2015 SIS e-invoicing Awareness Workshop 9/10 June, 2015 Beijing

Transcription

1 In a Nutshell 2015 SIS e-invoicing Awareness Workshop 1 9/10 June, 2015 Beijing

2 Benefits of SIS e-invoicing Save money Reduce human factors Save time Reduces lost and mishandled invoice Reduced costs by going paperless Faster reconciliation due to higher data quality One electronic invoicing platform - One XML standard for invoicing all your partners - Structured rejection process - Full integration with ERP - Better value proposition for the supplier: Connect once connect to all 370 airlines already using the platform Improve efficiency: - Data quality - Speed of information - Automation - Access to detailed information - Audit trail 2015 SIS e-invoicing Awareness Workshop 2 9/10 June, 2015 Beijing

3 Benefits for carriers Leverage on the connection to the SIS service. Receive invoices with the operational data required for reconciliation Enables information quality that meets the airlines needs and financial efficiency such as automation Improved financial processes, dispute handling and relationships with suppliers Give flexibility for business processes (outsourcing and insourcing) 2015 SIS e-invoicing Awareness Workshop 3 9/10 June, 2015 Beijing

4 Benefits for industry suppliers Access to operators : airlines, low cost, Charter, business jets. Aviation industry suppliers show strong interest in a single solution to connect to most of their customers Reduce cost by becoming paperless No postage/delivery/archiving costs No missing data and fewer or no rejections by the recipient Faster settlement and better cash flow Reduced processing time of high quality data invoice Increase the speed of validation allowing invoice adjustment before settlement 2015 SIS e-invoicing Awareness Workshop 4 9/10 June, 2015 Beijing

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6 SIS E-INVOICING AWARENESS WORKSHOP Meriem Hamidouche Manager Finance (business transformation)

7 ETIHAD S PAYABLES PROCESS Receive Invoice Register Invoice Validate & reconcile Invoice Pay Invoice 85 % Invoice by Mail 5 % Self Billing Catering, AUH Airport taxes & Ground services Indirect Cost: Directly In ERP Direct Operating Cost: Indirect Cost THREE WAY MATCHING (Invoice / Receipt / PO) Direct Operating Cost: Choose payment location and bank Run batch payments 5 % Electronic invoice Euro Control XML In the Cost Accounting System In the Cost Accounting System We process 25,000 invoices per month Auto Validation with 99% accuracy against Accruals Then transfer to ERP Average 11,000 payment per month across 55 countries The main risk to ensuring 100% accurate, complete and timely invoice processing and payment is the manual way we receive invoices and the lack of standardized granular information!

8 How? INVOICE VALIDATION & RECONCILIATION Cost Category Value Volume Direct Operating Cost 80% 20% Fuel, Overflying & Navigation, Ground Handling, Catering, Crew, Reservation, Maintenance, Aircraft Overheads 20% 80% Marketing, IT, Admin, Training, Rent 3 WAY MATCHING PO / RECEIPT / INVOICE PO Based Contractual Rates Data maintained in a Cost Register system Operational Daily Activity Integrated data from operational system AIMS, Cost Accounting Engine - ALMEERA Accruals At flight level! We know our cost when we spend it! Invoice Validation At Flight Level 99% Accuracy! Airport Managers report ADHOC activities within 24 hrs. from flight departure Daily Airport Reporting Tool

9 CHALLENGES AIRLINES & SUPPLIERS High volume and manual data entry Invoices lost in transit Insufficient and inaccurate data in paper Manual dispute resolution Too many billing formats & processes Too many interfaces to maintain Lack of visibility for supplier receivables Expensive back office cost Negative impact on relationship Negative impact on operation Current process not scalable What do we need A paperless, electronic invoicing solution that fits all industry suppliers

10 OVERALL E-INVOICING OPTIONS There are numerous e-invoicing solutions in the market, but no one size fits all Minimize number of platforms & choose the right platform for the right group of suppliers Enabler to SIS & EDI Solution IATA SIS IS-XML Format PDF CONVERTOR Supplier Cat. DOC NDOC DOC (Minority) EDI UPLOAD XML Format NDOC DOC (Minority) Invoice Volume 20 % 80 % Invoice Value 80 % 20 % I-SUPPLIER Standard Upload NDOC DOC (Minority) SCANING OCR NDOC DOC (Minority) For Airline related suppliers, our preferred solution is IATA SIS Platform One industry standard for suppliers to bill all airlines Unlike other similar tools, IATA has the ability to mobilize the industry

