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Ludwig Jahrstorfer

Product Strategy P2P & Invoicing

Finance and invoicing are not industry or country specific; they are cross-industry and global. This makes it a very exciting field to work in, as all companies around the world have to deal with it.

My job at SupplyOn is to set the strategic direction for our purchase-to-pay and invoicing solutions. To accomplish this task, I am in close contact with customers and business partners.

I am convinced that digitization offers companies enormous potential for optimization. It is my passion to discover this potential together with our customers and to work on new solutions.

Posts by Ludwig Jahrstorfer:

SCM Insights

Growth Opportunity Act: Germany goes eInvoicing

On March 22, 2024, the Growth Opportunities Act was passed by the Bundestag and Bundesrat in Germany. With the introduction of this law, the federal government aims to boost Germany's attractiveness as a business center.Part of the Growth Opportunities Act is the introduction of mandatory eInvoicing in Germany. Domestic invoicing is to be digitized through the gradual introduction of electronic invoice formats. The clear goal: no more paper and no more PDFs.Two standard formats have been defined for electronic invoices: X-Rechnung and ZUGFeRD.X-Rechnung is a pure XML format and has already been known in the business-to-government environment for a few years.ZUGFeRD, on the other hand, is a hybrid format. Here, a human-readable and interpretable PDF invoice is embedded in a machine-readable XML file.An overview of the exact timeline for the introduction and who is affected and when:From 2025, all companies must be able to receive e-invoices in the formats defined by the government. Regardless of company size or turnover.In 2027, only smaller companies with an annual turnover of less than 800,000 euros will be allowed to send PDF and paper invoices.From 2028, these formats will no longer be permitted. X-Invoice and ZUGFeRD invoices will then be the new standard. The use of alternative electronic invoice formats remains permitted as long as the formats are compliant with EU standard EN16931.EDIFACT was controversial for a long time. Business associations have called for this transmission channel to be retained. The government has complied with this request and continues to allow EDI as a transmission channel - subject to the following conditions: EDI data formats must comply with EU standard EN16931 and a bilateral agreement between sender and recipient, i.e. customer and supplier, is required.Unlike other countries, Germany has decided against a central government platform for the eInvoicing model itself. Invoices must comply with the new formats, but the transmission channel can be chosen freely. Germany is therefore taking a different approach to countries such as Italy, where all invoices must be sent via a central government platform.The introduction of mandatory eInvoicing in Germany serves as preparation for the planned EU reform VIDA. VIDA stands for "VAT in the Digital Age" and is an EU initiative. According to the current schedule, from 2028, EU invoices exchanged between two EU countries will only be permitted in a structured and machine-readable format, i.e. EN16931-compliant.At the same time, the introduction of a standardized tax reporting system is planned via VIDA. The EU plan envisages the introduction of central tax reporting platforms at both national and EU level. Companies in each EU country will report their tax data to the national platform, which in turn will forward the data to the central EU portal. For Germany, e-invoicing therefore forms the basis for the introduction of the standardized tax reporting system as part of VIDA.SupplyOn is currently developing an invoicing add-on for Germany that will make it possible to process 100% of invoices received within Germany - regardless of whether the supplier is registered with SupplyOn or not. In addition to receiving the invoices and converting them into a desired target format, SupplyOn also takes over the complete validation of all invoices against previous documents such as the purchase order. SupplyOn can also enrich additional invoice data. All with the aim of achieving the fullest possible automation of incoming invoices on the customer side with a dark posting rate of over 90%.
Growth Opportunity Act: Germany goes eInvoicing
SCM Insights

