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How to Reconcile a Invoice

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					                                                                                                                                                                                                    FHBB - IAB




swissDIGIN - content standard for electronic single invoice                                                                                                                                  version 1.0

Scope:                          The aim of the swissDIGIN content standard is to foster the exchange of electronic invoices betweeen companies and organisations in Switzerland. The
                                standard defines the structure and minimal data elements of an invoice needed by the recipient or a service provider to process and reconcile an invoice to a
                                large extend automatically.


Definition single invoice:      The single invoice claims the amount for a specific single purchase order and corresponds to it in terms of line items and quantity delivered. The invoice not necessarly
                                has to refer to a buyer's purchase order number. Therefore the standard distinguishes between invoices with such a reference and invoices without such specification
                                (see process hypothesis).


Focus:                          The standard stresses more on invoices for indirect goods delivered and services rendered in Switzerland. Further international requirements were included (optional
                                fields) as far as they were identified by the project members.

Structure:                      The invoice is devided into Header (K), line item (P) and Footer (F) data fields.
                                Inside this levels the fields are structured by different segements. These segments are referenced by a double-digit number.
                                Inside these segments the data elements are mentionned which are also referenced by a double-digit number.
                                Interdepended data elements are listed under the same reference number and differentiated by an alphabetic character.


Classification:                 M     These mandatory fields form the swissDIGIN core standard and are an integral part of each invoice. They are defined by legal requirements and by the
                                      recipient's process needs to reconcile an invoice.
                                C     These mandatory fields also form the swissDIGIN core standard and have to be provided, if the mentionned conditions are fulfilled.
                                O     These optional fields may be required by the recipients in specific cases for a rulebased control of processes (manual or systembased). They also may be legal
                                      requirements under specific conditions or used in international transactions.
                                      Some use cases for such requirements are stated in the column "comments / recommendation"
                                I     These fields provide additional information but don't represent clearly defined business needs.

Occurence:                      1:1   Field or segment is mandatory and used but once per invoice or line item.
                                1:n   Field or segment is mandatory and used once or more times per invoice or line item.
                                0:1   Field or segment is not mandatory and can be used maximum once per invoice or line item.
                                0:n   Field or segment is not mandatory and can be used more times per invoice or line item.

Foundations:                    Swiss legal requrements (MWSTG, MWSTGV, ElDI-V und GeBüV)
                                OECD Tax Guidance Series
                                EU Directive 2001/115/EC, Final Report of CEN/ISSS e-Invoicing Focus Group
                                Business requirements (see process hypothesis)




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swissDIGIN - content standard for electronic single invoice                                                                                                                                  version 1.0



Process hypothesis:             Invoices with reference to purchase order number of buyer it-system
                                The aim is the fully automated processing of an incoming invoice by the recipient's system.
                                A clearly defined identification of the invoice and its line items to the correspondend purchase order and its line items is ensured.
                                The supplier master data (payment information, payment conditions etc.) are kept in the recipient's system and account assignment information is predefined by the
                                purchase order.
                                Invoices without any reference to purchase order number of buyer it-system
                                In this case the purchase order is processed by the buyer by e-mail/fax/phone etc. and without data entering it in the it-system. The aim is the electronic assignment and
                                routing of the invoice to an existing contract/agreement and/or to a clearly defined place (employee, departement etc.), where the invoice will be reconciled, endorsed
                                with account assignment data and if necessary forwarded to a person/place to authorise the payment. The supplier master data in the recipient's system may not always
                                be complete, therefore payment information and terms might be useful to the recipient.


Status:                         passed by project members and publicly released on November 30th, 2004

Project members:                Buying organizsations: ABB, Bâloise, Bühler Group, RUAG Aerospace, SBB, Swisscom, Syngenta, UBS,
                                Service providers: PayNet, PostFinance, Swisscom IT Services
                                Project lead: FHBB

Version:                        version 1.0

Distribution:                   public


Contact:                        Christian Tanner
                                University of Applied Sciences - FHBB
                                Institute of Business Economics - IAB
                                Peter Merian-Strasse 86, 4002 Basel
                                Tel. +41 61 279 17 90
                                swissdigin@fhbb.ch




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swissDIGIN - content standard for electronic single invoice
                                                         classification                                                                                  version 1.0




                                                                            occurrence
                                                                 extended
                                                      standard

