Streamline Your Processes with Invoice4you for HighTech

Invoice4you for HighTech

hello and welcome to this video on the European standard on electronic invoicing the e-invoicing directive calls for the definition of a common european standard on electronic invoicing the directive dictates that Member States shall adopt it so that it will become mandatory for all contracting authorities and contracting entities to receive in process e'en voices complying with the European standard this video will explain three important components of the e-invoicing standard the core the sires and extensions to do this we'll have a look at a couple of examples Maria works for the central government and is responsible for procurement she buys phone services from Lucy who works for a phone service company Maria and Lucy take on the role of buyer and seller in this scenario likewise we have Dmitry working for a public hospital and Bernhard a food manufacturer they to exchange goods and services in the role of buyer and seller both buyers request goods or services in large quantities and have a long-term relationship with the sellers both buyers receive an electronic invoice now when comparing the invoices we see many similarities but there are some differences in the invoice that Lucy sends to Maria we find the name and address of both buyer and seller a description of the service the invoice amounts and phone usage information on the invoice that burn incense to Dmitri we also find the name and address of both buyer and seller a description of the service the invoice amounts but we also find something called the product batch information now imagine if Dmitri buys the phone service from Lucy and receives Lucy's invoice Dmitry cannot properly process the invoice as his computer was expecting to receive the product batch information but instead it got the phone usage information field and hence cannot process it to process the invoices correctly it takes a technician to adjust the invoice processing system costing both time and money to his Public Administration now many public administrations face this challenge especially in an economic environment that is globalizing at a rapid pace now the European Commission is removing this barrier by introducing the European standard on electronic invoicing the team charged with developing the european standard identified the information that is used in most invoices and based on this specified what we call the core invoice some of the core information is mandatory in all invoices but some of it is optional and is included only when necessary in all cases if both seller and buyer conformed to the european standard the seller will know that if he sends the information the buyer will be able to process it correctly now Lucy knows that her invoice will be processed correctly not only by Maria but also by Dmitry and any other public administration that follows the European standard the standard recognizes that the core may not suit all invoice exchanges for some there may be too much information while others may want additional information there are those two distinct variations that can apply let's examine the first one in the following scenario in which options are being removed some information elements in the core invoice allow for options for example in regard to payment instructions the core allows for multiple payment options including a separ credit transfer non separate transfer direct debit or the element can be left empty since in some cases payment method is defined in the contract now let's suppose to meet she needs to limit these options to only allow SEPA credit transfers to ensure that he conforms with some legislation this means that Demetri implements a restricted version of the standard that has been made available that those who fall under this legislation the standard cause this a call invoice usage specification or a situs for short because this scientist is using just one of the options provided by the core the science falls within the European standard and therefore Dimitri is fully compliant the invoice can be processed by anyone that supports the standard without restrictions however even though Sciences comply with the European norm they may still challenge interoperability in our example Maria supports the full core invoice without restrictions and Lucy always uses non SEPA credit transfer as a payment option in her invoices she can send her invoice to Maria who can process it without an issue but when sending to Dimitri she must adjust her invoice to Dimitri science to limit such conflicts and reduced the need for adjustment it's advised that buyers are able to receive the full core invoice or adopt common sizes that are widely used in the following scenario we'll take a look at the other variation on the European norm where information is added maria receives phone information from Lucy and she wants all phone service companies to send her this information for this she may implement except toriel extension that may have been developed for the phone service industry sector where this extra business term is added into the invoice specification and then ask all phone service companies to provided this information by supporting the extension this variation is called an extension in the European standard to use an extension there must be a bilateral agreement between the buyer and the seller now Lucy and Maria can continue doing business as before and Maria can receive the phone information from other phone suppliers who willing to support the extension but because the invoice is not following the core anymore these extended invoices will not be processed by Lucy's other buyers who only accept the standard without extensions because extended invoices require bilateral agreements they fall outside of the European norm therefore everyone must support the core or Esaias to comply with the standard even though they may also use extended invoice by agreement with certain business partners thank you for watching alongside this video sefie invoicing offers a free service package that gets you started with the invoicing in public procurement and helps you comply with the European standard and its specifications it includes services documentation and tools come and check them out on SEF digital and let's connect Europe together