Maximum transparency with Payment Status Overview

In many companies, the accounting department often runs out of time to concentrate on value-adding activities. Instead, a lot of effort is invested in processing incoming inquiries. Time that is not spent on important tasks. Accounts Payable specialists are well trained and often solve complex financial issues. In most cases, the supplier requests are just about when an outstanding invoice will be paid. Checking the processing status takes up a lot of time, resources and ultimately costs companies unnecessary money.Together with Bosch as a pilot customer, SupplyOn has developed a new Invoicing add-on that provides all suppliers with information on the processing status of their invoices with just one click. The "Payment Status Overview" add-on solves this task via a freely accessible web portal that does not require a login. By entering the invoice number, amount and date, the information is retrieved directly from the customer ERP system and displayed to the user. This allows them to see whether the invoice has been successfully received, is still being processed or the payment is already planned. Any rejection is also displayed in the overview. Further status messages are also possible. Optionally, the payment date can also be retrieved from the customer ERP and displayed to the supplier. The added value of this solution benefits suppliers as well as customers. The resulting advantages include:Suppliers receive a transparent status of the processing status of their invoices at any timeYou no longer need to check the payment date with the customer's supplier accounting departmentFor customers, the solution offers a significant reduction in incoming inquiriesA considerable amount of time and effort can be saved in the accounts payable department this wayThe highlight of the Payment Status Overview solution is its free availability to all suppliers. No registration or password entry is required. By simply entering the necessary document data, it is ensured that no unauthorized access occurs, as only the supplying company and the customer are in possession of this data.Here is a business case calculation from the customer's perspective:Assuming it takes about 10 minutes to process a request - from opening the e-mail, reading the request, searching for the processing status of the invoice, and writing a reply to the supplier. In addition, an hourly wage for a bookkeeper of €30 per hour is assumed. As a result, the cost per inquiry is €5. With 20,000 inquiries per year from suppliers regarding the invoice status, this results an annual saving of €100,000.Further functionalities for the add-on are planned for 2024. These include the ability for suppliers to send specific queries to customers via the web portal in case of ambiguities. This information will be processed and answered by the customer in a targeted manner.
Maximum transparency with Payment Status Overview
SCM Insights

