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eInvoicing is now the Norm –Get ready!The National approach and PEPPOL explained

Declan McCormack - eInvoicing Ireland Programme Manager

eInvoicing - Countdown to Compliance

“Member States shall ensure that contracting authorities and contracting entities receive and process electronic invoiceswhich comply with the European standard on electronic invoicing”

European Directive 2014/55/EU

COMPLIANCE DEADLINE

18th APRIL 2019

eInvoicing - The Directive

European Directive 2014/55/EU

1. ALL Public Sector Bodies

2. NOT to contracts … declared to be secret/accompanied by special security

measures

3. Compliance by April 2019 (2020 for Local Government)

4. No requirement for Suppliers to submit eInvoices at this time

5. Member States are obliged to:

“… receive and process electronic invoices which comply with the European

standard”

eInvoicing - The European Standard (EN-16931)

Invoice

Core

Elements

Invoice Note

Process Controls

Seller

Buyer

Document Totals

VAT Breakdown

Invoice Lines

• Why? Interoperability

Mass market driven solutions

• How? Member States/Standards

expertise

Business processes

• What? Legal and commercial

requirements

Commonly used elements

XML formats (UBL & CII)

eInvoicing – The benefits

“Switching to e-procurement, and particularly to e-invoicing, can bring significant savings and

make life easier both for the governments and for the thousands of businesses active in the

Internal Market.“ - Michel Barnier, European Commissioner for Internal Market and Services (Commission Press

Release June 2013)

Compliance

Reduced

administration

Process

efficiencies

Business

intelligence

Better access for

SMEsEnvironment

Digital Agenda

eInvoicing – What is electronic invoicing?

Manual

Semi-automated

National Legislation &

Standards

European Directive & Standards

“An invoice that has been issued, transmitted and received in a structured electronic format

which allows for its automatic and electronic processing” European Directive 2014/55/EU

OCR

Invoice processing: Public sector context

4

Million90%

Health

Ed

In excess of

4 million

invoices are

processed

by the Public

Sector each

year.

It is estimated

that 90% of all

invoices are

delivered by

post and

received as

paper to the

Public Sector.

Volume of

invoices and

turnaround

payment times

place high

administration

burden on staff

Invoice volumes per

annum:• Health ~2m

• Local Gov ~1.2m

• Central Gov ~625k

• Education ~300k

Financial Shared

Services initiatives

in progress in

Health, Education

and Central

Government.

Build to Share

(Note: Data not available

for all Public Sector

Bodies)

(Note: This is only a subset of

invoice volumes in the Education

sector)

eInvoicing – Factors to consider

• Interoperability – national and cross-border

• Shared services - Invoice processing environments in main Sectors

• Sector diversity - Different systems, rollout stages & levels of functionality

• Local Government – Standardised as opposed to shared services

• Public bodies outside of shared services model

• Protecting investments in existing eInvoicing solutions

• Avoiding cost burden on the Public Sector and Suppliers (SMEs)

• Facilitating a competitive market of service providers

• Aligning with eGovernment strategy

eInvoicing – Collaborative approach

CentralGovernment

NSSO-FSS

HealthHSE-HBS

EducationShared

Services

LocalGovernment

LGMA

Government/EU

Service Providers Market

OGP/OGCIO Suppliers/SMEs

eInvoicing - The National Approach

Shared

Services/Sector-led

European Standards

based Solutions

Framework for

Procurement of

compliant eInvoicing

solutions

eInvoicing is

optional for

Suppliers

at this time

Shared Services

support both OJEU

& non-OJEU

contract invoices

To Facilitate and enable

Public Sector Bodies

achieve compliance via

a set of commercially

available solutions

Standards based

solutions compliant

with the Directive.

