Author Archives: Rodrigo Martinez

03/02/2021

Traditional invoicing vs eInvoicing: An infographic

This isn’t sending a PDF and or sending an email, eInvoicing is software to software and 100% automated. By comparing traditional invoicing and eInvoicing we can see just how efficient e-invoicing can be for both buyers and sellers.

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E-invoicingRetailersSuppliers

27/01/2021

EDI: Debunking the myths

Electronic data interchange (EDI) automates procurement, eliminating a lot of manual processes. But there are some myths that make some businesses think twice about implementing it. Here are some of those myths busted.

EDI is costly

There’s an assumption that EDI is too costly and not worth the investment. This myth is often based on outdated technologies. Technology has advanced ignorantly in the last couple of decades though, and EDI service providers can provide a range of cost-effective options for businesses. For businesses looking to comply with retailer requirements, a good option is to use a simple EDI web portal, where you send and receive EDI messages. This can cost the same as a monthly phone plan and many see EDI as a small price to pay to maintain their retailers’ business. EDI integration can work out to be extremely cost-effective too. EDI integration involves the exchange of business information directly between business software. This method can be more expensive than a web portal, but the benefits can definitely justify the investment. EDI integration automates manual processes and sends documents electronically, which creates significant cost savings. Some sources calculate the cost of processing an order manually to be around $38 compared to just $1.35 using EDI.

EDI is complicated to implement

There’s a perception that EDI is complicated to implement, with some believing EDI is difficult to understand and needs expert skills. EDI messages are just another coding language, sometimes even XML or CSV. Once you understand how they’re constructed and what each element means, it’s as easy as pie. There are now even EDI standards, which have simplified this even further. In the end, EDI will make your processes more streamlined and improve your business communications. Plus, if you partner with an experienced EDI provider, they can often hold your hand through the process.

EDI creates errors

Some believe EDI can cause bugs and errors. There are a few reasons why this is wrong. These days there are a range of tests and approvals before a company goes live with EDI. For example, here at MessageXchange, we perform testing between you and us, the EDI provider, as well as end-to-end testing with your trading partners. It’s only once these tests are completed and passed that EDI is moved to production.

EDI slows down business processes

Many worry that moving to EDI will be disruptive to their businesses. It is believed that EDI interferes with business processes which slows down workflows. Overall, EDI can be quick to implement, depending on your goals and solution. If you stage your EDI implementation correctly, and gear your implementation to achieve your biggest objective first, it’s can really improve speed and productivity. This gives staff more time to work on other tasks. It also reduces the risk of errors and therefore the time needed to correct them. Studies show paper orders can take upwards of 10 days to fulfill, while EDI orders can take less than a day.

EDI is used less and less

You might’ve seen comments about EDI’s declining use and its possible replacement by other technology like APIs. APIs are actually used by most current EDI service providers. They shouldn’t be thought of as an opponent to EDI, but as just another connection protocol for EDI, like sFTP or AS2. After all, APIs don’t follow a generic standard, whereas EDI does. That means it’s faster and easier to onboard new trading partners. EDI use is in fact growing around the world. Over 60% of businesses across the United States already use EDI in their daily operations. If you want to learn more about EDI and how it can help your business, request a call back from one of our team.

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EDIRetailersSuppliers

21/01/2021

What’s the difference between EDI and eInvoicing?

Some of the main issues businesses face include too many manual processes, high supply chain costs and errors in supply chain documents. Electronic data interchange (EDI) has helped a lot of businesses overcome these issues through process automation. But now a new technology called eInvoicing is gaining popularity. We’ve compare the two and show when each should be used.

