Only e- invoices - pleaseCase: State of Finland

Keijo KettunenState Treasury

Agenda

•State Treasury Who?

•Invoices electronically by the end of 2010 Why?

•Scope and scale of the project What?

•How do we make it possible How?

- drivers and activities

•Encouraging results:

•70 % of purchase invoices electronically Where?

•

State Treasury Who?

The State Treasury is a service

bureau that is run on quality

management principles. It

operates in three divisions

under the Ministry of Finance.

Administrative Management serves the

State corporation as the financial and

personnel administration expert by

generating Group-level information on a

centralized basis, guiding the production of

administrative information and the use of

procedures in administration, and by

directing the use of purchased services.

The Finance division administers the central

government’s debt, cash funds, most of the loans

and interest-rate subsidies granted from central

government funds, and some of the State

guarantees.

The Insurance division is the State’s

insurance institution. It promotes risk

management in the entire central

government.

Participants Who?

•Ministry of Finance:

•Responsible for strategic quidelines

•TIEKE, the Finnish Information Society Development

Center

•Promotes eBusiness in Finland and

internationally. It provides expertise and services

both to companies and individuals. The aim is to

provide standards for ex. For e-invoicing

•FK, Federation of Finnish Financial Services

•Provides standards and promotes e-invocing

Participants Who?

Hansel, The central procurement unit of the Finnish

Government

•Requires e-invoices when undersigning

framework agreements with suppliers

Banks

•Promote e-invocing among small comanies and

consumers

Local Accounting agencies

•Promote e-invocing among their own suppliers

Participants Who?

Itella,

•Service provider

•Is responsible for acknowledgement services,

system availability and helpdesk functions

•Makes possible to receive and handle

electronically all known e-invoice standards in

Finland

•Enables one to many – business transactions

•Promote e-invoicing among our own suppliers

Why?

Cost savings

Commitment

The whole E-Procurement process in electronic form

Benefits

I Saving area

Cost savings 20 €/ Purchase invoice

II Saving area III Saving area

Paper invoices

E-Invoices

Handling

A B

ArchivingPaying

Handling process is most important

Why?

Planned E-Procurement model in Finland

Invoice processing

Ordering(Transactional buying)

Sourcing(Strategic buying)

electronic invoice processing

Efficiency Through Automated Procurement

Strategic E-Procurement

Electronic Order Management: automated workflowE-Invoice in keyrole

Why?

Commitment

Direct debit

Case ”Television fees”

Case ”Automobile tax”

No penalty interest

E-Invoice is the ”roll-in product” to E-E-Invoice is the ”roll-in product” to E-Business and E-Government in general.Business and E-Government in general.

Why?

Key figures in Finnish Government

Invoices

B2G 2,7 million

G2B 1,5 million

G2C 11,7 million

e-invoicesB2G 50 %

G2B 3 %

G2C 3 %

89 % of invoices are sent to Consumers

64 Accounting offices

What?

Governments Strategy

No selfmade solutions:

Only Off-the-self software solutions and services used

Aim to be the Market Leader

Active cooperation to enhance the use of e-invoice

No mandatory legislation:

Legislation has supporting role

How?

Network for transporting business documents

Large 2 %

Medium-sized1,6 %

Small96,4 %

Suppliers Customers

Private persons

Largecompanies

Medium-sized companies

Smallcompanies

Banks

Service providers

MAINSTREAM

How?

Governments Business Model

1 Service provider (Itella)

G2B, G2C, B2G

Both inhouse and ”standard” formats

Separated contracts with banks, G2C

How?

Actions to raise the share of e-invoices

RECEIVINGFirst 100 biggest suppliers

Automated process to change the suppliers sending paper invoices to send e-invoices (ITELLA)

Banks and accountancy offices contacting suppliers

Paragraph in framework agreements which presume e-invoce

Introducing own e-invoicing software to small suppliers

SENDINGCommon campaign with Itella, other big invoicers and banks to activate consumers to receive e-invoices

The Activation of governments own personnel (86.000)

How?

Statistics

All Invoices are received electronically- Scanning service and E-Invoices (ITELLA)

Share of E-Invoices received is over 70 % in best accountancy offices

Average share of E-Invoices is 50 %

Where?

Whole Purchase process

GovernmentSupplier

Order by purchase management systemMarket place

Product catalogues of different suppliers

Acceptance incl. posting

Order

Confirmation of order

Electronic invoice acceptance system

(Rondo)Transfer of order information to Rondo

Deliveryacceptance inspection

Operator/Itella

Einvoice

Personal Ledger of account payable

Automatic balancing

BankAutomatic transfer

feedback

Vision:

After purchase decision, whole purchase process shall be

automated

17HO

For taxpayers good!

“One way to put it”

SAVING POTENTIAL OVER 3500 TREES

For our common good!

Thank You !

Doubts?Questions?