24/03/2025

Best practices for implementing EDI in supply chain management

Electronic Data Interchange (EDI) is a powerful tool for improving efficiency, accuracy and speed in supply chain management. But simply adopting EDI isn’t enough –you need a solid implementation plan to ensure a smooth transition and maximise the benefits. Whether you’re new to EDI or looking to optimise your existing setup, following best practices can make all the difference. Here’s a step-by-step guide to help you get it right.

1. Get an internal team together

EDI implementation isn’t just an IT project – it affects multiple departments, including procurement, finance and logistics. Form a cross-functional team to oversee the process, ensuring that all key stakeholders are involved from the start. This will help with decision-making, troubleshooting and overall coordination. While putting together your internal team, think about your objectives. Make sure all internal departments are providing input on what they want to EDI to do for them.

2. Look at your processes and identify areas for improvement

Before diving into EDI, assess your current supply chain processes. Where are the inefficiencies? Are there bottlenecks that slow things down? Identify the pain points that EDI can help resolve, such as reducing manual data entry, minimising errors, or improving order fulfilment times. EDI isn’t just about automating transactions –it’s about improving visibility and decision-making. Consider what data you need from your supply chain to enhance forecasting and inventory management. Ensure that your EDI solution supports the exchange of this critical information. No matter where you sit in the supply chain, look at all aspects such as logistics/3PLs, suppliers, retailers, manufacturers, and warehousing.

3. Get your partners involved early

Successful EDI implementation depends on your trading partners being on board. Engage with them early to understand their capabilities, challenges and requirements. Work collaboratively to find solutions that work for everyone. This will help prevent delays and ensure a smoother rollout. Not all your suppliers and customers will be at the same level of EDI capability. Some may already be using EDI, while others might need more support. Make a list of your key trading partners and evaluate their readiness. This will help you prioritise onboarding efforts and address any potential roadblocks. Smaller suppliers may not have the resources or expertise to implement full-scale EDI. A web portal solution can make it easier for them to participate without needing a complex setup. We provide customers with a web portal solution, Colladium, that‘s free to use for your partners to send and receive EDI documents through a simple, user-friendly interface.

4. Plan for onboarding support

Onboarding partners to EDI can be a challenging process, especially for trading partners who are new to EDI. Provide clear documentation and support to help them transition smoothly. Assign a dedicated contact or team to assist with questions that may arise during implementation. Testing EDI messages with your partners is another thing that can take time and resources. A solution we provide our customers is automated message testing. It lets your business partners test the messages they’ll send you, before actually sending them. They’ll get feedback there and then. And no manual checking from your team, your partners do it all on our Colladium web portal. This takes a lot of the heavy lifting off your plate.Want to learn more about implementing EDI across your supply chain? Get in touch with our experts.

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3PLsEDILogisticsRetailersSuppliersSupply Chain

28/02/2025

EDI for small business: Benefits of web portals

Complying with your retailers’ electronic data interchange (EDI) requirements can be confusing and complex. For small businesses, you want to comply in an easy, cost-effective way with minimal impact on your existing processes. This is where web portal solutions, like Colladium, become a viable solution.

How does a web portal solution work?

EDI web portals allow businesses to exchange documents electronically with their trading partners via a web browser. Instead of integrating EDI directly into their internal systems, businesses can log in to a portal, where they manage EDI transactions. You don’t need to install any software or hardware, and no in-depth knowledge of EDI is required. With the web portal, you can easily create, receive, and send all necessary documents, including purchase order responses, advanced shipping notices, invoices, and more.

When is a web portal right for your business?

There are a few reasons you might choose a web portal for EDI over a fully integrated EDI solution:
  • You trade with a small number of retailers
  • You’ll receive a small volume of orders through EDI (roughly 30 or less orders a week)
  • You sell a limited range of products
  • Your software can’t generate the information required by your customers
  • You’re just starting out with EDI.

Why choose Colladium for your EDI compliance?

  • It’s low cost: It's free to trade with many retailers. We also have a range of retailers that you cantrade with for $99 per month to trade and $49 for each additional retailer.
  • Quick to get started: Register, put in your details and start trading in as little as minutes.
  • No technical expertise required: A user-friendly interface where you can create all requiremed documents with ease, even advanced shipping notices (ASNs) or despatch advices.
  • Compliance with rrading partners all in the one place: See all your orders in the one listing and respond to them all in the one, familiar way. Behind the scenes, we make sure that everything your customer needs is covered, down to their validation checks, business rules and more.
  • Add more integration and functionality – Download orders in CSV or XML format for easy uploading into your software, and share information with your logistics and 3PL partners for them to create the ASN on your behalf, for as little as $49 a month.
  • Help at your fingertips: We’ve got a comprehensive knowledge base that’ll walk you through how to get started, how to accept an order, issue an ASN or invoice and more. And if you can’t find what you’re looking for there, just get in touch with our Australian-based support team.
Check out Colladium today at Colladium.com

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EDISuppliers

27/02/2025

Getting ready for the New Zealand Government eInvoicing mandate

We’ve been talking a lot about the eInvoicing mandate requirements coming to New Zealand for government agencies. With less than a year for government agencies to adhere to the mandate it’s important to start planning ahead.