                                                                 standard
structure /




                                                        core
reference        field name                                                              comments / recommendation


K - Invoice header                                                          1:1
      01 - generic information                                              1:1
      K-01-01     document type                         M                   1:1 Describes the document type such as invoice, partial- or final-invoice, proforma-
                                                                                invoice.
     K-01-02     document number                        M                   1:1 Sequential number assigned by the biller, which uniquely identifies the invoice

     K-01-03     document issue date                    M                   1:1 Recommended format: ISO 8601(YYYYMMDD, e.g. 20040519)

     K-01-04     document currency                      M                   1:1 If currency code is requested, ISO-Standard 4217 is recommended e.g. CHF, EUR,
                                                                                USD etc.


     K-01-05     order number in buyer system           C                   0:1 Condition: mandatory field for invoices referring to a purchase order number, in case
                                                                                of the buyer having communicated respective reference number (generated by his
                                                                                purchasing system) on his purchase order. This reference number is used by the buyer
                                                                                / invoice recipient to reconcile the invoice automatically.
     K-01-06     contract identification                C                   0:1 Condition: mandatory field if buyer asks to refer the invoice to a established contract
                                                                                reference. Can be applied in case of service level agreements or maintenance
                                                                                contracts where no explicit purchase order is required.

     02 - information on supplier / seller / biller                         1:1
     K-02-01     identification code in buyersystem     M                   1:1 This field is needed to automatically ensure and assign incoming invoices to a business-
                                                                                relationship in the recipients system.
                                                                                Usually the supplier number in the recipients system is applied. But ID-numbers within
                                                                                EBPP-networks or DUNS-number (http://upik.dnb.com) etc. are possible references.
                                                                                The identifier is to be defined between biller and recipient.




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swissDIGIN - content standard for electronic single invoice
                                                         classification                                                                                     version 1.0




                                                                            occurrence
                                                                 extended
                                                      standard

                                                                 standard
structure /




                                                        core
reference        field name                                                              comments / recommendation


     K-02-02     tax identificaton number               M                   1:1 VAT identification number under which the taxable entity supplied the goods or
                                                                                services.

     K-02-03-a   legal name of company                  M                   1:1 Name an adress have to comply with the data in the commercial or tax register. The
                                                                                legal form of the organization has to be specified.

     K-02-03-b   address                                M                   1:3 Data on street and/or P.O. box

     K-02-03-c   place / city                           M                   1:1

     K-02-03-d   zip / postal code                      M                   1:1

     K-02-03-e   country                                M                   1:1 If a country-code is requested, ISO-Standard 3166-1 is recommended (e.g. CH, DE,
                                                                                etc.).
     K-02-04     name of the organizational unit                   O        0:1 Can be requested to identify the billing unit within a corporate group, if the buyer is
                                                                                holding all the organisational units of the supplying group under the same supplier
                                                                                number in his system (K-02-01).

     K-02-05     contact person                                     I       0:1 Name, phone nummer, reference, e-mail adress etc. for further enquiries in case of
                                                                                incorrect invoices and for clarifications.
     03 - information on buyer / recipient / client                         1:1
     K-03-01     client number in sellersystem                     O        0:1




     K-03-02     tax identification number                         O        0:1 Can be asked by tax authorities in international transactions (recommendation
                                                                                according to OECD Tax Guidance Series - Tansaction Information Guidance).




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swissDIGIN - content standard for electronic single invoice
                                                      classification                                                                                     version 1.0




                                                                         occurrence
                                                              extended
                                                   standard

                                                              standard
structure /




                                                     core
reference        field name                                                           comments / recommendation


     K-03-03-a   legal name of company               M                   1:1 Name an adress have to comply with the data in the commercial or tax register. The
                                                                             legal form of the organization has to be specified.

     K-03-03-b   address                             M                   1:3 Data on street and/or P.O. box

     K-03-03-c   place / city                        M                   1:1

     K-03-03-d   zip / postal code                   M                   1:1

     K-03-03-e   country                             M                   1:1 If a country-code is requested, ISO-Standard 3166-1 is recommended (e.g. CH, DE,
                                                                             etc.).

