TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 TBG1 - TBG5 - TBG6 - TBG12 Joint Meeting Accounting Token Into Invoice

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Your Speaker Chair UN-TBG12 WG Accounting & Audit (former EWG-D14) since 1997 Belgian e-Business consultant (UML, eb-XML, EDIFACT) 30+ years IT expertise in accounting and administrative organization domains ICT Expert appointed by the United Nations Delegation of France IT and accounting Expert appointed by « Conseil Superieur de l ’ Ordre des Experts-Comptables » (France) Founding member of Edificas Conference guest speaker in Canada, Singapore,Turkey, United Kingdom, Slovenia, France, the Netherlands, Luxemburg, etc. Initiator or partner of EU funded projects such as EDI-AUDIT (FR), EDIVAT (BE), TELER (NL, DE, S, FR, P) Former IT technical adviser of the Belgian professional organization OECCBB

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Accounting Token Project Scope In general, by each step of most e-Business scenarios, the economic value flow is tracked with entries into accounting books. The scope for this project consists in building a normalized minimum set of data elements needed for bookkeeping, accounting and auditing practices.

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Why Accounting Token ? Accounting is a back office task that is associated with, or that is crossing a number of steps in the course of many businesses; e-Message characterising an event in a business process is often a trigger for Accounting Classical Entry

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 What ? End-to-End solution Each activity is assigned to a responsible ‘actor’ that ensures its successful completion. The information used at each stage is contained to that which can actually be used and is necessary to perform the next step in the process (excerpt from EAN GCI) ; Plug vertical business processes into horizontal ones (i.a. accounting); Removal of missing link between core business and back office

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 How Accounting Token ? Discover which elements are needed to automate pulling (or pushing) classical accounting entry from a e-business message ? Confront business messages chain with accounting needs; TBG1 is among the most suitable e-Business chain for accounting to work with; Understand respective business process.

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 In Short Accounting token shall contain the fundamental set of accounting elements to stick on current e-business documents

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 orderdeliveryinvoicestatmnt accntbank remitt. Accounting and e-business choreography REPORTING XBRL Common developments Taxonomies Chart of accounts IAS-IFRS ENTRY JOURNAL LEDGER - AP - AR TRIAL BALANCE ANNUAL ACCOUNTS FISCAL RETURN UN-EDIFACT / ebXMLTBG12 UN-Cefact SPECIFICATIONS Events that trigger classical double accounting entry

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 ALL EVENTS MUST BE RECORDED INTO ACCOUNTING ACCOUNTS TBG1 Steel Industry Business model

TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Buyer - Seller Both Need Accounting However Different Views

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Invoice Accounting Views

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 e-Invoicing Invoice Line Taxable Basis amount Tax Rate Tax Allowance Rate Tax Amount Amount (UnitPrice x Qty) Account Tax Account Cost, budget, job, other analysis Account(s) Interface Application Generation Accounting Enentries Accounting Tax Return Filing Accounring entry Interface Application to determine amount debit-credit sense and positive or negative sign Entry Message (accounting) Account (accounting) Amount Invoice Header General Account Secondary Account Total Invoice Accounting entry Interface Application to determine amount debit-credit sense and positive or negative sign (accounting) Account (accounting) Amount Debit Credit = e-Invoice Toward e-Accounting

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 At Seller/Supplier Debit Buyer Receivable Account Credit Sales Account Credit Due Tax Account (Credit Other Tax Account) At Buyer/Customer Debit Deductible Tax Account or/and Debit Not Deductible Tax Account (Debit Other Tax Account) Credit Seller Payable Account Invoicing Activity Diagram

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 BUYER SELLER [ 0..*] At Buyer Credit Seller Payable Account At Seller Debit Buyer Receivable Account Accounting Needs (on Invoice Header)

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 At Buyer Debit Purchase Account or Debit Assets Account At Seller Credit Sales Account BUYER SELLER [ 0..* ] At Buyer Debit Deductible Tax Account or/and Debit Not Deductible Tax Account Debit Other Tax Account At Seller Credit Due Tax Account Credit Other Tax Account BUYER SELLER [ 0..*] [ 0..*) Accounting Needs (on Invoice Lines)

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 BUYER SELLER[ 0..1 ] At Buyer Credit Seller Payable Account At Seller Debit Buyer Receivable Account Accounting Needs (on Invoice Header)

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 At Buyer Debit Purchase Account or Debit Assets Account At Seller Credit Sales Account BUYER SELLER [ 0..3 ] At Buyer Debit Deductible Tax Account or/and Debit Not Deductible Tax Account Debit Other Tax Account At Seller Credit Due Tax Account Credit Other Tax Account BUYER SELLER[ 0..1 ] Accounting Needs (on Invoice Lines)

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Order Accounting Views IN PROGRESS

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Order Response Accounting Views IN PROGRESS

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Delivery Accounting Views IN PROGRESS

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Settlement Payment Accounting Views IN PROGRESS

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 Questions ?

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 BUYER SELLER[ 0..1 ] At Buyer Credit Seller Payable Account At Seller Debit Buyer Receivable Account Accounting Needs (on Invoice Header)

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005 At Buyer Debit Purchase Account or Debit Assets Account At Seller Credit Sales Account BUYER SELLER [ 0..3 ] At Buyer Debit Deductible Tax Account or/and Debit Not Deductible Tax Account Debit Other Tax Account At Seller Credit Due Tax Account Credit Other Tax Account BUYER SELLER[ 0..1 ] Accounting Needs (on Invoice Lines)

UN/CEFACT TBG1 – TBG12 Joint Meeting Kuala Lumpur – March 16, 2005