Invoicing in China: how to successfully transform to Fully Digitized eFapiao

Companies that want to do business in China and work with local suppliers through their local office quickly realize that invoicing is much more complex than in Western Europe or North America. It's time-consuming, labor-intensive and has many unique requirements. In the future, this complex process will be completely digitized—and somewhat simplified.Fapiao & Golden Tax: an introduction to Chinese invoicingBut let's start at the beginning: In China, domestic invoices cannot be sent directly from the supplier to the customer. Instead, special tax hardware is required, such as a so-called tax control USB disk. In some cases, paper receipts are also required. Most importantly, companies must use state-certified providers as intermediaries and pre-register their invoices with the central tax authority using the Golden Tax System (GTS) software.An invoice issued and registered with the tax authority is called a Fapiao. In the classic Fapiao process, suppliers first submit invoice data to the Golden Tax System. These invoices are pre-validated by government-certified vendors to ensure, for example, that all tax data has been entered correctly.An invoice issued and registered with the tax authority is called a Fapiao. In the classic Fapiao process, suppliers first submit invoice data to the Golden Tax System. These invoices are pre-validated by government-certified vendors to ensure, for example, that all tax data has been entered correctly.After successful validation, the system assigns a unique number to each invoice. Once this step is successfully completed, suppliers can print the invoice data with the assigned invoice number on a Fapiao paper receipt and send it to their customers. These Fapiao receipts are special formatted papers with a seal and are available in blocks from the State Taxation Administration (STA). To issue an invoice, suppliers must obtain a sufficient number of Fapiao paper blocks in advance.If this procedure is not followed, suppliers will not be allowed to issue VAT invoices.On the customer side, the Fapiao document must be automatically recorded, evaluated, and compared with existing data in the GTS upon receipt. This is a tedious, error-prone, and cumbersome process that often requires a lot of manual verification.The following video explains the old paper-based process in more detail: From paperless to "Fully Digitized eFapiao"Some time ago, the paper-based Fapiao process was transformed into a paperless version, although this is not widely used in China. In the paperless process, the procedure remains the same, but the paper-based Fapiao receipt has been replaced by a proprietary digital data file. However, the cumbersome process with all its drawbacks has not changed.The Chinese government has therefore decided to convert the classic Fapiao process, whether paper-based or paperless, into a fully digitized version, the so-called "Fully Digitized eFapiao". This is based on a new central platform where invoices can be exchanged between suppliers and customers in a fully digital format.To comprehensively test the new Fully Digitized eFapiao process, the Chinese government launched a pilot in 2021 in several major cities and regions, including Guangdong, Shanghai, Foshan and Inner Mongolia. Meanwhile, the pilot operation has been extended to further regions.Here are some details about Fully Digitized eFapiao:Fully digitized: Fully Digitized eFapiao is a new type of electronic invoice. It has the same legal meaning and use as the conventional paper Fapiao, but without the paper.No copies: Unlike the traditional Fapiao, copies are no longer necessary. This greatly simplifies the process. The paper-based process involved multiple copies of the Fapiao receipt.Reduced invoice size: Only 17 data fields are required.No pre-registration: No need to purchase paper blocks in advance. The Fapiao invoice number is assigned directly by the central platform.No special tax equipment: Enterprises do not need to purchase special tax control equipment such as USB disk, tax control USB disk and Tax UKey in advance. Instead, they can issue the Fully Digitized e-Fapiao directly through the national e-invoice platform.Diversified input channels: In the current pilot phase, it is possible to issue invoices directly through the central platform. Soon, this will be extended to digital terminals and mobile applications.Reduced workload: Scanning and OCR processes are no longer necessary on the recipient side, as paper and PDF invoices are no longer required.Always up-to-date with SupplyOn InvoicingSupplyOn Invoicing has supported the classic Fapiao process for several years. This applies to both the paper-based and paperless versions. The new Fully Digitized eFapiao process is also supported by SupplyOn: All suppliers from the pilot regions in China can also use SupplyOn Invoicing to work with their customers in a tax-compliant manner.The advantage: Invoices are checked and validated in advance by SupplyOn against order or other demand data. If there are any errors or discrepancies, corrections can be made before the invoice is submitted to the tax authorities. Time-consuming cancellation or credit processes are a thing of the past. Suppliers can rest assured that invoices meet customer requirements and have been verified against country-specific requirements. In return, purchasing companies only receive invoices that have been validated in advance by SupplyOn Invoicing and match the purchase order or goods receipt. This allows for direct posting without any manual effort.As a first step to support the pilot phase of Fully Digitized eFapiao, SupplyOn has provided the pilot suppliers with the successfully validated invoices in a new download format. This format is accepted by the new central platform and can be directly uploaded.From now on, pilot suppliers can also use SupplyOn Invoicing to transfer the validated invoice data directly to a local, government-certified provider and thus to the central platform. A manual download is no longer necessary. We are also working on further simplifying the invoicing process for purchasing companies.Our customers can rest assured: By using SupplyOn Invoicing, they are always up to date with the latest developments in China, as we promptly implement all relevant Chinese government requirements in our solution.
Invoicing in China: how to successfully transform to Fully Digitized eFapiao
SCM Insights

Are you ready for Invoice Clearance in France?

