenario 2: 6.2.1 Create order, 6.2.2 Acknowledge/Reject receipt of order, 6.2.3 Check stock levels.

6.1.3 Scenario 3 - Order and Order confirmation

Figure 6.3. Scenario 3 - Order and Order confirmation.



3 Any exceptions arising from the technical validation are handled by the supplier contacting the buyer by telephone, e-mail or website.


5 The supplier sends an order confirmation to the buyer with information as to what extent the supplier can deliver as ordered.

The following sections apply for scenario 3: 6.2.1 Create order, 6.2.3 Check stock levels, 6.2.4 Confirm order, 6.2.5 Confirm order with changes.

6.1.4 Scenario 4 - Order, Order acknowledgement and Order confirmation




Figure 6.4. Scenario 3 - Order, Order acknowledgement and Order confirmation.



3 The supplier sends an order acknowledgement to the buyer with the results of the technical vali-dation.


5 The supplier sends an order confirmation to the buyer with information as to what extent the supplier can deliver as ordered.

The following sections apply for scenario 4: 6.2.1 Create order, 6.2.2 Acknowledge/Reject receipt of order, 6.2.3 Check stock levels, 6.2.4 Confirm order, 6.2.5 Confirm order with changes.


1 A contract has been established between the buyer and supplier.

2 The parties have agreed on delivery and payment terms, including what changes the supplier may make in respect of an ordered trade item.

3 Party information is available in both the buyer’s and the supplier’s systems.

4 A valid product selection and price list is available to both parties for the ordering process.

5 Buyer and supplier have agreed on conditions for how order acknowledgement and order confir-mation are to be used. The parties can agree on using one of the following combinations:

- Neither order acknowledgement nor order confirmation.

- Order acknowledgement.

- Order confirmation.

- Both order acknowledgement and order confirmation.

6 Buyer and supplier have agreed if an order may or may not be confirmed more than once, that is if more than one order confirmation can be sent for the same order, such as when back ordering is allowed.

7 Buyer and supplier have agreed whether receipts will be used for order confirmations in the event that the parties are agreed that more than one order confirmation can be sent for the same order. See section 6.1.8 Handling receipts for order confirmations for more information on receipts.

6.1.6 Termination conditionsThe process runs until one of the following conditions are satisfied:

1 The supplier has rejected the order. This can be done by sending an order rejection or order confirmation with changes, or verbally (depending on the circumstances and what has been agreed between the parties). A rejection means that the supplier does not accept the order and will not deliver the ordered trade items to the buyer, or




2 The supplier confirms the order. Depending on what has been agreed between the parties, this can be done by sending an order confirmation, order confirmation with changes or implicitly, that is, the order is confirmed if the supplier has not informed the buyer otherwise within an agreed time frame. Confirmation of an order means that all necessary information about the upcoming delivery of trade items has been exchanged, the buyer has the basis for receipt recon-ciliation and the supplier knows exactly what trade items are to be delivered. Everything is in order for the next collaboration process, Deliver ordered trade items, to start.

6.1.7 ExamplesAt www.gs1.se/249-en you will find examples of how different types of changes (e.g. changed delivery date, partial delivery, back-ordering) are handled using order confirmation with changes.

6.1.8 Handling receipts for order confirmationsIf the parties have agreed that more than one order confirmation can be sent for the same order, receipts are recommended. In this way the sequence of the order confirmation documents can be ensu-red.

A receipt message from the buyer’s system must arrive before a further order confirmation for the same order can be sent by the supplier. The parties must therefore agree a period (in minutes) during which the buyer’s system which has received the order confirmation must create and send a receipt message to the sending system at the supplier. The Technical Appendix to the interchange agreement specifies the item period for receipts. It must be ensured that the receiving EDI system reads the business trans-actions in the correct sequence.

Business document specification BDS 0.1.2 Message receipt notification is used to acknowledge that an order confirmation has been received. In the business document, code value 7 (message acknow-ledged) is stated for “T3004 Action code”. BDS 0.1.2 is part of the fundamental specifications, see www.gs1.se/esap20spec-en.

6.2 Detailed description of Place order

Figure 6.5. Place order








• 6.2.1 Create order describes how the buyer creates an order and the supplier receives and per-forms a technical validaton of the general information in the order document.

• 6.2.2 Acknowledge/Reject receipt of order describes how the supplier sends an order acknow-ledgement in order to inform the buyer that the order is accepted or rejected based on the results of the technical validation.

• 6.2.3 Check stock levels describes how the supplier checks the order against stock levels.

• 6.2.4 Confirm order describes how the supplier sends an order confirmation in order to inform the buyer that he has committed to delivering the ordered trade items.

• 6.2.5 Confirm order with changes describes how the supplier sends an order confirmation in order to inform the buyer that he can deliver trade items with some changes from the order or that he cannot deliver any trade items at all.

6.2.1 Create orderThe business process starts when the buyer needs to purhcase trade items. The figure below shows the steps that the parties should take before the business document Order is sent and after it has been received.

Figure 6.6. Buyer’s and supplier’s step when exchanging an order.


Buyer’s step 1: Prepare orderThe buyer scans his Inventory Management module in his IT System for trade item(s) that need reple-nishing. The module contains information such as trade item, supplier and price and has previously been synchronised, see sections 4 Synchronise trade item information and 5 Synchronise price infor-mation.

When the buyer or Enterprise Resource Planning (ERP) system has selected one or more trade items and decided on quantities, the basis of an order is created. The business document specification Order shows which information is included in the business document, see section 6.3.1 Order for an overview.

Buyer’s step 2: Approve orderBefore the order is sent to the supplier, it must be approved. Who should be authorised to make this approval varies between organisations. It might be the person making the order or a specific authorisa-tion may be required. In the latter case, the order must be available to the signatory.

For traceability it is important to record who approved the order and when.

It is also important to have procedures for approval in exceptional situations, e.g. when the signatory is not available and there is no deputy or when the order value exceeds the signatory's authority or simply that the signatory does not approve the order.

Buyer’s step 3: Validate contents of orderThe following validations of the contents of the order should be made before sending it to the supplier:

1 That the order number has not previously been used by the buyer, i.e. there are no duplicates.

2 That the order date is reasonable.

3 That the GLNs used in the order are known by the supplier.




4 That a reference to the contract between the buyer and supplier is present.

5 If the original price list has been updated (by replacement or change) during the contract term, that a reference to the price list is present in the order. If no reference is present, it is assumed that only one price list has been exchanged.

6 That the requested delivery date is reasonable and within the contract's delivery terms.

7 That the GTINs of the ordered trade items are valid according to the contract.

8 That the ordered quantites are reasonable and according to the contract.

Buyer’s step 4: Send orderThe buyer sends the order to the supplier.

Supplier’s step 1: Receive orderThe order is received by the supplier.


Supplier’s step 2: Validate contents of orderOnce the order has been received by the supplier’s system the contents of the order should be valida-ted. The validation points are the same as validation points 1-6 for the buyer, see Buyer’s step 3: Vali-date contents of order above.

Note that at this stage only general order information is validated. GTINs and order quantities are vali-dated at a later stage.

After validation the following takes place, depending on the results of the validation and whether the parties have agreed to use order acknowledgement or not:

• If the general information in the order does not validate correctly, and if the parties have agreed to use order acknowledgement, the supplier sends an order acknowledgement to the buyer to inform him that the order is rejected, see section 6.2.2 Acknowledge/Reject receipt of order. If the parties have agreed not to use order acknowledgement, the supplier should contact the buyer manually and inform him that the order is rejected.

• If the general information in the order does not validate correctly, and if the parties have agreed to use order acknowledgement, the supplier sends an order acknowledgement to the buyer to inform him that the order is accepted, see section 6.2.2 Acknowledge/Reject receipt of order. If the parties have agreed not to use order acknowledgement, the supplier is assumed to have acknowledged receipt if he has not contacted the buyer within a given time period specified in the EDI contract. In this case the supplier continues by checking his stock levels, see section 6.2.3 Check stock levels.

6.2.2 Acknowledge/Reject receipt of orderWhen the supplier has validated the general information in the order he sends an order acknowledge-ment to the buyer. The order acknowledgment gives the buyer one of the following messages:

That the order is correct according to validation of contents and has been received but is not yet completely processed in the supplier’s system.

• That the order is not correct according to validation of contents and has been rejected.

The figure below shows the steps that the parties should take before the business document Order acknowledgement is sent and after it has been received.




Figure 6.7. Buyer’s and supplier’s steps when exchanging order acknowledgement.


Supplier’s step 1: Prepare order acknowledgmentThe supplier prepares the order acknowledgement. The business document specification Order acknowledgement shows which information is included in the business document, see section 6.3.2 Order acknowledgement for an overview.

Supplier’s step 2: Validate contents of order acknowledgmentThe following validations of the contents of the order acknowledgement should be made before sending it to the buyer:

1 That the GLNs used in the order acknowledgement are known.

2 That the parties' EDI contract permits the exchange of order acknowledgement at this time.

Supplier’s step 3: Send order acknowledgmentThe supplier sends the order acknowledgement to the buyer.

Buyer’s step 1: Receive order acknowledgementThe buyer receives the order acknowledgement.


Buyer’s step 2: Validate contents of order acknowledgementOnce the order acknowledgement has been received by the buyer’s system the contents of the busi-ness document should be validated. Tha validation points are the same as for the supplier, see Supp-lier’s step 2: Validate contents of order acknowledgement above.


If the order acknowledgement validates correctly the following takes place, depending on the contents of the order acknowledgement:

• If the order was rejected by the supplier, the buyer sends a new, correct, order to the supplier.

• If the order acknowledgement was accepted by the supplier, the buyer waits for an order confir-mation or a Despatch advice, depending on what the parties have agreed.

6.2.3 Check stock levelsWhen the supplier has received and validated the general information in the order, stock levels are checked to see if the supplier can deliver the trade items that were ordered.




Figure 6.8. Supplier’s steps when checking stock levels.

The steps are described below.

Supplier’s step 1: Create customer orderA customer order is created in the supplier’s business system. To ensure traceability between the buyer’s order and the customer order, a unique reference to the buyer’s order message must be crea-ted. To ensure that customer orders are not duplicated a global document identifier can be used.

Supplier’s step 2: Check stock levelsThe customer order is then checked against stock levels to determine whether the supplier can deliver the ordered trade items. It is also recommended that a check is made that the GTINs of the ordered trade items are valid and that the ordered quantities are reasonable. The stock control can have the fol-lowing outcomes:

1 Stock control shows that the supplier can deliver as requested in the buyer’s order.

2 Stock control shows that the supplier can deliver as requested with some changes, like for example changed delivery date, or that an order line is rejected due to the trade item being tem-porarily out of stock.

3 Stock control shows that the supplier cannot deliver any of the requested trade items.

What happens next depends on the result of the stock level check as well as what order response mes-sages the parties have agreed to use:

1 The supplier can deliver as requested in the order.

- If the parties have agreed to use order confirmation, the supplier sends an order confirmation to the buyer. See section 6.2.4 Confirm order.

- If the parties have agreed not to use order confirmation, no message is sent to the buyer. Instead the supplier is assumed to have confirmed the order unless he has contacted the buyer within a set period of time as specified in the EDI contract.

2 The supplier can deliver as requested with some changes.

- If the parties have agreed to use order confirmation with changes, the supplier sends this to the buyer. See section 6.2.5 Confirm order with changes.

- If the parties have agreed to not use order confirmation with changes, the supplier should contact the buyer and inform him of the changes.

3 The supplier cannot deliver.

- If the parties have agreed to use order confirmation with changes, the supplier sends a mes-sage where all ordered trade items are rejected. See section 6.2.4 Confirm order.

- If the parties have agreed to not use order confirmation with changes, the supplier should contact the buyer and inform him that nothing will be delivered.

6.2.4 Confirm orderIf stock level control shows that the supplier can deliver the ordered trade items and the parties have agreed to use order confirmation, the supplier sends an order confirmation to the buyer. The order con-




firmation informs the buyer that the supplier has committed to delivering the ordered trade items. The figure below shows the steps that the parties should take before the business document Order confir-mation is sent and after it has been received.

Figure 6.9. Buyer’s and supplier’s steps when exchanging order confirmation.