     K-03-04     identification code of the                     O        0:1 Identification code to automatically assign the organisational unit
                 organizational unit
     K-03-05     name of the organizational unit                 I       0:1 additional field for the name of the organisational unit
     K-03-06-a   identification of contact           C                   0:1 Condition: mandatory field for invoices without reference to a purchase order, if the
                 person/unit/department                                      recipient communicated respective information with the order. The aim is to clearly and
                                                                             efficiently assign the invoice to the right person/department/unit in charge for
                                                                             reconciliaton (e.g. personell number, departement code etc.).

     K-03-06-b   additional information on                       I       0:1 Additonal information to K-03-06a if respective information is coded (e.g. personell
                 person/unit/department                                      number, departement code etc.) to clarify in case of incorrect code.

     04 - delivery information                                           1:1
     K-04-01a date of delivery resp. date of end     C                   0:1 Condition: Mandatory field for supply of goods and services, if date is equal for all line
                  of service                                                 items and not stated within each line item.
                                                                             Recommended format: ISO 8601 (YYYYMMDD, e.g. 20040519)




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swissDIGIN - content standard for electronic single invoice
                                                     classification                                                                                     version 1.0




                                                                        occurrence
                                                             extended
                                                  standard

                                                             standard
structure /




                                                    core
reference        field name                                                          comments / recommendation


     K-04-01b    date of start of service           C                   0:1 Condition: Mandatory field for rendered services, if date is equal for all line items and
                                                                            not stated within each line item.
                                                                            Recommended format: ISO 8601 (YYYYMMDD, e.g. 20040519)

     K-04-02-a   legal name of company                         O        0:1 Name of the legal unit, where the goods were supplied resp. the service rendered, if
                                                                            the adress is different from the invoice recepients adress. Is requested in international
                                                                            trade by legal authorities if delivery takes place in a third country.




     K-04-02-b   address                                       O        0:3 Data on street and/or P.O. box
     K-04-02-c   place / city                                  O        0:1
     K-04-02-d   zip / postal code                             O        0:1
     K-04-02-e   country                                       O        0:1 If a country-code is requested, ISO-Standard 3166-1 is recommended (e.g. CH, DE,
                                                                            etc.).
     K-04-03    name of the organizational unit                O        0:1
     K-04-04    reference code of fulfillment                  O        0:1 e.g. number of delivery note, number of working report etc.
     05 - payment information                                           0:1
     K-05-01    payment terms                                  O        0:1 field for free description of payment terms
     K-05-02    payment period                                 O        0:1 number of days within which the invoice has to be settled
     K-05-03    due date                                       O        0:1 recommended format: ISO 8601(YYYYMMDD, e.g. 20040519)
     K-05-04-a discount rate                                   O        0:n percentage rate




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swissDIGIN - content standard for electronic single invoice
                                                      classification                                                                                      version 1.0




                                                                         occurrence
                                                              extended
                                                   standard

                                                              standard
structure /




                                                     core
reference        field name                                                           comments / recommendation


     K-05-04-b   due date of discount                           O        0:n Date until which it is allowed to deduct the stipulated discount rate (K-05-02).
                                                                             Recommended format: ISO 8601(YYYYMMDD, e.g. 20040519)
     K-05-05     payment reference number                       O        0:1 Reference number, stated by the supplier, to automatically assign the incoming
                                                                             payment to the corresponding invoice.
     K-05-06     payment reference membership                   O        0:1 Prevalent system in Switzerland, based on the payment-system of Swiss Post
                 number
     K-05-07     bank clearing number                           O        0:1
     K-05-08     number of postal / bank account                O        0:1
     K-05-09     IBAN number                                    O        0:1
     06 - additional information                                         0:n
     K-06-01-a account assignment category                      O        0:n Coded information, whether the content of K-06-01-b is assigned to a cost center,
                                                                             project number, cost type or cost account etc. (possible codes: PSP, KST, KOA, etc.).
                                                                             This information can be required in case of invoices without reference number to a
                                                                             purchase order. The information has to be equal for all line items.

     K-06-01-b   value of account assignment                    O        0:n If K06-01-a is greater than 0, n = analog K-06-01-a,
                 category                                                    Field can also be used independently of K-06-01-a
                                                                             e.g. number of cost center, project number, cost type or cost account

     K-06-02     reference to attachment                        O        0:1 Link/reference to an additional document as annex to the invoice.

     K-06-03     textfield for comments                          I       0:1 Field for additional information for the recipient on invoices without reference to a
                                                                             purchase order, as they are not processed automatically.