Comparing eInvoicing and EDI

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eInvoicing

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Electronic Data Interchange

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Message Types

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  • Invoices
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  • Invoices
  • Purchase Order (PO)
  • Purchases Order Response (PORs)
  • Purchase Order Acknowledgement (POAs)
  • Advance Shipping Notice (ASNs)
  • And more
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Governance

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  • Separate network providers that send EDI messages in the correct format to recipient.
Multiple standards
  • Common standards include EDIFACT, XML ANSI X12, EANCOM
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Security

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  • This is set by the Peppol authority
  • Access Points must comply with security requirements or can have access revoked.
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  • Security is set according to EDI standard used and each company and VAN’s security requirements.
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Connection protocols/message file format

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  • Any connection protocol and file format can be used between you and your Access Point
  • Universal Business Language (UBL) and AS4 is used between Access Points
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  • Any connection protocol and file format – often determined by one party

Which is better for you

EDI

This technology has been around for a long time. As a result, it has become the norm in a few different industries. Some of the main industries include retail, groceries and logistics. Businesses that operate in an industry that EDI is commonly used, should consider using EDI. EDI can send more message types compared to eInvoicing. For businesses looking to take their digital technology further and automate their entire supply chain, EDI could also be the choice for you.

eInvoicing

eInvoicing is great for businesses looking for a quick way to automate their invoicing processes. If you send and receive a lot of invoices, and aren’t really concerned about other data in the procurement chain, eInvoicing could be the right choice for you. eInvoicing is also useful for businesses that work with government agencies. As more government agencies move to eInvoicing it’s likely they’ll onboard their suppliers too. You can also benefit from 5 day payments for contracts less than $1 million from government agencies that are eInvoicing enabled.Want to learn more about these two technologies? Request a call with one of our eInvoicing or EDI experts today.

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E-invoicingEDI

19/01/2021

The A-Z of Peppol

What is Peppol?

Peppol is a set of specifications that help make cross-border eProcurement easier. The Peppol interoperability framework is currently used for e-invoicing in Australia and New Zealand.

The network (Peppol eDelivery Network)

The Peppol eDelivery Network connects systems with a set of standardised business processes and technical requirements. This provides an interoperable and secure network connecting all Access Points. All Access Points in the network use the same electronic messaging protocols, formats and digital signature technologies. This helps ensure secure messaging and makes it quick and easy for trading partners to connect and trade.

The document specifications (Peppol Business Interoperability Specifications ‘BIS’)

Peppol developed the Business Interoperability Specifications (BIS) to standardise the electronic documents exchanged and validated in the network. It specifies the process within the eDelivery network. The BIS requires the Universal Business language (UBL) to be used for documents within the network.

Governance

The Peppol framework is governed, owned and maintained by OpenPEPPOL. OpenPEPPOL is a non-profit international association that looks at ways to enable businesses to easily deal electronically. Peppol Authorities also have the responsibility to govern the eDelivery network and BIS within a defined jurisdiction. They also can approve and remove Access Points in the e-invoicing network.

Where are Peppol standards used?

Peppol is in use in 32 countries with 15 of those using Peppol authorities. Here is a list of the Peppol authorities and the countries where they operate:
  • Agency for Digital Government (DIGG), Sweden
  • Agency for Digital Italy (AGID), Italy
  • Australian Taxation Office (ATO), Australia
  • Coordination Office for IT Standards (KoSIT), Free Hanseatic City of Bremen – Germany
  • Danish Business Authority (ERST), Denmark
  • Department of Health and Social Care (NHS), UK
  • Department of Public Expenditure and Reform, Ireland
  • Federal Public Service Policy and Support (BOSA), Belgium
  • Financial Management Authority (FJS), Iceland
  • General Secretariat of Information Systems – Ministry of Digital Governance (GSIS), Greece
  • Info-communications Media Development Authority (IMDA), Singapore
  • Ministry of Business Innovation and Employment (MBIE), New Zealand
  • Ministry of Economic Development (MR), Poland
  • Ministry of the Interior and Kingdom Relations (NPA), Netherlands
  • Norwegian Agency for Public and Financial Management (DFØ), Norway
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E-invoicing

15/01/2021

eInvoicing around the world

eInvoicing is just starting to build momentum in Australia and New Zealand. In 2019, Australia and New Zealand signed the Trans-Tasman eInvoicing agreement, making it easier for businesses and government to exchange eInvoices, both within and between those two countries. Since then, we’ve seen an increase in government agencies implementing eInvoicing. And the Australian Government has promised to pay eInvoices in 5 days for contracts up to $1 million. They’ve also mandated the use of eInvoicing for all Commonwealth government agencies by the 1st of July 2022. So, eInvoicing in Australia and New Zealand is increasing. But how are other regions faring?

