Tesco Ireland Limited Gresham House, Dun Laoghaire Dublin, Ireland. April Dear Sir / Madam. Tesco Ireland Moves to Electronic Invoicing

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1 Tesco Ireland Limited Gresham House, Dun Laoghaire Dublin, Ireland April 2013 Dear Sir / Madam Tesco Ireland Moves to Electronic Invoicing I am writing to tell you about a change Tesco Ireland will be implementing to improve the invoicing and payment process for Goods and Services Not For Resale (GSNFR) i.e. by receiving invoices electronically which is Tesco s best practice and preferred method. As part of this programme we now require all of our Ireland suppliers to move to electronic invoicing for the payment of invoices. By moving to electronic invoicing you will benefit from: A secure, fast and environmentally friendly invoicing process with guaranteed delivery of tax compliant invoices to Tesco within 24 hrs Help increase our ability to pay you to agreed terms Notification alerts to help you track every step of the invoice submission and delivery process Online invoice archiving and reporting options Notification on invoice payment status Tesco has partnered with OB10, the largest global e-invoicing network, to facilitate your transition to electronic invoicing. They will be contacting you in the coming weeks to help you understand the options available,which require no additional software. There is a cost associated with using OB10 but we believe this is outweighed by benefits outlined above. Please note that as of the end of July all your invoices need to be submitted electronically via OB10. I would therefore encourage you to adopt this initiative early. It is important to ensure that the invoices you submit are fully compliant with Tesco s requirements. For your guidance we have provided best practice invoice submission guidelines in the FAQ document. For more information on the switch to electronic invoicing, please refer to the Frequently Asked Questions. If you wish to contact OB10 directly please ukclientservices@ob10.com or call on +44(0) If you wish to contact Tesco Ireland directly, please send your query to ob10roi.ap@in.tesco.com. Thank you in advance for supporting this initiative and helping us to improve our processes. We look forward to receiving your invoices electronically (via OB10) in the near future. Yours sincerely Ryan Preston Tesco Ireland Finance Director

2 Some frequently asked questions. Who are OB10? OB10 are Tesco s e-invoicing partner and manage electronically submitted invoices between Tesco and our suppliers. OB10 enables suppliers to send invoice data electronically, in their preferred data format. OB10 will translate the invoice data into our preferred format and validate it. Options available to you You can submit invoices via the Integrated Solution or Web Form. The number of invoices you send to Tesco will determine which solution is most cost efficient for your company. How to register with OB10? OB10 will contact you shortly to discuss the options, or if you wish to contact OB10 directly please ukclientservices@ob10.com or call on +44(0) How does my business benefit from e-invoicing? A secure, fast and environmentally friendly invoicing process with guaranteed delivery of compliant invoices to Tesco within 24 hours. Significantly mitigating the risk of delays due to missing information, landing on the wrong desk or manual intervention. Help increase our ability to pay you to agreed terms. Notification alerts to let you know about any invoice submission problems. OB10 enables ANY-TO-ANY DATA FORMATTING Technology hence there is no requirement for additional software or hardware Improved processing precision and better Cash Flow Management due to 24/7 access and reporting It is VAT compliant, regardless of where invoices are sent from or received Invoice status service track the full invoice cycle from submission through approval to payment with one click Cost proficient to send invoices - at any time Invoicing Best Practice Before you begin creating or submitting your invoices via OB10, please ensure the following You have an approved Purchase order number (i.e. 8 digit number beginning with a 4 ). The delivery by date on the Purchase order has passed. The invoice is submitted against the correct PO line numbers with line description, quantity, unit price, unit of measure and line value. Invoice value does not exceed the Purchase Order value. If your PO was issued post-delivery of goods or services, please allow 2 days before submitting the invoice. Multiple Purchase Orders per invoice are not supported and will result in OB10 failing your invoice for not complying with Tesco Ireland s requirements. Submit your invoice successfully and you receive the 15-digit OB10 transaction number. Failure to meet with the above requirements, even though your invoices might be accepted by OB10, may result in your invoices being rejected by Tesco.