What requirements are coming with the mandate?

From January 2026, approximately 135 government agencies, including major ones like ACC, Waka Kotahi (NZ Transport Agency), Health NZ, and NZ Police, will be required to:
  • receive eInvoices and process 95% of domestic trade invoices within 10 business days.
  • have eInvoicing in place if they send or receive more than 2,000 invoices per year.
Additionally, the government is consulting with businesses about making eInvoicing a requirement for certain suppliers under the Government Procurement Rules. The results of this consultation will be reported back to Cabinet, potentially expanding the mandate’s impact on suppliers working with the government. This shift is designed to reduce administrative burden, speed up payments and support cash flow for businesses, ultimately creating a more efficient and digitally connected economy.

How can government agencies plan ahead?

With the deadline approaching, government agencies should take proactive steps to get ready for the eInvoicing mandate. Here’s how:

1. Avoid the last-minute rush

Leaving eInvoicing implementation until late 2025 could create unnecessary challenges, including system integration issues, training gaps and compliance risks. Agencies should begin planning now to ensure a smooth transition. Early action allows time for research, vendor selection, internal system testing, and staff training. A gradual, well-planned implementation process helps identify and resolve potential issues before the mandate comes into effect, reducing operational disruptions. As the mandate date comes closer, eInvoicing service providers will also be busy with other agencies which can extend the implementation time.

2. Get the relevant teams involved

A successful eInvoicing rollout requires collaboration between multiple departments, including:
  • finance teams, who handle invoice approvals, payments and financial reporting.
  • IT teams, who will be responsible for integrating eInvoicing into existing systems.
  • procurement teams, who will need to align with suppliers.
Bringing these teams together early ensures everyone understands their roles and responsibilities. It also helps prevent communication gaps that could delay implementation. Agencies should also consider appointing a dedicated eInvoicing project lead to oversee the transition and coordinate efforts across departments.

3. Define your objectives

Before making any changes, agencies should clearly define what they aim to achieve with eInvoicing. While compliance with the mandate is a primary driver, there are broader benefits to consider. These may include:
  • reducing manual processing time for invoices and minimising human error
  • improving payment efficiency to strengthen supplier relationships
  • enhancing financial transparency and reporting accuracy
  • reducing reliance on paper-based invoicing and improving environmental sustainability.
Defining key objectives early helps agencies develop a clear roadmap for implementation and track progress effectively.

4. Understand your business processes

eInvoicing is not just about technology, it’s also about optimising existing business processes. Agencies should review how invoices are currently received, processed and approved to identify inefficiencies and areas for automation. Key questions to consider:
  • how are invoices currently received (email, mail, portal uploads)?
  • what manual steps are involved in processing invoices?
  • are there any recurring errors or delays that could be reduced with automation?
  • how will eInvoicing integrate with procurement and financial systems?
Understanding the end-to-end invoicing workflow will help agencies design a system that works seamlessly within their existing operations while maximising efficiency.

5. Review your software capabilities

Many agencies already use finance and accounting software, but not all platforms are compatible with Peppol eInvoicing, the standard used in New Zealand. You should assess whether your current systems can:
  • support Peppol-based eInvoicing for both receiving and sending invoices
  • process invoices automatically without manual intervention
  • integrate with existing procurement and financial management systems.
Engaging with software vendors early will help ensure compatibility and avoid last-minute IT challenges.

6. Find an Access Point

To send and receive eInvoices, agencies must connect to the Peppol network through an Access Point provider, like MessageXchange. Access Points act as intermediaries, ensuring eInvoices are securely exchanged between businesses and government agencies. When selecting an Access Point provider, agencies should consider:
  • compliance: The provider must meet New Zealand’s Peppol eInvoicing standards and be a certified Peppol einvoicing Access Point.
  • integration capabilities: The provider should offer seamless integration with your financial system(s).
  • security: Data protection and encryption are critical for handling sensitive financial information.
  • support and service levels : Reliable technical support ensures smooth implementation and ongoing operations.
By choosing a trusted and compliant Access Point provider, agencies can ensure their eInvoicing system is secure, efficient, and aligned with government requirements.

