E-invoice Processing Types (CTC) in IFS apps 10 update 21

Hi,

several countries in the world are implementing or planning to implement mandatory CTC/Compliance e-invoice for companies operating in the country. The main objective for the tax authorities to introduce a CTC model is to get detailed tax related information on invoice level already at the point of invoicing.

The tax authorities get better control of invoices and payments and by this having a better tool to close the VAT/tax gap and secure that taxes are reported and paid correctly.

IFS delivers support for new CTC models around the world in cooperation with a Service Provider. Proof of concept will be delivered together with preferred partner Pagero

Use of Service Providers

Companies want to focus on their core business and simplify electronic statutory reporting through global or local service providers Pagero is one service provider for e-invoice solutions. Customers are free to choose any service provider, locally or globally.

Frequent changes and not standardized

ERP cloud software enables the required data and lifecycle handling of invoice. A Service Provider the formatting and connection to authorities

IFS Cloud Solution

An IFS specific XML-Layout needs to be used when invoices are imported or exported from/to IFS Cloud

• On the outgoing side the service providers needs to receive the IFS specific XML-Layout and convert it to the desired output format.

• On the incoming side the services providers receives invoices in different formats and converts these invoice to the IFS specific XML-Layout for incoming invoices.

Kind Regards

Ralph

Hi Ralph 

Thanks for the long explanation. 

However, my question was quite simple:

“Does IFS Apps10 have any functionality for handling e-invoice/CTC to tax authorities”

I do not find an answer for this in you explanation.  Can you help me on this?

Regards Brian

Hi Brian,

Apps10 (also IFS Cloud) supports the output of an IFS Style XML-Files which will be the base for e-invoicing (incoming and outgoing). These files (besides a few exceptions) need to be converted to the locally used format on the outgoing side and transformed from the local format to the IFS Style XML format for input into an IFS environment.

For transformation of the invoices in/out as well as for the communication with the tax authorities a service provider must be used. IFS does not support all the different formats or ways of communication with the tax authorities directly.

Does thatlight up the topic a little bit?

Regards

Ralph

Brian,

To expand on the previous answers, we currently use e-invoicing in our Italian manufacturing site and will have to soon start receiving e-invoices at our German site as well at the end of this year. We currently use Pagero as our third party partner and they handle the country specific requirements for each company. We only need to provide them a single IFS xml file type that they can then convert as needed and we use their dashboard to monitor any issues with rejected file should they occur. Fairly easy setup.

Hi, In short, I read it like this?

• IFS (Apps10 and Cloud) can provide XML data to a service provider (Like Pagero), who can handle the correct submission of CTC data to the Tax authorities in the relevant countries.
• There is no specific “CTC” XML format in IFS. 

How does that work in practices? Must all invoices go to the customer via EDI? Then the service provider will pass on both an XML to the customer and the Tax authorities?  What if some invoices are sent via E-mail?  

As I read some documentation for IFS Cloud, then there is:

“Improved control for the Invoice Process in CTC solutions.” . Any idea of what that mean?

 Regards Brian

THE “CTC” XML format is the IFS FINVOICE(?) format that the that the service providers accept and then submit to tax authorities, who then validate the invoice. Then that invoice is sent to the buyer and finally the invoice is registered with the tax authority at the end in real time. I have not yet used the IFS Cloud interfaces for these processes yet but the screens and processes will probably vary based on the particular country solution developed by IFS. 

For example, the screens used by Brazil may be slightly different than the screens used by Italy. Clear as mud, right?

The way how E-Invoices are handled are different from country to country. Some countries involve the tax authorities, some don’t. The involvement of the tax authorities differs also. Some just want to receive the invoices, some of them want to approve them before sending to the customer and approving them,…. (see second screenshot).

For e.g. Brazil and Italy some functionality for CTC is directly available in IFS Applications/Cloud using the Global Extension. The functionality for these 2 countries developed historically.
For all upcoming requirements in other countriesthe regarding CTC the involvement of a service provider is required.

The IFS output is the FInvoice xml - this xml will be converted by the service provider into the required country specific format. The most simple way is just sending the invoice via the service provider to the customer.
 

Depending on the legislation additional communication with the tax authorities might be necessary.