22 August 2017
Steve Sprague

Latin American E-Invoicing

Steve Sprague - Invoiceware International

84Posts 253,033Views 0Comments
Finextra community

Electronic invoicing

A discussion and guidance on the path to full scale adoption of electronic invoicing by corporates, goverments, SME's and consumers, creating savings up to € 60 billion in 2020. With a focus on: trends, business models, processes, technology, and legal issues.

Brazil NFe v3.1 - Part 2 of 6 - Onpremise versus Cloud

18 December 2013  |  2105 views  |  0

Top 5 Reasons Why Companies are Using Brazil version 3.1 to Transition off of on-premise solutions in to Managed Service Solutions

In the second part of this series on using the Brazil Nota Fiscal version 3.1 changes to evaluate the strengths of cloud and managed services over on-premise solutions. I wanted to discuss the concept of failure points in the traditional NFe architecture.

Before I jump into the example, it is important to understand the traditional architecture that has been implemented.   This usually wasn't implemented by design, it was implemented for three specific IT realities:

  • Corporate IT desired to centralize all financial processes on a common ERP platform and replace local ERP solutions for consistency and controls.
  • Because many multinationals acquired companies in Brazil to grow – there were legacy systems already in place. When the ERP transition came into play – the standard operating procedure was to integrate the existing local system. This created an integration project that was often outsourced to local consultants.
  • A common ERP maintenance strategy is known as (N-1), this means that you stay one support pack back from the latest release. And often multinationals are many service packs back because applying OSS notes to a highly customized and configured and global ERP system has its issues.

 

Combine all of that together and you get the following – three distinct silos of support and change management.  Apply Day to Day support and constant Change Management to this infrastructure and you can see why many companies are looking to Managed Service providers to completely take this problem off of their list of things to manage going forward. Why try to manage something individually that is the same across all companies – cloud and managed service providers provide expertise, lessons learned and economies of scale.

 

The Problem with On-Premise approaches – three or more failure points with the architecture that more often than not each have their own support teams.  When the problem can occur in any functional area, and issue becomes a “search and rescue” mission. 

Day to Day support – Who do you to call to fix an invoice issues?

 

  • The ERP support team
  • The middleware support team or the 3rd party system integrator that built the connector
  • The local einvoicing solution support

 

If you can’t fix, shipping is delayed or worse shut down. Many companies experience shut downs for 3-7 days a year when on-premise solutions stop working due to technical issues or government changes.

 

When you consider the issues and the overall cost to support three components, you can see why companies are looking to use the Brazil NFe version 3.1 upgrade to consider managed service providers that implement, monitor and maintain all three components as a complete end to end solution.  When you consider that there are three likely phone calls:

 

  • The local warehouse is calling because the DANFe is not showing up on the printer and they cannot ship
  • The local IT staff is calling the ERP COE as there is something wrong within the ERP system or the middleware and nothing is working
  • Or the data is not correct and there is something they are having difficulty reconciling during the closing of the books – the local finance team needs to ensure that what is posted in ERP and what is provided in the SPED reports is accurate.  The penalties are too large to get this step wrong.

 

With the operational and audit issues at hand, wouldn’t it be nice to pick up the phone and call one expert, rather than going on “search & rescue” missions to find and fix the problem every time there is an error.

 

 

TagsRisk & regulation

Comments: (0)

Comment on this story (membership required)

Latest posts from Steve

US Implements EInvoicing and Reporting: Similarities to Latin America?

08 March 2016  |  3189 views  |  0 comments | recomends Recommends 0 TagsRisk & regulationGroupElectronic invoicing

Mexico SAT announces Electronic Audits to start 2016

07 March 2016  |  3124 views  |  0 comments | recomends Recommends 0 TagsRisk & regulationGroupElectronic invoicing

Latin American VAT and EInvoicing Mandates

11 February 2016  |  3188 views  |  0 comments | recomends Recommends 0 TagsRisk & regulationGroupElectronic invoicing

The rise of business-to-government regulation

16 September 2015  |  2262 views  |  0 comments | recomends Recommends 0 TagsRisk & regulationGroupElectronic invoicing

Steve's profile

job title VP Product Strategy
location Marietta
member since 2012
Summary profile See full profile »
Steve Sprague has been working in the electronic invoicing and middleware integration space for over 13 years. As VP, Product Strategy & Marketing for Invoiceware International, Steve manages product...

Steve's expertise

Member since 2012
84 posts0 comments
What Steve reads

Who's commenting on Steve's posts