Only e- invoices - please Case: State of Finland Keijo Kettunen State Treasury

Agenda State TreasuryWho? Invoices electronically by the end of 2010 Why? Scope and scale of the project What? How do we make it possible How? - drivers and activities Encouraging results: 70 % of purchase invoices electronicallyWhere?

State Treasury Who? The State Treasury is a service bureau that is run on quality management principles. It operates in three divisions under the Ministry of Finance. Administrative Management serves the State corporation as the financial and personnel administration expert by generating Group-level information on a centralized basis, guiding the production of administrative information and the use of procedures in administration, and by directing the use of purchased services. The Finance division administers the central government’s debt, cash funds, most of the loans and interest-rate subsidies granted from central government funds, and some of the State guarantees. The Insurance division is the State’s insurance institution. It promotes risk management in the entire central government.

Participants Who? Ministry of Finance: Responsible for strategic quidelines TIEKE, the Finnish Information Society Development Center Promotes eBusiness in Finland and internationally. It provides expertise and services both to companies and individuals. The aim is to provide standards for ex. For e-invoicing FK, Federation of Finnish Financial Services Provides standards and promotes e-invocing

Participants Who? Hansel, The central procurement unit of the Finnish Government Requires e-invoices when undersigning framework agreements with suppliers Banks Promote e-invocing among small comanies and consumers Local Accounting agencies Promote e-invocing among their own suppliers

Participants Who? Itella, Service provider Is responsible for acknowledgement services, system availability and helpdesk functions Makes possible to receive and handle electronically all known e-invoice standards in Finland Enables one to many – business transactions Promote e-invoicing among our own suppliers

Why? Cost savings Commitment The whole E-Procurement process in electronic form Benefits

I Saving area Cost savings 20 €/ Purchase invoice II Saving area III Saving area Paper invoices E-Invoices Handling AB ArchivingPaying Handling process is most important Why?

Planned E-Procurement model in Finland Invoice processing Ordering (Transactional buying) Sourcing (Strategic buying) electronic invoice processing Efficiency Through Automated Procurement Strategic E-Procurement Electronic Order Management: automated workflow E-Invoice in keyrole Why?

Commitment Direct debit Case ”Television fees” Case ”Automobile tax” No penalty interest E-Invoice is the ”roll-in product” to E- Business and E-Government in general. Why?

Key figures in Finnish Government Invoices B2G2,7 million G2B1,5 million G2C11,7 million e-invoices B2G50 % G2B3 % G2C3 % 89 % of invoices are sent to Consumers 64 Accounting offices What?

Governments Strategy No selfmade solutions: Only Off-the-self software solutions and services used Aim to be the Market Leader Active cooperation to enhance the use of e- invoice No mandatory legislation: Legislation has supporting role How?

Network for transporting business documents Large 2 % Medium-sized 1,6 % Small 96,4 % SuppliersCustomers Private persons Large companies Medium-sized companies Small companies Banks Service providers MAINSTREAM How?

Governments Business Model 1 Service provider (Itella) G2B, G2C, B2G Both inhouse and ”standard” formats Separated contracts with banks, G2C How?

Actions to raise the share of e-invoices RECEIVING First 100 biggest suppliers Automated process to change the suppliers sending paper invoices to send e-invoices (ITELLA) Banks and accountancy offices contacting suppliers Paragraph in framework agreements which presume e-invoce Introducing own e-invoicing software to small suppliers SENDING Common campaign with Itella, other big invoicers and banks to activate consumers to receive e-invoices The Activation of governments own personnel (86.000) How?

Statistics All Invoices are received electronically -Scanning service and E-Invoices (ITELLA) Share of E-Invoices received is over 70 % in best accountancy offices Average share of E-Invoices is 50 % Where?

Whole Purchase process GovernmentSupplier Order by purchase management system Market place Product catalogues of different suppliers Acceptance incl. posting Order Confirmation of order Electronic invoice acceptance system (Rondo) Transfer of order information to Rondo Delivery acceptance inspection Operator /Itella Einvoice Personal Ledger of account payable Automatic balancing Bank Automatic transfer feedback Vision: After purchase decision, whole purchase process shall be automated 17HO For taxpayers good!

“One way to put it” SAVING POTENTIAL OVER 3500 TREES For our common good!

Thank You ! Doubts? Questions?