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E-invoicinggovernment

31/01/2025

From compliance to competitive advantage: How New Zealand’s eInvoicing mandate can set your business apart

The New Zealand Government’s eInvoicing mandate isn’t just a box-ticking exercise—it’s a transformative opportunity for businesses to reimagine their operations. As part of its digital strategy, the government is driving the adoption of eInvoicing through the internationally recognised Peppol framework, aiming to increase efficiency, transparency, and interoperability. A real opportunity lies in how businesses can leverage this shift to streamline processes, foster trust, and gain a competitive edge. This article explores how New Zealand businesses can move beyond compliance to turn eInvoicing into a powerful driver of growth and innovation.

The mandate: What’s the big deal?

The New Zealand government is updating its procurement rules to expand the use of eInvoicing across a wider range of public agencies, and has set a target for agencies to pay eInvoices in 5 days, in a view to boost efficiency and support businesses. Starting January 2026, about 135 government agencies, including major ones like ACC, Waka Kotahi (NZ Transport Agency), Health NZ and NZ Police, will need to be able to receive eInvoices and pay 95% of domestic trade eInvoices within 5 business days. Agencies who send over 2,000 invoices per annum will also be required to send them as eInvoices. The Government will also begin consulting with businesses on requiring certain government suppliers to send eInvoices as part of the Government Procurement Rules, with the outcomes to be reported back to Cabinet in February 2025.

How eInvoicing gives you a competitive edge

Let’s dive into the real benefits. Sure, compliance is the baseline, but the businesses that treat eInvoicing as more than just a “must-do” will see real rewards.

a) Save time and money

Manually chasing invoices is time consuming, not to mention prone to errors. With eInvoicing, you can automate the whole process, which means:
  • less admin, fewer mistakes
  • faster payments hitting your account particularly critical for SMEs
  • lower costs to process each invoice.
For a small supplier working with government agencies, eInvoicing means you can get paid weeks earlier. That’s a big deal if cash flow is tight.

b) Build better relationships

Imagine being the supplier government agencies know they can count on. You’re not just another vendor—you’re a preferred partner. eInvoicing makes you reliable and easy to work with by:
  • ensuring your invoices are accurate and sent on time
  • cutting out disputes over missing or wrong information
  • creating trust with your customers and suppliers.

c) Use data to work smarter, not harder

Every eInvoice generates a goldmine of data. You can use this to:
  • spot trends in cash flow or late payments
  • better understand your financial health
  • negotiate better deals with suppliers based on insights into your spending patterns.
The businesses that treat eInvoicing as more than just a transactional tool and start tapping into the data are the ones that will stay ahead.

e) Future-proof your business

This Government eInvoicing mandate isn’t the last. Governments and industries are moving fast toward automation, real-time reporting, and other digital requirements. By adopting eInvoicing now, you’re not just solving today’s problem—you’re setting yourself up to adapt easily to whatever comes next. Think of it as building a foundation. Once you’ve got the systems and processes in place, handling future changes will be so much easier.

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E-invoicingRetailersSuppliers

30/01/2025

The human element of EDI

In the world of electronic data interchange (EDI), the focus often leans heavily on technology, automation, and process optimisation. However, the human element is just as critical in ensuring a successful EDI implementation. People drive the planning, execution, and refinement of these systems, making their roles indispensable. Here's how to focus on the human side of EDI for the best outcomes.

Getting your internal team ready for EDI

A successful EDI implementation begins with preparing your internal teams. Keeping everyone on the same page ensures smoother transitions and better outcomes. Open communication is essential. Teams involved must be kept up to date on the project's goals, timelines, and progress. Regular updates and transparency help align everyone's efforts and reduce resistance to change. This group should include representatives from various departments who will work together to oversee the rollout. We think these departments are key:
  • Management: They’re the ones you’ll need to get onboard for your EDI project to go ahead. You’ll also need them to continue to keep your EDI project on track in terms of timelines and goals.
  • Information Technology (IT): There’s a bit of technical stuff involved in EDI so they’re the best to tackle those aspects.
  • Finance: EDI significantly reduces manual inputting for accounts payable and receivable and will improve their processes.
  • Buying/procurement: EDI will optimise processes when producing and sending purchase orders.
  • Warehouse: Business operations teams will be able to get the most out of the data received through EDI, particularly information about deliveries.
A cross-functional team ensures diverse insights and facilitates better coordination. It also ensures all your departments are getting the most out of the EDI project.

What people you need for your EDI project

The success of an EDI initiative hinges on having the right people in the right roles. Here are the key areas of expertise you need:

Technical expertise

EDI involves specific technical knowledge. You'll need colleagues skilled in:
  • Understanding file formats, connection protocols and other aspects of your business software.

