1. Finvoice – an online invoice for business-to-business payments February 2007

2. What is Finvoice? Finvoice is an invoice devised by Finnish banks for presentment online by the invoicer to the payer –Similar bank-devised standards are applied to account-to- account transfers and statements of account Finvoice is an invoice in machine-readable form enclosed in an envelope which replaces the traditional paper invoice Finvoice automates financial administration: incoming invoices are coded (posted to accounts), matched against orders and paid automatically Finvoice is a solution suitable for invoicing between businesses of any size, also for invoicing to consumer customers Finvoice can be sent to recipient through banks’ online invoice transmission service

3. Finvoice online invoice Promotes introduction of online invoicing in Finland and automates invoicing and accounting in businesses Lowers threshold for accepting invoices online Provides a uniform way to present and transmit online invoices Available through alternative transmission services –bank via banking software –invoice processor Finvoice descriptions and help files with sample Finvoice invoice can be downloaded at www.finvoice.info

4. Online invoicing through bank Nearly all Finnish businesses have an online banking facility –no need to invest in new technology Finvoice online invoice and an online banking facility between business and bank make up an unparalleled invoicing choice for any business Members of the scheme: –Nordea –Sampo Bank –OP Bank Group –Aktia –savings banks –local cooperative banks –Svenska Handelsbanken –Bank of Aland –Tapiola Bank Finvoice online invoices move from bank to bank or through other operators

5. Finvoice transmission pattern BANK A BANK B Invoice processor Invoice processor CUSTOMER 1 CUSTOMER 1 CUSTOMER 2 CUSTOMER 2 CUSTOMER 4 CUSTOMER 4 CUSTOMER 3 CUSTOMER 3 = contractual relationship Transmission agreement between customer and bank Service agreement between customer and invoice processor Transmission agreement between customer (business or consumer) and bank Transmission agreement between customer and bank Service agreement between customer and invoice processor

6. Large businesses Invoicers Payers Solutions tailored to fit all needs Uniform pattern enhances automation Finvoice can be sent to both personal and corporate customers Banks Finvoice channelled through bank Large businesses SMEs Self-employed Consumers

7. Finvoice created at invoicer’s end Invoice Invoicing- address Buyer: - Name, address, - Invoicing address - Invoicing form (Finvoice, paper) - Specification Yes No Paper invoice Finvoice Online banking software Kuoritus eLetter No OUTGOING INVOICES/ ACCOUNTS RECEIVABLE FINVOICE INVOICES BANK eLetters file Mailing Printer Putting into envelopes

8. Invoicee gives the invoicer its online invoicing address Invoicer’s system produces Finvoice-compliant invoice Invoicer sends the invoice out either via bank (using online banking software) or via invoice processor Incoming payments monitored in the same was as earlier How Finvoice works at invoicer’s end

9. Cost savings –Cost of invoice printing, mailing and material is saved Value added to customer relationship –Payer can process invoice mechanically –Invoice is coded to account on behalf of payer –Quick delivery leaves more time to pay or makes it possible to apply earlier due date Benefits for invoicer

10. Finvoice processed at invoicee’s end Automatic sign-in Finvoice invoices ACCOUNTS PAYABLE Formation of payments data Invoice Manual sign-in Scanning Bill payment service Online banking software Archive Account- ing Online banking softawre Invoice circulation system eg eFlow, eOffice, Rondo etc BANK

11. Payer gives its invoicing address to invoicers Payer retrieves incoming invoices from bank using its own banking software or receives the invoices direct to its online banking facility Payer can automate invoice processing (circulation, checking, approval, coding to account, payment and filing), open invoice with browser and print out if needed How Finvoice works at payer’s end

12. Invoice processing costs less –working time and materials are saved Payment data is easy to process Service is easy to adopt and use, opens with browser Invented for businesses with electronic financial administration –Invoice comes in electronic form –Invoice is automatically matched against order –Invoice is automatically coded to account –Allows automatic processing of discounts Benefits for payer

13. Online invoicing address is agreed with bank –Address identifies the parties across borders –Address may consist of eg IBAN account number (International Bank Account Number) –as IBAN is already part of many financial administration systems, its use will not bring anything new to the procedures Businesses capable of sending online invoices are listed under www.tieke.fi/verkkolaskuosoitteisto Online invoicing address

14. How to start Finvoice service Make sure with your software supplier that your software is capable of processing and creating Finvoice online invoices Agree with your bank about adoption of the service Give your invoicers the invoicing address agreed with the bank Ask the invoicees for their invoicing addresses Save the payer’s invoicing address in your invoicing system List of invoicers and invoicees with contact details is available at address: www.tieke.fi/verkkolaskuosoitteisto

15. Further information available at: www.finvoice.info