RealTime Economy for Europe What is RTE RealTime

Real-Time Economy for Europe

What is RTE? Real-Time Economy is an environment where all the transactions between business parties are in digital format, increasingly automatically generated, and completed in real-time both from business and IT-processing perspectives. For enterprises, public sector, and citizens this means, for example, that orders, order confirmations, invoices, and payments flow from system to system without delays. This makes it possible to move towards electronic archiving, electronic book-keeping, and automated accounting. Real-Time Economy Competence Centre of Aalto University 2

Real-time economy – national co-innovation Full SEPA FVC FIA 1 FIA 2 SME 50 2006 2008 2009 2010 2012 Full SEPA (Full Single European Payment area) -SEPA payments -e. Invoicing FVC (Full Value Chain) - Harmonising value chain development FIA 1 FIA 2 - e. Accounting reference (tiliöintiviite) - Standard for Electronic Financial Reporting (www. raportointikoo disto. fi ) -Global e. Invoicing standard ISO 20022 -European e. Invoicing work - Electronic Financial Statement and XBRL - Fully Integrated Payroll (FIP): Payroll reporting codes and practices - Real-Time VAT - European e. Invoicing work (Fully Integrated Accounting 1) 1. 1. 2009 -30. 6. 2010 (Fully Integrated Accounting 2) 1. 8. 201030. 12. 2011 SME 50 (’Administrative costs in half…’) 2012 -2013 1. AFA – Automated Financial Administration 2. FAR – Fully Automated Reporting 3. ERM – Enterprise Risk Mitigation 4. SIM – Sustainability Intelligence Management

Real-time economy: National Co-innovation Program CONSUMERS SMEs Kuluttajatutkimuskeskus, Telia. Sonera, FK, … BANKS Aktia, OP-Pohjola, Nordea , Sampo, Suomen Pankki, . . . INTEREST GROUPS COMPANIES ALD Automotive, Finnair, Lindström Pretax, UPMKymmene, Wärtsilä, Asiakastieto, . . . PUBLIC ORG. Hansel, Kuntaliitto, PRH, Tieke, Valtiokonttori, vero, VM, TEM, STM, Kela, . . . Agent. IT, Dicole, Finansia, Hawcon, Hammerkit, Maventa, Pro. Countor, . . . ACADEMICS Aalto, Hanken, ÅA, TY, Politecnico di Milano, University of Nevada, . . . OPERATORS & SERVICE PROVIDERS Aditro, Basware, Opus. Capita, Telia. Sonera, Tieto, Itella, … FK, Taloushallinto -liitto, Keskuskauppak. , Suomen Yrittäjät, EK, Sitra, . . .

RTE>ICT 2015 Infrastructure for real-time economy (path 2) 1. Salary-payment-specific tax reporting & income register 2. VAT reporting 3. XBRL standard 4. Automated accounting

Two dimensions – commercial and administrative connecting – in real time Automation and real time inside network - incl Public sector Customer Supplier Logistics Supplier Customer Seller IT-services E-invoice Payments - Cash flow - Accounting Public sectoer - Financing reporting ”Buyer Big Data to move from self-service to service IT-services Payments Automation and real time between networks -Cash flow -Accounting -Rev Factoring Public sector reporting 6

Real-time economy – the new paradigm 1. Full automation of commercial and administrative information flows – throughout networks 2. Real-time – start and end in same instance (also for IT processing part) 3. Standardisation – of message content, interfaces and data bases – increasingly global (ISO 20022 central) 4. Administrative reporting needs are collected from corporate financial systems – as automatic byproducts from salary payments, e-invoicing, payments and account statements. 5. Strong drivers towards harmonised EU Single Market (can become real only through digitalisation)

Real-time VAT ISO 20022 ISO 20022

Bigger reporting picture Seller Invoice file E-Invoice file (any format) Operator Data Extraction Buyer 1 E-mail (PDF) Domestic VAT Buyer 2 Mail EU - VAT Tax inspection Intrastat Forecasting ++++++ Buyer 3

Automated and real-time reporting 1 Salary payments VAT reporting based on e. Invoicing XBRL & Account-based automated accounting N a t i o n a l i n f r a Information to Tax without need to change presents systems KELA 2 Income register Municipalities Social sec

Real Time Economy Should we not plug in?