Supplier’s step 1: Prepare order confirmationThe supplier prepares the order confirmation. The business document specification Order confirmation shows which information is included in the business document, see section 6.3.3 Order confirmation for an overview.

Supplier’s step 2: Validate contents of order confirmationThe following validations of the contents of the order confirmation should be made before sending it to the buyer:

1 That the GLNs used in the order confirmation are the same as the GLNs in the buyer’s order.

2 That the identity of the order confirmation has not already been used by another order confirma-tion.

3 That the parties' EDI contract permits the exchange of order confirmation at this time.

Supplier’s step 3: Send order confirmationThe supplier sends the order confirmation to the buyer.

Buyer’s step 1: Receive order confirmationThe buyer receives the order confirmation.


Buyer’s step 2: Validate contents of order confirmationOnce the order confirmation has been received by the buyer’s system the contents of the business document should be made. The validation points are the same as for the supplier, see Supplier’s step 2: Validate contents of order confirmation above.


Buyer’s step 3: Wait for deliveryIf the order confirmation validates correctly, the buyer waits for a delivery within the time frame agreed in the order and contract.

Changes at a late stageWhen the order has been confirmed, the supplier has committed to delivering the ordered trade items. However, the supplier may subsequently discover that he cannot deliver as confirmed. It is then pos-sible for the supplier to send an order confirmation with changes to advise the buyer of this, see next section Confirm order with changes. If the parties have not agreed to use this process, then the supplier must contact the buyer and inform him of the changed situation.




6.2.5 Confirm order with changesIf the stock control shows that the supplier can deliver the ordered trade items, but with some changes from the order, the supplier sends an order confirmation with changes to the buyer, provided that the parties have agreed on this process. Order confirmation with changes contains changes that the supp-lier proposes to make in the order. An example is that a trade item is back-ordered and will be delivered at some, unspecified, future date.

Order confirmation with changes can also be used if the supplier cannot deliver at all. In this case all trade items in the order are rejected.

The figure below shows the steps that the parties should take before the business document Order con-firmation with changes is sent and after it has been received.

Figure 6.10. Buyer’s and supplier’s steps when exchanging order confirmation with changes.


Supplier’s step 1: Prepare change proposalsThe supplier creates a change proposal. Possible changes in an order confirmation are:

1 All ordered trade items will be delivered on a date other than that requested.

2 An ordered trade item will be delivered on a date other than that requested (partial delivery).

3 An ordered trade item will be delivered on an unspecified future date (back-order).

4 A partial quantity of an ordered trade item will be delivered on a date other than that requested (partial delivery).

5 A partial quantity of an ordered trade item will be delivered on an unspecified future date (partial delivery and back-order).

6 A partial quantity of an ordered trade item is completely rejected.

7 An ordered trade item is completely rejected.

8 All ordered trade items are completely rejected (the order is rejected).

9 An ordered trade item is substituted wholly or partially with an alternate trade item.

The contract between the parties must specify which of these changes the supplier is permitted to make for a given trade item. For example, there must be explicit agreement that trade items may be substituted.

One order confirmation can contain a number of changes and these can be of different types. For example, a trade item can be delivered on more than one occasion at the same time as part of the quantity is rejected.

In the case where a trade item is substituted with another (bullet 9 above), trade item and price informa-tion for the substitute trade item must be available in the buyer’s business system. The contract speci-fies how much the substitute trade item may differ in quality and price from the substituted trade item.




An example collection at www.gs1.se/249-en describes how various types of changes (changed deliv-ery date, partial delivery, back-order, etc.) are handled with order confirmation with changes:

Supplier’s step 2: Validate contents of order confirmationThe following validations of the contents of the order confirmation should be made before sending it to the buyer:

1 That the GLNs used in the order confirmation are known.

2 That the parties have agreed to the exchange of order confirmation with changes at this time.

3 That the identity of the order confirmation has not already been used in a previous order confir-mation.

4 That the referenced order (and referenced order lines) exists.

Supplier’s step 3: Send order confirmationWhen the proposed changes are ready, an order confirmation is sent to the buyer. There must be agre-ement on the time frame for sending a confirmation to the buyer.

The business document specification Order confirmation with changes shows which information is included in the business document, see section 6.3.3 Order confirmation for an overview.

Buyer’s step 1: Receive order confirmationThe order confirmation is received by the buyer. Read about receipt of business documents in appendix 2.1 Receipt and technical validation.

Buyer’s step 2: Validate contents of order confirmationOnce the order confirmation has been received by the buyer’s system the contents should be validated. The validation points are the same as for the supplier, see Supplier’s step 2: Validate contents of order confirmation above.


Buyer’s step 3: Analyse change proposalsIf the order confirmation validates correctly, the buyer can continue by analysing what changes the supplier has proposed in the order. It is essential that the buyer has complete information, where pos-sible, on the consequences of the changes. If necessary, the buyer should contact the supplier for clari-fication.

Read about exception handling, when the analysis shows that the proposed changes cannot be accep-ted by the requestor, in appendix 2.2 Handling exceptions.

Buyer’s step 4: Update orderIf the analysis shows that the proposed changes are within the agreed terms, the order is updated in the buyer’s system. This means that the original order is changed according to the order confirmation.

It is therefore desirable that the purchasing system indicates for the user (requestor) that changes have been made. The updated order information is used subsequently for delivery reconciliation and in fur-ther business documents such as despatch advice and invoice.

Buyer’s step 5: Wait for deliveryThe system monitors that delivery is made within the time frames specified in the contract and order (as updated by order confirmation). Monitoring can be done manually if the system does not support this.

The order status in the buyer’s system is changed from “Order sent” to “Order confirmed with changes”. If all trade items were rejected, the status is changed to “Order rejected”.

When the order is confirmed with changes, the supplier has committed to delivering according to the agreed changes.

However, the supplier may subsequently discover that he cannot deliver as confirmed. It is then neces-sary for the supplier to inform the buyer of this. It is also possible that the supplier needs to advise the





buyer of delivery dates for trade items that were back-ordered in a previous order confirmation. It is possible for the supplier to send another order confirmation with changes to update the order informa-tion in the buyer’s system.

The new order confirmation messages replaces the previously sent order confirmation message. This means that the previously sent order confirmation message must be disregarded and that the new order confirmation message must contain information on all deviations from the original order.

If the parties have not agreed to use this process, then the supplier must contact the buyer and inform him of the changed situation.

6.3 Business documentsThis section gives an overview of the information contained in the business documents used in the Place order collaboration process.

6.3.1 OrderBusiness document Order is issued by the buyer to request a delivery of trade items from the supplier.

Figure 6.11. Overview of the contents of business document Order.

Order headerThe header contains information that identifies the order and the parties involved (Buyer and Supplier and possibly consignee, invoicee, etc.).

Order lineAn order contains one order line for each trade item being ordered. Each line contains information which identifies the trade item and the quantity being ordered.

Control totalThe control total contains control information for the business document.

Business document specification for OrderThe business document specification for Order can be found on http://www.gs1.se/globalassets/esap/esap20/version1.7/bds_200102_en170.pdf.

DThe complete specifications for ESAP 20.1 can be found on www.gs1.se/esap20spec-en.







6.3.2 Order acknowledgementBusiness document Order acknowledgement is sent from the supplier to the buyer and is used for two purposes:

• To inform the buyer that the order has been received but has not yet been checked against stock levels.

• To inform the buyer that the order document is erroneous and therefore rejected.

Figure 6.12. Overview of the contents of business document Order acknowledgement.

The business document consists only of a header which identifies the order acknowledgement and the parties involved (buyer and supplier) as well as the order being referred to.

When the order acknowledgement is used to reject the whole order, the reason for rejection can be specified.

Business document specification for Order acknowledgementThe business document specification for Order acknowledgement can be found on http://www.gs1.se/globalassets/esap/esap20/version1.7/bds_200103_en170.pdf.


6.3.3 Order confirmationBusiness document Order confirmation is sent from the supplier to the buyer to confirm an order. The business document can be used for three purposes:

1 To confirm an order in its entirety. The supplier takes the responsibility for delivering the ordered trade items without any changes.

2 To confirm an order and inform the buyer of any changes, such as change of delivery date, which the supplier wants to make. The types of changes which the supplier may make is governed by the contract.

3 To reject an order in its entirety.

6.3.3.1 Confirm an order in its entiretyWhen the order confirmation is used to confirm an order in its entirety, it consists only of a header which identifies the document, the parties involved and the order being confirmed.







Figure 6.13. Overview of the contents of Order confirmation when confirming an order in its entirety.

6.3.3.2 Confirm an order with changesWhen the business document is used to confirm an order and advise the buyer of any changes which the supplier wants to make, it consists of a header and a number of lines.

Figure 6.14. Overview of the contents of Order confirmation with proposed changes to the order.

Order confirmation headerThe Header contains information that identifies the business document and the parties involved (Buyer and Supplier) and which order it refers to.

It is also possible to specify the planned delivery date if the supplier wants to deliver the trade items on other than the requested delivery date specified by the buyer in the order. Note that this delivery date




applies to all trade items in the order. If the supplier wishes to change delivery dates for individual trade items, this can be done at line level. If the delivery date is the only change, the document consists only of a header.

Order confirmation lineAn order confirmation line is used to reject or change a line in the original order. Lines in the order that are not changed or rejected are not included in the order confirmation.

The following changes can be made at line level:

1 Change the delivery date of the entire ordered quantity of the trade item.

2 Backorder the entire ordered quantity of the trade item. That is, the trade item will be delivered on an unspecified future date.

3 Change the delivery date of part of the ordered quantity of the trade item.

4 Backorder part of the ordered quantity of the trade item. That is, part of the ordered quantity will be delivered on an unspecified future date.

5 Reject part of the ordered quantity of the trade item.

6 Reject the entire ordered quantity of the trade item.

7 Replace part of, or the entire, ordered quantity of the trade item with another trade item.

The contract between the parties must specify which changes the supplier is permitted to make for a given trade item.

It is possible to give the reason for the change.

An example collection at www.gs1.se/249-en describes how various types of changes (changed deliv-ery date, partial delivery, back-order, etc.) are handled with order confirmation with changes.

Control totalThe Control total occurs zero or one times per call-off as agreed. It contains control information for the business document.

6.3.3.3 Reject an order in its entiretyTo reject an entire order, every order line must be rejected. Rejecting an order in its entirety is a variant of “Confirm an order with changes” described above, where all order lines are rejected.

6.3.3.4 Business document specification for Order confirmationThe business document specification for Order confirmation with changes can be found on http://www.gs1.se/globalassets/esap/esap20/version1.7/bds_200104_en170.pdf.








Process description for ESAP 20.1Chapter 7. Deliver ordered trade items

7 Deliver ordered trade items

This collaboration process handles the delivery of trade items ordered by the buyer. The process covers activities from the preparation of the shipment and its transport through to its receipt and the registration of information needed for traceability and invoice reconciliation.

Information about the shipment is transferred using a despatch advice. Since this document should arrive before the shipment, the recipient can plan for their arrival.

7.1 Scenario

Figure 7.1. Scenario - Deliver ordered trade items.

The process of delivering ordered trade items starts when the supplier has accepted an order from a buyer. Then the following occurs:

1 The supplier prepares the shipment.

2 Each logistic unit is assigned a unique SSCC.

3 Each logistic unit is labelled with a GS1 logistic label representing the barcoded SSCC and other information.

4 Transport documents are prepared for the carrier.

5 When the shipment is ready to leave the supplier a despatch advice is sent to the recipient. The despatch advice describes exactly which logistic units are included in the shipment. Since the despatch advice should arrive before the shipment, the recipient can plan for the arrival.

6 The carrier collects the shipment (consisting of logistic units and associated documentation) and delivers them to the recipient.

7 The buyer (consignee) receives the shipment and checks that the correct logistic units have been received and that no logistic units have been damaged during transport.

8 The buyer (consignee) signs the transport document.

9 Using the despatch advice as reference, the consignee checks that the correct trade items and quantities have been delivered, and the result is input to the business system.


1 A contract has been established between buyer and seller.

2 Conditions for payment and delivery have been specified.

3 Party information for buyer and supplier has been input to both the buyer's and supplier's sys-tems.




4 The supplier has confirmed that he will deliver according to the buyer's order (possibly with changes agreed by the buyer).