eInvoicing – Standards based solutions

European Standard

eInvoicing – Sector/Shared Services-led Solutions

Central

Government

Health Education

LocalGovernment

Suppliers

European Standard

PEPPOL – The eDelivery network for eProcurement

Access Point

Service Providers

Access Point

Access Point

Access Point

SupplierShared

Services

Contracting

Authority

Contracting Authority

Connect Once – Connect to all

eDelivery Network

eInvoicing – The eInvoicing Programme

PROGRAMME ACTIVITIES

COMMUNICATIONS

COMPLIANCE DEADLINE 18th APRIL 2019

FRAMEWORK FOR PROCUREMENT

Shared

Service

Centres

Sectoral/Local

Public body

Groups

Individual

Public

bodies

eInvoicing

implementation

eInvoicing

implementation

eInvoicing

implementation

eInvoicing Solutions/ServicesAwareness

Understanding

Plan & Action

AVAILABLE Q4-2018



FRAMEWORK FOR PROCUREMENT

Shared

Service

Centres

Sectoral/Local

Public body

Groups

Individual

Public

bodies

eInvoicing Solutions/Services

AVAILABLE Q4-2018

• Health Business Services

• Financial Shared Services

• ETB eInvoicing

LGMA

• Basic compliance solutions

• Transformation services

• Automation/validation services

• Interfacing services

eInvoicing – Watch this space - ogp.gov.ie/einvoicing/

HSE Invoice Capture Solution

eInvoicing Ireland

24th April 2018

Health Business Services - Payment Services Scope of Services

HBS Payment Services

• Process all invoice payments for HSE & Tusla

• 2.3M invoices processed in 2017

• Over 30k unique national vendors

• 95 staff nationally in 6 sites

PurchasingDelivery &

Receipt

Invoice Capture /

Invoice Entry

Supplier /

Contract

Mgt

Vendor / User Queries

Process Reporting (KPIs and AP Performance Reports)

Payments and

Statutory ReturnsMaster Data

• Invoices received

• Invoices validated for

syntax errors

• Invoice data captured

• Invoices matched with

PO and GRN (3 way

match)

• Manual PO invoice

process

• Non-Order invoice

process

• Interface / Upload

process

• FX invoice process

• Invoices posted &

archived

• Payment proposals

• Payment blocks

• Electronic payments

• Manual payments

• Financial ledgers

updated

• Prompt Payment

• Manage VAT Returns

• Manage PSWT

• Manage RCT

(Construction Tax)

• Tax Clearance checks

• Welfare payments

• Travel payments

• Vendor set-up

process

• Vendor change

process

• Standard process /

form

• Review duplicate

vendors

• Review inactive

vendors

• PS national

procedures

• Supplier query

resolution

Payment proposal approval

Bank signatory approval

HBS PS

HBS PS

HBS PS

Corporate Finance

Invoice Approval

HSE Service Areas

Procurement Process

Requisition / PO Approval

HSE Service Areas

Payment Services Training

Invoice Capture Solution Project

Why?


Why?

• HSE provided with a fully supported solution

• Invoice Capture has capacity to process all HSE invoices

• Invoice Capture available 24/7 365 days a year

• Invoice Capture has click and drag functionality

• Invoice Capture is on new fully supported server

• Purchase Order numbers are mandatory on Invoice Capture

• Automated standard process to highlight reason for unmatched invoices

• Automatic email to end-user on unmatched items

• Fully functioning delivery note matching available

• Delivery Note (PODs) can be provided electronically

• Increased levels of 3 way matching

• Improved duplicate invoice detection rates

Invoice Capture Solution - Features


Why?

• Paper > Scan > Verify > Workflow > SAP

• E-mail > Verify > Workflow > SAP

• EDI > Workflow > SAP

Invoice Formats


Why?

• Purchase Order number mandatory on Invoice

• Improved goods receipting process

• Early visibility of invoices to drive tax compliance

• Single audit trail for purchase to pay

• Improved national reporting on vendors, volumes & expenditure

• HBS Payment Services target is to process 90% of all HSE invoices

electronically by 2020

Invoice Capture - Driving HSE Compliance

Education Shared Business Services (ESBS)

“eInvoicing in Education, early adopters Irish public sector”

Michael MorganCEF Digital & eInvoice Ireland (OGP) workshop event, 24th April 2018, Dublin

Contents

24/04/2018 eInvoicing Education, early adopters Irish public sector

1. Introductions

2. Background – ETBs, ESBS Finance Project & Interim Measures

3. e-Invoicing ESBS Interim Solution

• Motivation• Journey• Overview of the solution • Status – invoice numbers• Status – suppliers numbers• Website• Challenges• Next steps

1. Introduction - Michael Morgan• Project Manager, Education Shared Business Services (ESBS), Department of

Education and Skills (DES)

• Responsibilities include ESBS project to set up finance shared services for the Education and Training Boards (ETBs) sector

• Chartered Accountant with extensive experience having been a senior manager with a ‘Big 4’ firm

• Strong track record in ICT project management (PRINCE2), team leadership, IT customer service management, vendor and SLA management


24/04/2018eInvoicing Education, early adopters Irish public sector

Organisation Team/Role(s) Name Title email

Department of Education & Skills (DES)

ESBS Finance ETBs Project

/ Interim Shared Services

& EU Project Consortium

/ Suppliers on-board + 1st line support ETBs

Michael Morgan Project Manager [email protected]

Joan McCarville Process Lead [email protected]

Berni Toft Transition Lead [email protected]

