e-Invoicing Adoption Leaders Group Minutes – 17 March 2021

Published: 09 April 2021

Date

  • Wednesday , 17 March, 9:00am

Time

  • Wellington – 9:00am – 11:00am
  • Melbourne – 7:00am – 9:00am

Location

  • The Rydges, 75 Featherston Street, Wellington
  • MS Teams meeting

Chair

  • Stewart McRobie, CFO Finance and Performance, Ministry of Business, Innovation and Employment (MBIE)

Group Members

* Attended remotely

  • Alistair Smith, CFO (NZ), IAG Insurance
  • Caroline Rawlinson, CFO, MYOB *
  • Craig Hudson, MD, New Zealand & Pacific Islands, Xero *
  • Emma Dobson, Independent 
  • Gillian O'Neill, General Manager Finance, Woolworths NZ (Countdown) *
  • Jeff Martin, Chief Technology Officer, B2BE
  • John Eastman, New Zealand MD, Oracle
  • John Healy, CFO, ACC *
  • John Mazenier, New Zealand Country Manager , Technology One 
  • Kris Gerken, Head of Finance, Placemakers / Fletcher Building
  • Phil Cameron, MD, SAP New Zealand, SAP
  • Sara Hay, CFO Wellington City Council

Substitutes

  • Chris Greenough, Director, Global Service Operations, substituted for Marc Rivers, CFO, Fonterra
  • Murray Trim, Decision Support Manager, substituted for Nathan Marsh, Foodstuffs SI *
  • Philip Leath, GM Tax and Procurement, substituted for Stewart Taylor, CFO, ANZ

Secretariat 

  • Andrew Cooke, e-Invoicing Product Manager, MBIE

Apologies / Not in attendance

  • Ian Hankins, CFO, Westpac
  • Marc Rivers, CFO, Fonterra
  • Nathan Marsh, CFO, Foodstuffs
  • Peter Gudsell, CFO, Auckland City Council
  • Stefan Knight, Finance Director, Spark
  • Stewart Taylor, CFO, ANZ

Observers

  • Mark Wierzbicki, Director e-Invoicing, MBIE
  • Stu Ross, Manager Operations and Promotion, MBIE

Minutes

Welcome and introductions

Board minute Action Required
Round table of introductions. Nil
Carolyn Tremain and Hon. Stuart Nash gave speeches and left the meeting at 9:40am.

Administration

Board minute Action Required
The Chair noted that the meeting is being minuted to capture high level actions or decisions. Comments will not be attributed to individuals or organisations. The minutes will be published on an MBIE website.  No feedback from the Group members was received.  
The Chair noted that no declarations of interest were received. AP 1.1    Any declarations of interest to be submitted to the Secretariat prior to the next meeting.
The Chair presented the Terms of Reference. No feedback was received. AP 1.2    Terms of Reference finalised.

General

Board minute Action Required
The Chair gave a presentation on e-Invoicing in New Zealand. During the presentation Stewart briefed the group on:
  • e-Invoicing progress to date including:
    • MBIE joining Open Peppol and becoming the New Zealand Peppol Authority
    • Adopting the Peppol framework enabling New Zealand businesses to transact with Peppol members across the globe.
    • Finance system providers standing up e-Invoicing technology.
    • 21 access point providers accredited with a further 4 in progress.
    • Establishing a Syndicated All of Government Contract for e-Invoicing Service Providers to streamline and simplify the procurement process for e-Invoicing capability.
  • The government intends to:
    • Mandate e-Invoicing and annual volume targets to central government agencies.
    • Drive the faster payment of invoices across all New Zealand businesses.
  • An expectation that small business adoption will be driven by the enablement of MYOB and Xero.
  • MBIE is working collaboratively with the Australian Tax Office which is facilitated through the regular meetings of the Australia and New Zealand e-Invoicing Board.
  • MBIE is planning to broaden the available set of services to enable e-Procurement once e-Invoicing starts to become embedded in New Zealand businesses.
 
There was an open discussion among the Group. Points made included:
  • People and process change was a bigger problem than technology change.
  • Ensuring that senders and receivers are enabled together is essential for success.
  • Small business software providers are or are near to launching send capability.
  • Several organisations are receive capable but have very little traffic at the moment.
  • Late payment is a significant issue, particularly for small businesses. e-Invoicing can enable faster payment but doesn’t guarantee it.
  • A significant benefit of e-Invoicing is the predictability of cash flow.
  • A challenge for exporters who adopt e-Invoicing and faster payment will be the neutrality of working capital as foreign payments are not expected to sped up significantly through e-Invoicing.

A member noted that there is a lot of discussion on adoption and suggested that any relevant case studies should be shared with the Group. AP 1.3    Relevant case studies and research to be shared with the Group prior to, or at, the next meeting.
The Chair recommended that the 4-Corner Model[1] be shared with the Group at the next meeting. AP 1.4    The 4-Corner Model will be shared at the next meeting.

MEETING CLOSED: 11:05am

[1] The e-Invoicing network is based on the 4-Corner Model where every business and its trading partner communicate via an Access Point.