BII for business

Using profiles as a business toolThe case of the electronic invoice

Georg Birgisson

• Experience:– 1999-2010 Various IT consulting projects.

• Iceland representative (Icepro) in NES project• Editor for BII working group 1 (messages and business processes)

– 1997-1999 Marketing manager for satellite communication software.– 1994-1997 IT project manager– 1992-1994 Marketing of shipping services 92-94– 1986 - 1990 Bookkeeping, accounting and tax reporting, part time – Salesman

• Education:– Business degree, University of Iceland– MBA, Cornell University

AN ELECTRONIC DOCUMENT

Comparing the electronic invoice to the paper one.

Main forms of invoices

• Paper• Paperless

– Graphical form (.pdf, .jpg, .tiff ofl.)– Data form

• Unstructured.– Excel, Word ofl.– Html

• Structured– Standardized (CII, UBL, EDIFACT)– Un standardized (bespoke XML specifications)

• Structured vs. unstructured.– Automation

• Standardized vs. un-standardized– Wider audience

Paper Invoice vs. electronic

• Paper– Contains/carries data– Presents data by printing it– Original - the data and its presentation

• Electronic– Structured data supports automation– Presentation is separate and flexible• On screen, style sheets, paper, .pdf, etc.

– Original - the data

MESSAGE AND PROCESSES

What is being defined

EDI and XML (NESUBL)

• EDIFACT implementations– Bilateral specifications• What messages are exchanged.• What data the messages contain.• Business rules that apply.

• Limitations– Only high volume business relations are

economical.– Connecting new partners requires adaptations.

The problem and the solution

Supplier B Key buyer B

Key Buyer A

A+B+C+D

A+B+C+E

Any other buyer

A+B+C

A+B+C

A+B+C+D

A+B+C+E

Supplier A

Profiles

• Defines– Message choreography

• What message must each partner send• What reaction can/must the partners expect

– Message content• What content must the receiver expect to receive• What content can the sender expect to be processed/read

– Business rules• The business commitments that are established.• The meaning of individual data elements and its internal relationship

• Use in business– Bilateral

• The partners bilaterally agree to use a specific profile for their business

– Unilateral• A business entity states that it will receive and process any document sent according to the

stated profile (to a specific address, part of transport network)

The role of profile in standardization

• Message standards (syntax, CII, UBL, EDIFACT)– Defines how data is organized in a structured way into a

message.• XML: UN/CEFACT, UBL, xCBL …• EDIFACT, X12

• Using messages (semantics; BII, NES) – The messages exchanged and their sequence– The content of each message– The meaning and commitment of the content

• Syntax is the language, Semantics is the conversation.

Types of business partners

• Large trading partners with high volume flow– This has been the main domain of EDIFACT over the

last 20 years. Many successful implementations– Profiles with bilateral extensions

• Middle volume trading partners– Below the economical threshold for EDI– Key target group for profiles

• Low volume trading partners– Profiles via intermediaries

The evolution of profiles

• OIOUBL– Denmark public authorities– 2005

• NES - North European Subset– North European and UK cooperation– 2007

• BII – Business Interoperability and Interchange– European specification , published by CEN– December 2009– Contains all NES profiles in upgraded version

Profile key components

• Business process– Specification of an electronic business process.

• Collaboration– Generic sub processes that can be linked together

to form business process• Transaction– A set of data (information) sent from one partner

to another, relevant to an activity within the process

BII03 Ordering

BII04 Invoice only

BII05 Billing

BII06 procurement

Profile migration

Ordering Invoicing Dispute resolution

Invoicing

Ordering

Dispute resolutionInvoicing

OrderingSimple reply Line reply

Counter offer reply Invoicing Dispute

Dispute resolution Dispatch

BII19 - Advanced Procurementx x x x x x x

BII13 - Advanced Procurement with dispatch

x x x x x x x x

More profiles

Catalogues, statement, ofl.• BII01 - Catalogue only • BII02 - Catalogue update • BII17 - Multi party catalogue • BII16 - Catalogue deletion • BII23 - Invoice only with dispute • BII09 - Customs Bill • BII15 - Scanned Invoice • BII18 - Punch-out • BII20 - Customer Initiated Sourcing • BII21 - Statement