Workflow design

Designing workflows that align EDI processes with your business operations is critical. This requires colleagues who can:
  • analyse your existing workflows and identify areas for improvement.
  • determine how your EDI solution facilitates your workflow goals and daily operations.

Change management

Adopting EDI often means changing established processes. Specialists in change management help:
  • guide teams through new workflows.
  • address concerns and provide training.
  • plan ahead to ensure a smooth transition with minimal disruptions.

Planning and coordination

Leading an EDI project demands strong project management skills. Your project leader should:
  • develop detailed plans and timelines.
  • coordinate activities across departments.
  • monitor progress and adapt to challenges.
Worried you don’t have people who can cover these areas of knowledge? It’s all good, we’ve been doing data integration for a while so we can help with, or recommend people who can help with some of the expertise areas above. While EDI systems are built on technology, their success depends on the people managing and operating them. By preparing your teams, engaging the right expertise, and fostering collaboration, you can ensure a smooth and successful EDI implementation. Remember, technology may drive efficiency, but it’s people who bring the vision to life.Want to go through your EDI requirements with an expert? Get in touch with us below.

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EDIRetailersSuppliers

17/12/2024

MessageXchange interview series: Peak retail periods and how can EDI help with EDI expert, Kieren James

During peak business times, orders increase, sales increase and overall we see an increase in workload. We sit down with our resident EDI expert, Kieren James, to chat about the challenges businesses face during busy peak periods and explore how EDI can help make things easier.

Q: When are the typical peak periods in retail?

Peak periods in retail typically begin four to six weeks before major events such as Christmas, Easter, Mother's Day, Father's Day, Valentine's Day, Black Friday and Cyber Monday sales. For Christmas, the lead time depends heavily on the type of retail industry you’re in – obviously fresh foods have a much shorter lead time, but generally speaking, activity starts ramping up in late October to early November when forward orders are placed on suppliers. Demand can remain high through early December, if sales remain high. Strong sales lead to additional orders, while weak sales bring demand back to normal. When it comes to Easter, the lead time is shorter, usually around four weeks before the holiday. While Easter isn’t as busy as the Christmas period, demand on suppliers is high leading to longer than usual lead times. The level of demand depends heavily on sales performance in the first quarter of the year. Lower sales will result in higher stock levels required by retailers for the Easter period, while higher sales will lead to lower stock levels and will require additional orders.

Q: What are some of the key pain points for both suppliers and retailers during these times?

Increased workload is an obvious one. For businesses who manually process orders, spikes in activity, like for events such as Father’s Day, can result in a surge of manual tasks, like order processing and invoicing. For instance, going from 10 to 40 orders a week creates a substantial workload increase. Businesses using integrated systems experience less strain, as these solutions handle increased activity more efficiently. Web form portals, while helpful, still require manual intervention, which limits scalability. Another pain point is poor communication across the supply chain and inadequate demand forecasting. Without clear forecasts, suppliers struggle to prepare for spikes, leading to congestion at delivery points, such as store backrooms. This also adds to workload pressures.

Q: Why is important to plan ahead for peak periods?

Effective planning and proactive communication are crucial for managing deliveries and meeting demand during peak periods, both for buyers and sellers.
  • Scheduling specific delivery windows helps streamline the process, ensuring smoother operations and avoiding bottlenecks. It means retailers can plan for suppliers’ deliveries, ensuring staff are on hand to receive the goods, and it means the delivery partners aren’t waiting around waiting for stock to be unloaded.
  • Suppliers benefit from analysing retailers' order patterns during busy times and planning accordingly. This preparation reduces the risk of shortages and ensures timely delivery for customers.
  • Retailers can control key aspects by focusing on accurate demand forecasting and providing suppliers with clear, advanced communication. Offering sufficient lead times gives suppliers the best chance to meet expectations.
Proper coordination between retailers and suppliers is key to avoiding disruptions and ensuring a seamless supply chain during high-demand periods.

Q: How does EDI help to ease these pain points?

There are few ways EDI can help during peak times:
  • Eliminating manual data entry for both retailers and suppliers not only saves time but also reduces errors, streamlining operations.
  • Documents like advanced shipping notices and purchase order responses provide retailers with more transparency. These documents offer critical details, such as shipping dates, expected delivery times and what stock can actually be delivered, helping retailers plan effectively.
  • With better visibility, retailers can schedule manpower more efficiently, ensuring resources are aligned with delivery schedules.
  • Having data in an electronic format enables smoother payment processes, such as matching purchase orders, deliveries, and invoices to trigger automatic payments, especially with three-way checking systems.
Overall, automation fosters improved coordination, better planning, and faster payment cycles, benefiting both suppliers and retailers.