In recent years, an increasing number of countries have introduced so-called invoice clearance procedures. Before electronic invoices can be sent to the recipient, they must be checked and approved by a central government agency. The primary concern is the correct reporting of tax data. These clearance models are usually referred to as Continuous Transaction Controls (CTCs) because the verification takes place in near real-time.  CTCs aim to reduce the VAT gap. Governments use this term to describe the loss of tax revenue due to missing or incorrectly reported tax data.The first countries to implement such models are in Latin America. They are already discussing extensions such as the reporting of incoming payments or certain tax benefits. The EU is also considering CTC. Just at the end of last year, an important package of measures entitled "VAT in the Digital Age", or VIDA for short, was adopted. This creates a framework for how tax reporting for companies in the EU should look in the future.Companies in France will have to be "clearance-ready" by 2026In France, a CTC model for B2G (business to government) transactions has been in place for several years. Invoices to public institutions must be sent to a central government portal called "Chorus Pro". In future, this procedure will be gradually extended to B2B (business to business) transactions.In addition to the e-invoicing obligation, there is also an e-reporting obligation. This applies primarily to cross-border invoicing and relates to invoices that are not already covered by the national clearance procedure, for example, invoices from other European countries. Their tax data must also be reported to the French tax authorities.Regarding the planned timeline and introduction of the French Invoice Clearance procedure, a delay was communicated in summer 2023. A mandatory introduction was planned originally in stages starting in July 2024. French companies mentioned in several consultations with the authorities that more time is needed to prepare their processes and systems. This, however, is not the only reason. From the tax authority's side, the completion of the central government portal PPF (Portail Public de Facturation) also requires more time. The launch date of July 2024 faced pressure in summer as a result.Due to these reasons, the French Ministry of Finance has decided to postpone the introduction of the B2B Invoice Clearance procedure. In a recent meeting, the national tax authority provided some details on the postponement. As the formal dates have yet to be determined, the rough timeline was presented as part of a three-phase rollout:2024: In spring 2024, the French authorities will publish a list of officially registered PDP (Plateforme de Dématérialisation Partenaire) providers. In the second half of the year, the central government portal PPF (Portail Public de Facturation) will be completed.2025: During this year, France will implement a large-scale pilot program that will run for the entire year 2025. Companies of all sizes as well as provider companies can participate in this project. The pilot phase is intended to enable companies and software providers to test their systems and processes in order to prepare as well as possible for the launch of the clearance model.2026: In 2026, the Invoice Clearance procedure will be introduced and become mandatory for companies. The exact phased introduction will become clear at the end of 2023, when the planned finance law is passed by the French parliament.What does the French clearance model look like?Before the introduction, France evaluated and compared different CTC models from other countries. It chose a decentralized approach that gives maximum flexibility to market players. The invoice sender or recipient has two options here: Either they send the invoices directly to the central government portal PPF (Portail Public de Facturation, an evolution of the "Chorus Pro" portal already used for B2G). Or they work with certified providers called PDP (Plateforme de Dématérialisation Partenaire). The PDP receive the invoices, report the tax data to the central PPF platform and forward the invoice to the recipient.Each French company is free to choose whether to work with a PDP or to connect directly to the central PPF platform. In addition to the PDP, there will be another type of provider, the so-called OD (Opérateur de Dématérialisation). Only PDP are allowed to send invoices directly from a supplier to a customer and report tax data to the central PPF platform.Furthermore, providers specializing in purchase-to-pay processes offer additional advantages, such as matching an invoice against specific "requirement data" such as the purchase order or advance shipping notice. This can ensure that only invoices that have undergone successful upstream validation enter the clearance process. Lengthy and cumbersome cancellation processes can thus be avoided.In addition to transmitting invoice data and tax messages, suppliers in France must support a standardized status model. The so-called "lifecycle status" of an invoice can go through several phases. The following statuses are mandatory and must be supported by all parties: "Submitted", "Refused ", "Rejected" and "Payment Received".Decentralized clearance model in France:How does SupplyOn support the new French clearance model?SupplyOn Invoicing already covers the French invoicing requirements. SupplyOn also offers a solution for the new French clearing procedure. The development team is already working on an extension for Invoicing to support the new French CTC procedure. This solution extension will be available in time when the pilot phase starts in 2025 for SupplyOn's customers to prepare. During solution design, SupplyOn works closely with government agencies and consulting firms to ensure that all requirements are directly incorporated into the product.SupplyOn Invoicing enables suppliers to check invoices against various quality criteria before sending them. This can be a check against a purchase order (PO) or against customer-specific specifications. In this way, suppliers can be sure that their invoices will be accepted by the customer and paid promptly. Time-consuming correction processes are eliminated. In case of discrepancies, suppliers can work directly with their customers to find a solution.For customers, SupplyOn Invoicing is an upstream quality gate that checks invoices in advance and ensures a consistently high level of quality. This leads to an almost completely automated invoice receipt process. The planned solution expansion for France thus ensures that SupplyOn customers continue to enjoy all the benefits of Invoicing and can use the service as usual.The latest communicated postponement puts all sub-services and providers in a position to be prepared for the rollout, provided they take advantage of the additional time. In particular, the pilot program planned for 2025 gives all stakeholders the opportunity to test their processes and systems and gain confidence with the new system. Large companies, which are first in line to implement the CTC process, should view the postponement only as a six-month delay and consider the start of the pilot program in early 2025 as a de facto launch date.SupplyOn intends to monitor further developments closely. The time gained enables SupplyOn to work together with customers on preparing the systems.
Are you ready for Invoice Clearance in France?