Docflow Best Practice Integrating SAP ERP with Systems of eInvoicing Operators for Interchanging Electronic Invoices and Other Documents Docflow Solutions — electronic document management powered by SAP

Contents of the Presentation Docflow Best Practice — Company Profile Standard Functionality of DFS B2B Solution Integration of DFS B2B Solution with SAP Applications Architecture of DFS B2B Solution Benefits and Cost of DFS B2B Solution Annex 1. Integration with the Journal for VAT-Invoices Annex 2. KIA Motors RUS Implementation Case Annex 3. Procedure for Interchanging Electronic VAT-invoices 2/53

Automatically process incoming VAT-invoice data in SAP ERP Exchange electronic VAT-invoices and other source documents with counterparties via eInvoicing Operators Stream input documents and recognized data into SAP systems Integrate scanning, bar coding, encryption and digital signature features into standard SAP applications Create various electronic document management systems and electronic archives on SAP platform in the market for 8 years on SAP platform Docflow Best Practice has been in the market for 8 years developing electronic document management software on SAP platform. 18 software solutions 30 customers Currently the company portfolio includes 18 software solutions being successfully used by over 30 customers in Russia, Ukraine, Kazakhstan, and Belarus. Docflow Best Practice solutions make it possible to: Docflow Best Practice — Company Profile 3/53

Docflow Best Practice — Customers 4/53

Ready-to-use solutions Do not modify SAP code Easy to customize by parameterization and plug-ins Seamlessly integrate electronic documents with documents in SAP business applications Independent of storage system type Certified by SAP Allow use of special SAP licenses like SAP Standard Platform User Using certified solutions tested and verified in multiple implementations can greatly simplify the process of creating electronic document management systems powered by SAP Docflow Best Practice — Benefits of the Solutions 5/53

Contents of the Presentation 6/53 Docflow Best Practice — Company Profile Standard Functionality of DFS B2B Solution Integration of DFS B2B Solution with SAP Applications Architecture of DFS B2B Solution Benefits and Cost of DFS B2B Solution Annex 1. Integration with the Journal for VAT-Invoices Annex 2. KIA Motors RUS Implementation Case Annex 3. Procedure for Interchanging Electronic VAT-invoices

Legal effectiveness of electronic documents Creating VAT-invoices, acts and consignment notes to the FTS format Interchange of electronic documents between counterparties Signing documents using digital signature Counterparties Intercorporate Legally Effective Electronic Document Interchange 7/53 eInvoicing Operators … Diadoc Taxcom-Filer SPHERE Courier

eInvoicing Operators DFS B2B Solution – Integration of SAP ERP with the Systems of eInvoicing Operators Installation and initial customization of the Solution takes 1 day. Immediately upon installation the Solution enables users to exchange any electronic documents with counterparties from the standard SAP interface. Electronic documents can be stored in any certified storage. INCOMING document queue INCOMING document queue OUTGOING document queue OUTGOING document queue Electronic storage Counterparties Integration of SAP ERP with systems of eInvoicing Operators … DFS B2B Solution Diadoc Taxcom-Filer SPHERE Courier 8/53

Electronic Document Queues in SAP ERP Formalized documents: - VAT-invoices - TORG-12 consignment notes - Acts of acceptance (goods/services) Non-formalized documents (files in arbitrary formats) 9/53

Incoming Document Queue 10/53

Making a Decision on an Incoming Document Sign a document, accept a VAT-Invoice Current status of a document Reject a document, request a corrective VAT-invoice 11/53

Outgoing Document Queue Mass signing and sending electronic documents to counterparties Displaying linked electronic documents Displaying status of sent document 12/53 Load a document file from disk, sign it and send to counterparty

Other Document Operations in Queues 13/53 Displaying operation history for a document Calling custom operations with a document Moving a document to the processed document queue

Various Criteria Search for Electronic Documents Selecting documents of all kinds by: Company code Sender and recipient Sending period Type of electronic document Delivery status Selecting formalized documents by: Date of a document Number of a document Amount on a document Additional information Authorization check for a company code and counterparty Search for incoming and outgoing electronic documents 14/53