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swissDIGIN - content standard for electronic single invoice
                                                        classification                                                                                         version 1.0




                                                                           occurrence
                                                                extended
                                                     standard

                                                                standard
structure /




                                                       core
reference         field name                                                            comments / recommendation


P-line item                                                                1:n
     01 - line item references                                             1:1
     P-01-01      line item type                                  O        1:1 Code defining the type of the line item.
                                                                               Default = normal line item for good or service ordered
                                                                               Coded values for charges and allowances that apply to the whole purchase order and
                                                                               were not stated in the purchase order e.g. freight cost, order discount, costs for express
                                                                               delivery, effected prepayments etc. This way such additional line items can be identified
                                                                               by the recipient's system and processed based on defined rules.
                                                                               Recommended codelist: Edifact-standard "allowance or charge" (ALC)
                                                                               Each of such allowances or charges is stated as discrete line item.


     P-01-02      order line item number of buyer      C                   0:1 Condition: Mandatory field for invoices corresponding to reference number of the
                                                                               purchase order communicated by the buyer. This information is needed to reconcile the
                                                                               invoice line item with the corresponding line item of the purchase order. Prerequisite is
                                                                               that the buyer stated such line item number.
     02 - article and unit information                                     1:1
     P-02-01      article number of supplier                      O        0:1


     P-02-02      article number of buyer                         O        0:1
     P-02-03      standard article number                         O        0:1 e.g. EAN number, industry specific numbering etc.
     P-02-04      description of goods supplied or     M                   1:1 Notice: the size of this field in the recipient's system is often limited, so that only a part
                  service rendered                                             of the information can be incurred (e.g. limitation to 50 characters)
     P-02-05      unit of measurement                  M                   1:1 Unit of measurement of the orderd amount, recommended format for codes:
                                                                               UOM (units of measurement) by UNECE, www.unetrades.net
     P-02-06      price unit                                      O        1:1 Value that defines the quantity corresponding to the unit price.
                                                                               Standard value = 1, this information is specially needed, if the quantity of the price unit
                                                                               is greater than 1 (e.g. cable roll at 100 metres --> value = 100)




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swissDIGIN - content standard for electronic single invoice
                                                       classification                                                                                     version 1.0




                                                                          occurrence
                                                               extended
                                                    standard

                                                               standard
structure /




                                                      core
reference        field name                                                            comments / recommendation


     P-02-07     units sold                           M                   1:1

     03 - charges and allowances within line item                         0:n
     P-03-01    charge / allowance code                          O        0:1 Information can be used by recipient to verify conditons automatically or to process
                                                                              respective reports.
                                                                              Possible code list: Edifact-standard see "Allowance or Charge" (ALC)
     P-03-02     charge / allowance description                  O        1:1 Denomination field for allowances and charges
     P-03-03     charge / allowance calculation                  O        0:1 Amount in invoice currency that is used as calculation basis for the corresponding
                 basis                                                        allowance or charge. It can be a total amount of which a percentage rate is computed or
                                                                              a value which will be multiplied with an amount of units (P-03-04)

     P-03-04      charge / allowance unit                        O        0:1 Value corresponding to the unit of measurement stated in P-03-05
     P-03-05      charge / allowance unit of                     O        0:1 Unit of measurement of field P-03-04 e.g. percentage, kg, hours etc.
                  measurement
     P-03-06      charge / allowance total amount                O        1:1 total amount of allowance or charge excl. VAT
     04 - price information                                               1:1
     P-04-01      unit price excl. VAT                M                   1:1 All allowances and charges applying to this line item are computed in this price.

     P-04-02     unit price incl. VAT                            O        0:1 This field represents the basic price for recipients that are exempt from VAT. All
                                                                              allowances and charges applying to this line item are computed in this price.

     P-04-03     VAT percentage rate                  M                   1:1 VAT percentage rate applied to the line item

     P-04-04     taxable amount                       M                   1:1 Invoiced total amount excl. VAT after settlement of all allowances and charges applying
                                                                              to the line item.
     P-04-05     VAT amount payable                   M                   1:1 Total VAT amount payable of the line item

     P-04-06     total amount incl. VAT               M                   1:1 Invoiced total amount of the line item incl. VAT after settlement of all allowances and
                                                                              charges applying to the line item.




