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Electronic Invoicing B2BHow to address new Italian Regulatory Requirements in your Account Payable with SAP Ariba
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All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
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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
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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
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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
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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
csv, xml
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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
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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
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(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
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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
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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
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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
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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)
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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)
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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
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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
linkedin.com/in/giovanni-giacchetti-6b1883
Thank you
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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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