Electronic invoicing in Denmark -...
Transcript of Electronic invoicing in Denmark -...
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Electronic invoicing in DenmarkExperience and future initiatives
Swedish Alliance for e-businessStockholm March 7th 2006
Mikkel Hippe Brun, [email protected] Lanng, [email protected]
Office of Strategic IT, Danish National IT and Telecom AgencyThe Ministry of Science, Technology an Innovation
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Agenda
The background and business caseThe infrastructureThe experiencesInfrastructure initiativesThe next initiatives
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This is the story of...
How electronic invoicing and electronic payment in B2G eBusiness is implemented in DenmarkHow picking the lowest hanging eProcurement fruits – saves millions
The short versionAs of February 1th 2005 – all invoices to the public sector has sent electronically18 million invoices will be exchangedThe initiatives is mandated by legislation440.000 companies affectedScanning agencies handle the conversion of paper invoicesOASIS Universal Business Language is the underlying standard
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The numbers
Invoices sent to the public sector (thousands)
Municipalities 13.421 74%Regions 2.610 14%State 2.200 12%Total 18.231 100%
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Authorized employee Employee opening mail Finance department Supplier
Open mail
Send invoice in in-house mail
Pre register invoice.Send invoice in
in-house mail
Approve invoice
Check invoice and approval. Assign
bookkeeping accounts.
Pay invoice
Send invoice in in-house mail
Receive payment
Clear payment
Send invoice in in-house mail
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The business case (invoicing)
Each minute saved in invoice handling of 18 million invoices equals 12 million Euro saved
10 minutes handling time is saved using an electronic invoice
120 million Euro
It is estimated that if ordering is also made electronic as much as 17 minutes will be saved in the handling of each invoice
Potential savings: 200 million Euro
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VANS-infrastrukturen
ProcessAn invoice is sent to a VAN-operatorThe VAN-operator looks up the EAN-location number in a databaseThe invoice is perhaps sent to another VAN-operatorThe invoice is sent to a public authority
Public authorities
Private companies
VAN
EAN-database
2
3
4
1
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VANS infrastructure principles
A VANS-network provides:Shared addressing mechanism (using EAN-location numbers)
Secure exchange of data – once data is received by a VANS-operator (Note that that the data exchange between the customer and the VANS-operator may not be safe and reliable)
Guaranteed delivery of data (once received by a VANS-operator).
Freedom from bilateral exchange agreements
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The Scanning agencies
Receive paper based invoicesScan the invoices (throw the paper away)Do intelligent pattern matchingProduce a reduced electronic invoiceCertified companies may act as Read In BureausA maximum of 5 days processing time
Private business Scanning agency Public authority
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The standard
OASIS Universal Business Language:International effort to define a royalty-free library of standard electronic business documentsDesigned in an open and accountable vendor-neutral OASIS Technical CommitteeNorth European localization initiativeUK, Sweden, Norway, Finland and DenmarkCommon subset to be uses in cross border scenarios
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UBL 1.0 order-to-invoice
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The full picture ultimo 2005
Public authorities
Private companies
Read In Bureaus
VAN
Easy Account system
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Upcoming messages
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Full digitalization – a challenge
Electronic Invoices to the Public sector in Denam ark
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
feb-05
m ar-05
apr-05
m aj-05
jun-05
jul-05
aug-05
sep-05
okt-05
nov-05
dec-05
jan-06
Months
Invo
ices Scanned Invoices
Native XML Invoices
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The biggest volume is in the private sectorCompanies between 10 – 99 employees
66%
10%7%
17%
0%
10%
20%
30%
40%
50%
60%
70%
Danske virksomheder (B2B) Udenlandske virksomheder(B2B)
Den offentlige sektor (B2G) Forbrugere (B2C)
Kilde: KPMG 2005.
