The Ministry of Social Development (MSD) is leading the way for government eInvoicing
Since going live with receive capability in July 2023 as at May, 13.4% of all MSD departmental invoices are processed as eInvoices – 94% of which are paid within 5 days.
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eInvoicing is part of MSD’s commitment to digital transformation.
A systems approach
MSD has been proactive and system-focused in making the transition and growing its eInvoicing capabilities says MSD Business Implementation Specialist, Clodagh Daly.
While eInvoicing can streamline processes and increase efficiencies, it’s important that it’s not disruptive to the systems already in place. To ensure a smooth transition, MSD worked closely with their Access Point provider – Message Exchange - and finance system provider – Accenture, implementing business rules where required.
For example, “We introduced an automated nightly error validation report to address any issues like duplicate invoices or incorrect PO numbers, which is reviewed daily by our accounts payable team,” says Clodagh.
Onboarding suppliers to send eInvoices
A key part of MSD’s approach to start receiving eInvoices from their suppliers was to target their highest volume invoice senders first. They also focused on suppliers that used Xero, who can easily send eInvoices. (Xero and MYOB provides eInvoicing send and receive capability to their users, for no extra cost.)
“Engagement has been a mix of direct communication via email and Teams meetings. We maintained one-on-one relationships, and some suppliers approached us proactively.”
The Ministry has carried out targeted testing with its highest volume suppliers while for other suppliers, it has adopted a 'receive first, resolve issues' approach.
Success factors
“Our system-oriented strategy for implementing eInvoicing has been a key success factor. This approach has proven more productive and cost-effective than manual intervention, and it allows for easy modifications to accommodate new system rules. We also worked with other government agencies using the same financial systems to learn from their experiences.
“As we gain more knowledge on how data is transmitted from supplier financial systems, it puts us in a favourable position to improve on system efficiencies. The end goal is to have a smooth process for both MSD and for our suppliers.”
Change management has also been critical, with extensive internal communications about eInvoicing to raise awareness and understanding and developing comprehensive documentation to educate our people on the processes of eInvoicing.
“eInvoicing is in its early adoption phase in New Zealand, which does necessitate interim business rules and solutions.
“However, as eInvoicing continues to evolve, we anticipate that finance system providers and suppliers will enhance their technologies, further streamlining and improving the process.
“We are optimistic about the benefits on the horizon as eInvoicing builds momentum across New Zealand.”
MSD continues to lead government’s eInvoicing charge, continuing to transition more suppliers to sending them eInvoices instead of PDFs.
With this success under its belt, MSD also went live with send capability in July 2024 – the first government agency using the Oracle system to do so.
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