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INVOICEWARE INTERNATIONAL © 2013
Confidential
Invoiceware InternationalThe Leader in Latin America eInvoicing Compliance
Lower Total Cost of Ownership• One Platform, multiple countries – Brazil, Mexico,
Argentina, Chile• Minimal Internal Resources• Simplified Architecture• Fixed, Predictable Cost Today & Through Changes
Production Support• Invoiceware a phone call away for day to day calls• English, Spanish or Portuguese• End to End Support – including SAP issues
Change Management• Ongoing Changes Included (including both software &
consulting)• Local teams work with the governments (i.e. SEFAZ, SAT, AFIP, SII)
• Remove dependency on Internal Resources to keep system updated
INVOICEWARE INTERNATIONAL © 2013
Confidential
Latin America eInvoicingUnderstanding the Basic Differences to other Regions of the World
Different Types of Countries Mandated electronic invoicing
Brazil Mexico Argentina
Expanding Countries Chile Guatemala, Uruguay, Costa Rica Colombia
Domestic versus Cross Border• Domestic equals VAT tax and is subject to country
mandates• Cross Border is predominately paper
Mandates Constantly Evolve• Can change 3-4 times per year as the tax regulations
evolve• Average multinational spends 2600 hours a year
managing Brazil issues versus an avg. of 80 hours a year in other countries
INVOICEWARE INTERNATIONAL © 2013
Confidential
Latin America e-Invoicing Gov’t Mandates Eliminate Common Roadblocks
Government in LATAM• Mandates the use of electronic invoices• Mandates that supplier must make e-Invoice available to Buyer• Mandates the Format of the Invoice• Requirement of Supplier Invoice: Approved and Accompany the Truck
• Increases accuracy of what was ordered, shipped and invoiced• Invoice can arrive even before the Goods
Paper Invoices Supplier Rollout Multiple Formats Accuracy Timing
X X X X X
INVOICEWARE INTERNATIONAL © 2013
ConfidentialConfidential
How to Approach Latin AmericaGovernment Compliance vs. Commercial Compliance
Compliance - Okay to Deduct Avoid ~$250 fine per invalid invoice The e-Invoice received must match the e-Invoice previously
registered with the Tax Authority. Valid invoice = Okay to Deduct VAT on remittances to
Government.
Account Payables Efficiency – Okay to Pay If PO backed, does invoice = PO = Goods Receipt? If not PO backed, does commodity manager or buyer approve? Have the Goods Arrived and been processed?
Working Capital Optimization Inability to optimize cash flow (e.g., Missed Discounts) Liquidity concerns for supplier operations Short-term investment of Cash
INVOICEWARE INTERNATIONAL © 2013
ConfidentialConfidential
Mexico eInvoicingCompliance Update
December 31, 2013 CFD is Repealed There is NO “Grandfather” clause –
everyone must switch Includes all current CFD Users CBB (paper) allowed only for companies >
$250K Peso (~20K US Dollars)
INVOICEWARE INTERNATIONAL © 2013
ConfidentialConfidential
Mexico e-Invoicing: Mandated Inbound ValidationCountry Moves to CFDI
Mexico SAT - Real-Time Compliance Mandates• Real time integration – legacy was a batch process• Invoices must be registered and approved before being sent• Printed CFDI is also a valid, legal invoice, XML must be archived for 5 Years• CFDI may be received electronically in advance. Must be validated as authentic before payment.• Each outbound e-Invoicing solution must also provide for inbound validation as well• IMPORTANT: Step 6 – You do not want to pay invalid invoices – Audit Risk & You Assume Tax Issue
5
INVOICEWARE INTERNATIONAL © 2013
ConfidentialConfidential
Real-Time E-InvoicingBaseline Compliance Process Sets the Stage for Straight Through Processing
Brazil Real-Time Compliance Mandates• Real time integration with Brazilian Tax Authority (SEFAZ)• For Accounts Payable – Goods Nota Fiscal, Service Invoices at City Level & CTe - Transporation • NF-e received electronically by recipient in advance. Must be validated and any returns accounted
for via “return order process”• SEFAZ does not validate your taxes in real time but they do data-mine to check later• Brazilian companies are responsible for accurate taxes of their suppliers as well
Paper
Electronic
Inbound A/P
• Paper not authoritative for compliance
• Suppliers must provide XML electronically
• Step 6 (required) sets up opportunity for automated matching & “straight-though” processing.