Lynn Jackson Project Support [email protected]

Karen Greene Project Support [email protected]

Louise Fleming Project Support [email protected]

Institute of Technology, Sligo

(ITS)

EU Project Consortium

/ Co-ordinator

Padraig Harte IT Lecturer [email protected]

Aidan Higgins Project Manager [email protected]

Document Centric Solutions

Ltd. (DCS)


/ IT Service ProviderEoin Maguire Director [email protected]

Tubbercurry Software Ltd. t/a Nebule Software


/ Technical advisorEdmund Gray

Chief Technical Officer

[email protected]

Celeris Group EU Project Consortium

/ AdvisorCarmen Ciciriello Director

[email protected]

1. Introduction – Teams

mailto:[email protected]






2. Background - ETBsThe 16 Education and Training Boards (ETB’s) are Irish regional authorities with responsibility for:

• 250+ community colleges or 33% of post-primary schools

• 600 centres delivering further education and training (FET)

• 10+ community national schools or 1% of primary schools


High level Stats ETBs (baseline Finance/Payroll)There are sixteen ETBs namely; 1. Cavan Monaghan, 2. City of Dublin,3. Cork, 4. Donegal, 5. Dublin Dún Laoghaire, 6. Galway Roscommon, 7. Kerry, 8. Kildare Wicklow, 9. Kilkenny Carlow, 10. Laois Offaly, 11. Limerick Clare, 12. Longford Westmeath, 13. Louth Meath, 14. Mayo Sligo Leitrim, 15. Tipperary, 16. Waterford Wexford.

2. Background – ESBS Finance for ETBs Project


Scope: The map shows the ETBs and

main FMS currently in use, in addition

to FMS3 in training centres.

Purpose: A Business Case was approved in 2015 by the Minister of Education and Skills, to deliver an ESBS finance solution (people, processes & technology) as a shared service to ETBs.

FMS2

FMS1

Mixed

2. Background – Interim MeasuresPurpose:• To alleviate pressure on ETB Finance functions• To gather data on ETB finance systems for the main ESBS finance project as

recommended in the business case approved in September 2015. • To analyse/standardise invoice process flows, engage with staff and develop a

change management programme to support the move to shared services.Scope: • Introduce e-Invoicing across ETBs in targeted sectors• Enable further Public Purchase Cards use by ETBs• Create online ETB Property Register• Assist replacement of legacy Learner Payments Systems (LPS)


Motivation for eInvoicing

• to comply with EU standards on E-Invoicing which will be compulsory in the public sector from April 2019 and

• To prepare the education sector for the main Finance Shared Services from 2019 and other Irish and EU digital initiatives.

• to reduce the administrative burden of processing invoices by removing most of manual invoice handling steps, both for the supplier and customer (which in this project is the ETB school/centre or admin office).


3. E-Invoicing – journeyThe typical paper/e-mail invoice process

Print PaperInvoice

Mail Invoice

Supplier

• Receives Invoice

• Checks Invoice

Buyer

Invoice DataEntry

AP Clerk

AP SystemTypical paper

process

e-invoicing process

Supplier

AP System

TransmitInvoice

Electronically

TransmitInvoice

Electronically

The Internet

XML

01110001101010010011101 0111000110101001001110101011

Email

Supplier changing from paper invoices

Saving €13 per invoice

Buyer changing from paper invoices

Saving €17 per Invoice

eInvoice (with or without attached PDF) directly input into AP System24/04/2018 eInvoicing Education, early adopters Irish public sector

3. E-Invoicing – journeySteps to Implement e-Invoicing

1. Sign up with Access Point

2. Define policies

3. Test with Service Provider

4. Test integration with your Financial Management System

5. Rollout to Top Suppliers

6. Continue to Rollout to mid-tier and smaller suppliers

Typical Project 3-6 Months to go live + rollout24/04/2018 eInvoicing Education, early adopters Irish public sector

ReceiveInvoices from System Providers/ SuppliersSecurely

- Format- Sender- Validation- Tax

- Coding- Splits- Order

Matching- Tracking- Updating

1. Accept 2. Checks3. Coding/ Matching

FMS 1

4. Accounts

- Review- Check

Coding- Export

FMS 3

FMS 2

3. E-Invoicing – Interim Solution Overview


PEPPOL Access Point

3. E-Invoicing - ETB invoice numbers• 16 Separate Regional Authorities (ETBs) across 750+ Sites

• Variety of Financial Management Systems

• 275,000 Invoices per year (existing method paper/e-mail)

• 20,000 e-Invoices received first 22.5 months June 2016 to mid-April 2018

• Approx. 5% of total invoices to date

• Currently 14 live suppliers & 44 approved with target 70 suppliers out of 130 selected


3. E-Invoicing - Number of Suppliers


Date 20/04/2018

Count of Supplier Name

Status Total

Live 14

Approved 44

Awaiting approval 5

To be actioned 69

Grand Total 132

14

44

5

69

Targeted ETB suppliers by eInvoice status

Live

Approved

Awaiting approval

To be actioned

3. E-Invoicing - Website

• ETB e-invoicing website launched February 2018

• easy to navigate and essential to the on-boarding process of new suppliers

• on the website a supplier can do the following:• Register using a set-up form.