3 Will e-invoicing from OB10 be a requirement for new suppliers? Yes, OB10 will be a pre-requisite to become a registered Tesco supplier of Goods and Services Not for Resale. Will I need to sign an agreement with OB10? Yes, if you choose to use the Integrated Solution you will sign a service agreement with OB10. If you choose to use the Web Form you will be required to accept their terms and conditions presented at the time of creating your account. Is there a cost to use OB10 e-invoicing? Yes, there is a cost to use OB10 just as there is a cost associated with sending paper invoices (payments made to the post office, to procure and store office supplies such as ink and paper). For more information about the options at your disposal and the cost associated with them, please refer to the Option Documents enclosed to this letter. What does the membership fee for the Integrated Solution cover? The membership fee covers the cost to OB10 of setting you up on their network and the general costs of or maintaining the network. This is an annual fee cost irrespective of the number of your customers that you service via the network What happens if I still send paper invoices? Higher priority will be given to those invoices received electronically. While you are working with OB10 to complete your registration we will be happy to continue to receive your paper invoices. We have set a deadline of end of July 2013 for suppliers to transition to electronic invoicing. Once you are sending invoices via the OB10 network all paper invoices will be rejected by Tesco. Do I need to install any software? No. Additional software or hardware is not required. All that you need to send invoices via OB10 is connection to the internet. Can I send invoice data directly from my billing system? Yes, OB10 enables ANY-TO-ANY DATA FORMATTING, so you can send invoices directly from your billing system via OB10. To do this you will need to use the automated solution and become an Integrated Solution Supplier on the OB10 network. Please contact OB10 directly on +44 (0) to do this.

4 I already have the facility to make invoices available to my customers via the Internet allowing them to view an image of an invoice on the web. Can I use this facility instead OB10? No, the OB10 network ensures that Tesco receives the data you send in a format that will upload to our accounting software and match to a purchase order (invoice must be compliant and meet matching criteria as described above Can I send electronic invoices using OB10 to all of my customers? Yes. Once you are subscribed to the OB10 network, OB10 enables you to send electronic invoices to any other customers that are members of the network. Will Tesco make payments using OB10? No. OB10 is a transmission service for invoices only and is completely independent of payment. Tesco will continue to use the current payment method. Will I need to use this service if my account is currently paid on time? Yes. Your use of the OB10 service will ensure we continue to pay you on time. OB10 account terminology: Supplier OB10 account number refers to the number assigned to you by OB10 when you register. Tesco Ireland OB10 account number is AAA What should I do if my invoices are rejected by OB10? The submission alert that you receive from OB10 will tell you why the invoice has been rejected. Where possible you should correct the error and resubmit the invoice. If you are unable to correct the error then please contact OB10 Support by creating a support ticket through your portal account. What happens if I experience issues when submitting invoices via OB10? Please raise a support ticket ( or call Telephone No: if you face any issues with using the OB10 network. How can I submit invoices that will pass PO validation? Tesco Ireland expects all invoices to be submitted against an approved 8 digit PO number beginning with 4. All valid PO s are sent on a daily basis to OB10 to be updated into their database. Please allow 2 days before submitting your invoice.

5 An Invoice must not be submitted against a PO that has already been fully invoiced. Your invoices will pass the PO validation if the above guidelines are followed. To submit a credit note, what mandatory information is required? Credit notes should always quote the related PO number. In addition you should always provide the original invoice number that the credit note corresponds to. Why don t I receive alerts from OB10 for invoices that I have sent? Please make sure you check your spam folder. If you still do not find these alerts, please make sure the correct address is set up to receive OB10 notifications. To find out how to administrate your contact details please refer to the How to amend your account details guide. Alternatively, please log a ticket with OB10 Support at My invoice is rejected, how can I resubmit the invoice? Suppliers using the Web Form should correct the error and resubmit the invoice, please refer to the How to re-submit a failed invoice guide. Suppliers using the Integrated Solution should correct the invoice data file previously sent to OB10 and resubmit, in case you need assistance please contact OB10 Support. It is important that you do not change the invoice number when you re-submit a failed invoice. Should I send paper invoices for invoices that are rejected? No, a rejected invoice has to be corrected by the supplier and re-sent via OB10. Suppliers using the Integrated Solution should correct the invoice data file and re-send to OB10. Any paper invoices sent to Tesco Ireland post your account going live with OB10 will be rejected. My invoice was accepted by OB10, can TESCO Ireland still reject my invoice? Yes, OB10 is responsible for invoice delivery only. TESCO Ireland will reject invoices that are non-complaint to the Tesco Procurement policy. Invoices will be rejected for the following reasons: No Purchase Order Number Invoice value exceeds Purchase Order Value Invoice is submitted before the deliver by date Invoice is a duplicate invoice

6 General Enquires If you have any additional questions on the areas below, please contact the relevant teams marked by x using the contact details in the table below. Contact details: OB10 support Tesco Ireland Accounts Payable For Payment queries Tesco Ireland Accounts Payable OB10 General queries Tesco Supplier Registration Purchase Order Raiser/ Requester Raise a ticket at or call the Support Team on +44 (0) roi.ap@in.tesco.com Ob10roi.ap@in.tesco.com supplier.regireland@in.tesco.com This can be found on the purchase order.