List of Electronic Documents Found Mass download of documents Mass printing of documents List of documents in the form of ALV report Sorting and filtering functionality Displaying a printable form and formalized document data Displaying linked SAP documents Displaying a batch of documents Mass download of documents Mass printing of documents 15/53

Contents of the Presentation 16/53 Docflow Best Practice — Company Profile Standard Functionality of DFS B2B Solution Integration of DFS B2B Solution with SAP Applications Architecture of DFS B2B Solution Benefits and Cost of DFS B2B Solution Annex 1. Integration with the Journal for VAT-Invoices Annex 2. KIA Motors RUS Implementation Case Annex 3. Procedure for Interchanging Electronic VAT-invoices

Sending Source Documents to Counterparties Delivery via eInvoicing Operator Receiving the documents by counterparties Signing of documents Delivery by mail Mass signing and sending of electronic documents Mass printing of documents Posting Sending documents in paper form Sending documents in electronic form The functionality for creating electronic documents can be embedded in the same SAP applications that are used for printing paper documents. Electronic documents can be signed and sent to counterparties either immediately upon creation or later in mass processing mode. 17/53

Module for eInvoice Creation, Signing and Sending SENDING eINVOICE CUSTOM PROCEDURE FOR DATA ACQUISITION DOUBLE SENDING CHECK DATA VALIDATION DATA ACQUISITION CONFIRMATION OF SENDING FILING INTO JOURNAL FOR VAT-INVOICES SIGNING eINVOICE APPLICATION The module for eInvoice creation, signing and sending can be embedded in any transactions for displaying SAP invoices, or in reports for printing VAT-invoices. A custom procedure can be configured for eInvoice data acquisition. The sent eInvoice is filed into the journal for output VAT-invoices. 18/53

Sending eInvoice from SAP Transaction Documents are signed and sent either immediately upon creation in SAP applications or later from the outgoing document queue 19/53

Linking Sent Electronic Documents to Documents of SAP Applications 20/53 All the electronic documents created in SAP ERP business applications are linked to respective SAP documents. This enables the user to track status of sent documents directly from the transactions where they have been created.

Mass eInvoice Sending from ABAP Reports Mass creation and sending of eInvoices to counterparties Current status and date of issue The module for electronic document creation can be embedded in the existing paper document printing reports. If the user has no digital signature certificate, the documents will be placed into the outgoing document queue for deferred signing and sending. 21/53

Contents of the Presentation 22/53 Docflow Best Practice — Company Profile Standard Functionality of DFS B2B Solution Integration of DFS B2B Solution with SAP Applications Architecture of DFS B2B Solution Benefits and Cost of DFS B2B Solution Annex 1. Integration with the Journal for VAT-Invoices Annex 2. KIA Motors RUS Implementation Case Annex 3. Procedure for Interchanging Electronic VAT-invoices

Electronic storage http(s) Downloading, RFC-user Sending, Dialog-user http(s) Interchange server Workstation Web service http(s) Web service http(s) General Scheme of SAP ERP Integration with the Systems of eInvoicing Operators Local Area Network 23/53 DFS B2B Solution INCOMING document queue INCOMING document queue INCOMING document queue INCOMING document queue DFS B2B Connector Special Operators …

DFS B2B Solution OUTGOING document queue OUTGOING document queue INCOMING document queue INCOMING document queue Centralized Interchange and Centralized Signature of Documents by a Single Certificate of the Company 24/53 SAP GUI Special Operators … Workstations Interchange server DFS B2B Connector SAP GUI Crypto-Pro All documents are downloaded and sent via the interchange server All documents are signed on the interchange server No extra software required on user workstations

DFS B2B Solution OUTGOING document queue OUTGOING document queue INCOMING document queue INCOMING document queue Centralized Interchange and Local Signature of Documents by Private Certificates of the Users 25/53 Special Operators … DFS Signer SAP GUI Crypto-Pro DFS Signer SAP GUI Crypto-Pro Interchange server DFS B2B Connector SAP GUI Crypto-Pro All documents are downloaded and sent via the interchange server Business documents are signed on the user workstations Service documents are signed on the interchange server Workstations

