electronic invoicing overview april, 2010 · 2016-01-23 · 3. xml structured data format (cxml...

Electronic Invoicing Overview

April, 2010

Electronic Invoicing Topics

• Electronic Invoicing Overview

• Electronic Invoicing Benefits

• Supported File Formats

– Flat File• Flat File Invoice Process Functionality

• Flat File Benefits & Barriers

• Flat File Process Flow

– Electronic Data Interchange (EDI)• EDI PO/Invoice Process Functionality

• EDI PO/Invoice Benefits

• EDI PO/Invoice Barriers

• EDI PO Process Flow

• EDI Invoice Process Flow

– XML • PO/Invoice Process Functionality

• XML PO/Invoice Benefits

• XML PO & Confirm Process Flow

• XML Invoice Process Flow

2 April, 2010 Electronic Invoicing Overview

– Ariba Supplier Network• Ariba Supplier Network Overview

• Ariba Invoice Process Flow

• Electronic Invoicing Technology Decision

Electronic Invoicing Overview

• As part of the Structured Expense Initiatives (SEI Program), Citi has embarked on a global program to migrate supplier manual submissions of invoices to electronic submissions

Initiative will enable electronic connectivity to Citi’s suppliers for electronic PO routing, order confirmations, and invoice submissions

Key business drivers for this initiative are to:

• Expedite supplier invoice receipt by Citi Payment Services

• Reduce manual entry time and error rates

• Improve overall processing time and payment return to suppliers


Electronic Invoicing Benefits

• General Benefits of Electronic Invoicing

– Improves business processes, increases efficiency and produces resource cost savings

– Enables significant reductions in business and supplier expenses, such as postage, printing, phone calls, and handling

– Eliminates the human interaction and manual work required to process purchase orders and invoices; reduces input errors and processing time

– Transfers information faster and more accurately; shortens transaction processing cycles

– Enables on-line data storage of PO and Invoice documents

– Allows a company to take advantage of the benefits of storing and manipulating data electronically without the cost of manual entry

– Builds closer business partnerships

– Enables competitive advantage opportunities

– Integration of electronic documents means they can be processed much faster, reducing lead times and speeding up payments

– Supports on-demand processing of Invoices into the P2P AP system


Electronic Invoicing File Formats

The Citi Procure to Pay system (P2P) supports the following electronic file formats:

1. Flat File format – variable length text file submitted through a secure file transfer process (CitiSFT)

2. EDI X12 structured data format - submitted through a value-added network (VAN), allowing trading partners to send and receive EDI transmissions independently of one another; Citi’s VAN is Advantis

3. XML structured data format (cXML Invoice Documents) - submitted through an HTTPS connection to the CitiSOA Internet Gateway (DMZ)

4. Ariba Supplier Network – 3rd Party Supplier Network where vendors can upload or enter invoices which subsequently route to Citi electronically


Flat File Invoice Process

Functionality

• Flat File format

– A Citi Flat File Invoice Format specification is provided

– Submitted files must be of variable length, tilde (~) delimited text format

– Batch header and trailer record are required for each file

– Invoice information is provided in Invoice Header and Invoice Line records

– Each record in the file must be on a separate line in the file, terminating with a new line character

– An entire file not in compliance with the format will be rejected

– An Exception File will be provided to communicate invoice exceptions or file rejects

– Accounting information for all items/lines must be included for Non-Match to PO invoices


Flat File Invoice Process

Benefits & Constraints

• Benefits of utilizing Flat File Format

– This is the simplest and quickest electronic submission method to implement

– File transmissions between Citi and suppliers utilize a secure, encrypted method of transferring files across open networks (CitiSFT), based on the HTTPS, SFTP, and FTPS protocols

– File transfer activity is monitored and supported by the Citi network operations team 24x7

• Constraints of utilizing Flat File Format

– Development cost for creating invoice file per Flat File specification

– Entire file rejections if file format errors detected (deviation from specification); file returned to FTP account it was sent from

– Entire file rejections if character errors detected (for ex. alpha character in a numeric field)


Flat File Invoice Process Flow


P2P

P2P AP

Invoice

Workbench

P2P AP

Payables

Invoice Import

Process

CitiSFT

(Inbound File

Transfer Service)