5 Buyer and supplier have agreed on how discrepancies, if any, between the despatch advice and the delivered trade items shall be handled.

6 The supplier has been given a reference to the order by the buyer. The reference will be used in the despatch advice.


1 Delivery without discrepancies is registered in the buyer's system, or

2 The supplier is informed of the discrepancies between the despatch advice and the delivered trade items.

7.1.3 Unloading occasionThe word “delivery” may be intrepreted differently by different parties in the supply chain. To a carrier, a vehicle loaded with logistic units may be a delivery. To a consignee, a delivery may be all trade items deriving from one order, regardless of whether the trade items are unloaded at one and the same occa-sion, or whether the trade items are unloaded at more than one occasion on the same day.

In order to avoid misunderstandings, the word “delivery” will not be used in this document for the above or similar situations. Instead, the expression “unloading occasion” is used.

At one (1) unloading occasion, the logistic units from one (1) vehicle are unloaded at one (1) consignee.

7.1.4 Flows according to ESAP 20The basic ESAP 20 flow is that one (1) order generates one (1) unloading occasion, one (1) despatch advice and one (1) invoice. (Flow No. 1 in the table below).

When trade items originating from one and the same order must be split on more than one unloading occasion (more than one vehicle), one despatch advice must be created for each unloading occasion and one invoice must be created for each unloading occasion. (Flow No. 3 in the table below).

The parties may agree in contract that trade items deriving from one order may be split on more than one delivery date. When trade items deriving from one and the same order are split on more than one delivery date, one invoice must be created for each delivery occasion (delivery date). Note that an order confirmation with changes must have been previously sent to the buyer. (Flow No. 5 in the table below).

When optimizing vehicle fill rate, trade items deriving from more than one order from one and the same buyer may be loaded onto one and the same logistic unit and thereafter adviced using one and the same despatch advice. However, one invoice must be created for each order. Note that it must be agreed in the contract that trade items from more than one order may be adviced in one and the same despatch advice. (Flow No. 6 in the table below).

7.1.4.1 Examples of flows supported by ESAP 20 and flows not supported by ESAP 20The table shows the relation between the numer of orders, unloading occasions, despatch advices and invoices for a number of flows, and whether the flows are supported by ESAP 20 or not.

The numbers in the table should be interpreted as follows:

• 0=Exactly 0

• 1=Exactly 1

• Other numbers (2, 4, 5) does not stand for the exact number in most cases, but are to be seen in relation to the other numbers in the same flow. For example, if a flow consists of 2 orders, 1 unlo-ading occasion and 2 invoices, this means that there are more than one order and invoice per unloading occasion and that one invoice is created for each order.




Table 7.1. List of flows supported by ESAP 20, respectively not supported by ESAP 20

No Flow Short description Order Unloa-dingocca-sions

Des-patchadvi-ce

Invoi-ce

Sup-por-tedbyESAP20

Comment

1 Whole-sale flow

The supplier delivers ordered tradeitems deriving from one (1) order tothe buyer. One (1) despatch advice isfollowed by one (1) invoice.

1 1 1 1 YES

2 Whole-sale flow

The supplier delivers trade items ac-cording to a pre-order which is fol-lowed by a regular order. The tradeitems deriving from more than one or-der are adviced with one (1) despatchadvice and are invoiced with one (1)invoice.

2 1 1 1 NO One despatch advicemust be created foreach order. Each or-der must be invoicedwith a separate invoi-ce. This flow is notsupported by ESAP20 due to increasedcomplexity when re-ferring to more thanone order in the des-patch advice and theinvoice.

3 Whole-sale flow

The supplier delivers trade items, de-riving from one (1) order, from morethan one warehouse. This means thatthe trade items are unloaded on morethan one occasion (more than one ve-hicle). One despatch advice is createdfor each vehicle (unloading occasion).One invoice is created for each unloa-ding occasion.

1 2 2 2 YES

4 Whole-sale flow

The supplier delivers trade items, de-riving from one (1) order, from morethan one warehose. This means thatthe trade items are delivered on morethan one occasion (more than one ve-hicle). One despatch advice is createdfor each vehicle (unloading occasion),but only one (1) invoice is created.

1 2 2 1 NO Each unloading occa-sion must be followedby one invoice. Thisflow is not supportedby ESAP 20 due to in-creased complexitywhen referring tomore than one des-patch advice in the in-voice.

5 Whole-sale flow

The supplier delivers trade items deri-ving from one (1) order, but divided onmore than one delivery date (morethan one unloading occasion). Onedespatch advice is created for eachvehicle (unloading occasion) and oneinvoice is created for each unloadingoccasion.

1 2 2 2 YES This must be agreedin contract. It is re-commended to use or-der confirmation withchanges.




6 Whole-saleflow/Re-tail flow

The supplier delivers trade items deri-ving from more than one order. Thetrade items are loaded onto one andthe same unit load device in order tooptimise vehicle fill rate. The tradeitems are adviced using one (1) des-patch advice but are invoiced usingone invoice per order.

2 1 1 2 YES This must be agreedin contract.

7 WMI-flow

Continuous deliveries based on acontract instead of an order, for ex-ample replenishment of bread.

0 1 1 1 YES

8 WMI-flow

Continuous deliveries based on acontract instead of an order, for ex-ample replenishment of bread. Thetrade items are adviced using onedespatch advice per unloading occa-sion, but are invoiced using only one(1) invoice.


9 Storepacked.Delive-red tostore viaterminal

The supplier delivers store packedtrade items deriving from more thanone order from one and the same sto-re. The trade items are loaded ontoone and the same vehicle and trans-ported to the buyer's warehouse/ter-minal, from where the buyerdistributes the trade items to the store.One despatch advice is created foreach order. One invoice is created foreach order.

5 1 5 5 YES The contract must al-low for distributing sto-re packed trade itemsto store via a terminal.


The supplier delivers store packedtrade items deriving from more thanone order from one and the same sto-re. The trade items are loaded ontoone and the same vehicle and trans-ported to the buyer's warehouse/ter-minal, from where the buyerdistributes the trade items to the store.One despatch advice is created foreach order, but the trade items are in-voiced using only one invoice.




Des-patchadvi-ce

Invoi-ce

Sup-por-tedbyESAP20

Comment





The supplier delivers store packedtrade items deriving from more thanone order from one and the same sto-re. The trade items are loaded ontoone and the same vehicle and trans-ported to the buyer's warehouse/ter-minal, from where the buyerdistributes the trade items to the store.In order to optimise vehicle fill rate thesupplier loads trade items derivingfrom more than one order onto oneand the same unit load device (logisticunit) One invoice is created for eachorder.

5 1 1 5 YES The contract must al-low for distributing sto-re packed trade itemsto store via a terminal.The contract mustalso allow for advicingtrade items derivingfrom more than oneorder in one and thesame despatch advi-ce.

12 Storepacked.Delive-reddirectlyto store

The supplier delivers store packedtrade items deriving from one (1) or-der directly to the store. One (1) des-patch advice is followed by one (1)invoice.

1 1 1 1 YES The contract must al-low for distributing sto-re packed trade itemsdirectly to the store.

13 Automa-ticallygenera-tedorder.Delive-reddirectlyto store

Automatically generated orders aresent from the store to the supplier.The supplier delivers directly to thestore. Trade items deriving from seve-ral orders are delivered at more thanone unloading occasion but are advi-ced using only one (1) despatch advi-ce and are invoiced using only one (1)invoice.

4 2 1 1 NO One despatch adviceand one invoice mustbe created for eachunloading occasion.This flow is not sup-ported by ESAP 20due to increased com-plexity when referringto more than one or-der in the despatchadvice and the invoi-ce.


Automatically generated orders aresent from the store to the supplier.The supplier delivers directly to thestore. Trade items deriving from seve-ral orders are delivered at more thanone unloading occasion. In order tooptimise vehicle fill rate the supplierloads trade items deriving from morethan one order onto one and the sameunit load device (logistic unit) fortransportation directly to the store.One despatch advice is created foreach unloading occasion, at whichtrade items deriving from more thanone order are delivered. One invoiceis created for each order.

4 2 2 4 YES The contract must al-low for distributing sto-re packed trade itemsdirectly to the store.The contract mustalso allow for advicingtrade items derivingfrom more than oneorder in one and thesame despatch advi-ce.



Des-patchadvi-ce

Invoi-ce

Sup-por-tedbyESAP20

Comment




7.2 Detailed description of Deliver ordered trade items

Figure 7.2. Deliver ordered trade items


• 7.2.1 Prepare shipment describes how the supplier prepares the logistic units that are to be inclu-ded in the shipment.

• 7.2.2 Advice shipment describes how the supplier sends a despatch advice to inform the buyer of the upcoming shipment

• 7.2.3 Transport shipment describes how the shipment is transported to the buyer.

• 7.2.4 Receive shipment describes how the consignee receives the shipment.

7.2.1 Prepare shipmentThe supplier picks the trade items that are to be included in the shipment. At the same time, information which is to be included in the despatch advice and the invoice is collected.

There are two alternative ways of preparing the shipment, depending on whether the ordered volumes are sufficiently large that the supplier can deliver full pallets directly from stock, or if the ordered packa-ges of the same trade item are so few that they have to be picked onto a unit load device.


Automatically generated orders aresent from the store to the supplier.The supplier delivers directly to thestore. Trade items deriving from seve-ral orders are delivered at more thanone unloading occasion. The tradeitems are adviced using only one (1)despatch advice. One invoice is crea-ted for each order.

4 2 1 4 NO One despatch adviceand one invoice mustbe created for eachunloading occasion.



Des-patchadvi-ce

Invoi-ce

Sup-por-tedbyESAP20

Comment




7.2.1.1 Alternative 1 - The logistic unit is a full palletThis alternative applies when the buyer has ordered sufficiently large volumes that the supplier can deliver full pallets directly from stock. This pallet may be either homogeneous or a display pallet.

Figure 7.3. Supplier’s steps when preparing a shipment consisting of full pallets which are piced directly from stock.


Step 1: Pick pallet from stockThe full pallet is picked from stock.

Each pallet is a logistic unit. The information about the logistic unit is registered in the internal system and will be used in the despatch advice. The information will also be used as a basis for the invoice.

If an unexpected shortfall was discovered when the trade item was picked, the shortfall can be reported in the despatch advice.

The despatch advice may also be used to advice that the quantity of a trade item is delivered in surplus. The quantity of a trade item may be delivered in surplus if a trade item, whose confirmed quantity devi-ates from the ordered quantity, has been replenished in stock at the time of picking.

The SSCC of the logistic unit, as well as trade item and traceability information (GTINs of the contained trade items, batch number, best before date), if any, are scanned from the bar code on the logistic unit (the logistic label). The information is linked to the buyer's order and is input to the despatch advice. The scanned SSCC is also used to secure that the same SSCC is used on the transport label.

Step 2: Create basis for invoiceThe basis for raising an invoice comes from the buyer’s order with a reference to the buyer’s order number and a reference to a contract and its current price list. This data is completed with:

1 Shipment information such as shipping date, delivery address, reference to packing list or des-patch advice and shipped quantities.

2 Price information for the delivered trade items.

3 Charges according to contract (freight charge, service charge, packing charge).

4 Discounts according to contract (invoicing discount).

5 Customer details according to the buyer’s order (GLNs for buyer, consignee, delivery place, invoice recipient, and others).

6 A summary of the amount per delivered trade item.

7 A summary of the VAT amount per VAT rate.

8 A summary of the net amounts and VAT amounts which make up the amount required for pay-ment from the buyer.

9 Sales account and VAT account per VAT rate and other internal codes such as cost centre, pro-ject number and debit account. This data is needed to raise an invoice and is only processed internally by the supplier.

Step 3: Create transport labelIf a transport label is required according to the contract between the supplier and the carrier or the supplier and the buyer, a transport label per logistic unit is created and printed. The main aim of the transport label is to give the carrier information to ensure that the logistic unit is delivered to the right




place. A transport label may be a standard transport label (STE), a store-pack label or a customer pack label.

The transport label is affixed to the logistic unit according to the following rules:

1 The barcode on the label must be no less than 400mm and no more than 800mm from the bot-tom.

2 The label should be as high as possible within this range to leave room for a possible logistic label below the transport label.

