Insights 2015 - Your questions answered
Is putting a digital signature on an invoice sufficient to be compliant?
A compliant invoice is made up of complete and accurate content, a digital signature to provide proof of authenticity of origin and integrity of data. A document that is incomplete and lacks mandatory data is not compliant just because a digital signature is used.
Generally it has been observed that regional/local e-Invoicing players are more prompt in being compliant/ available in a country. These regional players also enjoy more acceptability in these specific regions. How is Tungsten planning to take on these regional players so that their customers don't have to adopt a regional solution as against global mandate?
The strategy is always going to be to become compliant in a country without external help. Where necessary, we will collaborate with local partners to become compliant. Our partnership with Trustweaver will help us overcome the local collaboration aspect a bit quicker however the full implementation requirements will remain as we strive to implement the same global process for our global clients while observing and catering for locally applicable specialities.
Why do we encourage invoicing from non-compliant countries to a compliant country? Is it legally ok?
Invoices from non-compliant countries to compliant countries are non-VAT invoices in our context and thus pose no problem for processing into compliant countries.
When will Italy be harmonised with the rest of Europe?
There is likely going to be a harmonisation across Europe however local flavours will remain.
How does Tungsten Network plan for country compliance? What can a buyer do to assist in next countries to be implemented?
You can find more information on this in the slides from Markus Hornburg’s workshop.
Do you see it as a future trend also in Europe that clearance systems will spread?
As answered by PwC we currently don´t see this approach as a general idea in Europe however this might change in time when more Governments understand the benefits of real time tax collections.
What is Tungsten Network’s response when my tax and accounting teams disagree with your guidance on country compliance?
Please put them in contact with our Compliance team and we will handle these concerns on a case by case basis.
What are the general government rules on accepting emailed invoices? Eg. Pdfs
There are no general rules. All country Governments have individual requirements as to how they wish to receive electronic invoices.
Does Tungsten Network plan to have more interoperability with local partners to speed getting compliant in new countries?
Please see above.
How complex is it to achieve compliance? Is there more than just digital signature and archive location?
Becoming compliant is an extensive and complex process. More information in the slides from Markus Hornburg’s workshop..
What do you suggest companies should do to meet a compliance mandate until the Tungsten Network solution is available in that jurisdiction?
Unfortunately you will need to follow the local process and in most cases this will not require the help of an external partner. Once we become compliant you will benefit from your global process and we will take care that the rest is taken care of as well.
Will there be EMEA Governments to Business?
Not to our current knowledge.
Stefan, what if I am in M&A and wanted to do procurement due diligence on the company I'm acquiring?
Provided that the correct and legal permissions are provided, the tool could be used to analyse customer data in an acquisition scenario.
What % e-invoicing penetration would you consider a minimum to make this tool most effective?
The tool is good to use as soon as invoices are processed by Tungsten Network, however for price variance to be effective there needs to be historical data, I would say 4 – 6 months of invoices at 2000 invoices per month or more.
If we already use a historic cost recovery company, can you work with them using your analytics tool?
Yes we absolutely can work with cost recovery firms, we are indeed in discussions with several of them today.
How do you ensure that the same products with different descriptions are correctly included in the analysis as the same product?
The algorithms use a combination of descriptions, part numbers and units of measure to obtain a high quality match.
Would the tool be of use for Intrastat as well as cross border VAT recovery?
Yes cross border VAT reporting is on the product development pipeline and will be coming later this year.
What would it take to show line item price variance across the Tungsten Network, rather than just within my data?
While the tool is capable of doing this, we wont implement it for legal reasons.
Who tends to be the main user of Tungsten Analytics?
The main users will be in category management / procurement, but the tool is also useful for Accounts Payables reporting.
How are transactions converted to a base currency? Do you use a constant exchange rate across the period or apply daily rates?
The base currency for reporting is updated once per month using a feed from the European Central Bank. We are able to update more frequently if required.
Could you load non Tungsten Network spend from the ERP systems to give visibility and strategies to convert them to Tungsten Network suppliers?
Yes we are able to load non – Tungsten Network data / Customer ERP data to the tool.