Vendor

Application

Ex: CRM, ERP

P2P AP

Invoice

Exception

Process

CitiSFT

(Outbound File

Transfer Service)

Manual Invoices

and UpdateseInvoice

Invoices

(SSI)

XML

Invoices

Invoices

EDI

Invoices

Internet

Vendor

DMZ(firewall)

Invoice

Flat File

Invoice

Rejections

Secure File Transfer

using HTTPS, SFTP, or

FTPS protocols

Vendor

Invoice

Rejections

EDI PO/Invoice Process

Functionality

• P2P EDI X12 Functionality

– A Citi EDI Invoice Format specification is provided

– P2P supports the EDI ANSI X12 standard (v 4010) for electronic data exchange between and within businesses

– The following electronic messages/document types are supported:

1. EDI 850 - Purchase Order Outbound to vendors

– Live in the US

2. EDI 860 – Purchase Change Order Outbound to vendors

– Live in the US

3. EDI 810 - Invoice Inbound from Vendors

– Live in the US

4. EDI 824 - Invoice Exception Outbound to Vendors

– Live in the US

– P2P has partnered with the Advantis VAN to transmit all inbound & outbound messages and authenticate/validate the messages



Benefits

• Benefits of utilizing EDI Data Exchange

– EDI is the ideal solution for suppliers currently utilizing or planning to utilize EDI technology

– EDI is used as a strategic tool to reduce expenses, streamline business procedures, and create a competitive advantage

– EDI transactions between companies flow faster and more reliably than paper documents

– EDI electronic exchanges pass through the VAN allowing trading partners to send and receive EDI transmissions independently of one another

– EDI allows a company to take advantage of the benefits of storing and manipulating data electronically without the cost of manual entry

– Secure message transmission is provided between Citi and Advantis VAN; each document is authenticated and validated (EDI translator)

– VAN provides additional services; i.e. retransmitting documents, acting as gateway for different transmission methods, & handling telecommunications support



Constraints

• Constraints to utilizing EDI Data Exchange

– Business process changes are required to accommodate automated processing

– Costs involved in time and money in the initial set-up (implementation, customization, training)

– Transaction costs to utilize the VAN

– Companies must have the resources in place to make an EDI program work

– Possible lack of EDI technology expertise in-house

• however, outsourced solutions are available from EDI “Service Bureaus”

– Perception that EDI represents just a data format

• the correct business view is that EDI is a system for exchanging business documents with external entities, and integrating the data from these documents into the company’s internal systems


EDI PO Process Flow


P2P

Vendor

P2P

IP/PO Module

P2P EDI

Gateway

Vendor

Application

Ex: CRM, ERP Purchase

Orders

VAN

“A”

EDI

Translator

ADVANTIS

VAN

EDI

Translator

860

3rd

Party

EDI

Vendor

EDI

Translator

850

860

EDI 850

File850850

860

Purchase

Orders

Purchase

Orders

Purchase

Order

Changes

EDI 860

File

Purchase

Order

Changes

EDI Invoice Process Flow


P2P

P2P AP

Invoice

Workbench

Vendor

P2P AP

Payables

Invoice Import

Process

P2P EDI

Gateway

Vendor

Application

Ex: CRM, ERP

P2P AP

Invoice

Exception

Process

Manual Invoices

and UpdateseInvoice

Invoices

(SSI)

Flat File

Invoices

Invoices

XML

Invoices

VAN

“A”

EDI

Translator

ADVANTIS

VAN

EDI

Translator

EDI 810 File

System Format

Invoices

3rd

Party

EDI

Vendor

EDI

Translator

EDI 810 File

810

PO Match

Invoices

810

EDI 824

File824824

EDI 824 File

Invoice

Exceptions

System Format

Invoices

Invoice

Exceptions

Invoice

Exceptions

XML PO/Invoice Process

Functionality

• P2P XML Functionality

– Industry supported cXML standards (v 1.2.009) have been established for P2P

– The following electronic messages/documents are supported:

1. cXML Purchase Orders Outbound Direct to Vendors

2. cXML Purchase Order Confirmation Inbound from Vendors

3. cXML Invoice Inbound from Vendors

– P2P has partnered with the CATE (Citi Architecture & Technology Engineering) organization for transmission of all inbound messages and authentication of the messages

– Reporting and Transaction Monitor services are available



Benefits

• Benefits of utilizing XML Messaging

– Industry standard for the exchange of information

– The extensibility and structured nature of XML allows it to be used as a common technology for communication between different systems and platforms

– XML supports platform, vendor and application neutral data

– One source of XML-based information can be formatted and distributed via a multitude of different channels with minimal effort.