11 BENEFITS OF SIS E-INVOICING FOR AIRLINES Reduced AP cost - Automation Increased accuracy better data quality Reduction of Banking Fees (One transfer instead of Many) when using ICH FOR SUPPLIERS Reduced AR cost Guaranteed Timely Settlement No lost invoices Full visibility on your receivables Connect once, connect to all - Single migration access 350 airlines COMMON BENEFITS Faster Payment no penalty, access to EPDs, better cash flow) Simplified Financial Reconciliations ( One Payment & One Receipt ) One global standard (IS- XML) simplifies process & reduce software integration cost Better relationship and increased productivity

12 SIS E-INVOICING MAKING IT HAPPEN IN EY 1- Airline system integration to SIS 2- Vendor Target List 3- Vendors Mobilization & enrolment 5- Vendor System Integration 6- Test and Go Live Airlines must start by: Reviewing the ISXML standard integrate the standard to internal system used for invoice validation and reconciliation (ERP or Cost Accounting) Organize a test with few suppliers in the main areas Top 30 or 50 Suppliers Based on: Selected category Invoice volume System readiness IATA platforms (match maker and mobilization workshops) Other Airlines to focus on home market suppliers Internal Mobilization Procurement - during regular meetings & contract negotiation Operation on daily basis & during performance review It is critical that the main system providers (ERP or Cost Accounting System) enable the interface with the SIS IXML as a standard functionality!!

13 Payables Receive Invoice Register Invoice Invoice verification Pay Invoice Invoice by Mail 4% Electronic Invoice 19% (XML and SPEC2000) Post box / Scan 77% (through internal workflow in SAP office) We process 26,000 invoices every four months Direct Operating Costs: Fuel Cost (Fuel Management Sistem then trasfer to SAP ) Ground Handling, Catering ATC, Leasing aircrafts, Maintenance Directly in SAP Indirect Cost: Marketing, IT, Training, Rent, etc. Directly in SAP Purchase Order 89% PO (three way matching) 70% (Invoice / Receipt / PO) XML electronically 10% (Fuel Management System) SPEC2000 electronically 9% (AMOS => SAP) Not Purchase Order 11% Invoices register directly in SAP Choose payment location and bank Run manually payments Average 6,000 payment per month Accelerate the payables processes through automation: increase Electronic invoices number, direct invoices registration in SAP, improve the payment process. Reducing the risk of manual registrations.

14 P2P => Ground Handling Accounting Process Flight Daily activity +72h Company database Automatic for Basic handling/landing Contracts & price lists Daily entry sheet P X Q INVOICES Registration Invoice Validation Station Manager Data entry for adhoc services Standard Sap programm For adhoc services Flight Profitability Fast invoice processing Supplier Invoice Accounting Department

15 P2P => Fuel Accounting Process Daily activity ATL, BDP, EFB Flight Contracts & price lists Procurement Pilot Fuel Management System INVOICES Daily entry sheet P X Q Invoice Quantity verification Invoice Total verification Fuel Management System Data: - Aircraft name; - Flight n ; - station departure and arrive; - Date and hour; - Aircraft type; - Quantity and Unit Misure; - Supplier; - N ATL. Supplier Invoice (xml and pdf) Accounting Department

16 Print / PDF invoices EDI invoices Current Process Direct Operating Costs Receiving Registration Validation Payment Approval Airpas interface no manual action interface to account. system Airpas: invoice verification: match of flight data from operating systems and contractual rates payment approval in account. system interface to payment system Cost controlling scan of paper invoice.pdf invoice per invoice registered manually acc.system Airpas Reporting Interface to acc. system Fuel invoices: Ø 0,9 days Ground Ops invoices: Ø 10,3 days 18

17 Focus Direct Operating Costs key facts Cost type / DOCs EDI PDF Print Fuel 80% 15% 5% Volume: ~ invoices per year Ground Ops / ATC 20% 70% 10% Current projects: Processing catering invoices through Airpas / EDI Increase share of invoices with EDI data Accelerate current process (ip. GO invoices) IATA SIS platform 19