DFS B2B Connector 26/53 Interchange server DFS B2B Connector SAP GUI Crypto-Pro Special Operators … Centralized Download of Documents and Local Signature and Sending of Documents DFS B2B Solution OUTGOING document queue OUTGOING document queue INCOMING document queue INCOMING document queue SAP GUI Crypto-Pro SAP GUI Crypto-Pro All documents are downloaded via the interchange server Service documents are signed on the interchange server Business documents are signed and sent on the user workstations Workstations

Distributed Interchange and Local Signature of Documents by Private Certificates of the Users 27/53 Workstations DFS B2B Solution OUTGOING document queue OUTGOING document queue INCOMING document queue INCOMING document queue All documents are downloaded and sent via the user workstations All documents are signed on the user workstations DFS B2B Connector SAP GUI Crypto-Pro DFS B2B Connector SAP GUI Crypto-Pro Special Operators …

Contents of the Presentation 28/53 Docflow Best Practice — Company Profile Standard Functionality of DFS B2B Solution Integration of DFS B2B Solution with SAP Applications Architecture of DFS B2B Solution Benefits and Cost of DFS B2B Solution Annex 1. Integration with the Journal for VAT-Invoices Annex 2. KIA Motors RUS Implementation Case Annex 3. Procedure for Interchanging Electronic VAT-invoices

Benefits of DFS B2B Solution Possibility of tracking the sent document statuses from SAP applications Possibility of sending electronic documents to counterparties directly from SAP ERP business applications with filling in the journal for output VAT-invoices Ready-to-use solution, fast implementation Possibility of connecting to several eInvoicing Operators at once Possibility of using any certified storage to store electronic documents Possibility of sending the prepared documents en masse 29/53

DFS B2B Solution Implementation Projects (1/2) PROJECT GOALIntegration of SAP ERP system with Diadoc system for interchanging electronic documents. SYSTEM / OPERATORDiadoc / SKB Kontur PROJECT GOALIntegration of SAP ERP system with Diadoc system for interchanging electronic documents. SYSTEM / OPERATORDiadoc / SKB Kontur SEVERSTAL, Moscow HYUNDAI MOTOR MANUFACTURING RUS FACTORY, St. Petersburg 30/53 PROJECT GOALIntegration of SAP ERP system with Diadoc system for interchanging electronic documents. SYSTEM / OPERATORDiadoc / SKB Kontur PROJECT GOALIntegration of SAP ERP system with Diadoc system for interchanging electronic documents with dealers. SYSTEM / OPERATORDiadoc / SKB Kontur HYUNDAI MOTOR CIS, Moscow KIA MOTORS RUS, Moscow

DFS B2B Solution Implementation Projects (2/2) 31/53 PROJECT GOALIntegration of SAP ERP system with the systems of major eInvoicing Operators for interchanging any kinds of electronic documents with counterparties. SYSTEM / OPERATORDiadoc / SKB Kontur; SPHERE Courier / Korus; Taxcom-Filer / Taxcom PROJECT GOALIntegration of SAP ERP system with SPHERE Courier system for interchanging electronic VAT-invoices with counterparties. SYSTEM / OPERATORSPHERE Courier / Korus PROJECT GOALIntegration of SAP ERP system with Diadoc system for interchanging electronic documents with subsidiaries of the group. SYSTEM / OPERATORDiadoc / SKB Kontur SUN InBev, Moscow MEGAPOLIS, Moscow KIROVSKY ZAVOD, St. Petersburg

One DFS B2B Connector license allows integration of an SAP system with one eInvoicing Operator. Basic set of licenses allows centralized interchange and centralized signature of documents by a single certificate of the company. DFS Signer licenses are optional and are required only for local signature of documents. DFS B2B Connector extra licenses allow local signature and sending of documents when there is no allocated interchange server involved in the architecture. Cost of Licenses for Integration of SAP System with the Systems of eInvoicing Operators 32/53

Contents of the Presentation 33/53 Docflow Best Practice — Company Profile Standard Functionality of DFS B2B Solution Integration of DFS B2B Solution with SAP Applications Architecture of DFS B2B Solution Benefits and Cost of DFS B2B Solution Annex 1. Integration with the Journal for VAT-Invoices Annex 2. KIA Motors RUS Implementation Case Annex 3. Procedure for Interchanging Electronic VAT-invoices

