Public Sector Buyers
Since April 2019 it has been mandatory for European public sector buyers to be compliant to receive invoices in electronic format from their suppliers, as per Directive 2014/55/EU.
The Directive calls for the definition of a common European standard (EN) on e-invoicing. The EN ensures that all European public sector buyers and suppliers can receive and send e-invoices across Europe using a single format. As a result they do not need to adjust their sending practices to connect with different trading partners.
It is not yet a requirement for suppliers, however there is a push to mandate it in the near future. The net benefits can be savings of between €4 – 12 per invoice (EESPA), so there are huge incentives for suppliers to start trading electronically.
According to DIGIT, there are already over 150,000 e-invoice receiving organisations connected across 20 Euro countries, plus Singapore, Canada, USA. According to the Irish Office of Government Procurement, e-invoicing adoption rates of up to 25% can be expected within 3 years across Europe (nearer to 40% in Western Europe, including Ireland and the UK).
Celtrino for Public Sector Buyers
Public bodies can connect to a PEPPOL Access Point, for example Celtrino, to start trading electronically with their suppliers. Buyers and suppliers do not need to use the same access point to trade with each other.
Transactions are carried out using a 4 corner model:
- Public sector buyer (C1) connects to an Access Point (C2) and sends an electronic order.
- C2 then uses a Service Metadata Publisher (SMP) service (Celtrino also offer an SMP service) to identify the trading capabilities of the supplier (C4), and what access point they use (C3). C2 then sends the order to C4 via C3.
Celtrino’s solution enables you to quickly and seamlessly on-board your existing suppliers to start trading electronically today.
Buyers can generate access to a wider range of suppliers, and increase international trade. The directive makes it more attractive for suppliers to start trading with the public sector.
Many users have been able to reduce invoice processing costs by 50-75%, with a return on investment of over 60% per annum. An estimated €920 million in savings has already been recorded over the last three years through e-invoicing.
As well as the legal requirement to trade electronically as per the Directive, it enables buyers to control spend, to save on cash/resources that have traditionally been devoted to manual processes, and to enhance the transparency and traceability of procurement activities.
Celtrino are the exclusive framework supplier of e-invoicing solutions to the Irish Public Sector. We have successfully enabled the leading Irish government departments to be compliant to receive e-invoices prior to the deadline of the 18th April 2019, and over the next 12 months we will be working closely with sub-central government authorities to implement their compliance requirements.
For public bodies who wish to draw down from this Framework and to comply with the directive as per their obligations, they must go through www.ogp.gov.ie.