Q: How do you ensure your EDI setup can handle an increase in orders during peak times?

A few things to look at are:
  1. System design: An efficient system is built by carefully designing processes that ensure the right messages with the right information are delivered to support visibility and informed business decisions.
  2. Data alignment: Keeping data clean and well-aligned within the system reduces errors, ensuring smooth operations and better decision-making.
  3. Capacity planning: Ensuring that your EDI infrastructure and processes can handle current and future data exchange requirements effectively. This involves running stress tests on high volumes of orders, identifying bottlenecks in processes and other performance tests.
A well-designed and maintained system is key to achieving efficiency and minimising errors in business processes.

Q: When should you start looking to implement EDI or switch EDI providers, given peak times?

There's no one-size-fits-all guidance when it comes to this. The amount of time needed to implement an EDI solution with a provider can depend on things like:
  • whether you're using EDI today or are brand new
  • whether you need to undergo EDI accreditation testing with retailers and/or suppliers, and how involved and lengthy this process is
  • whether you need to adjust internal processes to integrate EDI into business-as-usual operations
  • any training you need to provide to your teams to manage the new processes effectively.
As a very general rule of thumb, it's a good idea to reach out to EDI service providers about three months before your planned go-live date. However, the exact timing can vary, so the earlier the better. When deciding if your EDI provider is a good fit, there are two things to look out for particularly in peak times:
  1. Partnership value: Assess whether partnerships provide value for money and meet service expectations.
  2. System reliability: Digitalising the supply chain is beneficial, but all systems encounter issues at some point. It's important to have responsive support to address challenges promptly and minimise disruptions.
No system is flawless, but proactive planning and strong partnerships can ensure a resilient and efficient supply chain.

Q: Are there other tips you suggest for businesses to get on top of their peak business time pressures?

Take time to plan, it can be hard with pressures of day to day operations but it is important look forward to prepare better for peak times.Want to go through your EDI requirements with an experts? Getting in touch with us below.

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EDIRetailersSuppliers

11/12/2024

2024 recap of eInvoicing in Australia and New Zealand

This year has been a big one for eInvoicing in both Australia and New Zealand. Governments have rolled out new initiatives to boost adoption, and we’ve also seen some technical updates to eInvoicing messaging to put us in good stead going forward. There are now nearly 200,000 businesses and 461 government agencies able to receive eInvoices and more than 1.5 million eInvoices have been sent in Australia and New Zealand, while the number of eInvoices sent each month has more than triple in New Zealand. Let’s take a look at the highlights of the year and what we can expect in 2025 and beyond.

Australian Budget 2024: eInvoicing funding for the next four years

The Australian Government’s 2024 budget included significant investments in digital technology and fraud prevention, with eInvoicing playing a key role. Here are some of the main announcements:
  • Funding for eInvoicing: The Australian Taxation Office (ATO) has been allocated $23.3 million to maintain the national eInvoicing network for the next four years. This funding will also help promote eInvoicing adoption to improve cash flow, reduce payment redirection scams, and boost productivity for small businesses.
  • Payment Times Reporting Scheme: The Australian government have committed $25.3 million over four years to improve cash flow and boost productivity by supporting the Payment Times Reporting Scheme. This adds to the existing policy introduced by the government of 5 days payment terms for all invoices where Peppol compliant eInvoicing capability exists.

Peppol PINT A-NZ Billing: A move towards international interoperability

To improve interoperability between regions, the Peppol PINT specifications have been introduced by the Australian and New Zealand Peppol authorities. These specifications differ from the A-NZ Peppol BIS 3.0 standards we’ve used since 2018. Key changes include:
  • Updates to the UBL file exchanged between Access Points.
  • Changes to the registration and lookup of receiving capabilities in the Service Metadata Publisher (SMP).
If you handle accounts payable eInvoices, you’ll need to be ready to receive the new PINT A-NZ format. While senders can start using the PINT A-NZ specification now, it will become mandatory from 15 May 2025. Check out our blog to learn more about the PINT specifications changes.

New Zealand Government procurement changes

Starting January 2026, around 135 New Zealand government agencies, including major ones like ACC, Waka Kotahi (NZ Transport Agency), Health NZ, and NZ Police, will need to:
  • be able to receive eInvoices.
  • pay 95% of domestic trade eInvoices within five business days.
Additionally, agencies that send more than 2,000 invoices annually will need to send them as eInvoices. These changes aim to lift productivity and improve public sector efficiency by adopting smarter ways of working. Faster payments will also help small businesses with limited cash flow.

