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E-invoicing mandatory in Estonia 2016

If you want to do any business with the public sector, be ready to switch to e-invoices. Starting in 2020, this is the way it will be in all EU Member States. In public procurement e-invoicing will become mandatory in 2018.

In Estonia, this will be a reality even earlier. Estonian authorities have decided to make the transition to B2G (Business to Government) e-invoicing already in 2016, and by the end of 2016 sending e-invoices will be mandatory.
 
A recent study by Ernst and Young revealed that in the Estonian private sector, 19% of all invoices issued are electronic, 17% are still sent on paper and the rest are delivered as pdf documents. Unlike small companies, larger organizations have good technical maturity for implementing e-invoicing. However, organizational changes are expected from everyone.
 
The Ministry of Finance of the Republic of Estonia has calculated that the project will bring 1.95 million euros in savings when the transition takes place in the B2G sector. If B2B follows suite, total savings could amount to more than 70 million euros. The authorities have planned an extensive communications campaign to explain the benefits of e-invoicing. The Estonian Government also intends to support smaller enterprises with publicly accessible tools for e-invoicing.

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New annual event: Pärnu Supply Chain Conference

Starting from 2014, the annual Pärnu Supply Chain Conference will be organized alongside the famous Pärnu Management Conference, Pärnu Finance Conference and Pärnu Marketing Conference.

Telema’s CEO Hele Hammer was invited to be part of the organizing committee. Telema was asked to conduct the world-famous MIT Beer Game and Hele was asked to introduce Tallinn University of Technology’s new Supply Chain Management programme. Both sessions were received warmly and Hele was voted one of the best presenters at the conference.

Based on the great success of the MIT Beer Game, Telema has already been invited back to Pärnu Supply Chain Conference 2015. The conference takes place 12–13 March in Pärnu – as you probably already guessed. Once again, we have been asked to conduct the MIT Beer Game session. Register early, as there is a limit of 32 participants for that session.  

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Will GLN ever be as popular as GTIN already is?

Most of us know the acronym GTIN (formerly EAN). GTIN is the Global Trade Item Number issued by GS1 to facilitate universal recognition of items, usually represented by a printed barcode on the item. GLN is a relative of GTIN and stands for Global Location Number issued to companies or its units.
 
Those of us doing business with Rimi in any of the Baltic States also know that Rimi requires the use of a GLN on all orders and invoices.The Global Location Number (GLN) is used to identify any location that needs to be recognized in the supply chain. GLN is registered to an object in the physical world: a building or a specific location within a site. It could even be for example the “Second floor of Järve Selver”. 

Unlike company ID or VAT number, GLN makes it possible to identify several entities within one company. In trade and commerce in particular, this is very often necessary. Some companies might have thousands of locations that need to be uniquely identified. Using GLNs greatly improves the chances that EDI documents reach the right recipient.
To get more information on GLN, visit the GS1 homepage.

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4DOC Supply Process in Baltics: Prisma to join in 2015

Starting in February 2015, one more influential player in FMCG retail will switch over to the 4DOC supply process – Prisma. Why are more and more retailers in the Baltic States adopting this process using four documents: 1) order 2) despatch advice 3) receiving advice, 4) invoice?
 
This is primarily because the Baltic FMCG and DIY retailers are trying to cut costs and gain competitive advantage. Using the four EDI messages instead of two makes the automated purchase process even more precise. The main idea of the 4DOC-process is to issue an invoice only after the customer has confirmed they have actually received a quantity of goods with the receiving advice document.
 
Meaningless work is reduced in the whole supply chain, and all parties gain additional value:
  • As invoices are based on the receiving advice, they are more exact. There are less credit invoices, and therefore, less administrative costs.
  • Confidential information is more secure. Prices are not used on despatch advices and receiving advices, so that less people will get to see them.
  • The process is faster in terms of products being placed on shelves faster as well as the supplier getting its payment faster.

It is true that meeting the 4DOC requirements may be challenging. Companies need to alter their internal processes and information systems. However, the benefits to be gained from this more exact system will outweigh the investment costs in the long term.

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Ready, steady, go! Lithuania greets the euro

On 1 January 2015, Lithuania will enter the euro zone. The Telema EDI system is ready to transfer data in any currency. For integrated EDI users, the Telema EDI System exchanges information to and from their ERP system. The Telema Portal is already automatically euro compliant.
 
As our system is built so that we transfer what our customers want us to transfer, there are no special validators in our system to check the currency. The currency on any document is what the sender intended it to be. Unless specifically asked, Telema will not make any currency conversions – what our clients send us, we will forward to their partners.  
 
Please make sure that the documents forwarded to the Telema EDI System use the correct currency. From January 2015, trading documents issued in Lithuania should bear sums in euros and the currency code needs to be EUR.

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