3 The label shall be no nearer the edge than 50mm.

If the logistic unit has both a logistic label and a transport label, then the transport label should not include an SSCC. If there are technical reasons which prevent the suppression of the SSCC on the transport label, then the SSCC on the transport label must be identical to that on the logistic label.

The transport label shall be placed above an existing logistic label. The transport label must never cover any part of an existing logistic label.

Step 4: Check labelsBefore the logistic unit is shipped the labels should be checked to ensure that they are correctly positio-ned on the logistic unit, that they contain the correct information and that the barcoded information is readable. The following checks should be made:

1 That the information on the labels is correct.

2 That the placement rules described above have been followed.

3 That no label is covered with plastic or other packaging material.

4 That the logistic unit is marked with only one SSCC, i.e. if the logistic unit has both a logistic label and a transport label, then the transport label should not include an SSCC.

If the labels are not correctly placed and/or do not contain the correct information, this must be correc-ted and a new label must be printed and placed on the logistic unit. If the barcoded information is not readable, a new label with readable bar code must be printed and placed on the logistic unit.

When the labels are correctly positioned and contain the correct and readable information, the logistic units are ready for shipment.

7.2.1.2 Alternative 2 - The logistic unit consists of trade items which have been picked onto a unit load deviceThis alternative applies when the buyer has ordered so few packages of the same type that the supplier cannot deliver full pallets.

In this alternative, a logistic unit is created by picking trade item packages onto a unit load device, such as for example a pallet or roll-cage.

Figure 7.4. Supplier’s steps when preparing a shipment when packages of one or more trade items are picked onto a unit load device.




Step 1: Pick trade itemsThe supplier picks the ordered trade items onto a unit load device (ULD) such as a pallet or roll-cage. To secure that the correct trade items are picked, the GTIN of the trade item can be read from the bar code of the ordered trade item.

Traceability information, if any (batch number, best before date), is read from the package bar codes. The traceability information is input to the despatch advice.

The unit load device with trade items is a logistic unit. The information about the logistic unit is registe-red in the internal system and will be used in the despatch advice. The information will also be used as a basis for the invoice.

If an unexpected shortfall was discovered when the trade item was picked, the shortfall can be reported in the despatch advice.

The despatch advice may also be used to advice that the quantity of a trade item is delivered in surplus. The quantity of a trade item may be delivered in surplus if a trade item, whose confirmed quantity devi-ates from the ordered quantity, has been replenished in stock at the time of picking.

Step 2: Give the logistic unit an SSCCThe logistic unit i allocated an SSCC.

Step 3: Create logistic labelIf a logistic label is required according to the contract between the buyer and the supplier, a logistic label is created and affixed to the logistic unit.

If the logistic unit contains more than one trade item, only the SSCC may be displayed on the logistic label. That is, the logistic label must not display information such as GTIN, best before date, batch num-ber or number of contained packages. This information must instead be included in the despatch advice.

The same label may be used to display transport information such as addresses and for example the weight of the logistic unit and the number of logistic units in the shipment. If the logistic unit consists of trade items which are ordered by a store and distributed to the store via a wholesaler or distribution centre, the bar coded GLN of the store (the end destination) may be displayed on the label in order to facilitate the distribution process. The contract between the supplier and the buyer or carrier must allow for displaying transport information on the logistic label.

Step 4: Create basis for invoiceSee section Create basis for invoice in Alternative 1 above.

Step 5: Create transport labelSee section Create transport label in Alternative 1 above.

Depending on in what way the supplier's logistic system and transport system interacts, logistic infor-mation and transport information may be displayed on the same label together with the SSCC. See section Create logistic label.

Step 6: Check labelsSee section Check labels in Alternative 1 above.

7.2.2 Advice shipmentWhen the supplier has prepared the shipment (see previous section) he sends a despatch advice to inform the buyer about the upcoming delivery. The despatch advice identifies exactly which logistic units are going to be delivered and the contents of each logistic unit.

The figure below shows the steps that the parties should take before the business document Despatch advice is sent and after it has been received.




Figure 7.5. Buyer’s and supplier’s steps when exchanging despatch advice.


Supplier’s step 1: Create despatch adviceWhen the shipment is ready to leave the sender a despatch advice should be sent to the buyer /consig-nee. The despatch advice specifies the contents of the shipment.

Business document specification Despatch advice shows which information is included in the business document, see section 7.3 Business document for an overview.

Note that:

1 A despatch advice shall correspond exactly to the logistic units that are being shipped. This means that the despatch advice cannot be prepared before the logistic units are ready for ship-ment.

2 All logistic units from the same order which are to be transported from one and the same address to one and the same physical delivery point at one and the same point of time shall be specified in one and the same despatch advice.

3 If an order can result in more than one shipment (also called partial delivery) a despatch advice must be sent for each shipment. Note that partial deliveries must be allowed by the contract.

4 When optimizing vehicle fill rate, trade items deriving from more than one order from one and the same buyer may be loaded onto one and the same logistic unit. In this case, these trade items may be adviced using one and the same despatch advice. References to order and order line are specified at despatch advice line level. Note that it must be agreed in the contract that trade items from more than one order may be adviced in one and the same despatch advice. Separate invoices must be raised for trade items adviced in one and the same despatch advice. That is, a separate invoice must be raised for trade items deriving from one and the same order.

5 If an unexpected shortfall was discovered when the trade item was picked, the shortfall can be reported in the despatch advice.

6 The despatch advice may also be used to advice that the quantity of a trade item is delivered in surplus. The quantity of a trade item may be delivered in surplus if a trade item, whose confirmed quantity deviates from the ordered quantity, has been replenished in stock at the time of picking.

Supplier’s step 2: Validate contents of despatch adviceThe following validations of the contents of the despatch advice should be made before sending it:

1 That the despatch advice number has not previously been used by the buyer, i.e. there are no duplicates.

2 That the despatch advice date is reasonable.

3 That the GLNs used in the despatch advice header are known and valid.




4 That the despatch advice refers to an order. This validation point does not apply for continuous delivery of goods based on a contract instead of an order.

5 That references to order and order line are specified at line level when trade items deriving from more than one order from one and the same buyer are loaded onto one and the same unit load device.

Supplier’s step 3: Send despatch adviceThe buyer sends the despatch advice to the buyer.

Buyer’s step 1: Receive despatch adviceThe despatch advice is received by the buyer.


Buyer’s step 2: Validate contents of despatch adviceOnce the despatch advice has been received by the buyer’s system the contents of the business document should be validated. The validation points are the same as for the supplier, see Supplier’s step 2: Validate contents of despatch advice above.


Buyer’s step 3: Update order information from despatch adviceInformation from the despatch advice is prepared for reconciliation when the goods are delivered. Invoice reconciliation is also prepared using the despatch advice.

The following updates are made:

1 That the order information in the internal system of the buyer is updated from the despatch advice if a trade item has been substituted or if a trade item is reported as not delivered, due to the discovery of an unexpected shortfall when the trade item was picked. Note that the contract must allow for substituting a trade item with another trade item.

2 That the order information in the internal system of the buyer is updated from the despatch advice if it is reported that the quantity of a trade item is delivered in surplus. Surplus delivery may occur when a trade item, whose confirmed quantity deviates from the ordered quantity, has been replenished in stock at the time of picking. The contract must allow for surplus delivery of a trade item whose quantity has previously been confirmed as deviating.

3 For variable measure items (e.g. variable weight) the shipped quantity can differ from the ordered quantity. In such cases, the buyer's system is updated with the shipped quantity which permits subsequent invoice reconciliation.

When the updates are complete the order is ready for invoice reconciliation.

Buyer’s step 4: Plan goods receiptSince the despatch advice arrives before the shipment the consignee can plan receipt using informa-tion from his item database. This can include choosing chilled, dry or frozen storage, etc.

7.2.3 Transport shipmentWhen the supplier has assembled the shipment and the despatch advice has been transmitted to the buyer (see previous section), the shipment is transported to the buyer.

The figure below shows the steps which the supplier and the carrier carry out when transporting the shipment.




Figure 7.6. Supplier’s and carrier’s steps when transporting shipment.


Supplier’s step 1: Prepare transport documentsThe supplier creates a transport document which shows the number of logistic units that the carrier is to transport for the supplier's account, as well as the delivery address. It is signed-off by the recipient upon delivery as confirmation that responsibility has passed to the recipient.

Supplier’s step 2: Hand over shipmentThe supplier hands the shipment over to the carrier. The shipment consists of logistic units, possibly with logistic labels, and transport documents.

Carrier’s step 1: Accept shipmentThe carrier accepts the shipment and also accepts responsibility for the shipment.

The carrier can be a third party logistics provider who has been contracted by the supplier or the buyer, or it can be the supplier or buyer himself who provides the transport (i.e. takes the carrier role). The buyer and supplier have agreed where responsibility for the shipment passes from one party to the other and thus who is responsible during transport. If a third party carrier is used, then the transfer of responsibility is governed by the transport contract.

Carrier’s step 2: Transport shipmentThe carrier transports the shipment to the given delivery address.

7.2.4 Receive shipmentWhen the carrier has transported the shipment to the delivery address (see previous section) the consignee receives the shipment.

The figure below shows the steps which the carrier and the buyer carry out when the shipment is deliv-ered.

Figure 7.7. Carrier’s and buyer’s steps when the shipment is delivered and received by the buyer.





Carrier’s step 1: Hand over shipmentThe carrier hands over the shipment to the consignee. The shipment consists of logistic units with logis-tic labels and transport documents.

Buyer’s step 1: Accept shipmentThe consignee accepts the shipment from the carrier. An initial check of the shipment is made as fol-lows:

1 That all logistic units are correctly addressed

2 That the number of logistic units agrees with the transport documents.

3 That all logistic units are undamaged

The division of responsibility for transport that has been agreed between buyer and supplier determines who the buyer should contact with claims regarding damage in transit.

Buyer’s step 2: Sign-off transport documentsIf the logistic units are OK at delivery check, the consignee signs the transport documents as evidence of receipt for the carrier. This implies that responsibility for the logistic units has been transferred to the buyer.

If the logistic units are is not OK at delivery check, i.e. that some logistic units are damaged or that not all logistic units have been delivered, then the consignee signs the transport documents adding infor-mation on any irregularities.

Receipt of the logistic units does not mean that the buyer has automatically accepted the quality of the incoming items. This may be checked later.

Buyer’s step 3: Scan SSCC from logistic labelThe bar-coded SSCC on the logistic label is read from a terminal connected to the buyer's business system. Using the SSCC as a key, the logistic unit is associated with the corresponding despatch advice and the information it contains.

Information about the logistic units is fetched from the despatch advice and is used in the following sys-tems:

• Warehouse management

• Traceability

• Accounts payable for invoice reconciliation

Buyer’s step 4: Reconcile trade items with despatch adviceUsing the despatch advice as reference, the consignee checks that the correct trade items have been delivered.

If delivery reconciliation shows that all trade items have been correctly delivered, then this is input to the business system.

If delivery reconciliation shows discrepancies between the despatch advice and the trade items delive-red, then these are noted for invoice correction and error reports to the supplier. The buyer must also inform the supplier about the discrepancies. The parties must agree on how the discrepancies shall be handled in the invoice and credit note.

7.3 Business documentThis section gives an overview of the information contained in the despatch advice.

The supplier uses the despatch advice to inform the buyer of a pending shipment. The despatch advice describes the logistic units that are part of the shipment. The business document is a list of logistic units with each line containing a list of the included trade items.




Figure 7.8. Overview of the contents of business document Despatch advice.

Despatch advice headerThe Header contains information that identifies the document, dates and references.

Logistic informationFor each logistic unit, information about the logistic unit is specified, e.g. identity (SSCC), gross weight and the properties of the logistic unit

Despatch advice lineOne despatch advice line occurs for each trade item in the logistic unit. It specifies information about the trade item, e.g. trade item identity (GTIN), batch number, best before date, despatched quantity or amount and reference to the order.

Control totalThe Control total contains control information for the document.

Business document specification for Despatch adviceThe business document specification for Despatch advice can be found on http://www.gs1.se/globalas-sets/esap/esap20/version1.7/bds_200105_en170.pdf.







Process description for ESAP 20.1Chapter 8. Issue invoice

8 Issue invoice

The supplier issues an invoice requesting payment for goods or services delivered. The purpose is to ensure that the buyer has sufficient information to enable a payment and update accounting systems.