North America

In 2015, the US government mandated eInvoicing for federal government agencies by the end of 2018. The transition to eInvoicing was expected to bring a range of benefits including savings between $150 million and $250 million. Aside from Government, the largest adopters of eInvoicing are large enterprises. Some say a major issue in gaining adoption has been a lack of standards and too few eInvoicing service providers. In order to increase uptake, an eInvoicing framework is being created by the Business Payments Coalition (BPC) – a group of organisations and individuals that promote the adoption of electronic business-to-business (B2B) payments.

Latin America

Mexico has been one of the pioneers in eInvoicing globally. They started their eInvoicing journey in 2004, being one of the first in the world. Even though it wasn’t made mandatory, eInvoicing was largely adopted by businesses and government. In 2010, Mexico managed to achieve 100% adoption by businesses. The volume of digital invoices issued between 2011 and 2017 increased from 1.7 billion to 6.5 billion. Mexico’s success has led to other countries implementing eInvoicing. The Latin America region sends 36 trillion eInvoices a year and have achieved some of the highest adoption rates of eInvoicing in the world: Chile has over 88% adoption and Brazil has achieved 100% adoption for B2B transactions. The high adoption in the region is due to the mandating of eInvoicing in both public and private sectors. Many countries who have implemented eInvoicing have seen reduction in fraud and easier tax preparation for businesses. This is in addition to cost reductions from eliminating manual processes.

Europe

In 2019, the European Union made it compulsory to send eInvoices between B2G. And if adopted between businesses, it’s expected that eInvoicing in the region will generate savings of €40 billion a year. Many countries have started to mandate its use both in public and private sectors. For example, Finland has used eInvoicing since 2010 for public sector procurement and now uses eInvoices for 100% of its transactions. Most Finnish businesses have also adopted eInvoicing. And in Italy, eInvoicing was made mandatory for both B2B and B2C transactions in 2019. France is joining them by making eInvoicing compulsory for SMEs and microbusinesses from 2020.

Asia

Asia is one of the regions where eInvoicing is expected to grow the most in coming years. Singapore made eInvoicing compulsory in 2008 for B2G transactions. It was the first country outside of the EU to use the Peppol framework, chosen in part to facilitate international trade. Singapore is providing grants to cover up to 50% of implementation costs for enterprises and S$200 for SMEs who join the network. One of the reasons countries in the region are adopting eInvoicing is to reduce fraud. In 2016, Indonesia required taxpayers to issue invoices electronically in order to notify the enforcing authority. Mongolia, Azerbaijan and Kazakhstan have also implemented eInvoicing to curb the risk of fraud. It’s an exciting time for eInvoicing as we see a lot of countries, particularly in our region, move more and more towards a digital economy. If you’re interested in learning how eInvoicing can help your business, request a call back from our team.

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E-invoicing

10/01/2021

Four signs you’re outgrowing your EDI solution

Electronic data interchange (EDI) is used in several industries to automate ordering . There are a couple of types of EDI to choose from: EDI webforms (where you do everything from a portal) and integrated EDI (which uses your existing software). It’s not uncommon for businesses to start by using a web portal because all you need is an internet connection (no additional software) and it’s usually pretty affordable. However, as you more orders start to flow in, the more labour it involves. So, what are the signs that it’s time to make a change?

1. More customers are moving to EDI

You’ll start to notice more requests to use EDI when more customers make the move. This can be a sign that it’s time to move to an integrated solution. Manual processing of orders is likely to increase so switching to integrated EDI solution will reduce your team’s manual handling, giving them more time to work on other tasks.

2. You’re getting an increased number of orders

If you’re growing your customer base, introducing new products or just seeing more sales (good on you!), the number of orders you receive is going to increase. As your orders increase though, so will your manual processes. The increased workload can get overwhelming for your team. So how can you tell when your order numbers are getting too high for your current EDI solution? A common sign is having to hire casual staff to help process the orders you’re receiving. This obviously increases costs and resources, without making processes more efficient. Integrated EDI can help to automate manual inputting and reduce the need for more staff as your orders increase. As a rough guide, if you are processing 30 orders a week, you’re likely to benefit more from an integrated EDI solution.

