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Electronic Invoicing B2BHow to address new Italian Regulatory Requirements in your Account Payable with SAP Ariba

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New Regulation will require you to receive digitally all

Invoices from your Italian Supplier starting from January

2019 (and July 2018 for specific Industries / Categories).

This is a huge opportunity to streamline and create efficiency in

your Account Payable, achieving a 4x productivity

increase.

4x improvement is only possible with a Smart Invoicing

solution, where Business Rules can help you in filter errors

before supplier submission and achieving a touchless

matching process.

SAP Ariba Commerce Automation is the solution to manage

invoices smartly and compliantly non only in Italy, but in

additionally 37 countries.

In summary


In June 2014 Italian regulations introduced

Public Sector electronic invoicing regulation

in the B2G market. All suppliers must send

electronic invoices using a specific xml format to a

central hub

In January 2019 this regulations will be

mandatory for B2B market too (from July 2018

only for few Industries)

Business Context

SDI = Sistema di Interscambio (Interchange system network)

paXML = Italian xml format for electronic invoicing

Supplier SDI Buyer

paXML paXML


Starting from Jan 2017, private held companies could exchange electronic invoices with

same rules using SDI

Approximately 15K invoices have been exchanged for B2B and 2,5M invoices for B2G every

month

Starting from July 2018 (and then January 2019), these volumes will move to 2,5B invoices.

Roadmap to Compliance – Regulatory Requirements

Dec 2013

Voluntary PS bodies

can start receiving

electronic invoicing

using SDI

Jun 2014

Central PS bodies must

receive electronic

invoicing using SDI

2015-2016

Local PS bodies

enrolled in this process

Jan 2017

Voluntary private

company could use SDI

for electronic invoicing

Jul 2018

Private company (if

public tender

subcontractors)

must use SDI for

electronic invoicing

It is also mandatory

for oil & gas

product

transactions

Jan 2019

All public and

private companies

must exchange

invoices using SDI

Today

Impacts for the B2B Sector


While only flow (and for Account Receivable) is affected by the new Regulatory requirements,

your Account Payable still needs to manage also without increasing complexity.

Future Scenario – Increasing Complexity in <CLIENT> Account Payable

Your ClientsYour Suppliers

Procurement

InvoicesSales

Invoices

1 2

Your Company

1 2

3

4

5

3 4 5

paXML

paper

pdf

csv, xml


The Opportunity – How to get benefits out of this required change

New Regulation will imply a digitalization of the CAPTURE task in Account Payable, but only the

adoption of a Smart Invoicing solution could support a full enablement of benefits.

Account Payable Task Effort Split (%) How to automate Effort reduction (%)

CAPTUREget data into the system (from

paper, pdf, other)14%

• Automate input through connection to

Business Network

• Eliminate manual data input or check (e.g. as

OCR) from team

100%

PROCESSreconcile invoice with PO, GR or

check No-PO Invoice57%

• Embed Business Rules in the Business

Network to prevent missing data

• Automate registration in case of complete

match

80%

QUERIESsolve issue from suppliers /

business side29%

• Give full visibility to supplier in the portal and

avoid queries 90%

Today

25-30 min per invoiceTomorrow

4-5 min per invoice

85% max reduction

Source: SAP Ariba Benchmarks based in previous engagements


The Opportunity – How process optimization will work

AR

Suppliers

InvoiceAccount

Coding

Contract

Match

Price

ComplianceShip-to

Address

Invoice

Number

Invoice

Date

Bill-to

Address

VAT/GST

Compliance

Quantity

Threshold

Unit Amount

Threshold

Error

Excep-

tion

• Fewer than 2% exceptions

• Massive decrease in AP effort and

procurement time

• Cost savings

• Real-time visibility into errors

• Rapid resolution and resubmission

• Faster days sales outstanding

Over 87 configurable

rules that capture errors

and exceptions before

they reach AP

Supplier portal provides

real-time access to invoice

and payment status,

eliminating inquiries to AP

Touchless invoicing: Lower AP/AR costs. Faster cycles. Lower risk.

Ariba 98%+

Auto Post


(1) Hackett, 2016 - Purchase-to-Pay Alignment: The Missing Link to Delivering on Spend Cost Reduction, SAP elaboration

(2) SAP Benchmark based on more than 100 engagement on Invoice Management

The Opportunity – Simple calculation of Benefits for Account Payable

~ 100 k

~ 50-70%

Vendor Invoices per year

(Example of Manufacturing client with 2B€

turnover)

~ 12-20 €

~ 0,6-1,4 M€

Cost to manage each invoice,

considering a 20% exceptions (1)

Touchless invoice target

achievable (2)

Achievable saving with the

introduction of SAP Ariba

Commerce Automation


SAP Ariba, with its Commerce Automation Component, is able to cover this new Regulatory

Requirements and ensure full compliance to Buyer and Seller organizations.

