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BII for business

BII for business. Using profiles as a business tool The case of the electronic invoice. Georg Birgisson. Experience: 1999-2010 Various IT consulting projects. Iceland representative ( Icepro ) in NES project Editor for BII working group 1 (messages and business processes)

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BII for business

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  1. BII for business Using profiles as a business tool The case of the electronic invoice

  2. Georg Birgisson • Experience: • 1999-2010 Various IT consulting projects. • Iceland representative (Icepro) in NES project • Editor for BII working group 1 (messages and business processes) • 1997-1999 Marketing manager for satellite communication software. • 1994-1997 IT project manager • 1992-1994 Marketing of shipping services 92-94 • 1986 - 1990 Bookkeeping, accounting and tax reporting, part time • Salesman • Education: • Business degree, University of Iceland • MBA, Cornell University

  3. An electronic document Comparing the electronic invoice to the paper one.

  4. Main forms of invoices • Paper • Paperless • Graphical form (.pdf, .jpg, .tiff ofl.) • Data form • Unstructured. • Excel, Word ofl. • Html • Structured • Standardized (CII, UBL, EDIFACT) • Un standardized (bespoke XML specifications) • Structured vs. unstructured. • Automation • Standardized vs. un-standardized • Wider audience

  5. Paper Invoice vs. electronic • Paper • Contains/carries data • Presents data by printing it • Original - the data and its presentation • Electronic • Structured data supports automation • Presentation is separate and flexible • On screen, style sheets, paper, .pdf, etc. • Original - the data

  6. Message and processes What is being defined

  7. EDI and XML (NESUBL) • EDIFACT implementations • Bilateral specifications • What messages are exchanged. • What data the messages contain. • Business rules that apply. • Limitations • Only high volume business relations are economical. • Connecting new partners requires adaptations.

  8. The problem and the solution Supplier A Key Buyer A A+B+C+D A+B+C+D A+B+C Any other buyer A+B+C Supplier B Key buyer B A+B+C+E A+B+C+E

  9. Profiles • Defines • Message choreography • What message must each partner send • What reaction can/must the partners expect • Message content • What content must the receiver expect to receive • What content can the sender expect to be processed/read • Business rules • The business commitments that are established. • The meaning of individual data elements and its internal relationship • Use in business • Bilateral • The partners bilaterally agree to use a specific profile for their business • Unilateral • A business entity states that it will receive and process any document sent according to the stated profile (to a specific address, part of transport network)

  10. The role of profile in standardization • Message standards (syntax, CII, UBL, EDIFACT) • Defines how data is organized in a structured way into a message. • XML: UN/CEFACT, UBL, xCBL … • EDIFACT, X12 • Using messages (semantics; BII, NES) • The messages exchanged and their sequence • The content of each message • The meaning and commitment of the content • Syntax is the language, Semantics is the conversation.

  11. Types of business partners • Large trading partners with high volume flow • This has been the main domain of EDIFACT over the last 20 years. Many successful implementations • Profiles with bilateral extensions • Middle volume trading partners • Below the economical threshold for EDI • Key target group for profiles • Low volume trading partners • Profiles via intermediaries

  12. The evolution of profiles • OIOUBL • Denmark public authorities • 2005 • NES - North European Subset • North European and UK cooperation • 2007 • BII – Business Interoperability and Interchange • European specification , published by CEN • December 2009 • Contains all NES profiles in upgraded version

  13. Profile key components • Business process • Specification of an electronic business process. • Collaboration • Generic sub processes that can be linked together to form business process • Transaction • A set of data (information) sent from one partner to another, relevant to an activity within the process

  14. Profile migration BII04 Invoice only Invoicing BII05 Billing Invoicing Dispute resolution BII03 Ordering Ordering BII06 procurement Ordering Invoicing Dispute resolution

  15. More profiles Catalogues, statement, ofl. Tendering, support tools BII10 - Tender Notification BII11 - Qualification BII12 - Tendering Simple BII14 - Prior Information Notice BII22 - Call for Tender BII24 - Attachment Document BII25 - Status Request BII26 - Retrieve Business Document • BII01 - Catalogue only • BII02 - Catalogue update • BII17 - Multi party catalogue • BII16 - Catalogue deletion • BII23 - Invoice only with dispute • BII09 - Customs Bill • BII15 - Scanned Invoice • BII18 - Punch-out • BII20 - Customer Initiated Sourcing • BII21 - Statement

  16. The players • Business partners • The participants in business process. In procurement these are the Customer and the Supplier. Business partner are the responsible parties for the process as whole • Role • Roles change depending on the activity in the process • Party • The entity that carries out a role. Parties are the business partners themselves or work under their authorization.

  17. Roles and actors Business partner Role Party Party Role Business partner Customer Purchasing authority Economic operator Suppler Purchasing Receiver Dispatcher Delivery Debtor Creditor Billing Payer Payee Settlement

  18. “used” : • Core document (no extentions) Bilateral extentions Data set • Core+ general (e.g. country) Content used • Core+ bilateal General extentions Core

  19. Levels in business rules • Profile level rules • How the exchange of a transaction affects the partners’ obligations • How information in transactions interacts with external information such as contracts • Definition on how update transactions affect exciting data • Collaboration • Process rules • Information constraints • Transaction rules • Information constraints

  20. Information constraints • Data element cardinality • Optional becomes mandatory in a given context • Data element Interaction • Formulas, e.g. B = sum of all A’s • Dependency, e.g. if A then B • Relationship, e.g. A > B • Data element values • Min, max or range • Allowed values, specified by code list

  21. A changed process In times of change, shift happens.

  22. Issuing and sending Supplier Customer Prepare invoice data Issue invoice Send Transport Receive Process Settle

  23. Different exchange • Direct exchange • Large and integrated • Specific data • One to many • Main party • His requirements • Many to many • General exchange • General data

  24. Total distribution Printing General mail Manual Create pdf Email Reception Manual Distribution Issue invoice BII invoice Electronic exchange Auto

  25. Guideline • Sets up an invoice containing all data specified in BII invoice core data model • Describes how the data is inserted into the syntax message

  26. Receiving and processing Supplier Customer Prepare invoice data Issue invoice Send Transport Receive Process Settle

  27. Processing the data • To be profile compliant the receiver must consider all data that is specified in a core message data model • Different processing • Import into ERP systems • For automated processing • Present with a style sheet • Manual processing • Mixed • Data required by ERP system for automated processing is imported • Additional data is presented on style sheets. Requires the ability to access the message and present it.

  28. Internal document processing • Receiving • Validation • Assigning accounting keys (based on internal accounting practices). • Cost centre • Department • Project • Equipment • Cost type • Other dimensions • Manual or automated • Mapping to the system • Reconciliation • Manual, invoice routed to individuals and presented • Automatic, rules driven by invoice data values • Handling of discrepancies • Booking into accounts

  29. Hands on process Auto Validate Booking Receive Internal processes Manual Assign keys Reconcile Manage discrepancy Automated process Auto Validate Assign keys Reconsile Booking Receive Manual Manage discrepancy

  30. Payment • Handling payments is not considered part of the procurement and out of scope for BII • Payments are handles by banking messages. • The electronic invoice carries from the seller the necessary information to initiate payment and to provide references for reconciling the financial accounts.

  31. Validating the document

  32. Based on agreement • Bilateral • By membership Extension methodology Layered validations Profile compliance

  33. Thank you Georg Birgisson Eykur ehf. georg@eykur.is Tel: +(354) 544 4800 Mobile: +(354) 898 0850

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