Filing the Posted VAT-invoices into the Journal for Output VAT-invoices Posting of SD-Invoice or FI-Invoice is done. An appropriate entry is made in the journal for output VAT- invoices through the standard print program. 34/53

Creating an XML File for the eInvoice in the Journal for Output VAT-invoices The required entry is selected in the journal for output VAT-invoices. When the ‘Invoice’ button is clicked, an XML file for the eInvoice is created and recorded in the SAP ERP database. 35/53

Sending eInvoice to Counterparty from the Journal for Output VAT-invoices When the ‘Send invoice’ button is clicked, the XML file created before for the eInvoice is downloaded from the database and input to the module of DFS B2B Solution for signing and sending to counterparty. The sent eInvoice is automatically loaded to the storage, placed into the outgoing document queue and linked to a respective SAP invoice. The accompanying sevice documents are loaded to the storage too. 36/53

Enhancing the Standard SAP ERP Functionality — Outgoing Electronic Documents 1. Outgoing electronic documents 37/53

Enhancing the Standard SAP ERP Functionality — Incoming Electronic Documents 2. Incoming electronic documents 38/53

Enhancing the Standard SAP ERP Functionality — Common Functions 3. Common functions 39/53

Contents of the Presentation 40/53 Docflow Best Practice — Company Profile Standard Functionality of DFS B2B Solution Integration of DFS B2B Solution with SAP Applications Architecture of DFS B2B Solution Benefits and Cost of DFS B2B Solution Annex 1. Integration with the Journal for VAT-Invoices Annex 2. KIA Motors RUS Implementation Case Annex 3. Procedure for Interchanging Electronic VAT-invoices

Integration of SAP ERP and Diadoc for electronic interchanging source documents for vehicles with the dealers Automatic formation of electronic archive for source documents in SAP ERP by acquisition of the document batches for each vehicle Creation of a singe electronic archive of source documents for spare parts (documents are sent from 1C) and vehicles, on the SAP ERP basis Project in KIA Motors RUS Implementing intercorporate electronic document interchange by means of integration with Diadoc; implementing internal document interchange and single electronic archive in SAP ERP: 41/53

KIA Motors RUS — Implementation Stages Integration of SAP ERP and Diadoc Production run Development of an electronic archive for source accounting documents Go-live. Replication of the solution to new kinds of documents Installing and customizing the DFS software Installing and customizing the DFS software Developing the functions for sending eInvoices and TORG-12 from printing reports Developing the functions for sending eInvoices and TORG-12 from printing reports Refining requirements, blueprinting the solution Interchanging eInvoices and TORG-12 with dealers in go-live mode Developing the functions for creation and sending of new kinds of documents: Act for services (XML) VAT-invoice for services (XML) Corrective VAT- invoice (XML) MH-1 act (PDF) Reconciliation report (PDF) Developing the functions for creation and sending of new kinds of documents: Act for services (XML) VAT-invoice for services (XML) Corrective VAT- invoice (XML) MH-1 act (PDF) Reconciliation report (PDF) July 2012 August 2012 September October 2012 Turning on the system for production run Developing the electronic archive cards Developing the function for automatic filling of the archive when sending documents to dealers Developing the function for automatic filling of the archive when sending documents to dealers Integration testing, going live 42/53

KIA Motors RUS — Mass Sending of Documents from the Printing Reports At the time of the project start there existed separate reports in KIA’s SAP system for mass printing of paper documents. During the project, the functions for sending relevant electronic documents have been embedded in the printing reports, which has minimized end-user training. 43/53

KIA Motors RUS — Single Electronic Archive for Source Documents INCOMING document queue INCOMING document queue OUTGOING document queue OUTGOING document queue Spare parts Loading all the documents SAP Content Server SAP Content Server Vehicles Queue of ALL INCOMING documents Queue of ALL INCOMING documents Queue of ALL OUTGOING documents Queue of ALL OUTGOING documents Archive Processing Search Printing DFS B2B Solution 44/53 In KIA, the electronic documents for spare parts are sent from the 1С system, while those for vehicles and services are sent from SAP ERP. One of the important tasks of the project was to create a single archive of electronic documents in the SAP system, where the documents sent to dealers not only from SAP ERP but also from 1C were supposed to be automatically loaded to.