• Choose a method of sending their e-Invoice.

• Choose a provider.

• Download all ETB site references (SSC Ref) around the country

Web address is www.etbeinvoicing.ie


http://www.etbeinvoicing.ie/

3. E-Invoicing - Challenges1. Technical – rounding, VAT, credit notes, consolidated bills, multiple cost

centres and local coding

2. People/Organisational – change management, training etc.

3. Suppliers – lead-times to on-board and readiness to go direct to PEPPOL (service providers can help)

4. Support – reliance on multiple existing FMS support providers


3. E-Invoicing - Next Steps1. Technical – upgrade to latest EN, use

software adaptors and p-card integration (Nebule & DCS leading)

2. Suppliers – rollout from 16 live & 44 approved to 70 (DES ESBS Finance team leading with 3 selected ETBs as champions utilising website)

3. People – continue with change management, training

4. Case study (IT Sligo co-ordinating)

5. Dissemination (Celeris Group leading)


Panel Discussion Q&A

Brian Lunney HBS, HSEMichael Morgan, ESBS,

Christian Rasmussen, CEF

Martin Forsberg, CEF

Declan McCormack, eInvoicing Ireland

eInvoicing is now the Norm – Get ready!

eInvoicing is now the Norm – Get Ready

A European Commission, CEF Digital and eInvoicing Ireland information workshop

Communicating the Directive Maura Howe eInvoicing Communications Manager

The Alex Hotel

Tuesday, 24 April, 2018

Communication Goals and Strategy

• To engage Public Bodies, service providers, suppliers (including

SMEs) and all other stakeholders involved so that they understand

the obligations relevant to Ireland, the national implementation model,

and what action they need to take

• To support Public Bodies in reaching compliance

• Communicate the existence of framework and support materials

eInvoicing – Next Steps (Path to compliance)

Awareness

Obligations Timeline National/Sector Approach

Suppliers & eInvoicing Market

November 2018

April 2019

Understanding

Invoice Environment

Systems Capabilities

Business Processes

Opportunities

Plan & Action

Sector Solution

SystemsInterfaces

People & Processes

Beyond Compliance

Compliance

eInvoicing Communications Channels (Path to compliance)

Public Bodies November 2018

April 2019

Service Providers

Suppliers

Compliance

Steering Group Members

Shared Services

Sectoral communications

point

ogp.gov.ie/eInvoicing

ogp.gov.ie/eInvoicing

ogp.gov.ie/eInvoicingNSAI Formal Route:

eTenders.com

OGP Communication

channels

Representative Groups

SME Advisory

Group

OGP Communication

channels



COMMUNICATIONS

Awareness

Understanding

Plan & Action

FRAMEWORK FOR PROCUREMENTAVAILABLE Q4-2018

eInvoicing Solutions/Services

Shared

Service

Centres

Sectoral/Local PB

Groups

Transitioning

PBs

eInvoicing

implementation

eInvoicing

implementation

eInvoicing

implementation

Awareness Understanding Action

Programme – Communications Highlights

All Member States’ central entities to comply

with eInvoicing Directive Q2 - 2019

All Member States’

local entities comply

with eInvoicing

Directive Q2 - 2020

Procurement

Framework

Established

Publish

Framework

RFT

Directive

Published

17th October

PIN

publication

eInvoicing Introductory

presentations/articles

2017 2018 2019 2020

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2

Open PEPPOL

Announcement

RFI

publication

Framework Evaluation

Standstill

Award

Enduring Model

Deadline to Transpose

Directive into National

Law Q1 - 2019

eInvoicing

Infographic

47

Public

Consultation

Process

12 month

release

Building

Community

3 Months release

F/w and Action

Tools

announcement

6 months release

1 Month release

CEF Information

Event

CEF Event

Follow-up &

tools

[email protected]

eInvoicing – Watch this space - ogp.gov.ie/einvoicing/

eInvoicing is now the Norm – Get Ready

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COMPLIANCE DEADLINE

18th APRIL 2019

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