5
INVOICEWARE INTERNATIONAL © 2013
Confidential
NFE EventsBi-Directional Process Orchestration with SEFAZ as the Mediator Between Parties
SEFAZ Solution – Two Way Process Orchestration via NFE “events”• NFE is acknowledged by the receiving CNPJ through event posted back to SEFAZ. • NFE must be acknowledged within 180 days initially, and eventually before shipment as phased roll-out progresses. • Greater burden on receiving CNPJ, but many large receiving CNPJ are pushing for these changes to guard against
ghost transactions in the first place.• Solution very similar to EMCS for Alcohol/Tobacco/Energy within Europe
Draft, subject to change
INVOICEWARE INTERNATIONAL © 2013
ConfidentialConfidential
Multiple Local Vendors
VATTax Remittance
Domestic e-invoice &Cross Border
Different e-invoicing provider in each country Complex legislation equals high internal support costs
Domestic Invoices subject to electronic mandates Cross-Border – still predominately paper
Supplier VAT deductible only from gov’t valid invoices Coordination of Credit/Debit notes to adjust gov’t
registered taxes once goods accepted
PO usage on the rise but still low E-invoice formats don’t support “Straight Through
Processing” – need ability to append data
Common Challenges for Multinationals
PO Usage“STP” Capability
SupplierCollaboration
Master Data & Onboarding Requirements Payment Status, PO Append, Dispute
Management, Supply Chain Finance
INVOICEWARE INTERNATIONAL © 2013
ConfidentialConfidential
Regional Compliance Multi-Country Support Domestic Buyer Side
Mandates: • Brazil – NFe, NFS, CTe,
MDFe• Mexico• Chile• Argentina
Guaranteed e-invoice Compliance
Automation & Workflow Purchase Order & Goods
Receipt Matching Line Item Matching for Tax
Rate Issues –to request need for Credit/Debit
Data Append: Suppliers add PO & Other Matching Info to Invoice (i.e. Mexico Addenda)
Comprehensive Support Electronic In Country
Mandates Cross-Border & In Country
Paper (CloudScan)
No supplier fees to inhibit adoption
Onboarding and & Master Data Collection for Supplier Management
Supply Chain Finance
Partnership with TradeshiftRegional Latin America Shared Services Platform
Tradeshift Business CloudConnecting companies, creating value and empowering business
Electronic Invoicing & Data
Capture
Workflow
Financial Services
Enterprise Management
• There are no barriers to join, all companies can sign up and start sending business documents for free.
• Buyers and sellers can interact and collaborate in real-time.
A rapidly growing eco-system of applications supporting electronic invoice presentment and payment (EIPP) processes.
Companies can extend business processes onto Tradeshift by installing or building their own apps.
Capturing both Electronic & Paper Invoices
ERP
Scanned & PDF invoices Validated e-Invoice
Onboarding
Learns invoice formats automatically
Advanced heuristics with machine learning and discovery abilities to recognize and remember new invoice formats.
Exceptional data quality, validated by suppliers
Exceptions flagged by the Business Firewall. Suppliers corrects the exceptions and sign-off on the conversion prior to submission.
First step to e-Invoicing
It’s an onboarding tool to convert PDF and paper senders to submit electronically.
Tradeshift is Configurable…
Entities
Entities are legal business units and are the way in which we model enterprises on
Tradeshift
1Validation rules
The rules that define what is required on a document in order to optimize processing - are typically branch and supplier group
specific.
3Supplier groups
Predefined groups of suppliers, who have
similar characteristics regarding the way in
which they send documents
2
...and Extensible
TRADESHIFT BUSINESS CLOUD
Invoic
ing
Purc
hase
O
rders
Sup
ply
C
hain
Fi
nanci
ng
Dynam
ic
Dis
counti
ng
Com
plia
nce
Clo
udSca
n®
Colla
bora
tio
n&
Work
flow
Vendor
Managem
ent
Your
ow
n
ap
ps
Supplier Buyer
Connect with all trading partners via
one common business platform
Deliver business documents
electronically into ERP system
Automate business processes
Future-proof new business needs
INVOICEWARE INTERNATIONAL © 2013
ConfidentialConfidential
Regional Compliance Multi-Country Support Domestic Buyer Side
Mandates: • Brazil – NFe, NFS, CTe,
MDFe• Mexico• Chile• Argentina
Guaranteed e-invoice Compliance
Automation & Workflow Purchase Order & Goods
Receipt Matching Line Item Matching for Tax
Rate Issues –to request need for Credit/Debit
Data Append: Suppliers add PO & Other Matching Info to Invoice (i.e. Mexico Addenda)
Comprehensive Support Electronic In Country
Mandates Cross-Border & In Country
Paper (CloudScan)
No supplier fees to inhibit adoption
Onboarding and & Master Data Collection for Supplier Management
Supply Chain Finance
Invoiceware & TradeshiftRegional Latin America Shared Services Platform