3. Your customers are asking you to send them more information

You can start with very few messages when trading with customers using EDI. It could be as simple as just receiving a purchase order and sending back an invoice. If you’re using a web portal, this might not seem like much work at all. But what if your customers start asking for additional message types? Retailers introduce more message types for a number of reasons – to get more visibility of what can be fulfilled, so get a more accurate picture of when and how stock will arrive, and to have more accurate, real-time information at their fingertips. As they add more EDI documents, like purchase order responses or advanced shipping notices, your workload will increase. This can be a good time to switch to integrated EDI. It removes double-handing and allows the information to be sent automatically.

4. You’re struggling with too much manual processing

Are you struggling to cope with the amount of manual processing required when you receive an order? It might be time to switch to an integrated EDI solution. Integrated EDI significantly reduces the amount of work that your team needs to do. You won’t need to double-handle things – you enter it once and it’s automatically sent to your customer.

How to switch

Before switching to an integrated EDI solution, there are a few things you can do in preparation.

Check your software

You’ll need to find out what your software is capable of. This includes things like:
  • The documents your software supports. For example, if your customer requires an advanced shipping notice and SSCC labels, does your software support that?
  • The file formats it can import and export, like XML or CSV.
  • The connection protocols it’s able to use, like sFTP or API.

Our process

We try to make our process as simple as possible for businesses to switch to integrated EDI:[vc_column width="1/4"]

Let us know what you want to achieve and we'll suggest the best solution

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Start our partnership

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Connect to MessageXchange and test connectivity and messaging

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Go live!

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EDISuppliers

16/12/2020

Tips for successful onboarding of your partners to eInvoicing

eInvoicing is gaining popularity as more organisations look to benefits from its efficiencies. einvoicing enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning. To get the most out of eInvoicing, one of the most important things is successfully onboarding your customers and/or suppliers.

Why is onboarding so important?

It maximises your ROI

Every invoice you can process through eInvoicing increases your ROI. Generally, your setup cost is fixed, so get the most out of it through onboarding as many customers or suppliers as possible. Having all of your partners trading through the same method also reduces your costs because you don’t have to maintain several processes.

You use one process with all your suppliers

Businesses that don’t onboard all their partners have different processes for each. This makes invoicing for your teams more complicated and time consuming. If you still receive email and PDF invoices your accounts payable team still need to manually input the figures into your system.

The process of onboarding

There are a few steps in the process of onboarding partners to eInvoicing. It’s important to prepare for each one.

Segmenting

This stage assesses the ability of your partners to implement eInvoicing. Segment your partners into different levels of capability such as:
  • Those already using eInvoicing They’re ready to start sending you eInvoices and you send them eInvoices.
  • Those with the capability to start using eInvoicing Mainly those with ERP or accounting software and just need to enable eInvoicing.
  • Those currently not using software and physically receiving and sending invoices They could be using paper or sending documents via email.
These segments will require tailored communications and onboarding methods.

Communications

When onboarding your partners, it’s important to have a plan for communicating your transition to eInvoicing. This provides clarity and direction for the project. First things first, let your partners know you’re transitioning to eInvoicing. Communicating any type of change internally or externally is always daunting, but it’s important. At some stage, you may want to include requirements and message implementation guide (MIG) documents if you have them. MIGs are guides that detail what data in what format will be required to be exchanged. When onboarding your partners, it’s important to have a plan for communicating with them. It’s more than just announcing that you’re moving to eInvoicing. The main things you want to do when communicating with them is:
  1. Bring them along on the journey You may want to communicate with your suppliers giving them updates on the progress of your onboarding.
  2. Get their buy in Talk about why you’re transitioning to eInvoicing but also mention the benefits for your partners to use eInvoicing.
  3. Give them the info they need and make it as easy as possible At some stage, you may want to include requirements and message implementation guide (MIG) documents if you have them. MIGs are guides that detail what data in what format will be required to be exchanged.
If you’re interested in learning more about the process and best plan for onboarding, read our whitepaper, A guide to successfully onboarding trading partners to eInvoicing.