8.1 Scenario

Figure 8.1. Scenario - Issue invoice.

1 The supplier prepares the invoice and sends it to the buyer.

2 The buyer receives the invoice and processes it in preparation for payment.

3 The buyer approves the payment.



2 Contractual conditions regarding trade items, price and party information has been synchronised between the buyer’s and supplier’s business systems.

3 The supplier has prepared a shipment and the associated despatch advice.


1 The invoice is approved for payment. Buyer and supplier wait for payment to be made. Or

2 The invoice is held pending crediting. The buyer waits for a credit note.

8.1.3 One invoice per delivery occasionAt one (1) delivery occasion, logistic units from one (1) vehicle are unloaded at one (1) consignee.

One invoice must be issued for trade items delivered at one and the same delivery occasion and origi-nating from one and the same order.

The parties may agree in contract that trade items deriving from one order may be delivered on several dates. When trade items deriving from one and the same order are delivered at more than one delivery date, one invoice must be created for each delivery occasion. Note that an order confirmation with changes must have been sent to the buyer.

8.2 Detailed description of Issue invoiceThe figure below shows the steps that the parties should take before the business document Invoice is sent and after it has been received.




Figure 8.2. Buyer’s and supplier’s steps when exchanging invoice.


Supplier’s step 1: Prepare invoiceThe supplier starts preparing an invoice when the condition for sending an invoice, which the parties have agreed upon, has been fulfilled. The supplier prepares the invoice from the data captured during the delivery process. The business document specification Invoice shows which information is included in the business document, see section 8.3 Business document for an overview.

Supplier’s step 2: Validate contents of invoiceThe following validations of the contents of the invoice should be made before sending it:

Validation points at INVOICE HEADER level:

1 That the invoice number (T0060 Invoice number) has not previously been used by the supplier. To ensure that duplicates are never raised, the supplier can use a Global Document ID as the invoice number.

2 That the document is categorised as an invoice (T0061 Invoice type = 380).

3 That the date when the invoice was issued (T0062 Invoice date) is specified and according to agreed terms.

4 That the due date for payment (T0067 Due date) is consistent with the agreed payment terms.

5 That the delivery date (T0176 Actual delivery date) is given if the date is used as basis for pri-cing.

6 That the despatch date (T0127 Despatch date) is given.

7 That a reason for not charging VAT is given (T0290 Reason for not charging VAT code), when no VAT is charged due to VAT reverse charge regulation or when VAT is exempt due to an intra community supply in the European Economic Area.

8 That a reference to the contract (T0007 Reference to contract) is given.

9 That a reference to the price list (T0006 Reference to price list) is given if more than one price list is used for one and the same contract.

10 That a reference to the buyer's order (T3316 Reference to order) is given when delivery has been carried out based on an order (that is, for all cases except for continuous deliveries directly to a store, for example replenishment of bread).




11 That a reference to the despatch advice (T0090 Reference to despatch advice) is given, if an electronic despatch advice has been used.

12 That a reference to the delivery note (T0063 Reference to delivey note) is given, if a reference to an electronic despatch advice has not been given.

13 That the identification (GLN) of the supplier, buyer and any other party roles and locations speci-fied in the invoice, corresponds with those in the order. (T0009 Supplier identification GLN, T0065 Invoice issuer identification GLN, T0008 Buyer identification GLN, T0240 Recipient identification GLN, T0066 Payee identification GLN, T0085 Invoicee identification GLN, T0036 Consignee identification GLN, T0037 Delivery place identification GLN).

14 That the supplier’s VAT registration number (T0064 Supplier’s VAT registration number) is given.

15 That the buyer’s VAT registration number (T0099 Buyer’s VAT registration number) is given when no VAT is charged due to VAT reverse charge regulation or when VAT is exempt due to an intra community supply in the European Economic Area..

16 That a statement on approved F-tax is given (T5031 Reference to decision on F-tax code) if the supplier is a registered company in Sweden and the invoice concerns invoicing of services.

17 That T0204 Currency code is given.

18 That T0283 Rate of exchange and T0286 Accounting currency code are given if the accoun-ting currency is other than the invoicing currency.

19 That T4152 Commisson amount, if any,= T4153 Basis for calculation of commission amount x T4151 Commission rate percent according to contract about sales commission.

20 That a tax calculation basis (T0197 Tax category code and T0195 Duty fee tax rate) is given if a sales commission is given.

21 That the invoice discount (T2201 Invoice discount amount), if any, is according to contract.

22 That the rate of the invoice discount (T2010 Rate of discount) is given if the calculation for the invoice discount is based on a discount rate.

23 That a tax calculation basis (T0197 Tax category code and T0195 Duty fee tax rate) is given if an invoice discount is given.

24 That the reduction for pick-up of goods (T3412 Reduction for pick-up of goods as an amount), if any, is according to contract.

25 That a tax calculation basis (T0197 Tax category code and T0195 Duty fee tax rate) is given if a reduction for pick-up of goods is given.

26 That the freight charge (T0091 Freight charge), if any, is according to contract.

27 That the service charge (T3323 Service charge), if any, is according to contract.

28 That the packing charge (T3419 Packing charge), if any, is according to contract.

29 That a tax calculation basis (T0197 Tax category code and T0195 Duty fee tax rate) is given if a freight charge, service charge or packing charge is given.

Validation points at INVOICE LINE level:

30 That a line number (T0051 Line number) is given and is greater than the line number of the pre-ceding invoice line.

31 That the invoice line amount (T0071 Extended price) is the product of the invoiced quantity (T0069 Invoiced quantity) and the invoiced price (one of T0029 Contract price, T0203 Current price, T3288 Contract price temporarily discounted, T0182 List price discounted, T0238 Current list price discounted, T3424 Additional price and T4159 Sales price to consumer).

32 That a reference to the buyer’s order line (T3322 reference to order line) is given.

33 That a reference to the buyer’s order (T3316 Reference to order) is given and is the same for all invoice lines.




34 That a reason for not charging VAT is given if no VAT is invoiced for a specific GTIN. and no rea-son for not charging VAT is given at header level (T0290 Reason for not charging VAT code or T0278 Reason for not charging VAT).

35 That the GTIN of the invoiced trade item (T0154 Trade item GTIN) is the same as the GTIN of the delivered trade item.

36 That the supplier’s article number (T0172 Supplier´s article number), if any, is the same as the supplier’s article number for the trade item notified in the despatch advice.

37 That an edition number (T4160 Edition number) is given if there is more than one edition of the invoiced trade item.

38 That the quantity of the invoiced trade item (T0069 Invoiced quantity, T0055 Unit of measure-ment for quantity code) is the same as the quantity of the delivered trade item.

39 That the delivered quantity (T0070 Delivered quantity) is given, and is the same quantity as the ordered quantity according to the order and the despatched quantity in the despatch advice, if the invoiced trade item is a variable measure item that has been ordered per piece.

40 That an invoiced price is given for the trade item and that the price is the same as the agreed price which has been exchanged in the price list. The price can be one of T0029 Contract price, T0203 Current price, T3288 Contract price temporarily discounted, T0182 List price dis-counted, T0238 Current list price discounted, T4159 Sales price to consumer.

Validation points at INVOICE SUMMARY level:

41 That all total amounts in SUMMARY, INVOICE AMOUNT are correctly calculated:

- That T0073 Line item total = The sum of all T0071 Extended price.

- That T0179 Total allowance or charge amount = T0091 Freight charge + T3323 Service charge - T3412 Reduction for pick-up of goods as an amount - T2201 Invoice discount amount - T4152 Commission amount.

- That T0075 Total VAT amount = The sum of all T2022 VAT amount.

- That T0072 Amount due = T0073 Line item total + T0179 Total allowance or charge amount + T0075 Total VAT amount.

- That T0074 Total taxable amount for VAT = The sum of all T0180 Taxable amount.

42 That all total amounts in SUMMARY, VAT are correctly calculated:

- That T0180 Taxable amount for a specific duty fee tax rate (T0195 Duty fee tax rate) and tax category (T0197 Tax category code) = The sum of T0071 Extended price for the same specific duty fee tax rate and tax category + T0091 Freight charge for the same specific duty fee tax rate and tax category + T3323 Service charge for the same specific duty fee tax rate and tax category +T3419 Packing charge for the same specific duty fee tax rate and tax category - T2201 Invoice discount amount for the same specific duty fee tax rate and tax category - T3412 Reduction for pick-up of goods as an amount for the same specific duty fee tax rate and tax category - T4152 Commision amount for the same specific duty fee tax rate and tax category.

- That T2022 VAT amount for a specific tax category = T0180 Taxable amount for the same specific tax category x T0195 Duty fee tax rate for the same specific tax category.

- If the accounting currency (T0286 Accounting currency code) differs from the invoicing currency (T0204 Currency code):That the VAT amount in accounting currency (T0284 VAT amount in accounting currency) is given in SUMMARY, VAT.

- That the VAT amount in accounting currency (T0284 VAT amount in accounting currency) corresponds to T2022 VAT amount after currency conversion using the attributes in the class CURRENCY INFORMATION.




Supplier’s step 3: File invoiceThe invoice is part of the accounting information. Therefore, the invoice must be filed and archived in a way that meets to the requirements of the VAT Act, the Bookkeeping Act and generally accepted accounting principles according to the Accounting Standards Board's guidelines and general advice. Learn more about these requirements in Appendix 3 Archiving and retrieval of invoices.

Supplier’s step 4: Allocate accounting informationThe supplier allocates the request for payment as a claim in the accounting system. This is input to the accounts receivable to ensure that invoices and payments due are monitored.

Supplier’s step 5: Send invoiceThe supplier sends the invoice to the buyer or agreed invoicee.

Buyer’s step 1: Receive invoiceThe invoice is received by the buyer/invoicee.


Buyer’s step 2: Register invoiceWhen the invoice has been received by the buyer’s system, it must be processed. This may include registering the receipt of the Invoice and booking the invoice into the buyer’s accounting system.

Buyer’s step 3: Validate contents of invoiceOnce the invoice has been registered the contents of the invoice should be validated. The validation points are the same as for the supplier, see Supplier’s step 2: Validate contents of invoice above, except for items 5 and 36, which are replaced with the items below:

• Item 5. That the delivery date (T0176 Actual delivery date) is given and is the same as the date when the shipment was received if the date is used as basis for pricing.

• Item 35. That the supplier’s article number (T0172 Supplier´s article number), if any, is the same as the supplier’s article number for the trade item notified in the despatch advice and regis-tered as received.


Buyer’s step 4: Add other accounting informationInformation is added to the invoice for auditing purposes.

There are specific circumstances when an invoice must be presented in full, for example when a tax authority performs a tax audit. For that reason plain text for coded information must be added to the invoice, as follows:

1 The codes and qualifiers of the syntax are translated to text in the readable invoice.

2 Codes from code lists are translated to plain text, e.g. MTR is translated to meter.

3 Information which has been transmitted as codes shall be completed with the plain text for that code. For example, the names and addresses for each GLN in the invoice must be added in plain text. In the same way the names of the invoiced trade items (GTINs) must be added in plain text.

Buyer’s step 5: Sign off invoiceThe next step is to sign off the invoice. This is done regardless of the validation results, that is regard-less of whether the invoice validated correctly or not. Signing off can be done manually or automatically.

Buyer’s step 6: Finalise accountingWhen the invoice has been signed off, the accounting is finalised.

If the invoice validated correctly, the buyer may proceed with the payment process, see next section Pay invoice.




If the the validation resulted in errors, the invoice is marked as awaiting crediting and the buyer waits for a credit note from the supplier. See section Issue credit note for the crediting process.

Buyer’s step 7: File invoiceThe invoice is part of the accounting information. Therefore, the invoice must be filed and archived in a way that meets to the requirements of the VAT Act, the Bookkeeping Act and generally accepted accounting principles according to the Accounting Standards Board's guidelines and general advice. Learn more about these requirements in Appendix 3 Archiving and retrieval of invoices.

8.3 Business documentThis section gives an overview of the information contained in the invoice.

An invoice is sent by the supplier to the buyer.

One invoice must be issued for trade items delivered at one and the same delivery occasion and origi-nating from one and the same order.