Tendering, support tools• BII10 - Tender Notification • BII11 - Qualification • BII12 - Tendering Simple • BII14 - Prior Information Notice • BII22 - Call for Tender

• BII24 - Attachment Document • BII25 - Status Request • BII26 - Retrieve Business Document

The players

• Business partners– The participants in business process. In procurement

these are the Customer and the Supplier. Business partner are the responsible parties for the process as whole

• Role– Roles change depending on the activity in the process

• Party– The entity that carries out a role. Parties are the business

partners themselves or work under their authorization.

Roles and actorsCu

stom

er

Supp

ler

Economic operator

Dispatcher

Creditor

Payee

Purchasing authority

Receiver

Debtor

Payer

Purchasing

Delivery

Billing

Settlement

Business partner

Role Party Business partner

RoleParty

Content used

Data set

Core

Generalextentions

Bilateralextentions

“used” :

•Core document (no extentions)

•Core+ bilateal

•Core+ general (e.g. country)

Levels in business rules

• Profile level rules– How the exchange of a transaction affects the partners’

obligations– How information in transactions interacts with external

information such as contracts– Definition on how update transactions affect exciting data

• Collaboration– Process rules– Information constraints

• Transaction rules– Information constraints

Information constraints

• Data element cardinality– Optional becomes mandatory in a given context

• Data element Interaction– Formulas, e.g. B = sum of all A’s– Dependency, e.g. if A then B– Relationship, e.g. A > B

• Data element values– Min, max or range– Allowed values, specified by code list

A CHANGED PROCESS

In times of change, shift happens.

Issuing and sending

CustomerSupplier

Prepare invoice data

Issue invoice Send Receive Process SettleTransport

Different exchange

• Direct exchange– Large and integrated– Specific data

• One to many– Main party– His requirements

• Many to many– General exchange– General data

Total distribution

PrintingGeneral mail Manual

Distribution

Create pdfEmail Manual

Reception

Issue invoice BII invoice

Electronic exchange Auto

Guideline

• Sets up an invoice containing all data specified in BII invoice core data model

• Describes how the data is inserted into the syntax message

Receiving and processing

CustomerSupplier

Prepare invoice data

Issue invoice Send Receive Process SettleTransport

Processing the data

• To be profile compliant the receiver must consider all data that is specified in a core message data model

• Different processing– Import into ERP systems

• For automated processing

– Present with a style sheet• Manual processing

– Mixed• Data required by ERP system for automated processing is imported• Additional data is presented on style sheets. Requires the ability to

access the message and present it.

Internal document processing

• Receiving• Validation• Assigning accounting keys (based on internal accounting practices).

– Cost centre• Department• Project• Equipment

– Cost type– Other dimensions– Manual or automated

• Mapping to the system • Reconciliation

– Manual, invoice routed to individuals and presented– Automatic, rules driven by invoice data values

• Handling of discrepancies• Booking into accounts

Internal processes

Receive Validate

Assign keys Reconcile

Booking

Auto

Man

ual

Manage discrepancy

Hands on process

Receive Validate Assign keys Booking

Auto

Man

ual

Manage discrepancy

Automated process

Reconsile

Payment

• Handling payments is not considered part of the procurement and out of scope for BII

• Payments are handles by banking messages.• The electronic invoice carries from the seller

the necessary information to initiate payment and to provide references for reconciling the financial accounts.

VALIDATING THE DOCUMENT

Company(schematron)

Industry(schematron)

Regional (schematron)

Profile required information (schematron)

Core document (schematron)

Technical structure(schema)

Layered validations

Profile compliance

Extensionmethodology

Based on agreement-Bilateral- By membership

THANK YOU

Georg BirgissonEykur ehf.georg@eykur.isTel: +(354) 544 4800Mobile: +(354) 898 0850