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swissDIGIN - content standard for electronic single invoice
                                                       classification                                                                                       version 1.0




                                                                          occurrence
                                                               extended
                                                    standard

                                                               standard
structure /




                                                      core
reference        field name                                                            comments / recommendation


     05 - delivery information                                            1:1
     P-05-01-a date of delivery resp. date of end     C                   0:1 Condition: Mandatory field for goods supplied and services rendered, if the date is not
                  of service                                                  stated in the header and is different for specific line items.
                                                                              Recommended format: ISO 8601 (YYYYMMDD, e.g. 20040519)

     P-05-01-b   date of start of service             C                   0:1 Condition: Mandatory field for services rendered, if the date is not stated in the invoice
                                                                              header and is different to specific line items.
                                                                              Recommended format: ISO 8601 (YYYYMMDD, e.g. 20040519)
     P-05-02     reference code of fulfillment                   O        0:1 e.g. number of delivery note, number of working report etc.



     06 - additional information                                          0:n
     P-06-01-a account assignment category                       O        0:n Coded information, whether the content of P-06-01-b is assigned to a cost center,
                                                                              project number, cost type or cost account etc. (possible codes: PSP, KST, KOA, etc.).
                                                                              This information can be required in case of invoices without reference number to a
                                                                              purchase order.

     P-06-01-b   value of account assignment                     O        0:n If P06-01-a is greater than 0, n = analog P-06-01-a,
                 category                                                     Field can also be used independently of P-06-01-a
                                                                              e.g. number of cost center, project number, cost type or cost account
     P-06-02     reference to attachment                         O        0:1 Link/reference to an additional document as annex to the corresponding line item.

     P-06-03     textfield for comments                           I       0:1 Field for additional information for the recipient on a line item without reference to a
                                                                              purchase order, as they are not processed automatically.




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swissDIGIN - content standard for electronic single invoice
                                                         classification                                                                                        version 1.0




                                                                            occurrence
                                                                 extended
                                                      standard

                                                                 standard
structure /




                                                        core
reference        field name                                                              comments / recommendation


F - invoice summary                                                         1:1
      01 - VAT information per VAT rate applied                             1:n
      F-01-01     VAT percentage rate                   M                   1:1 Applied VAT percentage rates, multiple rates per invoice are allowed (amount of
                                                                                different VAT percentage rates = n).

     F-01-02     taxable amount                         M                   1:1


     F-01-03     tax amount payable                     M                   1:1


     F-01-04     reference in case of VAT                          O        0:1 Description of the reason or rationale for any tax exemption or reduction granted
                 exemption                                                      (OECD Tax Administration Guidance Series)

     02 - total amounts                                                     1:1
     F-02-01      total amount of invoice excl. VAT     M                   1:1 Equivalent to the total of all line item total amounts excl. VAT (n P-04-04)

     F-02-02     total amount of invoice incl. VAT      M                   1:1 F-02-01 plus total of all VAT amounts payable per VAT percentage rate (n F-01-03),
                                                                                In Switzerland this amount is normally rounded to the next 5 cents.

     F-02-03     rounding difference                               O        0:1 Rounding difference between F-02-01 + n F-01-03 and F-02-02 caused by the rounding
                                                                                to the next 5 cents in F-02-02.




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The presence of this field depends strictly from the infrastructure
you use for the transmission. In some cases this field can be
substituted by other kind of identification codes for both buyer
and seller.




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The presence of this field depends strictly from the infrastructure
you use for the transmission. In some cases this field can be
substituted by other kind of identification codes for both buyer
and seller.




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The presence of a single discount rate for the whole invoice can
 be restrictive. In many cases, there could be different discount
rates for each line item of the invoice. Moreover, in some cases
 these discount rates can result from the application of several
different discount levels (for customer, quantity of the single line
                item, ecc.) that should be specified.




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    These fields in many cases could not manage to describe
 exaustively the item. In many cases, in facts, it is necessary to
specify a lot of parameters about the product. A description field
 of only 50 chacters can be not enough. We suggest to insert a
 variable number of couple of fields for the specification of the
 name and the value of the different parameters that each firm
                          decide to use.




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In our experience with Italian SMEs, at line item level these fields
 are not mandatory, but they appear only in the footer (like fields
                   from F-01-01 to F-02-03).




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We suggest to insert different fields for the several kind of
references that could be made (immatricolation number of the
goods, date/number/line of the delivery note, date/number/line of
the order, date/number of the drawing, …)




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Description: How to Reconcile a Invoice document sample