The parties may agree in contract that trade items deriving from one order may be delivered on several dates. When trade items deriving from one and the same order are delivered at more than one delivery date, one invoice must be created for each delivery occasion. Note that an order confirmation with changes must have been sent to the buyer.

When filing the invoice, it is strongly recommended that all associated information is also filed, including such information which was exchanged separately (such as names, addresses, trade item descrip-tions). Clear text for specific code values should also be stored.

Figure 8.3. Overview of the contents of business document Invoice.

Invoice headerThe invoice header contains:

• Invoice number.

• Invoice type indicates that this is an invoice as opposed to a credit note.

• Dates (invoice date, due date, actual delivery date, despatch date).




• Reason for not charging VAT.

• References to contract, price list, order and delivery.

• Identification of parties (supplier, buyer etc.).

• Currency information.

• Sales commission. Used when there is an agreement about commission when selling for example news papers.

• Invoice discount – used to specify an invoice discount for the current invoice.

• Pick-up of goods reduction - used to reduce the invoice amount when the goods is picked up by the buyer according to agreement.

• Charges. Possible charges are freight charge, service charge, packing charge.

Invoice line The invoice contains one invoice line per invoiced trade item. If no trade item is invoiced, the invoice will contain no invoice line. This might for example be the case when the invoice only concerns a freight charge for a delivery which already has been invoiced. The invoice line contains:

• Identity of the invoiced trade item.

• Extended price.

• Invoiced quantity for the trade item.

• Delivered quantity of the trade item. Used if the ordered trade item is a variable measure item which is ordered in number of packages but is invoiced per weight.

• Invoiced price.


• Reference to order line. Not applicable when invoicing continuous deliveries based on a contract instead of an order.

Invoice summaryThe Invoice summary occurs once per invoice document and contains summary of invoice amounts and summary of value added tax.

The summary of invoice amounts contains:

• Amount due.

• Line item total.

• Total taxable amount for VAT.

• Total VAT amount.

• Total allowance or charge amount.

The VAT summary is repeated for each tax type, tax rate and tax category and contains:

• Tax type.

• Tax rate.

• Tax category.

• Taxabe amount.

• VAT amount.

• VAT amount in accounting currency.

Business document specification for InvoiceThe business document specification for Invoice can be found on http://www.gs1.se/globalassets/esap/esap20/version1.7/bds_200106_en170.pdf.





Process description for ESAP 20.1Chapter 9. Pay invoice



9 Pay invoice

The buyer transfers an amount to the supplier as specified in the invoice as payment for goods and ser-vices delivered.

GS1 Sweden has not specified a procedure for payment. One of the following organisations who have developed standards and services for electronic payments should be contacted instead:

• Swedish Banker’s Association: www.swedishbankers.se

• Bankgirocentralen BGC AB: www.bgc.se

• Plusgirot Nordea: www.plusgirot.se

http://www.swedishbankers.se/

http://www.bgc.se

http://www.plusgirot.se/

Process description for ESAP 20.1Chapter 10. Issue credit note

10 Issue credit note

The process of issuing a credit note is used to reimburse the buyer for, for example, returned or faulty products or services, for credit of deposits of returned packaging, or for payment of accumulated volume discounts.

10.1 Scenario

Figure 10.1. Scenario - Issue credit note.

1 When the parties have agreed on reimbursement, for example for an erroneous invoice or for the return of a product or service or payment of accumulated volume discount, the supplier prepares a credit note and sends it to the buyer.

2 The buyer receives the credit note and processes it.



2 Contractual conditions regarding trade items, price and party information has been synchronised between the buyer’s and supplier’s business systems.

3 The supplier has agreed to reimburse the buyer for incorrect invoicing or returned items/packa-ging, or to pay an accumulated volume discount.

4 Invoice(s) to be credited must already be entered into the buyer’s and supplier’s bookkeeping systems.

5 Information on the buyer’s credit account must be sent before a credit note is issued. The supp-lier shall have input to his customer database and check the validity of the credit account(s) that can be used for the payment of credit balances.


• The credit note is filed and the amount is ready to be credited to the buyer’s account, or matched against another unpaid invoice from the same supplier.

10.1.3 Referring to a credited invoice or invoicing periodWhen crediting errors in the original invoice, and when trade items which have become the subject of a compensation claim case are to be credited immediately, the credit note shall refer to the invoice being credited. When paying accumulated volume discounts, when crediting deposists for returned returnable packaging, and when crediting trade items which have become the subject of a compensation claim case which have been delivered and invoiced during a period of time, the credit note must refer to the period during which these invoices were issued (invoicing period).




10.2 Detailed description of Issue credit noteThe supplier. sends a credit note to the buyer. The figure below shows the steps that the parties should take before the business document Credit note is sent and after it has been received.

Figure 10.2. Buyer’s and supplier’s steps when exchanging credit note.


Supplier’s step 1: Create credit noteThe supplier starts preparing a credit note for one of the following reasons:

1. Crediting errors in the original invoice, that is:

• A trade item has been invoiced wrong price or quantity.

• A charge has been incorrectly invoiced.

2. Payment of accumulated volume discounts when a contractual agreement on volume discounts has been triggered.

3. Reimbursing trade items which have become the subject of a compensation claim case.

4. Reimbursing returned unsold trade items or crediting deposits for returned returnable packa-ging.

There are three possible ways of crediting:

• The entire original invoice is credited.

• Part of the original invoice is credited.

• Several invoices are credited in one and the same credit note.

Which way of crediting that may be used depends on the resaon for crediting, as follows:

1. When crediting errors in the original invoice there are two possible ways of crediting:

• The entire original invoice is credited and a new, correct invoice is issued. This alternative is always correct, that is, all systems should be able to handle this process.

• Part of the original invoice is credited, that is, only the line(s) and/or charge(s) (freight charge, service charge, packing charge) in error are credited, as follows:

- Wrong price: The trade item is credited in a credit note line. The same trade item is debited the correct price in the same credit note.




- VWrong quantity: The incorrect quantity is credited in a credit note line. Note that if the invoiced quantity was less than the delivered quantity, a new invoice must instead be issued for the remaining quantity.

- Wrong charge: The charge is credited in the same way it was debited, that is, at the credit note header level.

2. For payment of accumulated volume discounts there is one way of crediting:

• Several invoices are credited in one and the same credit note. The credit note refers to the period of time during which the invoices concerning the accumulated volume discounts were iss-ued.

3. When reimbursing trade items which have become the subject of a compensation claim case, there are two possible ways of crediting:

• Part of the original invoice is credited, when the trade items are to be credited immediately. The credit note refers to the invoice in which the trade items were invoiced and separate credit note lines are created for each credited trade item.

• Several invoices are credited in one and the same credit note, when the trade items which are to be credited have been delivered and invoiced during a period of time. The credit note refers to the invoicing period.

4. When reimbursing returned unsold trade items, and when crediting deposits for returned pac-kaging, there is one way of crediting:

• Several invoices are credited in one and the same credit note. The credit note refers to the period of time during which the invoices concerning the unsold trade items were issued.

The business document specification Credit note shows which information is included in the business document, see chapter 10.3 Business document for an overview.

Supplier’s step 2: Validate contents of credit noteThe following validations of the contents of the credit note should be made before sending it. The vali-dation points are separated according to the three possible ways of crediting:

• Validation points when the entire original invoice is credited. This alternative applies when crediting an incorrectly invoiced price or quantity for a trade item, or when crediting an incorrectly invoiced charge (freight charge, service charge, packing charge).

• Validation points when part of the original invoice is credited. This alternative applies when crediting an incorrectly invoiced price or quantity for a trade item, when crediting an incorrectly invoiced charge (freight charge, service charge, packing charge), or when a trade item which have become the subject of a compensation claim case is to be credited immediately, referring to the original invoice.

• Validation points when more than one invoice is credited in one and the same credit note. This alternative applies for payment of accumulated volume discounts, when reimbursing retur-ned unsold trade items which have been delivered and invoiced during a period of time, when reimbursing trade items which have become the subject of a compensation claim case which have been delivered and invoiced during a period of time and when crediting deposits for retur-ned returnable packaging.

Validation points when the entire invoice is creditedThis alternative applies when crediting an incorrectly invoiced price or quantity for a trade item, or when crediting an incorrectly invoiced charge (freight charge, service charge, packing charge).

1 That the identity of the credit note (T0060 Invoice number) has not previously been used by the supplier. To ensure that duplicates are never raised, the supplier can use a Global Document ID as identity of the credit note.

2 That the document is categorised as a credit note (T0061 Invoice type = 381).




3 That the date when the credit note was issued (T0062 Invoice date) is specified and according to agreed terms.

4 That the due date for payment (T0067 Due date), if any, is consistent with the agreed payment terms.

5 That the reason for crediting (T0287 Reason for crediting code) is given in the header.

6 That the credit note refers to a preceding invoice (T0089 Reference to invoice).

7 That the identification (GLN) of the supplier, buyer and any other parties given in the credit note header are consistent with those in the original invoice (T0008 Buyer identification GLN, T0009 Supplier identification GLN, T0065 Invoice issuer identification GLN, T0240 Recipient identification GLN, T0085 Invoicee identification GLN).

8 That the invoicing currency (T0204 Currency code) is given and is the same as in the original invoice.

9 That the rate of exchange and accounting currency, if any (T0283 Rate of exchange and T0286 Accounting currency code) are the same as in the original invoice.

10 That there are no lines in the credit note.

11 That the following total amounts at INVOICE SUMMARY level are present and equal to the total amounts in the invoice which is credited: T0072 Amount due, T0073 Line item total, T0074 Total taxable amount for VAT.

12 That the following total amounts in SUMMARY, VAT are the same as in the original invoice for a specific tax rate (T0195 Duty fee tax rate) and tax category (T0197 Tax category code): T0180 Taxable amount, T2022 VAT amount).

13 That the VAT amount in accounting currency (T0284 VAT amount in accounting currency) is given in SUMMARY, VAT and is the same as in the original invoice, if the VAT amount in accoun-ting currency was given in the original invoice.

Validation points when part of the original invoice is creditedThis alternative applies when crediting an incorrectly invoiced price or quantity for a trade item, when crediting an incorrectly invoiced charge (freight charge, service charge, packing charge), or when a trade item which have become the subject of a compensation claim case is to be credited immediately, referring to the original invoice.

VALIDATION POINTS AT HEADER LEVEL:





5 That the reason for crediting (T0287 Reason for crediting code) is given in the header if one or more charges (freight charge, service charge, packing charge) in the original invoice are being credited.

6 That the credit note refers to a preceding invoice (T0089 Reference to invoice).

7 That the identification (GLN) of the supplier, buyer and any other parties given in the credit note header are consistent with those in the original invoice (T0008 Buyer identification GLN, T0009 Supplier identification GLN, T0065 Invoice issuer identification GLN, T0240 Recipient identification GLN, T0085 Invoicee identification GLN).

8 That the invoicing currency (T0204 Currency code) is given and is the same as in the original invoice.




9 That the rate of exchange and accounting currency, if any (T0283 Rate of exchange and T0286 Accounting currency code) are the same as in the original invoice.

VALIDATION POINTS AT LINE LEVEL when crediting the quantity of a trade item or when a trade item which has become the subject of a compensation claim case is to be credited immediately referring to the original invoice:

10 That a line number (T0051 Line number) is given and is greater than the line number of the pre-ceding credit note line.

11 That the credit note line amount (T0071 Extended price) is the product of the credited quantity (T0069 Invoiced quantity) and the invoiced price in the original invoice.

12 That the credited price for the trade item is the same as the price in the original invoice (one of T0029 Contract price, T0203 Current price, T3288 Contract price temporarily discounted, T0182 List price discounted, T0238 Current list price discounted, T3424 Additional price and T4159 Sales price to consumer), and that (T0031 Unit of measurement for price code) is the same.

13 That the reason for crediting (T0287 Reason for crediting code) is given.

14 That a reference to an invoice line (T0242 Reference to invoice line) is given.

15 That a reference to an invoice (T0089 Reference to invoice) is given and that it is the same for all credit note lines.

16 That the GTIN of the credited trade item (T0154 Trade item GTIN) is the same as the GTIN of the invoiced trade item.

17 That the credited quantity (T0069 Invoiced quantity) is the same as the quantity agreed to be compensated, and that the unit of measurement (T0055 Unit of measurement for quantity code) is the same as in the original invoice.

