Benefits of electronic invoice
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Transcript of Benefits of electronic invoice
MADE TO TRADE.Benefits of electronic invoice
Mikhail SklyarovHead of finance divisionMETRO Cash & Carry Russia
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
METRO Group structure at a glance
International, high-performing retailing company
Successful DAX-30 enterprise
About 2,100 locations in 32 countries
Approx. 300,000 employees from 150 nations
Operational strengths of the four sales divisions Metro Cash & Carry: self-service wholesale Real: hypermarkets Media Markt and Saturn: consumer electronics stores Galeria Kaufhof: department stores
Active real estate management with independent profit centre
Focused on profitable growth as well as sustainable and consistent value enhancement
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
METRO Cash & Carry Russia
Key facts:
Operative:
Sales 2009, EUR
Employees
Stores 52
13.000
2.6 bn
2001
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Content
1 Benefits of e-invoice
2 E-invoice as part of EDI
3 Implementation of e-invoice
4 Summary
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
1-3 thousand hectares of forest is cut each year to produce paper for VAT invoices
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
The weight of this paper is 300 tons
To store this paper we need 1000 pallets or 30 trucks or 5000 sqm warehouse
Official requirement is to keep documents at least 5 years
MCC RU store 60 million pages of VAT invoices per year
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Comparison of e-invoice and paper process
Retail companySupplier
ERP system
Invoice
Invoice control
Documents
receiving
Paper Process
Retail companySupplier EDI invoice
EDIproviderERP system
EDI invoice
EDI Process
ERP system
ERP system
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Paper invoice E-invoice
Document delivery- +
Lost paper invoices- ++
Invoice entry- ++
Invoice check and approval
- +
Time for invoice processing
- ++
Invoice storage - ++
Master data quality - ++
Investment + -
Benefits of e-invoice
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Cost comparison for invoice processing
Paper invoice e-invoice
Invoice receiving 5 0
Invoice scanning 5 0
Invoice entry 20 0
Invoice approval 30 0
Claims management 35 0
Invoice storage 5 0
EDI support 10
Total: 100 10
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
• Electronic document is not changeable
• Secure access to the information for Tax inspection
• Checking of electronic data is faster and more convenient than checking of paper invoices
• Protection of environment
• Modernization and competitiveness of the economy
Government
Electronic document flow implementation will bring significant benefits both for business and for Government:
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
EDI advantages
Electronic document flow implementation will bring significant benefits both for business and for Government:
Business
• Invoices are issued electronically, less efforts and mistakes for document creation
• Fast exchange of information
• Nearly no cost for document delivery
• Invoices are processed automatically
• The lack of mistakes during invoice entering and processing
• Little invoice storage costs
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Content
1 Benefits of e-invoice
2 E-invoice as part of EDI
3 Implementation of e-invoice
4 Summary
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
EDI is a standard of electronic message exchange between supplier and retailer
ORDERS – Electronic order
RECADV – Confirmation of delivery
DESADV – Dispatch advice
INVOIC – E-invoice
* Together with paper
EDI Provider
90%
30%
2%*
30%
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Content
1 Benefits of e-invoice
2 E-invoice as part of EDI
3 Implementation of e-invoice
4 Summary
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Country rollout of EDI Invoice
RU
TR
PLDE
HUFR
PT ES
BE
UA
Germany Live 01/1989France Live 12/2005Belgium Live 12/2005Hungary Live 10/2007Russia Live 07/2009
Portugal Test 01/2008Live 02/2010
Spain Test 11/2008Live 01/2010
Turkey in progressPoland in progress
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
EDI invoice implementation in Russia (in parallel with paper)
Aim of the project: Implement EDI invoice with suppliers. As soon as necessary law changes are adopted immediately switch to EDI invoice without paper.
Current status: 63 suppliers are in production, another 600 suppliers are in test including Kraft foods, Nestle, WBD.
Target 2010: receive 5% of the invoices by EDI
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
EDI process together with paper
Paper invoice
Sup
plie
r
Reconciliation of EDIand paper invoice
Retail chain
Invoice payment
Input of total data
Goods receiving data
Store
Archive
EDI invoice
Paper invoice
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Legislation is still an open issue
Make amendments to article 169 of Tax code
Make amendments to accounting law
From legislation point of view
E-invoice = Paper invoice
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
E-invoice pilot with provider Taxcom
The following processes have been tested:
Creation of E-invoice
E-invoice interchange between supplier and customer
E-invoice request by tax office
E-invoice format remained an open issue
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
E-invoice format should be EDI compatible to be integrated in EDI process
ORDERS –
Electronic order
DESADV –
Dispatch advice
RECADV –
Confirmation of delivery
INVOIC – E-invoice
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Content
1 Benefits of e-invoice
2 E-invoice as part of EDI
3 Implementation of e-invoice
4 Summary
MADE TO TRADE. Mikhail Sklyarov: June 2010 | © METRO AG 2010
Summary
E-invoice is a strategic project which is supported by business as well as government
E-invoice brings a lot of benefits for all parties involved
Legislation and data format are main open issues