Xero enable eInvoicing for more New Zealand businesses

Xero took a significant step in increasing eInvoicing adoption by enabling the service for all New Zealand users, except those who have opted out, mirroring its earlier rollout in Australia. Xero customers can access eInvoicing at no additional cost, making it easier for businesses to adopt this streamlined invoicing process. This move aligns with the New Zealand government’s efforts to increase eInvoicing adoption nationwide. By enabling eInvoicing for a broader user base, we'll see uptake increase and see more New Zealand businesses embrace more efficient invoicing practices.

What’s expected in 2025

Looking ahead to 2025, we can expect some key developments in the eInvoicing space:
  • Consultation on Supplier eInvoicing: The New Zealand Government will consult with businesses on requiring certain government suppliers to send eInvoices, as part of the Government Procurement Rules. Outcomes are expected to be reported in February 2025.
  • New Message Types: There’s a possibility of introducing order messages, including purchase orders, to the eInvoicing network. While Peppol has specifications for these messages, they haven’t been implemented yet.
Additionally, agencies that send more than 2,000 invoices annually will need to send them as eInvoices. These changes aim to lift productivity and improve public sector efficiency by adopting smarter ways of working. Faster payments will also help small businesses with limited cash flow.Ready to have a look at eInvoicing for your organisation? Ask our experts by getting in touch below.

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E-invoicinggovernmentRetailersSuppliers

03/12/2024

ASFA 2024 wrap up: key takeaways from the superannuation industry’s big event

We recently attended the ASFA conference in Sydney, where nearly 1,000 delegates gathered to hear from industry experts about the future of superannuation. Among the standout sessions were talks on quantum computing and AI. However, a particularly practical and pressing topic for the superannuation industry was the upcoming changes associated with PayDay Super.

Damian Hill from the Commonwealth Superannuation Corporation (CSC) led a panel discussion featuring Emma Rosenzweig, Deputy Commissioner for Superannuation and Employer Obligations at the ATO, Michelle Bower, CEO of the Gateway Network Governance Body (GNGB), and Sarah O’Brien, Head of Regulatory Policy at Rest.

A quick poll of the audience revealed that the biggest challenge in people’s mind when it comes to getting ready for PayDay super is ‘handling increased transactions’, with 31% of the vote. Next was ‘less time to return unallocated payments’ with 27% of the vote, then ‘increased support requested by employers’ with 19% of the vote, ‘still waiting for administration and policy parameter’ with 14% of the vote and finally ‘the 1 July 2-26’ start date with just 9% of the vote.

The discussion largely centred on the impact of PayDay Super for funds and employers, clarifying key requirements. Employers will need to ensure super contributions are sent to funds within seven calendar days, while funds have three business days to allocate these contributions to employees’ accounts. This creates additional pressure for funds to accurately match contributions.

Interestingly, audience questions were about:

  • the New Payments Platform (NPP), which unlike BECS, allows real-time payments, and its use in Superannuation payments. The ATO have confirmed they will look at updating Superstream messaging standards to include NPP as a payment method. There are also working groups discussing enhancements to the fund validation service (FVS), to support NPP payment methods, such as including whether an account is NPP reachable and potentially adding PayIDs. The discussions are still ongoing, but we’ll provide updates as we get them.
  • increases in transaction volumes and the impact on current commercial arrangements between funds and their administrators or gateways. The transaction volume is anticipated to increase 3-5 times under Payday Super. We already see peaks on Wednesday and Thursdays so we can expect to see an increase in volume on those days. But we do know many organisations are assessing their options for Superstream and payments, given the impending changes.
  • what data or information can be provided to assist in supporting or motivating employers to provide accurate data to super funds in their contribution files, as this will vastly improve match rates. The ATO have confirmed there will be no changes to any of the services currently offered, so it will likely be up to the industry to decide how best to manage this change and ensure data is exchanged correctly the first time around.

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Superannuation

28/11/2024

Payday Super: What it means for superannuation funds

The shift to Payday Super will transform superannuation, bringing both new demands, as well as new and exciting opportunities for funds. Here’s what you need to know.

The current state of superannuation

200 million contributions annually: Today’s superannuation transaction network processes around 200 million contributions each year. Error rates: An error rate of 1.6% is seen across the 200 million transactions that go through the superannuation transaction network. However some payroll providers and clearing houses report much higher error rates of 11-12%. Current timeframes: Funds currently have 20 days to allocate contributions to member accounts.

