slides on electronic invoicing
Content
Electronic Invoicing
Definition (Invoice)
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.
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Introduction
An invoice is essentially a detailed bill left by vendors and outside suppliers for goods or services rendered to a company. A typical invoice might list the quantity of each item, prices, billable hours, service description and a contact address for payment. An invoice is usually paid through and accountable department by the posted due date.
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The issuing of invoices
± Any taxable person or non-taxable legal person who makes any supply, other than a supply in respect of which a tax invoice is required to be issued in terms of article 50, shall provide to the person to whom the supply is made an invoice, Thirteenth Schedule.
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The issuing of invoices
Obligation to issue an invoice: Supplies of goods and services to and payments on account by: ± taxable persons and non-taxable legal persons Supplies (to a.o. non-taxable private individuals): ± distance sales ± intra-Community supply of a new means of transport ± intra-Community supply of an excise product
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Intra-community supply
Intra-community supply relates to goods supplied by a business in one European union member state to a business in another union which have been dispatched or transported form the territory of country to another country as result of such supply
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REGULAR INVOICING = invoice issued by the supplier SELF-BILLING = invoicing done by the customer: ± Prior agreement between parties ± Procedure for the acceptance of each invoice by the supplier/service provider The use of self-billing is subject to a (prior) approval by the Commissioner, except when the customer is the person liable for the tax on the supply concern.
OUTSOURCING = invoice issued by a third party in name 8 and for the account of one of the parties of a transaction
E-invoicing
The automated process of issuing, sending, receiving and processing invoice data by electronic means.
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E.Invoicing
Modern, reliable, secure and practically paperless method of handling and processing invoices for goods, services and other transactions. Both companies and private consumers can receive invoices in electronic format. Effective and cost-efficient, and has potential for great savings E-invoicing can halve invoicing costs compared to invoicing with printed invoices
10
E.Invoicing
Distribution of invoices mainly by eInvoice operators Contracts between operators B-2-B RosettaNet specification implemented especially in electronic industry
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How the E.invoicing Forum Works?
The main focus is to develop co-operation betweenor Fum member organizations in the area of eInvoicing Promote and accelerate the development between different parties and to increse co-operation and information sharing Find the acute areas and topics that need to be operated on Twice a year a free-of-charge meeting for members
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Electronic invoicing (EDI)
Electronic data interchange is the electronic transfer, from computer to computer, of commercial and administrative data using an agreed standard to structure an EDI message. An EDI message consists of a set of segments, structured using an agreed standard, prepared in a computer readable format and capable of being automatically and unambiguously processed. EDI message standards are essential to EDI. In practice EDI is often used for the bulk transfer of data (e.g. files, often containing hundreds of individual invoices) between trading partners who are known to each other.
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Electronic invoicing (EDI)
EDI (Closed) Network
Buyer Seller
Price Quote Purchase Order Order Acknowledgment Invoice
Payment Instruction
Payment Advice
Payment Network
Payment Processing & Settlement
15
Originating Bank
Receiving Bank
Benefits of E-Invoicing
There are no printing and envelope costs of paper invoices and putting them in the envelope. There are no mailing costs associated with einvoicing There are no costs associated with opening invoice letters Time and money is also saved with easy fast filing and retrieval in computer systems
16
Extremely Easy to use Credit card and/or ACH (electronic check) acceptance. Send unlimited invoices Email or print invoices Direct deposit of funds into checking account Automated recurring invoicing
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Automated past due reminders Automated email receipts Convert invoices and receipts to PDF for electronic filing Customize frequency of recurring invoices and past due reminders Customize email content of invoice and past due notices Payment and status reports of outstanding, paid and past due invoices
18
Tip field for food/catering businesses (optional) Ability to post promotional messages to Website portal Web-based solution; No software to download or maintain Customizable tax rate Attach document files to emails Ability to monitor receivables across multiple business units (Franchise Manager
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Definition (Invoice)
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.