– XML electronic messaging is direct to the vendor

– Information coded in XML is easy to read and understand

– Supports multilingual documents

– Mapping to existing file systems or relational databases is a relatively simple process

– Secure message transmission is provided between Citi and vendors as each document is authenticated and validated.



Constraints

• Constraints to utilizing XML

– Business process changes are required to accommodate automated processing

– Costs involved in time and money in the initial set-up (implementation, customization, training)

– Companies must have the resources in place to make an XML program work

– Lack of XML technology expertise in-house

• however, outsourced solutions are available from 3rd party software consulting companies


XML PO & Confirm Process Flow


P2P

P2P

IP/PO

Module

Buyer

Internet

Vendor

P2P

XML

Gateway(creates XML)

P2P

Transport

Agent(delivers XML)

Vendor

DMZ(firewall)

Vendor

Application

Ex: CRM,

ERP

PO Confirm

MessagePO Message

CitiSOA

DMZ(delivers PO

confirm XML)

XML Invoice Process Flow


P2P

P2P AP

Invoice

Workbench

Vendor

P2P AP

Payables

Invoice Import

Process

P2P XML

Gateway

(Inbound Web

Service)

Vendor

Application

Ex: CRM, ERP

P2P AP

Invoice

Exception

Process

P2P XML

Gateway

(Oracle Transport

Agent)

Manual Invoices

and UpdateseInvoice

Invoices

(SSI)

Flat File

Invoices

XML

Invoices

EDI

Invoices

Internet

Citi-SOA

DMZ

Vendor

DMZ(firewall)

Ariba Supplier Network Overview

• What is a Supplier Network?

– A 3rd Party Trading Network where buyers and suppliers can communicate via an electronic exchange. This includes a web portal

– Supports several document standards for Purchase Orders and Invoices

– cXML, EDI, CSV, fax, manual, etc.

– Global and Secure Network to transact and manage suppliers

– Real Time documents


• Benefits of Utilizing Ariba Supplier Network

– Citi can utilize vendors already existing on the Supplier Network to quickly enable vendors to an electronic format within P2P.

– Supports large and small volume vendors

– Reduced time in supplier onboarding/enablement

– Minimize coding/customization from supplier and Citi

– Multiple supplier document layouts supported

– Dedicated 3rd party team to help onboard new vendors not on the network

– Supplier Network will follow Citi standards

– Integrate with P2P XML functionality to process the PO’s and Invoices

– Supplier Network Portal used to interface with P2P

– Reduction in the number of supplier inquiries for invoice status

Supplier

Supplier

Supplier

Supplier

Supplier

Ariba

Supplier

Network

Different File

Formats

One File Format

to Citi

P2P

Ariba Invoice Process Flow


P2P

P2P AP

Invoice

Workbench

Vendor

P2P AP

Payables

Invoice Import

Process

P2P XML

Gateway

(Inbound Web

Service)

Vendor

Application

Ex: CRM, ERP

P2P AP

Invoice

Exception

Process

P2P XML

Gateway

(Oracle Transport

Agent)

Manual Invoices

and UpdateseInvoice

Invoices

(SSI)

Flat File

Invoices

XML

Invoices

EDI

Invoices

Internet

Citi-SOA

DMZ

Vendor

DMZ(firewall)

Ariba

Supplier

Network

Ariba

Mapping

Internet

XML

Invoices

Web

Portal

Electronic

Files

(EDI, cXML, CSV)

On-line

entry

Invoice

exceptions

Electronic Invoicing

Technology Decision

• Considerations for Electronic File Format:

– If cost, resource constraints, or ease of implementation are major considerations then consider using the Flat File format for electronic invoicing

– If your company already has an investment in EDI technology or an interest in using EDI technology then consider the EDI format for electronic invoicing

– If your company is already using XML, or has an interest in greater levels of standardization, or has an interest in implementing the technology that will eventually be used widespread on the web then consider the XML format for electronic invoicing
