e-invoicing: generating both significant time and cost savings
TRANSCRIPT
www.england.nhs.uk
E-Invoicing:
generating
both
significant
time and
cost savings
HFMA Convergence
Conference
6 July 2017
www.england.nhs.uk
Workshop structure
• NHS England update on e-invoicing (John McLoughlin)
• NHS SBS Presentation on e-invoicing developments
and demonstration (Gavin Turner/Matthew Jordan)
• Experience from a CCG perspective (Edward Andrews)
• Experience from a Provider perspective (David Hay)
• Questions/discussion
Agenda
www.england.nhs.uk
Who am I ……..
John McLoughlin
• Senior Financial Lead – Financial Accounting and Services
• Value Maker
➢Efficient Processes and Systems
Why am I so interested in e-invoicing……..
• Opportunity for significant cost and time savings across the NHS
E-invoicing – NHS England’s
perspective
www.england.nhs.uk
Efficient Processes and Systems –
Electronic Invoicing• E-Invoice - is a document or dataset that can be considered
an invoice which has been issued and received in any
electronic format (European Commission)
• SBS partnered with in 2014
• is PEPPOL Compliant – means it can integrate
with other e-invoicing platform
• Compliant with DH e-procurement Strategy
www.england.nhs.uk
Benefits on E-Invoicing
• Free to use - no setup fee, transaction fees or service charges
• Faster invoice processing times - reduces the average time for invoices to appear on the Oracle system from 10 days to 1 day
• Instant validation - take advantage of pre-submission checks to ensure supplier invoices are right first time (reduce volume of rejected invoices)
• Reduced business costs – save costs on printing, paper, postage, phone calls…
• Easy setup - it’s quick and simple to get started and just as simple to use
• Improved account reconciliation - track the statuses of your invoices (will show Received, Approved, Rejected and Paid invoice statuses)
www.england.nhs.uk
E-invoicing – CCG Progress to Date
• ISFE invoice processing:
• Number of invoices in 2016/17 across ISFE from all suppliers - 2.8m
• Significant differential in CCGs receiving e-invoices:
• Best performing = 60%
• Worst performing = 7%
• NHS England = 27% (11th ranked)
• Average = 18%
Invoice Type April 2015 March 2017 March 2018?
Electronic 2% 18% 100%
Paper 98% 82% 0%
www.england.nhs.uk
• In 2016-17 over 550,000 invoices submitted from Providers to
CCGs
• Of these, the data for March 2017 shows:
E-invoicing – Provider stats
13,085 53
755 18
11,311 57
34,075 138
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
number of invoices number of Providers
100% Paper invoice
SBS client
<75% e-invoice
>75% e-invoice
www.england.nhs.uk
• the NHS processes as many as 20 million invoices a year, with 3 million of these by commissioners alone
• e-invoicing can generate savings in excess of 50% per transaction
• Therefore, for every £1 saving per transaction we will generate hard savings of £3m annually across commissioners and indeed across the NHS could be as much as £20m annually
• AND lets not forget the time savings and benefits of redirecting staff to more value added tasks than debt collecting
Potential NHS Cost Savings
www.england.nhs.uk
• ………. HFMA article in its June Magazine and online for members:
• https://www.hfma.org.uk/news/healthcare-finance/feature/virtual-invoicing-the-real-deal
• ………. My blogs on Future Focussed Finance’s website:
• http://www.futurefocusedfinance.nhs.uk/blog/e-invoicing-win-win-providers-and-commissioners
• http://www.futurefocusedfinance.nhs.uk/blog/virtual-invoicing-real-deal
Check out ……
NHS Shared Business Services Electronic Invoice
Solution
• Improve efficiency and invoice process times
• Improve client and supplier experience
• Help NHS SBS achieve our Green Initiative
• An eInvoicing solution offers versatility and adaptability via a variety of sending methods
• Interface Portal
• Document Uploader
• Integration-File Transfer
Why eInvoicing
• Suppliers receive status updates on invoice progress granting them
visibility of their invoice through entire process
• Reduce likelihood of rejected or returned invoices due to missing data
• Suppliers save money
• Free to send invoices and credit notes
• Faster invoice processing time
• Promote a positive green agenda
• Prompt Payment Discounts
• PEPPOL Compliance
Benefits of eInvoicing
Recognised Benefits of e-Invoicing
Invoice Date to Scan Invoice Date to Payment Scan date to view
NHS SUPPLY CHAIN79% improvement for the
average invoice date to scan date
68% improvement on average invoice date to payment date
98% improvement on average scanned date to date available
in workflows
REED SPECIALIST RECRUITMENT LTD
80% improvement for the average invoice date to scan
date
58% improvement on average invoice date to payment date
39% improvement on average scanned date to date available
in workflows
E-invoice Paper E-invoice Paper E-invoice Paper
Average invoice date to scan date
Average Invoice date to payment date
Average scanned date to available in workflow
3 14.1 13.3 42.4 0 2.9
5 25.1 20.3 48.4 1.6 2.6
Grand Total 4.4 22.1 18.2 46.6 1.1 2.7
eInvoicing Improvements
• Invoices and credit notes are pre-validated before submission
• No reliance on post
• Removes the entire post, scanning & verification steps, vastly reducing process time
• Structured format producing a clear easy-to-read invoice image
• Prevents duplicate invoices entering the system - every invoice must have a unique invoice number which matches Oracle validation logic.
• Reduction in invoices on dummy supplier account
• Supplier will have increased visibility of invoice progress via status updates (Sent, Delivered, Accepted, Disputed, Paid, Rejected)
• Reduce contact to NHS SBS service centres and client procurement and payment teams
Improvements to processing
© NHS Shared Business Services 2014
Validation rules ensure a quick and efficient handling of invoices and credit notes
The validation rules implemented by NHS SBS are:
Org ID: In order for the invoice to be routed to the correct NHS organisation the
Organisation ID (e.g. RY6, RXY)
Invoice date: cannot be >14 days than current date
Invoice Numbers/Credit Note Numbers: consist of only numbers and/or upper case
letters, 30 character maximum limit, and same number cannot be used more than
once
PO Number: Follow the PO number range for NHS organisation
Attachments: Only PDF attachments or following image files: gif, tiff, jpeg and png
allowed
Invoice Validation Rules
• Over 8,500 suppliers now sending electronic invoices
• Over 2.5 million invoices received since Sept ’13
• Receiving approx. 100,000 per month which is around 25% of overall
volume.
Progress to date
Demonstration
QUESTIONS?
Questions
www.england.nhs.uk
Experience from a CCG perspective
Edward Andrews - Finance Manager
www.england.nhs.uk
Experience from a Provider
perspective
David Hay – Head of Financial Services
25,000 Invoices pa15,000 NHS pa348 SBS Clients
Using Tradeshift since July 2015
Invoices sent via Tradeshiftin 23 months:➢ Number➢ Value
90+ day debt:➢ July 2015➢ May 2017
13,637£1.9B
£6m£3.5m
www.england.nhs.uk
Contact details:
• John McLoughlin – [email protected]
• NHS SBS - [email protected]
Questions