Electronic Invoicing Overview. April, 2010

Transcription

1 Electronic Invoicing Overview April, 2010

2 Electronic Invoicing Topics Electronic Invoicing Overview Electronic Invoicing Benefits Supported File Formats Flat File Flat File Process Functionality Flat File Benefits & Barriers Flat File Process Flow Electronic Data Interchange () PO/ Process Functionality PO/ Benefits PO/ Barriers PO Process Flow Process Flow XML PO/ Process Functionality XML PO/ Benefits XML PO & Confirm Process Flow XML Process Flow Ariba Supplier Network Ariba Supplier Network Overview Ariba Process Flow Electronic Invoicing Technology Decision 2 April, 2010 Electronic Invoicing Overview

3 Electronic Invoicing Overview As part of the Structured Expense Initiatives (SEI Program), Citi has embarked on a global program to migrate supplier manual submissions of invoices to electronic submissions Initiative will enable electronic connectivity to Citi s suppliers for electronic PO routing, order confirmations, and invoice submissions Key business drivers for this initiative are to: Expedite supplier invoice receipt by Citi Payment Services Reduce manual entry time and error rates Improve overall processing time and payment return to suppliers 3 April, 2010 Electronic Invoicing Overview

4 Electronic Invoicing Benefits General Benefits of Electronic Invoicing Improves business processes, increases efficiency and produces resource cost savings Enables significant reductions in business and supplier expenses, such as postage, printing, phone calls, and handling Eliminates the human interaction and manual work required to process purchase orders and invoices; reduces input errors and processing time Transfers information faster and more accurately; shortens transaction processing cycles Enables on-line data storage of PO and documents Allows a company to take advantage of the benefits of storing and manipulating data electronically without the cost of manual entry Builds closer business partnerships Enables competitive advantage opportunities Integration of electronic documents means they can be processed much faster, reducing lead times and speeding up payments Supports on-demand processing of into the AP system 4 April, 2010 Electronic Invoicing Overview

5 Electronic Invoicing File Formats The Citi Procure to Pay system () supports the following electronic file formats: 1. Flat File format variable length text file submitted through a secure file transfer process (CitiSFT) 2. X12 structured data format - submitted through a value-added network (VAN), allowing trading partners to send and receive transmissions independently of one another; Citi s VAN is Advantis 3. XML structured data format (cxml Documents) - submitted through an HTTPS connection to the CitiSOA Internet Gateway (DMZ) 4. Ariba Supplier Network 3rd Party Supplier Network where vendors can upload or enter invoices which subsequently route to Citi electronically 5 April, 2010 Electronic Invoicing Overview

6 Flat File Process Functionality Flat File format A Citi Flat File Format specification is provided Submitted files must be of variable length, tilde (~) delimited text format Batch header and trailer record are required for each file information is provided in Header and Line records Each record in the file must be on a separate line in the file, terminating with a new line character An entire file not in compliance with the format will be rejected An Exception File will be provided to communicate invoice exceptions or file rejects Accounting information for all items/lines must be included for Non-Match to PO invoices 6 April, 2010 Electronic Invoicing Overview

7 Flat File Process Benefits & Constraints Benefits of utilizing Flat File Format This is the simplest and quickest electronic submission method to implement File transmissions between Citi and suppliers utilize a secure, encrypted method of transferring files across open networks (CitiSFT), based on the HTTPS, SFTP, and FTPS protocols File transfer activity is monitored and supported by the Citi network operations team 24x7 Constraints of utilizing Flat File Format Development cost for creating invoice file per Flat File specification Entire file rejections if file format errors detected (deviation from specification); file returned to FTP account it was sent from Entire file rejections if character errors detected (for ex. alpha character in a numeric field) 7 April, 2010 Electronic Invoicing Overview

8 Flat File Process Flow e (SSI) XML Manual and Updates Application Ex: CRM, ERP AP Exception Process AP Payables Import Process AP Workbench Rejections Rejections Secure File Transfer using HTTPS, SFTP, or FTPS protocols Flat File CitiSFT (Outbound File Transfer Service) CitiSFT (Inbound File Transfer Service) DMZ (firewall) Internet 8 April, 2010 Electronic Invoicing Overview

9 PO/ Process Functionality X12 Functionality A Citi Format specification is provided supports the ANSI X12 standard (v 4010) for electronic data exchange between and within businesses The following electronic messages/document types are supported: Purchase Order Outbound to vendors Live in the US Purchase Change Order Outbound to vendors Live in the US Inbound from s Live in the US Exception Outbound to s Live in the US has partnered with the Advantis VAN to transmit all inbound & outbound messages and authenticate/validate the messages 9 April, 2010 Electronic Invoicing Overview

10 PO/ Process Benefits Benefits of utilizing Data Exchange is the ideal solution for suppliers currently utilizing or planning to utilize technology is used as a strategic tool to reduce expenses, streamline business procedures, and create a competitive advantage transactions between companies flow faster and more reliably than paper documents electronic exchanges pass through the VAN allowing trading partners to send and receive transmissions independently of one another allows a company to take advantage of the benefits of storing and manipulating data electronically without the cost of manual entry Secure message transmission is provided between Citi and Advantis VAN; each document is authenticated and validated ( translator) VAN provides additional services; i.e. retransmitting documents, acting as gateway for different transmission methods, & handling telecommunications support 10 April, 2010 Electronic Invoicing Overview

