DNB has invited Olav Kristiansen in DIFI to explain the consequences of the implementation of electronic invoices in the Norwegian public sector. From 1 July 2012, standard formatted electronic invoices will be compulsory for all deliveries to government and, most probably, municipal institutions.
Olav, what is DIFI and what is your role there?
DIFI is the Norwegian Agency for Public Management and eGovernment and aims to strengthen and renew the Norwegian public sector, improve coordination between the public authorities and offer joint solutions. I am the project manager, in charge of implementing electronic invoices in the public sector.
Do we need electronic invoices? Many people send invoices electronically via e-mail and often as PDF documents. Why is this not good enough?
An e-mail invoice is not an electronic invoice. An electronic invoice is automatically processed at the recipient. There are also many security aspects to consider if invoices are sent via e-mail, as well as the risk of full e-mail boxes, interception, and spam etc.
Public sector standard for electronic invoices
Has a public sector standard been determined for electronic invoices?
Yes, and the Norwegian name is: Elektronisk Handels Format (EHF), which means electronic trade format.
The banks have been able to use electronic invoices for some time. Have the banks started work on the standard format so that satisfactory functionality can be delivered to public institutions within a reasonable time and by the deadline?
Based on the dialogue I have had with the banks, all indications are that the banks can deliver EHF.
The public sector is ready to receive electronic invoices
The deadline for the public sector to prepare a system for receiving electronic invoices was July 1, 2011. Did you meet the deadline?
The deadline was not met by all of the government services and institutions. However, 80–90 per cent did meet the deadline. We know that many are queuing up to implement the solution, both banks and other suppliers.
There is another deadline on July 1, 2012. Isn’t this rather confusing? What must happen by then and are the municipalities in Norway part of this?
It has not yet been decided whether the municipalities will be part of this. An analysis of the consequences is now in progress. Nevertheless, the intention is that by July 1 next year, it will be compulsory for all businesses to issue electronic invoices.
Is there any transitional solution with such a short time limit?
No, SSØ (Senter for statlig økonomistyring), the Norwegian Government Agency for Financial Management is responsible for this.
Municipalities do not have to wait
Should the municipalities await the Norwegian public sector’s solutions before new agreements are signed with their banks?
If the banks intend to become access points or if they promise to exchange documents with access points, then they can start to sign agreements.
The banks intend to become access points, but one question which many are asking is whether the intermediary role of the banks will no longer apply in the public sector’s solutions?
“Not at all, this must be done in cooperation,” says Olav Kristiansen, project manager in DIFI.
If you require more information on electronic invoices, please contact your cash managment adviser or call your account officer/corporate center on 04800.