Certification and testing

The Peppol eInvoicing framework has certain fields that can be used within eInvoices. If you require certain fields on your invoices outside of these you’ll need to test your partners messages to ensure they include these fields. Once you’ve decided on these additional fields make sure to document it in a MIG or elsewhere. You will then need to ensure the eInvoices that your suppliers will send to you include these fields and are Peppol-compliant. MessageXchange provides customers with message compliance testing (MCT) service that is customised to each business’ needs. Your supplier will upload their Peppol eInvoice file to a portal, which will check its syntax, business rules and more against your requirements. It’s a simple interface for suppliers to test their messages and ensure it meets your requirements before they start to send you production-ready invoices. It also saves you from manually testing with your suppliers, which can require constant back and forth.

Managing a hybrid process while you onboard

It’s normal and expected that businesses maintain multiple invoicing processes while they’re onboarding suppliers. After all, not every business is in the same level of readiness when it comes to eInvoicing. Some may be more advanced than others. Some may be reluctant to change. For this reason, you’ll need to have different processes for different businesses. Initially you will need to continue operating in the same way with some businesses as you transition others to eInvoicing.

Tips for success

There are a few things to keep in mind to make the process go smoother.

Stage your onboarding process

It might be a good idea to start with the partners you know are ready and get them onboarded first. Then you can focus on other partners that might be less capable. Start with a small number at a time to make it more manageable, and to give you an opportunity to learn what to do, or not to do.

Remind partners of the benefits for them

It’s one thing to communicate your reasons for jumping on eInvoicing but it’s a good idea to make it clear how it’ll benefit your partners too. Reinforce these benefits in your communications throughout each stage. This will help them transition and comply with your process.

Give them options for compliance

We touched on your partners’ ability earlier on. It can be helpful to suggest options for compliance. You might think suggest a web portal to issue eInvoices for those who use their existing invoicing software. This can make it cheaper and easier for them to comply. We provide a free portal, Colladium, for these types of businesses to issue and receive eInvoices.

Seek help

If you’re stuck at any point in the process or need help always look for help. Your eInvoicing Access Point, or provider, can be a good starting point. They’ve likely seen the issue before, or know someone who has. If you’re interested in implementing eInvoicing for your business, request a call back below.

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E-invoicinggovernmentRetailersSuppliers

15/12/2020

eInvoicing and goods not for resale (GNFR): A recipe for success

Retailers are forever looking for ways to cut costs. Typically, it’s operations and supply chain that are targeted to improve efficiency and reduce costs. Retailers often adopt electronic data interchange (EDI) to automate the procure-to-pay process. But another, often overlooked area where processes can be optimised is also in procurement; it’s goods not for resale, or GNFR.

What is ‘goods not for resale’?

Goods not for resale covers anything that’s purchased without the intent of being re-sold. Things like:
  • store fittings
  • training
  • facilities and office space
  • utilities
  • professional services
  • marketing
  • travel
  • IT.
Procurement in these areas can be forgotten because they’re often managed by individual departments and can fall through the cracks, making it difficult to get an overall picture. A solid GNFR strategy gives you better visibility and understanding of your total costs, allowing you to identify unnecessary spending and achieve business objectives.

Find new areas to reduce costs. Enter, GNFR.

During tough times, businesses often push their efforts to cost reduction. And this normally happens in supply chains and operations like:
  • reducing locations
  • reducing staff
  • cutting prices and increasing discounting
  • looking for cheaper suppliers and products.
Continuing this path is unsustainable, so it’s important to look at other areas for efficiencies. Some sources claim GNFR can represent around 25% of a retailer’s total operating costs. One way to manage and improve GNFR procurement processes is eInvoicing.

eInvoicing: one small change for business, one giant leap for cost savings

eInvoicing enables organisations to exchange invoices electronically, directly between invoicing software. eInvoicing happens through a four-corner model, where corners one and four are the supplier and customer, and corners two and three are Access Points, like MessageXchange. Access Points connect to each other to exchange eInvoices. You can think of it like a telephone network – your phone and your friend’s phone are corners one and four, and your network provider (like Telstra, Optus or Vodafone) are corners two and three.When purchasing goods for your business, invoicing is one of the most time-consuming and costly processes. As a result of the automation from eInvoicing, a few benefits are:
  • Cost savings Studies have found that it costs, $27.67 to process a PDF invoice, and only $9.18 to process an eInvoice.
  • Easier invoice processing Removes the need for unnecessary data entry - the invoice just appears in your software. And by exchanging invoices directly between software, there’s less risk of them going astray.
  • Faster invoice payments The average eInvoice is processed in 5 days (compared with 23 days for a regular invoice).
  • Fewer errors Because much of the data entry is removed, reducing the risk of paying more for goods. This also improves data accuracy for use in reporting and optimising processes.
  • Better security Security measures, like encryption at rest and in transit, are implemented throughout the eInvoicing network so your data remains secure along the way.
GNFR typically accounts for 20% of a retailer’s spend but covers 80% of its suppliers and a high percentage of transaction volumes. If you compare the cost of a manual procurement process and an automated eInvoicing process in the GNFR space, it’s easy to see the cost savings add up. Request a call from one of our experts to learn more about how eInvoicing can help manage GNFR costs.