18 That there are no debit item lines in the credit note.

VALIDATION POINTS AT LINE LEVEL when crediting incorrectly invoiced price for a trade item:


20 That the credit note line amount (T0071 Extended price) is the product of the credited quantity (T0069 Invoiced quantity) and the invoiced price in the original invoice.

21 That the credited price for the trade item is the same as the price in the original invoice (one of T0029 Contract price, T0203 Current price, T3288 Contract price temporarily discounted, T0182 List price discounted, T0238 Current list price discounted, T3424 Additional price and T4159 Sales price to consumer), and that (T0031 Unit of measurement for price code) is the same.


23 That a reference to an invoice line (T0242 Reference to invoice line) is given.

24 That a reference to an invoice (T0089 Reference to invoice) is given and that it is the same for all credit note lines.

25 That the GTIN of the credited trade item (T0154 Trade item GTIN) is the same as the GTIN of the invoiced trade item.

26 That the credited quantity (T0069 Invoiced quantity) is the same as the invoiced quantity in the original invoice, and that the unit of measurement (T0055 Unit of measurement for quantity code) is the same as in the original invoice.

VALIDATION POINTS FOR THE CREDIT NOTE SUMMARY (the class INVOICE SUMMARY):

27 That the following total amounts are present and correctly calculated:

- That T0072 Amount due = T0073 Line item total + T0179 Total allowance or charge amount + T0075 Total VAT amount.




- WHEN THE CREDIT NOTE CONCERNS THE CREDITING OF TRADE ITEMS: That the sum of credit note line amount equals the summation of credit note line amounts. (T0073 Line item total = The sum of all T0071 Extended price).

- That the credit note total taxable amount equals the sum of credit note taxable amounts (T0074 Total taxable amount for VAT = The sum of all T0180 Taxable amount).

- That T0180 Taxable amount in SUMMARY, VAT for a specific duty fee tax rate (T0195 Duty fee tax rate) and tax category (T0197 Tax category code) = The sum of T0071 Extended price for the same specific duty fee tax rate and tax category + T0091 Freight charge for the same specific duty fee tax rate and tax category + T3323 Service charge for the same spe-cific duty fee tax rate and tax category +T3419 Packing charge for the same specific duty fee tax rate and tax category - T2201 Invoice discount amount for the same specific duty fee tax rate and tax category - T3412 Reduction for pick-up of goods as an amount for the same specific duty fee tax rate and tax category - T4152 Commision amount for the same specific duty fee tax rate and tax category.

- If the accounting currency (T0286 Accounting currency code) differed from the invoicing currency (T0204 Currency code) in the original invoice:That the VAT amount in accounting currency (T0284 VAT amount in accounting currency) is given in SUMMARY, VAT.


Validation points when several invoices are credited in one and the same credit note

This alternative applies for payment of accumulated volume discounts, when reimbursing returned unsold trade items which have been delivered and invoiced during a period of time, when reimbursing trade items which have become the subject of a compensation claim case which have been delivered and invoiced during a period of time and when crediting deposits for returned returnable packaging.

VALIDATION POINTS AT HEADER LEVEL:





5 That the reason for crediting (T0287 Reason for crediting code) is given in the header.

6 That the credit note refers to an invoice period (T2001 Invoice period start date and T2002 Invoice period end date).

7 That the credit note refers to the contract (T0007 Reference to contract).

8 That the identification (GLN) of the supplier, buyer and any other parties given in the credit note header are consistent with those in the invoices that the credit note relates to (T0008 Buyer identification GLN, T0009 Supplier identification GLN, T0065 Invoice issuer identification GLN, T0240 Recipient identification GLN, T0085 Invoicee identification GLN).

9 That the invoicing currency (T0204 Currency code) is given and is the same as for the invoices in the invoice period (T2001 Invoice period start date, T2002 Invoice period end date).

10 That the rate of exchange and accounting currency, if any (T0283 Rate of exchange and T0286 Accounting currency code) are the same as for the invoices in the invoice period (T2001 Invoice period start date, T2002 Invoice period end date).




11 FOR PAYMENT OF ACCUMULATED VOLUME DISCOUNTS: That there are no lines in the cre-dit note.

VALIDATION POINTS AT LINE LEVEL when reimbursing returned unsold trade items, and when credi-ting deposits for returned packaging (Not applicable when the credit note concerns payment of accumu-lated volume discounts):


13 That the GTIN of the credited trade item (T0154 Trade item GTIN) is the same as the GTIN of the invoiced trade item/returnable packaging.

14 That the credit note line amount (T0071 Extended price) is the product of the credited quantity (T0069 Invoiced quantity) and the invoiced price in the original invoices.

15 WHEN REIMBURSING RETURNED UNSOLD TRADE ITEMS: That the credited price for the trade item is the same as the price in the original invoices (one of T0029 Contract price, T0203 Current price, T3288 Contract price temporarily discounted, T0182 List price discounted, T0238 Current list price discounted, T3424 Additional price and T4159 Sales price to consumer), and that (T0031 Unit of measurement for price code) is the same.

16 WHEN CREDITING DEPOSITS FOR RETURNABLE PACKAGING: That the credited deposit for the returned returnable packaging is the same as the price in the original invoices (T0029 Con-tract price.


18 WHEN REIMBURSING RETURNED UNSOLD TRADE ITEMS: That the credited quantity (T0069 Invoiced quantity) corresponds with the quantity of the returned trade items, and that the unit of measurement (T0055 Unit of measurement for quantity code) is the same as in the original invoices.

19 WHEN CREDITING DEPOSITS FOR RETURNABLE PACKAGING: That the credited quantity (T0069 Invoiced quantity) corresponds with the quantity of the returned returnable packaging.

20 That there are no debit item lines in the credit note.

VALIDATION POINTS FOR THE CREDIT NOTE SUMMARY (class INVOICE SUMMARY):

21 FOR PAYMENT OF ACCUMULATED VOLUME DISCOUNTS: That T0072 Amount due in the credit note corresponds with the calculated amount for the accumulated volume discount accor-ding to contract and based on the invoices included in the period when the volume discount was collected (T2001 Invoice period start date, T2002 Invoice period end date).

22 FOR PAYMENT OF ACCUMULATED VOLUME DISCOUNTS: That T0074 Total taxable amount for VAT = The sum of all T0180 Taxable amount.

23 FOR PAYMENT OF ACCUMULATED VOLUME DISCOUNTS: That T0180 Taxable amount in SUMMARY, VAT is the same as the amount for the collected volume discount, based on the invoices included in the period when the volume discount was collected (T2001 Invoice period start date, T2002 Invoice period end date) for a specific tax rate (T0195 Duty fee tax rate) and tax category (T0197 Tax category code).

24 That all total amounts in SUMMARY, INVOICE AMOUNT are correctly calculated:

- That T0073 Line item total = The sum of all T0071 Extended price.

- That T0075 Total VAT amount = The sum of all T2022 VAT amount.

- That T0072 Amount due = T0073 Line item total + T0075 Total VAT amount.

- That T0074 Total taxable amount for VAT = The sum of all T0180 Taxable amount.

25 FOR PAYMENT OF ACCUMULATED VOLUME DISCOUNTS: That T0180 Taxable amount in SUMMARY, VAT is the same as the amount for the collected volume discount, based on the invoices included in the period when the volume discount was collected (T2001 Invoice period




start date, T2002 Invoice period end date) for a specific tax rate (T0195 Duty fee tax rate) and tax category (T0197 Tax category code).

26 That T2022 VAT amount in SUMMARY, VAT for a specific tax category = T0180 Taxable amount for the same specific tax category x T0195 Duty fee tax rate for the same specific tax category.

- If the accounting currency (T0286 Accounting currency code) differed from the invoicing currency (T0204 Currency code) in the original invoices:That the VAT amount in accounting currency (T0284 VAT amount in accounting currency) is given in SUMMARY, VAT.


Supplier’s step 3: File credit noteThe credit note is part of the accounting information. Archiving of accounting information must be done in a way that meets to the requirements of the VAT Act, the Bookkeeping Act and generally accepted accounting principles according to the Accounting Standards Board's guidelines and general advice. Learn more about these requirements in Appendix 3 Archiving and retrieval of invoices.

Supplier’s step 4: Allocate accounting informationThe supplier allocates the reimbursement as a debt in the accounting system. This is input to the accounts receivable to ensure that credit notes and debts due are monitored.

Supplier’s step 5: Send credit noteThe credit note is sent to the buyer.

Buyer’s step 1: Receive credit noteThe buyer receives the credit notet


Buyer’s step 2: Register credit noteWhen the credit note has been received by the buyer’s system it must be processed. This may include registering the receipt of the credit note and booking the credit note into the buyer’s accounting system.

Buyer’s step 3: Validate contents of credit noteOnce the Credit note has been received by the buyer’s system the contents should be validated. The validation points are the same as for the supplier, see Supplier’s step 2: Validate contents of Credit note above.


Buyer’s step 4: Add other accounting informationThere are specific circumstances when a credit note must be presented in full, for example when a tax authority performs a tax audit. For that reason plain text for coded information must be added to the credit note, as follows:

1 The codes and qualifiers of the syntax are translated to text in the readable credit note.

2 Codes from code lists are translated to plain text, e.g. Z04 is translated to “wrong price”.

3 Information which has been transmitted as codes, for example GLN and GTIN, shall be comple-ted with the plain text for that code.




Buyer’s step 5: Sign off credit noteThe next step is to sign off the credit note. This is done regardless of the validation results, that is regardless of whether the credit note validated correctly or not. Signing off can be done manually or automatically.

Buyer’s step 6: Finalise accountingWhen the credit note has been signed off, the accounting is finalised.

If there were errors in validation, the buyer should return to waiting for a credit note. This can be done manually or automatically.

Buyer’s step 7: File credit noteThe credit note is part of the accounting information. The credit note must be filed and archived in a way that meets the requirements of the VAT Act, the Bookkeeping Act and generally accepted accounting principles according to the Accounting Standards Board's guidelines and general advice. Learn more about these requirements in Appendix 3 Archiving and retrieval of invoices.

Once the credit note has been filed it can be matched against another unpaid invoice from the same supplier. Alternatively the supplier can credit the buyer’s account.

10.3 Business documentThis chapter gives an overview of the information contained in the credit note. The business document specification for credit note is the same as for invoice (BDS 20.1.6 Invoice)

A credit note is sent by the supplier to the buyer. One credit note refers to either one invoice or one invoicing period which includes more than one invoice.

When archiving a credit note it is strongly recommended that all related content is archived, even if this has been exchanged earlier (e.g. plain text for names, addresses, item descriptions).

Figure 10.3. Overview of the contents of business document Credit note.




Credit note headerThe header contains for example:

• Invoice number.

• Invoice type indicates that this is a credit note as opposed to an invoice.

• Due date.


• Reason for crediting. The reason for crediting must always be given, either at header level or line level.

• Reference to invoice is used when the credit note refers to a single invoice.

• Invoice period is used when the credit note refers to more than one invoice.

• Identification of parties (supplier, buyer etc.).

• Currency information.

• Charges and discounts (invoice charge, reduction for pick-up of goods, freight charge, service charge, packing charge, sales commission).

Credit note lineA credit note line is used when a trade item has been invoiced wrong price or quantity, when reimbur-sing returned unsold trade items, and when crediting deposits for returned packaging.. If an entire invoice is credited, or when solely charge(s) (freight charge, service charge, packing charge) in error are credited there are no lines in the credit note.

A credit note line contains the following information:

• Identity of the credited trade item.

• Extended price.

• Credited quantity of the trade item.

• Credited price.

• Reason for crediting. The reason for crediting must always be given, either at header level or line level.

• Reference to invoice and invoice line.


Credit note summaryThe credit note summary occurs once per credit note document and contains summary of credited amounts and summary of value added tax.

The summary of credited amounts contains:

• Amount due.

• Line item total.

• Totalt momspliktigt beloppTotal taxable amount for VAT.

• Total VAT amount.

• Total allowance or charge amount.

The VAT summary is repeated for each tax type, tax rate and tax category and contains:

• Tax type.

• Tax rate.

• Tax category.

• Taxabe amount.




• VAT amount.

• VAT amount in accounting currency.

