E-invoicing and the eProcurement Scotland Service
Introduction
Electronic invoicing is an emerging requirement for ePS user organisations seeking to complete the electronic purchase-to-pay cycle and generate invoice processing efficiencies. The ePS service already has in place electronic consolidated files for purchase card reconciliation and more recent developments lead by Glasgow City Council have demonstrated EDI and direct cXML invoicing into its finance system (SAP).
The next step for the development of the ePS service has been to demonstrate the capabilities of XML invoicing between suppliers and the ePS service software (Pecos). To facilitate this the ePS Programme is currently undertaking an e-invoicing proof of concept with a cross section of user organisations - Scottish Executive, Scottish Ambulance Service, and Argyll & Bute Council. This will demonstrate the process benefits, and help build the case for ePS user organisations and their suppliers to take forward electronic invoicing.
Different methods of e-invoicing
XML invoicing can take place:
directly from a supplier into Pecos
directly from a supplier into the ePS user organisation's finance system
from a supplier via a third party portal into the ePS user organisation's finance system
into into Pecos via a third party portal
Pilot e-invoicing project
Following the trial, guidance will be provided to ePS user organisations to assist them in progressing electronic invoicing within their organisations.
It is anticipated that the guidance will cover some basic principles of electronic invoicing including:
a clear and straightforward step by step guide to what to do and how to build a benefits case for the introduction of e-invoicing for both the supplier and buying organisation
a clear statement of the process to connect e-invoicing. This will include technical details such as the required file structure and DTD formats to enable suppliers and/or their technical advisers and companies in the 'portal' market to either build e-invoicing interfaces for their clients or to provide off-the-shelf connectors to the ePS service software 'PECOS'.
This guidance will be provided free of charge and be regularly checked for continuing validity.
Commercial aspects of this have yet to be finalised.
Future Vision
Provision of e-invoicing facilities is fast becoming a market requirement of eProcurement systems and obviously is something being looked at for further development within ePS. Provision of an eInvoicing solution which feeds into both Pecos or the user organisations finance system depending upon local requirements is the long term sustainable solution favoured by the ePS programme. With this in mind the ePS service will work with software vendors to overcome interoperability barriers between respective systems furthering the aims of the service with respect to e-invoicing capabilities. We are also monitoring developments being put in place by OGC in its Zanzibar programme.
While e-invoicing is likely to be a key trend for Scottish companies in the coming years, the market will continue to contain many suppliers and buying organisations using older or more basic formats and ePS must be able to support this. This will require the residual capability of receiving e-invoices via file upload and EDI to auto match against purchase orders and receipts and support for this will continue.