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E-invoicingRetailers

25/11/2020

OCR vs eInvoicing

Some of the challenges that finance teams, particularly accounts payable teams, can often face include:
  • too many manual processes
  • data entry errors
  • high costs from labour, printing and archiving
  • paying fraudulent or misleading invoices.
Two of the most common approaches to overcoming these issues are optical character recognition (OCR) readers and eInvoicing. So what should you choose?

What is OCR?

OCR is a technology that distinguishes printed or handwritten text characters of physical documents, such as a PDF document. The basic process of OCR involves examining the text of a document and translating the characters into code that can be used for data processing. OCR can be hardware using a physical scanner or software which takes advantage of Artificial Intelligence (AI) for character recognition.

How does it work?

Generally accounts teams upload the PDF or scanned document to their OCR software where the invoice is read, captured and input into their accounting software.

Pros and cons of OCR

From afar, it can seem that OCR reduces the amount of effort it takes to process and invoice, makes for faster processing and depending on the volume of invoices, can reduce costs. But because it’s not true data exchange because it scans an unstructured document and tries to interpret it, it can produce mistakes. Some consider 70% OCR accuracy as ‘good’. Identifying and fixing up these mistakes can be time-consuming and costly. Some of the other cons are:
  • a limited range of document types can be read
  • it isn’t always accurate, so further checks and balances need to be in place (often manual)
  • technology experts may need to be hired to look after your technology
  • upfront costs can be high.

What is eInvoicing?

eInvoicing enables organisations to send and receive invoices electronically, directly to and from their software. No need to scan an invoice before uploading it into your software like you do with OCR scanners.

How does it work?

eInvoicing in Australia and New Zealand is provided through a network of interoperable Access Points, like MessageXchange, that exchange your eInvoices using the Peppol standard that has been adopted around the world. You can think of it like a telephone network.

Pros and cons of eInvoicing

eInvoicing has a few key benefits:
  • cost savings from data entry, printing and archiving
  • easier invoice processing
  • faster invoice payments
  • fewer errors
  • exchanging invoices directly to and from software
  • Enhanced security.

Next steps

There are a few things you should think about when looking at eInvoicing:

Getting your business ready

To prepare your business, think about these things:
  • Define your objectives
  • Look at your business processes
  • Get the relevant teams involved
If you want to learn more about preparing for eInvoicing, check out our whitepaper, . At MessageXchange, we try to make things easier to get started with eInvoicing:[vc_column_inner width="1/3"]

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E-invoicinggovernmentRetailers

13/11/2020

What EDI messages are best to achieve my business objectives?

There are a few things businesses need to think about when implementing EDI. One of the key ones is your business objectives – why you’ve chosen to use EDI in the first place. This will dictate how you go about your planning and implementation. Your business objectives will also determine what messages you exchange with your partners.

What types of EDI messages are there?

EDI can go far beyond a purchase order and invoice. Some common messages are:
  • Purchase order Sent from buyer to supplier to order goods or services
  • Purchase order change Sent from buyer to supplier if the original purchase order has changed
  • Purchase order acknowledgement Sent from the supplier to the buyer to acknowledge receipt of the order
  • Purchase order response Sent from the supplier to the buyer to let them know how much of the order can be fulfilled, and any discrepancies from the original order
  • Advance shipping notice (or despatch advice) Sent from the supplier to the buyer to let them know when and how the goods will be shipped
  • Invoice Sent from the buyer to the supplier for payment of the goods or services
  • Recipient created tax invoice (RCTI) Sent from the supplier to the buyer for payment of the goods or services
  • Remittance advice Sent from the buyer to the supplier to confirm payment
  • Price/sales catalogue Sent from the supplier to the buyer with up-to-date product and pricing information
  • Product activity data Sent from buyer to the supplier with the number of units sold and units on hand
  • Transport instruction Sent from a buyer to a transport supplier (and related parties) to communicate transport arrangements
  • Transport response Sent from a transport provider to confirm instructions
  • Functional acknowledgement An automated response sent from a receiver of an EDI message to confirm receipt of the message.