Business document specification for Credit noteThe business document specification for Credit note (as well as Invoice) can be found on http://www.gs1.se/globalassets/esap/esap20/version1.7/bds_200106_en170.pdf.







Process description for ESAP 20.1Appendix 1:. Describing a business process

Appendix 1: Describing a business processThe model for describing a business process as used in this guideline is based on the Common Busi-ness Process Catalogue (CBPC), UN/CEFACT Modelling Methodology.

CBPC identifies and describes business processes at a general level. According to CBPC a business process consists of a number of phases:

Figure 1.1. The phases of a business process.

According to CBPC a business process starts with a Planning phase when a company or organization is planning their operations. Thereafter, the process proceeds to the Identification phase, where the company or organization identifies which parties are suitable to establish a business relationship with for business to be conducted.

The business process then proceeds to the Negotiation phase, when two parties who want to estab-lish a business relationship sign a framework or business contract. The contract provides, among other things, agreements for goods or services to be supplied, prices, delivery and payment terms. In the Implementation phase the parties carry out the obligations they assumed under the frame or commer-cial agreement.

The Implementation phase is divided into sub-phases:

Figure 1.2. Sub-phases of the phase "Implementation".

In the phase Identify basic information buyer and seller exchange additional information about such things as parties, delivery points, price information and trade item information.

In the phase Order/Call-off the buyer makes a purchase order or a call-off in accordance with what has been agreed in the framework or contract. The supplier undertakes to deliver in accordance with the terms of the contract. The buyer agrees to reimburse the supplier for goods delivered or services per-formed.

In the Deliver phase delivery is made according to the agreements made in the phase Order/Call-off.

In the Pay phase payment is made for goods delivered or services rendered according to the agree-ments made in the phase Order/Call-off.

The Post-processing phase includes all activities and events occurring after the agreed goods or ser-vices have been, or should have been, delivered. This can include handling deposits and returns or var-ious warranty obligations.

All the standardized business processes for e-commerce GS1 has developed together with users are part of the Implementation phase and go through the sub-phases which this phase contains.

A business process is composed of collaboration processesAccording to the model, a business process consists of a number of collaboration processes, which run through the sub-phases of Implementation.




Figure 1.3. Illustration of a business process.

The figure shows an example of a business process that is a set of collaboration processes. The busi-ness process runs through the sub-phases of the Implementation phase.

A collaboration process describes how the parties interactA collaboration process describes how the parties interact and exchange information in a particular area, for example to order goods. The information exchanged is primarily in the form of electronic busi-ness documents.

Figure 1.4. Illustration of a collaboration process.

A document exchange describes how the parties exchange a business documentA collaboration process includes one or more document exchanges. A document exchange describes step by step what the sender and recipient should do before a business document is sent and received. This may include how a business document should be approved by an authorised person before it is sent and what checks the recipient of the document should carry out. The document exchange puts the business document in context.

Figure 1.5. Illustration of a document exchange.

A business document specification describes the content of a business documentA business document specification is a description of what information should be included in the elec-tronic business documents exchanged by the parties. By designing an electronic business document such as an order following the business document specification for an order, the parties can be sure that their systems interpret the sent and received information in the same way.




Figure 1.6. Illustration of a business document specification.



Process description for ESAP 20.1Appendix 2. Receipt of business document and exception handling



Appendix 2 Receipt of business document and exception handling

2.1 Receipt and technical validationWhen a business document is recived by the recipient’s system, the receipt is logged with at least the time, sender and recipient which allows the recipient to check that the document meets the require-ments for receipt to be accepted.

The interchange agreement defines which information is logged. It also states if and how acknowledge-ments and receipts will be used. This affects the timing of the formal receipt of the business document by the recipient.

The following technical validations are carried out to confirm that the document has been correctly received:

1 That the sender’s identity (GLN) is correct.

2 That the recipient’s identity (GLN) is correct.

3 That the message is syntactically correct.

4 That the electronic signature (if used) is valid.

If the document is correct according to the technical validation the recipient continues to process the business document. This is described for each document exchange elsewhere in this document.

If the business document is not correct according to the technical validation, the recipient cannot accept the business document. The interchange agreement defines how this should be handled.

2.2 Handling exceptionsIf the contents of the business document differs from what the parties have agreed upon in the business agreement the recipient should take appropriate action. The way this is to be done shoud be defined in the agreement, e.g. if the recipient should contact the sender, in what manner and if the sender should correct the errors and send a new business document.

SidNr

Process description for ESAP 20.1Appendix 3. Archiving and retrieval of invoices

Appendix 3 Archiving and retrieval of invoicesLegislation for archiving invoices exists to enable retrospective checks and audits of executed transac-tions. Checks and audits may need to be performed by the company itself, external auditors, investiga-tors from the Economic Crime Authority or tax and customs inspectors. If a company fails to follow the rules it may risk prosecution for accounting or tax fraud. This chapter provides a guide to how compa-nies should manage the archiving and retrieval of invoices so that legal requirements are met.

3.1 ResponsibilityThe trader responsible for bookkeeping is always responsible for archiving accounting information consistent with the requirements of the VAT Act (ML), the Bookkeeping Act (BFL) and generally accep-ted accounting principles of the Accounting Standards Board (BFN).

The task of archiving can be handed over to a third party, such as an accounting firm or other service provider, according to a contractual agreement. This agreement must make it clear that service provi-der meets the requirements for filing under ML, BFL and BFN principles.

3.2 General information on archiving and storageArchiving of invoices starts at a vendor/supplier immediately after an invoice has been prepared and issued and at a buyer/customer immediately after the invoice is received and registered. The archiving period is the calendar year in which the fiscal year ends and another seven years, according to the Bookkeeping Act.

Media that is used to store invoices should be durable and easily accessible. As a basic rule, invoices must be stored in Sweden, in good order and in a safe and transparent manner. Under certain condi-tions, invoices on machine-readable media may be stored in another country within the EU.

3.3 Alternative ways of storing invoicesInvoices can be stored in the following forms:

1 Ordinary readable form (document)

2 Microfilm/fiche

3 Machine-readable form (electronic invoices).

Invoices archived in machine-readable form must be accessible through immediate printing in ordinary readable form or on microfilm/fiche throughout the archiving period.

The rules for the form in which invoices are stored differ for invoices that the trader has issued and invoices the trader has received from business partners:

• For invoices the trader has issued in electronic form (on machine-readable medium) the basic rule is that the company shall also archive the invoices in electronic form. However, the company may choose to immediately print and compile invoices in readable form or as microfilm/fiche and then archive the invoices in this form throughout the archiving period.

• Invoices the trader has received shall be archived in the form they had when they were received. This means that electronic invoices must be kept in machine-readable form. Secure conversion to another machine-readable medium may be made, i.e. the invoice content must be unchanged after the conversion.

3.4 Where should invoices be stored during the archiving period?As a basic rule, invoices must be stored in Sweden, in good order and in a safe and comprehensible manner. Under certain conditions, invoices on machine-readable media may be stored in another coun-try within the EU. The basic rule is that invoices be stored in Sweden. A company may store electronic invoices and make hardware and systems available in another country within the EU if:

1 the location of storage and any changes are notified to the tax authorities, and




2 the company at the request of the tax or customs authorities allows instant electronic access to the accounting information for control purposes during the archiving period, and

3 the company can instantly print information in the electronic invoices in Sweden in ordinary readable form or on microfilm/fiche.

3.5 Other points on archiving of electronic invoices

3.5.1 EncryptionData in electronic invoices may be encrypted only if this is justified for security reasons and the informa-tion is immediately presentable in clear text. If the company cannot guarantee that decryption of archi-ved invoices is immediately possible during the entire archiving period then encryption may not be done.

3.5.2 Archiving securelyThere is no general requirement that the archived accounting information must be kept in a safe. When storage is on machine-readable media on which is added to and updated, a backup of the accounting information must be made. Authorisation and administrative procedures should be in place to ensure that stored information can only be read, not changed.

3.5.3 Transparency, accessibility and good orderArchiving of accounting information should be made so that an external auditor can have access to information in readable form within a reasonable time. For larger volumes of archived accounting infor-mation it is therefore desirable that to the company prepares an archiving plan so that information is transparent.

If accounting information is stored on machine-readable medium, hardware and software that enables printing in normal readable form must be available. For this reason it is for practical purposes appropri-ate that stored information is converted securely when replacing hardware and software to ensure that it is readable in the new system.

3.6 References and linksFor further reading, here is a reference to the rules with comments and links to the applicable rules and regulations.

3.6.1 References to the liability for archiving and retrieval of invoicesML, Chapter 11 a, § 1:

A trader who is obliged to issue invoices is also obliged to ensure that a copy of the invoice is preser-ved. The obligation to ensure that a copy of an invoice is preserved also applies to invoices the trader receives.

BFL Chapter 7. § 1 and § 6:

Documents, microfilm/fiche and machine readable media used to store accounting information must be durable and easily accessed. They shall be stored until the end of the seventh year after the end of the calendar year in which the fiscal year ended. They must be kept in Sweden, in good order and in a secure and transparent manner.

From BFNAR 2000:5 Accounting information and its archiving:

"Archiving provisions are a central feature of the Bookkeeping Act. These ensure stakeholders access to accounting information for the whole of the legally required archiving period."

Comment: The practical implications of the media on which invoices are stored are durable is that the accounting entity must at regular intervals during the seven-year retention period verify that the infor-mation in the invoices is still readable. If hardware or software is changed then the information should be converted, preferably to a machine-readable medium that is readable by the new system.




3.6.2 References regarding the form in which invoices are to be preservedBFL Chapter 7. § 1:

Accounting information shall be kept as:

1 Ordinary readable form (documents)

2 Microfilm/fiche that can be read with magnification aids, or

3 Other form that can be read, listened to or otherwise comprehended only using technical means (machine-readable medium) and by immediate printing can be produced in a form referred to in 1 or 2.

Documents, microfilm/fiche and machine-readable media that the company received from someone else shall be preserved in the state the material had when it came to the company.

Documents, microfilm/fiche and machine readable media with accounting information that the company itself has produced shall be preserved in the condition it had when it was compiled.

3.6.3 References for transfer of accounting information on machine-readable media to another formBFL Chapter 7. § 6:

A company may destroy a computer file with invoices transmitted electronically if the information in the electronic invoices is securely transferred and converted to other machine readable media in a format that is consistent with the business system that the company uses.

Comment: The provisions in the BFL on accounting information form of preservation are clarified in BFNs Guidance with general advice 2000:5.

This clarifies the difference between the concepts of creating an invoice and issuing an invoice. An invoice can be created electronically in a billing system but can then be issued and printed in duplicate, one of which is sent to the recipient and the remaining copy can be archived as accounting information. In most cases, however, companies archive the electronic invoice created in the billing system. It should in this context emphasized that electronic invoices can be sent only after the recipient has agreed to receive electronic invoices and the technical requirements for sending and receiving electro-nic invoices have been agreed between the trading partners.

For received electronic invoices, the company is required to archive them in machine-readable medium, even if they are printed in ordinary readable form. If the printed invoices are annotated with additional bookkeeping information, this shall also be preserved as accounting information with refe-rence to the electronic invoice. Information in the electronic invoice may be immediately transferred to other machine-readable medium by the company. The received data file containing the electronic invoi-ces does not need to be saved after transfer to another machine-readable medium, provided that the transfer has been done in a secure manner, i.e. that the information in the invoices has not changed.

3.6.4 Other aspects of archiving of accounting information in accordance with BFL, BFN's general advice and MLBFN's guidelines and general advice clarify that archiving must be done so that the information is trans-parent, accessible by external reviewers and kept in good order throughout the archiving period. To satisfy these requirements, a company with large volumes of accounting information should establish an archiving plan. This should state where received and issued invoices are stored and in what form: normal readable form, microfilm/fiche or machine-readable form. If invoices are stored on machine-readable media, hardware and software for instant printing in normal readable form or microfilm/fiche must be available. Authorisation procedures should be in place that make it impossible to change archi-ved accounting information.




3.6.5 Links to current regulationsCurrent regulations for archiving and retrieval of invoices are on the following websites:

• Bookkeeping Act: www.riksdagen.se

• Accounting Standards Board: www.bfn.se

• Tax Agency: www.skv.se



SidNr

www.riksdagen.se

www.bfn.se

www.skv.se