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The smallest companies has the largest share of business documents
41%
15%
44%
10-19 20-49 50-99
Fordeling af transaktionsvolumen for virksomheder imellem 10-99 ansatte (samlet volumen 191,1 mill. forretningsmeddelser)
KPMG 2005
Distribution of transaction volume for companies between 10 and 99 employees. (Total volume is 191 million orders and invoices)
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EDI Networks
B2Bportals
Banks Internet
Public Sector
Bridging existing networks
SME’s
Open standards for document transactions
Shared addressing ofwebservices
Large Enterprises
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Børsen ITinnovation Monday February 21th 2006
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Vision
It should be just as easy to exchange a business document electronically as it is to send an email.
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Business Requirements
Short term: Reuduction in barriers to SME’sSME’s must be able to:
Send and receive business messages with no other infrastructure than an internet connection.Send and receive business messages with standard off the shelf business software.
Long term requirements: Scalable infrastructureThe infrastructure must offer a platform that can be the framework for data exchange in the public as well as the private sector.The private sector and the public sector are invited to registerservices and exchange any message (public standard, proprietary or open).
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Elements in solution
Master UDDI registryReplicated / runtime UDDI registries
Interoperability profiles (WS-* based)Open standards
Digital certificatesSystems Developer KitClient Reference implementationMarketing
Via partnersPublic campaignseDag
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Registry structure
Lookup in UD
DI based on
ID and service nam
e
ISP1 Lookup in U
DD
I based on
ID and service nam
e
order
ISP2
UDDI
invoice
National Master UDDI
invoice
order
Public authority
Replication from
Master UDDI
Replication from
Master U
DD
I
Lookup in UD
DI based on
ID and service nam
e
Stat
ens
IT-n
et
UDDI
invoice
order
Replication from Master UDDI
Private company
Private company
Private company
UDDI
VAN
/ Pa
rtner
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Infrastructure i 2007
Public authorities
Private companies
VAN
EAN-database (eDir)
Gateway Registry
ISP
UDDI
Parte
ner UDDI
UDDI
State IT-Net
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Client strategy
The Ministry will develop an JAVA and WIN Software toolkitThe toolkit can be used in
Online bank solutionsERP-systemsstand alone clients
The Ministry will provide a reference implementation of a generic client.
This client will not be supported by the Ministry3rd parties are invited to make commercial versions
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VTU basic framework clientCan also be implemented by 3rd parties as stand alone or web application
Local folder
• Built on SDK
• Get outgoing docs from local folder
• Put ingoing docs into local folder
• Validate messages and signatures
• Accept and reject messages
• Lookup endpoints in registry
• Encrypt and sign messages
• Send to / get from SMTP server
ERP systems Generic clientSMTP-server
Registry
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ERP HTTP client implementation From system vendor
ERP systems
Message Handler
Registry
• Validate messages and signatures
• Accept and reject messages
• Lookup endpoints in registry
• Encrypt and sign messages
• Send to / get from MSH server
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North European input to UBL 2.0
OGC
Finland
Sweden
NordicUBL 2.0subset
Denmark
Norway
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UBL 2.0 sourcing-to-paymentud Use Case
Customer
Supplier
Sourcing
Ordering
Billing
Payment
Deliv ery Party
Originator Party
Buyer Party
Creditor
Despatch Party
Payee Party
Debtor
Self Billing with self billing credit
note
Cataloque prov ision
Buyer initiated sourcing
Punchout
Self billing with credit note
Billing with credit note
Billing with debit note
Statement of Account
Seller Party
Fulfilment
Fulfilment with Despatch Adv ice
Fulfilment w ith Receipt Adv ice
Catalogue Managing Party
«extend»
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Questions
Legislation and statutehttp://www.oio.dk/XML/standardisering/eHandel/materialer/OIOXMLeInvoice
Frequently asked questions:http://www.oio.dk/XML/standardisering/eHandel/materialer/OIOXMLeInvoice/faq
Online Validator:http://purl.oclc.org/NET/OIOXMLeFaktura/validator
InfoStructureBase – repository / registryhttp://isb.oio.dk
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