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Bruno Koch E-Invoicing in Europe October 13 th , 2011

Factuurdag 2011 - e-Invoicing in Europe

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(presentatie in het Engels) Bruno Koch, CEO Billentis

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Page 1: Factuurdag 2011 - e-Invoicing in Europe

Bruno Koch

E-Invoicing in Europe October 13th, 2011

Page 2: Factuurdag 2011 - e-Invoicing in Europe

page 19 18.10.2011

Every 2nd European company send/receive some electronic

invoices, many of them with just 10% of their volume

Page 3: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. 18.10.2011

Market Penetration 2011 (Electronic share of total volume of 30 billion)

page 20

20-50% 10-20% <10%

B2C B2B/B2G

Page 4: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. 18.10.2011

European invoices

page 21

Paper 22,000 Millions

Not tax compliant or

semi-electronic

4,700 Direct Exchange

1,900

Exchange via Service Provider

1,400

Compliant & paperfree E-Invoicing

Page 5: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged.

Europe Invoices received by enterprises according to delivery and processing channels

page 22 18.10.2011

001436

447

123

183

831

24

25

7410

101314

1314

2411

2723

326

64

1448

21

441

5110

1810

443

6

9292

7944

8583

797880

2363

5360

6523

45

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

PolandSlovakiaLithuaniaSweden

Czech RepublicHungary

RussiaLatvia

RomaniaNorwayAustria

DenmarkGermany

EstoniaFinland

United Kingdom

Format of inbound invoices (AddValue Survey 2010)

Elec. structured Email/PDF Scanning Paper

Remark: Unfortunately, this international survey didn‘t consider other countries than mentioned above

Page 6: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged.

European Growth and Channels Used for Electronic Invoices, +32-35% p.a.

page 23 18/10/2011

Source: Billentis Very strict definition used for E-Invoicing: Not considered are electronic invoice files which are not tax compliant or are just semi-electronic (supported somehow by paper)

Page 7: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 24 18.10.2011

Share of electronic invoices Purchase Invoices in Austria, 2011

0

10

20

30

40

50

60

1-10% 11-20% 21-30% 31-40% 41-50% 51-75% 76-100%

% o

f com

pani

es r

ecei

ving

e-

Invo

ices

% of invoices received electronically

Source: Survey on behalf of The Austrian Federal Economic Chamber, August 2011 Remark: 2009/2010 figures of AMETIC (Spain) and AddValue (16 countries) confirm this pattern

Page 8: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 25 18/10/2011

• Legal requirements, mis-understandings

• Missing market transparency

• Company internal changes of processes

• Divergent requirements of trading parties

• Technical integration

• Saving potential not yet recognized

• Trading party does not yet support the electronic channel

• AR/AP management or other parts of controlling are outsourced to a third party

Sources: Surveys of ibi research (Germany), The Austrian Federal Economic Chamber (Austria), FHNW (Switzerland), Basware (international), AddValue(16 European countries)

Mayor barriers for increasing E-Invoicing

Page 9: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. 18.10.2011

Possible structure of suppliers/invoice volume

10

100

1000

20 Number of suppliers 250 ~10,000

Num

ber o

f ann

ual i

nvoi

ces

per s

uppl

ier

page 26

Page 10: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 27 18/10/2011

Classical evolutionary steps for shifting from paper to electronic invoices

1. Frank invitation by trading parties 2. More concrete reminder 3. Incentives for sending/receiving E-Invoices instead of paper 4. Pressure to only send/receive invoices electronically 5. Penalties for paper invoices

ibi research survey 2011*: 13% of companies already use or intend to apply penalties; 40% of small companies practice E-Invoicing due to penalties for paper invoices

6. Obligation In private sector only possible to a certain extent Public sector privileged to declare E-Invoicing as mandatory

*Source: ibi research 2011, „Elektronische Rechnungsabwicklung – einfach, effizient, sicher – Teil III: Fakten aus der Unternehmenspraxis (www.elektronische-rechnungsabwicklung.de)“

More aggressive on-boarding methods

Page 11: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 28 18.10.2011

Evolutionary E-Invoicing methods Companies & Countrywide

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5 6 7 8 9 10

% E

-Inv

oice

s

Year after starting the rollout process

Company - Classic

Country average

Company - Powerplay

Page 12: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 29 18/10/2011

Europe: Expected shift of paper towards e-Invoices and hybrid processing

e-Invoices

Hybrid (Paper +

electronic) Paper

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

2000 2010 2020

Favoured formats up to today and outlook (B2B/B2G/G2B/G2C/B2C)

Page 13: Factuurdag 2011 - e-Invoicing in Europe

© Bruno Koch, Billentis - Reproduction is authorised provided the source is acknowledged. page 30 18/10/2011

• Sustainable e-Invoicing market growth rates of 30-35% p.a.

• Improvement of the „market quality“: structured invoice data for process automation; intensified international co-operation among service providers and based on a more standardized approach; efficient and easy-to-use solutions for the mass market

• 60%+ electronic invoices within a single organisation after 2 years are achievable for a best-of-class organisation challenge to squeeze out the remaining paper part

• European-wide penetration is expected to pass 50% in 2017 for the B2B/B2G segment and in 2020 for the B2C segment

• Beyond e-invoicing: Automate the full supply chain considering the procurement and payment messages

Outlook

Page 14: Factuurdag 2011 - e-Invoicing in Europe

page 31 18.10.2011

Conclusion for next decade:

Inside companies 100% electronic and unified processing

Document exchange among trading parties based on multi-

channel & multi-format