11 PO/ Process Constraints Constraints to utilizing Data Exchange Business process changes are required to accommodate automated processing Costs involved in time and money in the initial set-up (implementation, customization, training) Transaction costs to utilize the VAN Companies must have the resources in place to make an program work Possible lack of technology expertise in-house however, outsourced solutions are available from Service Bureaus Perception that represents just a data format the correct business view is that is a system for exchanging business documents with external entities, and integrating the data from these documents into the company s internal systems 11 April, 2010 Electronic Invoicing Overview

12 PO Process Flow IP/PO Module Purchase Orders Purchase Order Changes Application Ex: CRM, ERP Purchase Orders Purchase Order Changes Purchase Orders 3 rd Party Translator Gateway Translator VAN A ADVANTIS VAN 850 File Translator File April, 2010 Electronic Invoicing Overview

13 Process Flow e (SSI) XML Flat File Manual and Updates Exceptions System Format Application Ex: CRM, ERP AP Exception Process AP Payables Import Process AP Workbench System Format Exceptions Exceptions 3 rd Party Translator Gateway PO Match Translator 810 File 824 VAN A ADVANTIS VAN 824 File 810 Translator 810 File 824 File 13 April, 2010 Electronic Invoicing Overview

14 XML PO/ Process Functionality XML Functionality Industry supported cxml standards (v ) have been established for The following electronic messages/documents are supported: 1. cxml Purchase Orders Outbound Direct to s 2. cxml Purchase Order Confirmation Inbound from s 3. cxml Inbound from s has partnered with the CATE (Citi Architecture & Technology Engineering) organization for transmission of all inbound messages and authentication of the messages Reporting and Transaction Monitor services are available 14 April, 2010 Electronic Invoicing Overview

15 XML PO/ Process Benefits Benefits of utilizing XML Messaging Industry standard for the exchange of information The extensibility and structured nature of XML allows it to be used as a common technology for communication between different systems and platforms XML supports platform, vendor and application neutral data One source of XML-based information can be formatted and distributed via a multitude of different channels with minimal effort. XML electronic messaging is direct to the vendor Information coded in XML is easy to read and understand Supports multilingual documents Mapping to existing file systems or relational databases is a relatively simple process Secure message transmission is provided between Citi and vendors as each document is authenticated and validated. 15 April, 2010 Electronic Invoicing Overview

16 XML PO/ Process Constraints Constraints to utilizing XML Business process changes are required to accommodate automated processing Costs involved in time and money in the initial set-up (implementation, customization, training) Companies must have the resources in place to make an XML program work Lack of XML technology expertise in-house however, outsourced solutions are available from 3rd party software consulting companies 16 April, 2010 Electronic Invoicing Overview

17 XML PO & Confirm Process Flow Application Ex: CRM, ERP XML Gateway (creates XML) Buyer IP/PO Module PO Confirm Message PO Message Transport Agent (delivers XML) DMZ (firewall) Internet CitiSOA DMZ (delivers PO confirm XML) 17 April, 2010 Electronic Invoicing Overview

18 XML Process Flow e (SSI) Flat File Manual and Updates Application Ex: CRM, ERP AP Exception Process AP Payables Import Process AP Workbench XML XML Gateway (Oracle Transport Agent) XML Gateway (Inbound Web Service) DMZ (firewall) Internet Citi-SOA DMZ 18 April, 2010 Electronic Invoicing Overview

19 Ariba Supplier Network Overview What is a Supplier Network? A 3rd Party Trading Network where buyers and suppliers can communicate via an electronic exchange. This includes a web portal Supports several document standards for Purchase Orders and cxml,, CSV, fax, manual, etc. Global and Secure Network to transact and manage suppliers Supplier Supplier Supplier Supplier Different File Formats One File Format to Citi Ariba Supplier Network Real Time documents Supplier Benefits of Utilizing Ariba Supplier Network Citi can utilize vendors already existing on the Supplier Network to quickly enable vendors to an electronic format within. Supports large and small volume vendors Reduced time in supplier onboarding/enablement Minimize coding/customization from supplier and Citi Multiple supplier document layouts supported Dedicated 3rd party team to help onboard new vendors not on the network Supplier Network will follow Citi standards Integrate with XML functionality to process the PO s and Supplier Network Portal used to interface with Reduction in the number of supplier inquiries for invoice status 19 April, 2010 Electronic Invoicing Overview

20 Ariba Process Flow On-line entry XML e (SSI) Flat File Manual and Updates Application Ex: CRM, ERP exceptions AP Exception Process AP Payables Import Process AP Workbench XML DMZ (firewall) XML Gateway (Oracle Transport Agent) XML Gateway (Inbound Web Service) Ariba Mapping Electronic Files (, cxml, CSV) Web Portal Internet Ariba Supplier Network Internet Citi-SOA DMZ 20 April, 2010 Electronic Invoicing Overview

21 Electronic Invoicing Technology Decision Considerations for Electronic File Format: If cost, resource constraints, or ease of implementation are major considerations then consider using the Flat File format for electronic invoicing If your company already has an investment in technology or an interest in using technology then consider the format for electronic invoicing If your company is already using XML, or has an interest in greater levels of standardization, or has an interest in implementing the technology that will eventually be used widespread on the web then consider the XML format for electronic invoicing 21 April, 2010 Electronic Invoicing Overview