Only e- invoices — please Case State of

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

Agenda • State Treasury Who? • 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 electronically • Where?

State Treasury The State Treasury is a service bureau that is run on quality management principles. It operates in three divisions under the Ministry of Finance. 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. Who? 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 Insurance division is the State’s insurance institution. It promotes risk management in the entire central government.

Participants • Ministry of Finance: • Responsible for strategic quidelines • TIEKE, the Finnish Information Society Development Center • Promotes e. Business in Finland 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 Who?

Participants 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 Who?

Participants 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 Who?

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

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

Planned E-Procurement model in Finland Why? Efficiency Through Automated Procurement Strategic E-Procurement Electronic Order Management: automated workflow E -Inv oic Sourcing e inelectronic invoice processing key rol e Invoice Ordering (Strategic buying) (Transactional buying) processing

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

Key figures in Finnish Government Invoices B 2 G G 2 B G 2 C 2, 7 million 1, 5 million 11, 7 million e-invoices B 2 G G 2 B G 2 C 50 % 3% 3% 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 einvoice No mandatory legislation: Legislation has supporting role How?

Network for transporting business documents Suppliers Customers Service providers Large 2% MA Medium-sized 1, 6 % How? Large companies INS Medium-sized companies TR EA M Small 96, 4 % Small companies Private persons Banks

Governments Business Model 1 Service provider (Itella) G 2 B, G 2 C, B 2 G Both inhouse and ”standard” formats Separated contracts with banks, G 2 C How?

Actions to raise the share of e-invoices How? 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)

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

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

Doubts? Questions? Thank You !