KIA Motors RUS — Automatic Filling of the Archive Archive card — is a card for a batch of source accounting documents related to one deal. A set of fields for the archive card depends on a type of the deal (sale of Vehicle, Spare Parts, Services). Archive card contains the basic data of a deal (dealer code, number, date, amount, VIN or batch number for spare parts or services). Archive card is created automatically when the first document of a deal is sent. All of the following documents for this deal are automatically attached to the created card. Archive card contains links to electronic documents related to this deal. For each document one can view its current status. 45/53

KIA Motors RUS — Integration of Electronic Archive with SAP ERP Business Applications A link is created in the archive card for each SAP document, on the basis of which the electronic document was formed. Using the link one can go from the batch card of source accounting documents to SAP transactions for viewing the relevant SAP documents. 46/53

KIA Motors RUS — Searching the Electronic Archive for Documents Documents can be searched for through the archive by all fields of the archive cards. 47/53

KIA Motors RUS — Batch of Source Accounting Documents for a Dealer 48/53 Documents for one deal can be sent from the SAP system one by one. When documents are sent a link is automatically created to the earlier sent documents in relation to the same deal. Working in Diadoc’s web-interface, dealers can switch from viewing each individual document to viewing a batch of all the documents related to a deal.

KIA Motors RUS — Types of Electronic Documents VAT-invoice for sale of a vehicle (XML) VAT-invoice for services (XML) TORG-12 consignment note for sale of a vehicle (XML) Corrective VAT-invoice (XML) Act of acceptance for services (XML) MH-1 act of acceptance for goods and materials (PDF) Reconciliation report (PDF) Return certificate (PDF)... 49/53

Contents of the Presentation 50/53 Docflow Best Practice — Company Profile Standard Functionality of DFS B2B Solution Integration of DFS B2B Solution with SAP Applications Architecture of DFS B2B Solution Benefits and Cost of DFS B2B Solution Annex 1. Integration with the Journal for VAT-Invoices Annex 2. KIA Motors RUS Implementation Case Annex 3. Procedure for Interchanging Electronic VAT-invoices

Scheme for Receiving and Processing the Incoming eInvoice Interchange serverCounterpartyContent ServerSAP ERP eInvoicing system Incoming document queue Inv. # 98 dd User workplaces Delivered Correction requested Issued Correction request Operator's acknowledgement Notification of receipt 51/53

Content ServerSAP ERPCounterparty eInvoicing system Scheme for Signing and Sending the Outgoing eInvoice Interchange server Outgoing document queue User workplaces Delivered Issued Operator's acknowledgement Inv. # 98 dd New 52/53 Notification of receipt Inv. # 98 dd

Laws and Regulations EMPOWERMENT ISSUING (RECEIVING) PROCEDURE DOCUMENT FORMATS RULES FOR FILLING IN eINVOICES AND JOURNALS PREREQUISITES FOR INTERCHANGING eINVOICES DIGITAL SIGNATURE PROCEDURE FOR SUBMITTING eINVOICES TO THE FTS LEGITIMACY OF AN ACCOUNTANT FEDERAL LAW No. 229-ФЗ dated Electronic VAT-invoices made equal to printed ones ORDER FROM THE MINISTRY O FINANCE OF RUSSIA No. 50Н dated Procedure for issuing (receiving) VAT-invoices in electronic form ORDER FROM THE FTS OF RUSSIA No. dated Approval of the formats for a VAT-invoice and journals in electronic form RUSSIAN GOVERNMENT RESOLUTION No.1137 dated On forms and rules for filling in (maintaining) a VAT-invoice and journals in electronic form ORDER FROM THE FTS OF RUSSIA No. ММВ-7-6/36 dated Formats of the information message on the participant of eInvoicing and the notification of receipt of the electronic document FEDERAL LAW No. 1-ФЗ dated On the digital signature FEDERAL LAW No. 63-ФЗ dated Qualified digital signature ORDER FROM THE FTS OF RUSSIA No. ММВ-7-2/168 dated Approval of the Procedure for claiming documents at the request of the tax authority in electronic form FEDERAL LAW No. 402-ФЗ dated The Accounting Law regulates the interchange of electronic primary documents 53/53