7 1 / 3 e-invoicing and an overview of your options Join OB10 and benefit from: Secure and guaranteed invoice delivery: no more paper invoices getting lost in the mail On-time payment: your customers can process your invoices faster No more delays: invoices cannot be sent with missing information, cannot land on the wrong desk and do not need manual intervention Secure online connection: send invoices easily with no need for additional software or hardware 24/7 access and reporting: enjoy higher processing transparency and better cashflow management Tax compliance: guaranteed legal and tax compliance Easy and cost-efficient invoicing at any time OB10 offers two primary methods for sending invoice and credit transactions. You can either send a data file directly to OB10 using our Integrated Solution or create invoices online using the Web Form through the OB10 Portal. This document explains how e-invoicing works and the options available to you. How it works Supplier Buyer OptionsOverview_EU, EN, 4/12 Copyright 2012 OB10. OB10 and the OB10 logo are trade marks of OB10 and protected by law.

8 2 / 3 By checking invoices for duplicates and ensuring they contain the information required by your customer, we ensure automated, straight-through processing and enable ontime payment. Through the OB10 Portal you have access to the OB10 archive and a number of reporting functions. Please read this document thoroughly before deciding whether Integrated Solution or Web Form submission through the OB10 Portal is the best option for your company. 1. Integrated Solution: sending an extracted data file This option suits organizations that send a high volume of invoices. The Integrated Solution gives you a fully automated process where invoice data is extracted directly from your billing system and delivered directly into your buyers finance systems. This means: We process data in virtually any format and handle the data transformation based on your customer s requirements No need to install additional software or hardware You can send one consolidated data file for all your invoices Once on the network, you can easily connect and send invoices to other customers Costs for the integrated solution Annual Membership 1100* Per Invoice Transaction costs 1 20 invoices per month invoices per month invoices per month ,000 invoices per month invoices per month 0.32 * Buyer connection fees will apply. The annual fee covers the creation and maintenance of your account for a single tax entity. If you have multiple tax entities there will likely to be additional charges. These charges will fluctuate based on the number of formats, and separate connections etc. For more information, please contact your OB10 representative. Please note: transactions are charged on a monthly basis according to volume. Getting started with the Integrated Solution Once your customer invites you to join OB10, one of our onboarding experts will walk you through the registration process. OptionsOverview_EU, EN, 4/12 Copyright 2012 OB10. OB10 and the OB10 logo are trade marks of OB10 and protected by law.

9 3 / 3 2. Web Form: sending electronic invoices using the OB10 Portal The OB10 Web Form is designed for companies who send a low volume of invoices to their customers each year. The portal offers you a secure connection and guarantees delivery of your invoice to your customers within hours, which allows them to process your invoice and pay you promptly. Costs for using the Web Form There are several pricing options available when submitting invoices through the Web Form. Upon registration, all new suppliers using this option automatically receive 12 free transactions. At the end of your first anniversary, if you have not used all of your free transactions, we will replenish your account back to 12 invoices for you to use during the next 12 months. If you use all 12 free invoices and need more during this 12-month period, you will be required to purchase your first batch of transactions (minimum 25 invoices). You will then no longer have access to the free invoice option. Web Form pricing structure** Transaction Level Transactions 1 12 Free* * The initial 12 free transactions are automatically available, can be used during the course of 12 months and will be replenished at the end of one year. If more than 12 transactions are required during the course of the year, you must purchase at least 25 transactions. Once you make your first purchase, you will no longer have access to the free invoice option. ** Payment options: You can pay by PayPal or credit card. We accept Visa, Visa Electron, MasterCard, Maestro, Solo and American Express. We can also invoice you, however, you will be required to purchase a minimum of 125 transactions and pay an administration fee of 15%. Getting started with the Web Form submission through the OB10 Portal As part of your invitation to join the OB10 network, you will receive an with instructions on how to register. Once your registration is complete, we will send you your login credentials by so you can start sending electronic invoices via OB10. For more information on OB10, e-invoicing and the options available to you, visit or us at info@ob10.com. OptionsOverview_EU, EN, 4/12 Copyright 2012 OB10. OB10 and the OB10 logo are trade marks of OB10 and protected by law.