2
Introduction
An invoice is essentially a detailed bill left by vendors and outside suppliers for goods or services rendered to a company. A typical invoice might list the quantity of each item, prices, billable hours, service description and a contact address for payment. An invoice is usually paid through and accountable department by the posted due date.
3
4
The issuing of invoices
± Any taxable person or non-taxable legal person who makes any supply, other than a supply in respect of which a tax invoice is required to be issued in terms of article 50, shall provide to the person to whom the supply is made an invoice, Thirteenth Schedule.
5
The issuing of invoices
Obligation to issue an invoice: Supplies of goods and services to and payments on account by: ± taxable persons and non-taxable legal persons Supplies (to a.o. non-taxable private individuals): ± distance sales ± intra-Community supply of a new means of transport ± intra-Community supply of an excise product
6
Intra-community supply
Intra-community supply relates to goods supplied by a business in one European union member state to a business in another union which have been dispatched or transported form the territory of country to another country as result of such supply
7
REGULAR INVOICING = invoice issued by the supplier SELF-BILLING = invoicing done by the customer: ± Prior agreement between parties ± Procedure for the acceptance of each invoice by the supplier/service provider The use of self-billing is subject to a (prior) approval by the Commissioner, except when the customer is the person liable for the tax on the supply concern.
OUTSOURCING = invoice issued by a third party in name 8 and for the account of one of the parties of a transaction
E-invoicing
The automated process of issuing, sending, receiving and processing invoice data by electronic means.
9
E.Invoicing
Modern, reliable, secure and practically paperless method of handling and processing invoices for goods, services and other transactions. Both companies and private consumers can receive invoices in electronic format. Effective and cost-efficient, and has potential for great savings E-invoicing can halve invoicing costs compared to invoicing with printed invoices
10
E.Invoicing
Distribution of invoices mainly by eInvoice operators Contracts between operators B-2-B RosettaNet specification implemented especially in electronic industry
11
12
How the E.invoicing Forum Works?
The main focus is to develop co-operation betweenor Fum member organizations in the area of eInvoicing Promote and accelerate the development between different parties and to increse co-operation and information sharing Find the acute areas and topics that need to be operated on Twice a year a free-of-charge meeting for members
13
Electronic invoicing (EDI)
Electronic data interchange is the electronic transfer, from computer to computer, of commercial and administrative data using an agreed standard to structure an EDI message. An EDI message consists of a set of segments, structured using an agreed standard, prepared in a computer readable format and capable of being automatically and unambiguously processed. EDI message standards are essential to EDI. In practice EDI is often used for the bulk transfer of data (e.g. files, often containing hundreds of individual invoices) between trading partners who are known to each other.
14
Electronic invoicing (EDI)
EDI (Closed) Network
Buyer Seller
Price Quote Purchase Order Order Acknowledgment Invoice
Payment Instruction
Payment Advice
Payment Network
Payment Processing & Settlement
15
Originating Bank
Receiving Bank
Benefits of E-Invoicing
There are no printing and envelope costs of paper invoices and putting them in the envelope. There are no mailing costs associated with einvoicing There are no costs associated with opening invoice letters Time and money is also saved with easy fast filing and retrieval in computer systems
16
Extremely Easy to use Credit card and/or ACH (electronic check) acceptance. Send unlimited invoices Email or print invoices Direct deposit of funds into checking account Automated recurring invoicing
17
Automated past due reminders Automated email receipts Convert invoices and receipts to PDF for electronic filing Customize frequency of recurring invoices and past due reminders Customize email content of invoice and past due notices Payment and status reports of outstanding, paid and past due invoices
18
Tip field for food/catering businesses (optional) Ability to post promotional messages to Website portal Web-based solution; No software to download or maintain Customizable tax rate Attach document files to emails Ability to monitor receivables across multiple business units (Franchise Manager
19