What messages should you use?

Your objectives will influence the messages you should choose. Here are some examples:

If you’re trying to reduce manual handing

…the messages you should consider using are:
  • purchase order
  • invoice.
This means all invoices will come directly to your software electronically. No more need for your team to enter an invoice manually. You might ask why use a purchase order too. It’ll make it easier for your customers to receive orders, and will mean that they don’t have to manually enter them on their side. It usually leads to less errors throughout the process.

If you’re wanting to receive stock faster

…consider sending your purchase orders via EDI. By simply sending out a purchase order through EDI, it should get to your supplier significantly faster. They probably don’t regularly check their emails which can delay processing. It also means they don’t need to spend time entering it into the systems on their side.

If you’re after visibility of fulfillment

…the messages you should use are:
  • purchase order
  • purchase order response.
The purchase order is sent directly to your supplier’s software. And the purchase response is sent by your supplier to confirm whether your order can be fulfilled, and if it’s only being part-filled, it’ll tell you how much they can supply. These messages give full visibility of your order fulfillment.

If you’re trying to get better, more accurate information

…use a combination of:
  • purchase order
  • purchase order response
  • despatch advice and
  • or all of them.
A purchase order response will let you know ahead of time what the supplier will be able to send you. It helps you plan ahead if your whole order can’t be fulfilled. It also helps with data inaccuracies you might have. For example, if you don’t have the correct prices, you can let your suppliers amend prices on the purchase order response, which you can approve or not, before they despatch the goods. A despatch advice lets you know what’s coming, when and how. And getting the invoice electronically means your team don’t need to spend time re-entering it. All of the data from these can be used for reporting on supplier performance and more. An EDI invoice will mean you don’t have to re-enter the invoice data when it gets to you, which means less data entry mistakes.

If you’re trying to get better, more accurate information

Drop shipping is a popular business model for a lot of retailers. There are a few messages that can help you move to this model:
  • Purchase orders (PO)
  • Purchase order acknowledgement (POA)
  • Advanced shipping notice (ASN)
The PO gets the order to your suppliers as quickly as possible. The POA and ASN gives you visibility of where the order is at, and can even let you pass tracking information onto your customer.

If you want to receive deliveries more smoothly

There are two messages can help achieve this objective:
  • Purchase order (PO)
  • Advanced shipping notice (ASN)
Sending a PO gets your order to your supplier reliably. The ASN will let you know when to expect the delivery so your team is on hand to receive it. You can also use the SSCC labels to scan stock in to automate the receiving of goods.

If you want real-time data at your fingertips

There are a few messages that can help achieve this objective, including:
  • Purchase order (PO)
  • Purchase order response (POR)
  • Advance shipping notice (ASN)
  • Invoice
  • Sales forecast
  • Price/sales catalogue
The POR lets you know as soon as the supplier sends it, what they can supply. An ASN will let you know what’s being shipped, how and when. An invoice will help you see an accurate business position and liabilities. And price/sales catalogue makes sure you’ve got the most up-to-date data of the products you’re ordering. Never order with the wrong prices again. If you’re still struggling to decide what messages to use, have a chat to one of our experts. Request a call back below.

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EDIRetailers

06/11/2020

The state of eInvoicing in AUS and NZ

eInvoicing has taken off in countries around the world. Here in Australia and New Zealand, eInvoicing is still in its infancy, but steadily gaining momentum.

What is eInvoicing?

eInvoicing enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning. eInvoicing in Australia and New Zealand is provided through a network of interoperable Access Points, like MessageXchange, conforming to the Peppol standard. The standard was developed in Europe, but has been adopted around the world, including here in October 2019.

