1. BII for business Using profiles as a business tool The case of the electronic invoice

2. Georg Birgisson Experience: – 1999-2010 Various IT consulting projects. Iceland representative (Icepro) in NES project Editor for BII working group 1 (messages and business processes) – 1997-1999 Marketing manager for satellite communication software. – 1994-1997 IT project manager – 1992-1994 Marketing of shipping services 92-94 – 1986 - 1990 Bookkeeping, accounting and tax reporting, part time – Salesman Education: – Business degree, University of Iceland – MBA, Cornell University

3. AN ELECTRONIC DOCUMENT Comparing the electronic invoice to the paper one.

4. Main forms of invoices Paper Paperless – Graphical form (.pdf,.jpg,.tiff ofl.) – Data form Unstructured. – Excel, Word ofl. – Html Structured – Standardized (CII, UBL, EDIFACT) – Un standardized (bespoke XML specifications) Structured vs. unstructured. – Automation Standardized vs. un-standardized – Wider audience

5. Paper Invoice vs. electronic Paper – Contains/carries data – Presents data by printing it – Original - the data and its presentation Electronic – Structured data supports automation – Presentation is separate and flexible On screen, style sheets, paper,.pdf, etc. – Original - the data

6. MESSAGE AND PROCESSES What is being defined

7. EDI and XML (NESUBL) EDIFACT implementations – Bilateral specifications What messages are exchanged. What data the messages contain. Business rules that apply. Limitations – Only high volume business relations are economical. – Connecting new partners requires adaptations.

8. The problem and the solution Supplier B Key buyer B Key Buyer A A+B+C+D A+B+C+E Any other buyer A+B+C A+B+C+D A+B+C+E Supplier A

9. Profiles Defines – Message choreography What message must each partner send What reaction can/must the partners expect – Message content What content must the receiver expect to receive What content can the sender expect to be processed/read – Business rules The business commitments that are established. The meaning of individual data elements and its internal relationship Use in business – Bilateral The partners bilaterally agree to use a specific profile for their business – Unilateral A business entity states that it will receive and process any document sent according to the stated profile (to a specific address, part of transport network)

10. The role of profile in standardization Message standards (syntax, CII, UBL, EDIFACT) – Defines how data is organized in a structured way into a message. XML: UN/CEFACT, UBL, xCBL … EDIFACT, X12 Using messages (semantics; BII, NES) – The messages exchanged and their sequence – The content of each message – The meaning and commitment of the content Syntax is the language, Semantics is the conversation.

11. Types of business partners Large trading partners with high volume flow – This has been the main domain of EDIFACT over the last 20 years. Many successful implementations – Profiles with bilateral extensions Middle volume trading partners – Below the economical threshold for EDI – Key target group for profiles Low volume trading partners – Profiles via intermediaries

12. The evolution of profiles OIOUBL – Denmark public authorities – 2005 NES - North European Subset – North European and UK cooperation – 2007 BII – Business Interoperability and Interchange – European specification, published by CEN – December 2009 – Contains all NES profiles in upgraded version

13. Profile key components Business process – Specification of an electronic business process. Collaboration – Generic sub processes that can be linked together to form business process Transaction – A set of data (information) sent from one partner to another, relevant to an activity within the process

14. BII03 Ordering BII04 Invoice only BII05 Billing BII06 procurement Profile migration OrderingInvoicing Dispute resolution Invoicing Ordering Dispute resolution Invoicing Ordering Simple replyLine reply Counter offer replyInvoicingDispute Dispute resolutionDispatch BII19 - Advanced Procurement xxxxxxx BII13 - Advanced Procurement with dispatch xxxxxxxx

15. More profiles Catalogues, statement, ofl. BII01 - Catalogue only BII02 - Catalogue update BII17 - Multi party catalogue BII16 - Catalogue deletion BII23 - Invoice only with dispute BII09 - Customs Bill BII15 - Scanned Invoice BII18 - Punch-out BII20 - Customer Initiated Sourcing BII21 - Statement Tendering, support tools BII10 - Tender Notification BII11 - Qualification BII12 - Tendering Simple BII14 - Prior Information Notice BII22 - Call for Tender BII24 - Attachment Document BII25 - Status Request BII26 - Retrieve Business Document

16. The players Business partners – The participants in business process. In procurement these are the Customer and the Supplier. Business partner are the responsible parties for the process as whole Role – Roles change depending on the activity in the process Party – The entity that carries out a role. Parties are the business partners themselves or work under their authorization.