The Payday Super shift

Significantly increased contributions: Under Payday Super, contribution volumes are expected to rise 3-5 times, to 600 million to 1 billion per year. More errors than ever: With the number of contributions set to rise significantly, error rates are likely to increase. This will require funds to manage errors more efficiently, through automation and streamlined processes. Shorter timeframes: Under Payday Super, it’s expected funds will have 3 days from when they receive funds, to allocate them to the member account.

The implications for super funds

Rising costs: With increased contribution volumes and tighter timelines, the costs of existing services may rise. Higher risk of errors: If the error rate stays the same, there is set to be a large rise in the number of errors, requiring additional resources to manage corrections. Demand for efficiency: Funds will need tools that reduce the admin burden, streamline workflows, and ensure compliance within reduced timeframes.

The opportunity: Automation and new payment methods

The evolution of super contributions brings new tools and opportunities for funds, including: New Payments Platform (NPP): Real-time payment processing and PayTo, which allows funds to be pulled from accounts instantly, enable faster, more secure transactions. Business automation: By automating tasks such as validations, error checks, and payment pulls, funds can reduce manual processes and improve efficiency across operations. Automation can be setup to only pull funds once validations have occurred, significantly reducing the admin burden of funds.

Maximise the value from your service provider

With the demands of Payday Super, funds need to get the most out of their service provider. MessageXchange is uniquely positioned to meet these needs: Future-ready solutions: We support current batch payment methods, such as Direct Entry (DE) within the BECS framework, set for decommissioning in 2030, along with real-time options through the New Payments Platform (NPP), including PayTo. Advanced business automation: Our automation tools are designed to handle complex processes, reduce errors, and minimise time spent on manual tasks. Proven experience: Trusted by some of Australia’s largest businesses, we simplify complex workflows and payments, allowing funds to focus on delivering value to their members.If you want to learn more about our superannuation services? Ask our experts by getting in touch below.

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Superannuation

26/11/2024

Process for onboarding suppliers to EDI

EDI implementation has many stages, but onboarding is one of the most crucial. The better your supplier onboarding, the greater the automation and efficiency. Here's a quick step-by-step process on how to get the most success during onboarding from our own experience with customers.Check out our Ten Steps to Successful Community Onboarding whitepaper for information about the steps to onboarding success.Want to learn more about our implementation process? Ask our experts by getting in touch below.

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EDIRetailersSuppliers

14/11/2024

New Zealand eInvoicing: New government procurement changes

The New Zealand Government has recently changed their procurement rules for suppliers. These changes look to benefit suppliers, particularly small and medium business, with their cash flow. Here’s a breakdown of the changes.

What changes are coming?

The New Zealand government is updating its procurement rules to expand the use of eInvoicing across a wider range of public agencies, and has set a target for agencies to pay eInvoices in 5 days, in a view to boost efficiency and support businesses. These changes were announced by Economic Development Minister Hon Melissa Lee and Small Business and Manufacturing Minister Hon Andrew Bayly on the 5th of November 2024. Starting January 2026, about 135 government agencies, including major ones like ACC, Waka Kotahi (NZ Transport Agency), Health NZ and NZ Police, will need to be able to receive eInvoices and pay 95% of domestic trade envoices within 5 business days. Agencies who send over 2,000 invoices per annum will also be required to send them as eInvoices. Michael Alp, the eInvoicing Executive Sponsor and Chief Operating Officer at MBIE, emphasised the benefits already being seen by businesses, such as faster payments, better cash flow, reduced administrative work, and improved security. The push towards eInvoicing is expected to streamline transactions, minimise errors, and reduce the risk of payment fraud, creating a more efficient and reliable payment system for New Zealand’s public sector suppliers. The Government will also begin consulting with businesses on requiring certain government suppliers to send eInvoices as part of the Government Procurement Rules, with he outcomes to be reported back to Cabinet in February 2025.

Why are they being introduced?

The Government is ambitious about lifting New Zealand’s economic productivity and improving public sector efficiency, which means adopting smarter ways of working. Prompt payment is especially important for small businesses which have limited cash reserves – an unpaid or late invoice can be the difference between being able to pay staff on time or not. Having invoices paid on time can mean a world of difference to small and medium sized businesses