The current state of eInvoicing

The term ‘eInvoicing’ has been thrown around here in Australia for a number of years now. It really started to gain traction in 2019 when Australia and New Zealand signed a trans-Tasman eInvoicing agreement, allowing it easier for businesses both countries to exchange eInvoices. Today, the largest users of eInvoicing are government agencies. The Australian government is providing incentives for suppliers to use eInvoicing by promising suppliers with contracts less than $1 million payment within 5 days of issuing an eInvoice. In New Zealand, the government have set a target to pay 95% of all domestic invoices within 10 business days and eInvoicing is one of the key strategies to help reach it. New Zealand Inland Revenue (NZIR) was one of the first New Zealand government agencies to use eInvoicing. The focus for NZIR was to pay invoices early to help suppliers’ cash flow and to give them a seamless experience. Check out the case study here. The New South Wales state government has been a leader in eInvoicing in Australia. The Department of Customer Service (NSW DCS) recently implemented eInvoicing as part of the NSW Digital Government Strategy. The strategy’s purpose is to offer digital services that benefit customers and suppliers. Learn more about NSW DCS eInvoicing journey here. Some of the government agencies that are currently up and running with eInvoicing include:
  • The Australian Taxation Office (Australian government department)
  • The Department of Finance (Australian government department)
  • Services Australia (Australian government department)
  • The Treasury (Australian government department)
  • New South Wales Department of Customer Service (Australian state government department)
  • New South Wales Department of Premier and Cabinet (Australian state government department)
  • New South Wales Treasury (Australian state government department)
  • New South Wales Health (Australian state government department)
  • New Zealand Government Procurement (New Zealand government department)
  • New Zealand Inland Revenue (New Zealand government department)

What's next?

The government is currently looking for ways to increase the uptake of eInvoicing. The 2020 Budget here in Australia includes $120 million in funding to help businesses implement digital technologies. It also includes $3.6 million to make eInvoicing mandatory for all government agencies by the 1st of July 2022. If you want to get all the latest eInvoicing news, sign up for our newsletter below.

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E-invoicinggovernmentRetailersSuppliers

30/10/2020

Budget announcements and its impact on eInvoicing

The Australian government recently released its budget for 2020 and it’s clear that digital transformation is high on their agenda – it included $800 million to improve access to digital services. Some of the initiatives announced were:
  • accelerating the creation of a single national business registry
  • expanding the government’s Digital Identity Program
  • accelerating the take-up of 5G technology
  • promoting Australian finance technology overseas and
  • helping businesses adopt digital technologies.
eInvoicing is also high on their agenda. eInvoicing enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning. Some of the benefits of eInvoicing include:
  • cost savings
  • easier invoice processing
  • faster invoice payments
  • fewer errors
  • exchange of invoices directly to and from software
  • improved security.

So what eInvoicing initiatives did the Government announce?

The Government set aside $120 million to help businesses adopt digital technologies, which includes $22.2 million specifically for small businesses. Small businesses in Australia have a long way to go, with some figures showing 90% of small and medium businesses still use paper-based invoices. The Government allocated an additional $3.6 million to help Federal Government agencies implement eInvoicing, which was announced in conjunction with a government eInvoicing mandate. Larger government agencies need to adopt eInvoicing by the 1st of July 2021, followed by all other agencies by the 1st of July 2022. The Federal Government also announced they’ll be looking at ways to mandate eInvoicing for State Government departments in the near future. This is just one of the steps to a more digital economy, with reports indicating government agencies, both federal and state, are responsible for around 10% of all business-to-business invoices. Another focus announced in this year’s Budget is to improve digital skills for workers and SMEs. $2.5 million will be allocated to help businesses with digital skills training. This funding will be used to develop a Digital Skills Finder platform to help workers and SMEs find training courses to further their digital skills.

What can we expect from the measures?

The Government have made it clear from this year’s Budget that they want to boost small business capability and increase the uptake of digital technologies. Overall, there are more than a dozen initiatives already planned to support businesses to adopt digital technologies. Expect to see Federal Government agencies implement eInvoicing early to comply with the mandate dates. And if you’re a supplier to government, expect to start receiving communications about issuing eInvoices. Now’s a good time to start preparing at your end and looking for eInvoicing providers. Just get in touch to find out more.

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