The Solution – SAP Ariba Commerce Automation

SUPPLIERS | SELL TO SETTLE

Ariba Network

PROCUREMENTSUPPLY CHAIN FINANCIAL SUPPLY CHAINSUPPLIER MANAGEMENT STRATEGIC SOURCING

BUYERS | SOURCE TO SETTLE

SAP CLOUD

PLATFORMCUSTOMER VALUE

SERVICES

Note: SAP Ariba Procurement Analytics included in all solutions

SAP Ariba Supplier Lifecycle

& Performance

SAP Ariba Supplier Risk

Management

SAP Ariba Sourcing

SAP Ariba Contract

Management

SAP Ariba Supply Chain

CollaborationSAP Ariba Buying

SAP Ariba

Commerce

Automation

SAP Ariba Spend Analysis

Indirect

access to

SAP ERP

Catalog

Enablement

Supplier

Enablement

End User/

Supplier

Support

Sourcing

Support Desk

eAuction

Support

SAP Ariba Payables

SAP Ariba Invoice

Management


The Solution – Holistic Approach to Smart Invoicing

▪ 37 Pre-Defined Country Rules – an holistic

solution for your Company

▪ Over 87 Business Rules:

– 41 Generic Invoice Rules

– 17 PO Rules

– 15 Blanket PO Rules

– 14 Tax Rules

– 10 Order Confirmation and Ship Notice Rules

▪ Dramatically Reduces Invoice Exceptions up to

98%

▪ Modern many-to-many for all trading partners

▪ Flexible supplier onboarding

▪ Connect once, access many


The Solution – Suppliers and <CLIENT> have options

1a

1bSupplier to submit its

invoices to SDI

Ariba Network to collect

and integrate in <CLIENT>

processes

Your Suppliers <CLIENT>

FULL COMPLIANCE

WITH NEW LAW

SUPPLIER TO SDI WITH

THEIR SOLUTION

NO ONBOARDING –

QUICK TO IMPLEMENT

SCALABLE TO FULL

MODEL IN PHASE 2

Ariba Network as main

supplier gateway to

communicate with

<CLIENT>Your Suppliers <CLIENT>

FULL COMPLIANCE

WITH NEW LAW

SUPPLIER TO SDI WITH

ARIBA NETWORK

OVERALL SUPPLIER

PORTAL CAPABILITY

SCALABLE TO NEW

PROCESSES


SAP S/4HANA

Ariba Network POASN /

SESGood Receipt

EDIEmailcXML Paper CSV SDMobileWeb UI

Match / Payment

Invoice Pre-Match Invoice Status

PO

Confirma-

tion

Purchase

RequisitionApproval

Purchase

Order

PO

Release

ASN /

SESGood Receipt

PO

Confirma-

tion

Ariba Network

Partner

cXML

invoice

SDI hub

Format

conversion

paXML

invoice

paXML

invoice

Digital

signature +

timestamp

cXML

(paXML)

Electronic

invoice

(cXML, paXML)

cXML

invoice

(paXML)

Invoice

format

check

Scenario 1a – Full Process (Invoice with PO)


SAP S/4HANA

Ariba Network

Match / PaymentPurchase

RequisitionApproval

Purchase

Order

PO

ReleaseGood Receipt

Ariba Network

Partner

SDI hub

paXML

invoice

paXML

invoice

Format

Conversion

cXML

(paXML)

Electronic

invoice

(cXML, paXML)

Supplier Invoice

Validation

cXML

invoice

(paXML)

Feedback

Message

Feedback

Management

Scenario 1b – Simplified Process (Invoice with PO)


Bu

sin

es

s R

ule

s

Web Browser

Access

Full backend

integration

buyer supplierYOUR SYSTEM

Purchase order

Invoices

Exceptions

SAP Ariba Commerce Automation will manage integration with SDI seamlessly, while ensuring the

possibility to channel all invoices from all your suppliers globally.

How it works – One solution to manage all scenarios

Invoices

Exceptions

‘good’ Invoices

Invoices

1a

1a

1a

1b

1b

1b

3

4

5

3 4 5

1b

3

Italian Supplier to Italian Branch not connected via Ariba Network

Italian Supplier to Abroad Branch not connected via Ariba Network

4

5

Abroad Supplier to Italian Branch connected via Ariba Network

Abroad Supplier to Abroad Branch connected via Ariba Network

1a Italian Supplier to Italian Branch connected

via Ariba Network


Why SAP Ariba Commerce Automation

3.1 Million Companies

€1.5 Trillionin annual Commerce

270+ Million Documents annually

processed

21 Languagesavailable

14 Million Users

37 Countries eInvoicing ready

SAP Ariba has the Largest Business Network In The World

Contact information:

Giovanni Giacchetti

Director, SAP Ariba Digital Transformation, EMEA South

[email protected]

linkedin.com/in/giovanni-giacchetti-6b1883

Thank you

mailto:[email protected]

linkedin.com/in/giovanni-giacchetti-6b1883

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companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are

set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release

any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,

and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The

information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various

risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,

and they should not be relied upon in making purchasing decisions.

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