Electronic invoicing became mandatory in Denmark on 1 February, 2005. All former paper based invoices send to government on all levels, from large agencies to nursing schools, are now managed electronically.
E-invoicing in Denmark is the result of a public/private partnership that makes use of successful and established technology. The set-up for e-invoicing is based on proven market solutions, including the infrastructure and the systems that can receive and process e-invoices. The solution is independent of the companies’ IT sophistication and is highly flexible.
Companies can send their invoices in different ways, according to their level of IT readiness:
- Through their own ERP system, by sending an digital invoice in a specific XML format directly to their public-sector customer via the internet.
- Through a digital invoice portal, which resembles an Internet bank where companies compose their invoices using a login and password, and then send it electronically.
- By sending a paper invoice to a Read-In bureau. Here it is converted to an electronic invoice and forwarded to the correct public institution. This solution ensures that companies without the necessary IT can still do business with the public sector.
The Progress in e-invoicing
The development in the amount of e-invoices received by public institutions shows a very fast implementation. From zero to 95% within the first 10 month from February 2005. The very last paper invoices will be sent electronically by the end of this month.
E-invoicing supports the Danish national strategy for e-government which aims to create a more effective and coherent public sector. The strategy behind digitalisation is that investments must pay off, which means that digitalisation projects must either increase the quality of public services (better products, faster case-processing times, fewer errors etc.) and/or supply the same service using fewer resources. E-invoicing is a step towards public procurement that is digital from start to finish. This will mean further efficiency benefits for both the public and the private sector.
High transferability to other European countries
The Danish e-invoicing initiative should have a high transformation value to other countries. E-invoicing illustrates that the public sector can implement a swift overall upgrade in technology, with significant improvements in efficiency, if there is sufficient political commitment and the technology to support it. Most European countries can to some extent make use of the set-up used in Denmark.
The central infrastructure uses existing networks services on the internet (VANS) and services from Read-In Bureaus. Documents sent across this network are based on a standard variant 7of XML, OIOXML. By providing security and convenience for the supplier, this system enables all public sector partners to computerise all internal work processes and systems.
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Timeline for the implementation of e-invoicing in Denmark
- December 2003
Legislation: The Danish parliament unanimously passes the “Act pertaining to public payments”, thereby giving the Minister of Finance the authority to set rules and regulations governing the public sector’s use of electronic payment systems.
- Autumn 2004
Communication campaign: including a letter to all Danish companies, handbook, websites, newsletters, help hotline, TV-spots and adds in newspapers as well as an information package distributed to public institutions.
Technical infrastructure in place: The technical infrastructure (VANS-network and Read-In bureaus) and a standardised communication format (OIOXML) is in place.
- 1 February 2005
The new e-invoicing requirements take effect.
- Spring 2005
Adjusting systems and procedures: Public institutions and private companies make adjustments to their systems and procedures in order to efficiently send and receive invoices using the new electronic format.
- Autumn 2005
More than 90 per cent of invoices to public institutions are delivered electronically.
European recognition: E-invoicing in Denmark is awarded the eEurope Award.
- Spring 2006
No more paper invoices: Public institutions return paper invoices with the request that they be re-forwarded electronically.
- 2006
e-order coming up: The next step is the implementation of electronic order-systems thereby making public procurement digital from start to finish.
The Agency of Governmental Management, under the Ministry of Finance handles the implementation and ongoing administration of e-invoicing. For more information visit www.oes.dk/efak or contact Head of Division Thomas Fjeldberg Diese E-Mail-Adresse ist vor Spambots geschützt! Zur Anzeige muss JavaScript eingeschaltet sein!.
Autor(en)/Author(s): Thomas Fjeldberg
Quelle/Source: eGov monitor, 10.07.2006