How to get started with eInvoicing

The best time for government agencies and businesses alike to get started with eInvoicing is now. For government agencies, earlier implementation means avoiding the rush. For businesses, it means getting faster payments earlier. The process to get started is easy:
  1. Look at your business processes This is to understand your current business processes and where eInvoicing could fit. It’s important to set objectives for your eInvoicing and have buy in internally.
  2. Review software capabilities
    • Does your software support eInvoicing?
      • If so, to what extent? Some software providers will offer a fully-integrated solution, while others might produce a file and customers will have to find their own Access Points.
      • Does eInvoicing require an update or an additional cost?
    • Does your software produce the Peppol file? If it doesn’t, your Access Point may be able to translate the file to the Peppol format.
    • Is your software cloud based or on-premise?
    • What connection protocol your software can work with?
  3. Find an access point Look at access points and the solutions they provide, a few things to think about should be:
    • Technical capability Make sure they can get you connected with your partners and the Peppol network quickly and easily. You should also be looking for a provider that can offer other services to future proof your investment.
    • Experience It is important to know about your provider’s experience and how they keep up to date with eInvoicing developments.
    • Pricing and support Understand exactly how you will be charged and what support you will receive to avoid any conflict in the future.
Check out our A guide to adopting eInvoicing whitepaper to learn more here.Want to get started with eInvoicing? Ask our experts by getting in touch below.

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E-invoicinggovernmentRetailersSuppliers

30/10/2024

Peppol PINT A-NZ Billing: What is it?

You might’ve heard about the Peppol PINT A-NZ Billing specification recently, as all Peppol users in Australia and New Zealand will soon have to adhere to the new standard. But what is it? Well, it’s pretty technical, but we’ve tried to spell it out in plain English below.

What is PINT A-NZ Billing?

It’s a new specification that is being mandated by the local Australian and New Zealand Peppol authorities. It’s a slight change from the existing A-NZ Peppol BIS 3.0 specification we’ve used since 2018. It mainly impacts:
  1. The UBL file that is exchanged between Access Points (and in some cases, onto the software)
  2. The registration and lookup of receiving capabilities in the SMP (service metadata publisher).

What are the changes?

There are four main changes in the new PINT A-NZ Billing specification:

1. New identifier values

Basically, in the UBL file that Access Points exchange between each other, there will be a field in there that specifies the specification that message is using – either the A-NZ Peppol BIS 3.0 specification or the new PINT A-NZ Billing specification.

2. Wildcard scheme

At the moment, each organisation registered has specific information registered in the SMP (service metadata publisher), which is basically the master registry for Peppol. Usually it’s your Access Point who will manage the registration for you. It holds information such as:
  1. your identifier (like your ABN, NZBN or GLN)
  2. the identification type (whether it is an ABN, NZBN or GLN)
  3. the message(s) you can receive (such as invoices, credit notes, business response messages).
And now, it will hold the Peppol PINT specification(s) you can receive. For example, if you can receive all PINT specifications, like from Australia and New Zealand, Japan, Singapore and everywhere else, your entry would have “pint:billing-1*” – the wildcard (*) denoting you can receive all. However, if you can only receive the A-NZ PINT specification, your registration would have “pint:billing-1@aunz-1”.

3. Business rules

Basically, the rules in the specification have been tidied up – some identifiers of the rules have changed, some rules have been rationalised and redundant rules have been removed. Also, rules that used to have a ‘warning’ have been removed, given they added little value.

4. Publication of the specification

The new specification is published on the OpenPeppol website like the previous specification was, but this one is documented in a better, more usable format, with the ability to drill down via semantic or syntax definitions and users can easily navigate between related objects.

Why are these changes being made?

Many regions have their own Peppol specifications designed for the local market and practical use cases within that region. For example, the EU, Singapore and Japan have their own specifications. The idea behind the new PINT specification is to achieve interoperability between regions. The new PINT standard is an umbrella specification that can be specialised to create new specialisations.

What’s the practical impact for those sending and receiving eInvoices?

From what we’ve seen, the change is usually being made by the party who produces the Peppol UBL eInvoice, or consumes it. We’ve seen these two examples:

1. The accounts payable/receivables software exports/imports the Peppol UBL file

In this case, the software may need to make changes on their side, given they export/ingest the Peppol UBL file, which is the file affected by this change.

2. The Access Point maps the Peppol UBL file to/from the Peppol UBL to the accounts payable/receivable’s software’s native format

In this case, it’s usually the Access Point who can make the change and build this change into the map that goes to and from the sender and receiver’s software. Of course, whichever scenario you’re in, we always recommend thorough testing before going live.

What are the dates to be aware of?

If you’re receiving accounts payable eInvoices, you must be able to receive the new PINT A-NZ specification by Friday the 15th of November 2024. Senders can start sending eInvoices in the PINT A-NZ specification from that date, but must send them in that format from the 15th of May 2025.

Does this mean you can send and receive cross-border Peppol eInvoices now?

If your Access Point and software supports receiving eInvoices in different regions’ specifications, the answer is yes. As for sending Peppol eInvoices overseas, it depends on what your customer’s Access Point and software can support.Want to learn more about Peppol PINT A-NZ Billing requirements? Fill in the form below to get in touch with our experts.

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