17. Roles and actors Customer Suppler Economic operator Dispatcher Creditor Payee Purchasing authority Receiver Debtor Payer Purchasing Delivery Billing Settlement Business partner RoleParty Business partner RoleParty

18. Content used Data set Core General extentions Bilateral extentions “used” : Core document (no extentions) Core+ bilateal Core+ general (e.g. country)

19. Levels in business rules Profile level rules – How the exchange of a transaction affects the partners’ obligations – How information in transactions interacts with external information such as contracts – Definition on how update transactions affect exciting data Collaboration – Process rules – Information constraints Transaction rules – Information constraints

20. Information constraints Data element cardinality – Optional becomes mandatory in a given context Data element Interaction – Formulas, e.g. B = sum of all A’s – Dependency, e.g. if A then B – Relationship, e.g. A > B Data element values – Min, max or range – Allowed values, specified by code list

21. Where is the beef The invoice process StructuredPaperlessType of savings Seller processes invoicing dataUnchanged Seller issues the invoiceSavings Printing and packing Invoice sent to the buyerSavings Posting cost Buyer receives the invoiceSavingsUnchangedOpening & sorting Buyer reconciles the invoiceSavingsUnchangedInternal routing Buyer books into accountsSavingsUnchangedData entry Buyer registers paymentSavingsUnchangedData entry Invoice storedSavings Filing work and storing space

22. A CHANGED PROCESS In times of change, shift happens.

23. Issuing and sending Prepare invoice data Issue invoice SendReceiveProcessSettleTransport

24. Different exchange Direct exchange – Large and integrated – Specific data One to many – Main party – His requirements Many to many – General exchange – General data

25. Total distribution Printing General mail Manual Distribution Create pdf Email Manual Reception Issue invoice BII invoice Electronic exchange Auto

26. Guideline Sets up an invoice containing all data specified in BII invoice core data model Describes how the data is inserted into the syntax message

27. Receiving and processing Prepare invoice data Issue invoice SendReceiveProcessSettleTransport

28. Processing the data To be profile compliant the receiver must consider all data that is specified in a core message data model Different processing – Import into ERP systems For automated processing – Present with a style sheet Manual processing – Mixed Data required by ERP system for automated processing is imported Additional data is presented on style sheets. Requires the ability to access the message and present it.

29. Internal document processing Receiving Validation Assigning accounting keys (based on internal accounting practices). – Cost centre Department Project Equipment – Cost type – Other dimensions – Manual or automated Mapping to the system Reconciliation – Manual, invoice routed to individuals and presented – Automatic, rules driven by invoice data values Handling of discrepancies Booking into accounts

30. Internal processes Receive Validate Assign keysReconcile Booking Auto Manual Manage discrepancy Hands on process Receive ValidateAssign keysBooking Auto Manual Manage discrepancy Automated process Reconsile

31. Payment Handling payments is not considered part of the procurement and out of scope for BII Payments are handles by banking messages. The electronic invoice carries from the seller the necessary information to initiate payment and to provide references for reconciling the financial accounts.

32. VALIDATING THE DOCUMENT

33. Company (schematron) Industry (schematron) Regional (schematron) Profile required information (schematron) Core document (schematron) Technical structure(schema) Layered validations Profile compliance Extension methodology Based on agreement -Bilateral - By membership

35. THANK YOU Georg Birgisson Eykur ehf. georg@eykur.is Tel: +(354) 544 4800 Mobile: +(354) 898 0850