O2C (FMCG) ideal INVOIC message Guideline

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1 O2C (FMCG) ideal INVOIC message Guideline v3.4 ( ) Disclaimer: The current document provides a way of electronic invoicing which is compliant with the Belgian law. By implementing it (by mutual consent), the Belgian retailers and their suppliers (electronically) meet the conditions for legal invoicing, and as such degrade paper invoices to mere copies of the legal document. However, it must be understood that under no circumstances the current ideal INVOIC message will be regarded as complete unless credit/debit note and invoicing of empty goods have fully been incorporated. Also, a calculation example taken from the VAT Manual of the VAT Administration will be added.

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3 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 3 / 40 (v ) 0. Log of Changes Version Release date Summary of Changes v May 2012 Update on RTI working method on p 18, 19 & 30. v Aug 2011 Version numbers updated v Dec Version numbers adapted - Small spelling mistakes corrected - Segment numbers aligned to INVOIC EANCOM 2002 S3 version EAN011 v Jun Section 2.2. (P2): improved wording of application terms; - incorporated CN Proposals (v2.1) as Chapter 3; - re-numbered the Technical Issues Chapter accordingly (= Chapter.4) v Feb Introduction: completely refurbished; - added descriptions of code values; - removed retailer columns; - incorporated calculations & subtotals (see Chapter 2). v [intermediate version, never officially distributed] v Jun 2009 Changed document name: added GS1 B&L and FMCG v Mar 2009 GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

4 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 4 / 40 (v ) 1. Premises 1.1. This document describes an implementation of the EANCOM 2002 INVOIC message for the Belgian retail sector (FMCG). It is a further elaboration of the EBL001 User Guide, and largely takes into account the invoicing practices of the major Belgian Retailers and Brand Manufacturers. The EBL001 itself is based on EANCOM 2002, but for some DEs it uses code values which are not part of the EANCOM 2002 Codes list. The EBL001 is compliant with all legal requirements that are necessary to make a document an invoice, and as such it is a perfect basis for an e-invoice. It should however be noted that the EBL001 is not the only possible way in which these requirements can be met in an EDI exchange The full suite of O2C INVOIC documentation currently consists of the following documents: a. Introduction [O2C (FMCG) - INVOIC) - 'Ideal' message INTRODUCTION (v ).pdf] b. Technical Documentation [(O2C (FMCG) - INVOIC) - 'Ideal' message (v ).pdf] c. Overview of Calculation Rules (A3 sheet) [(O2C (FMCG) - INVOIC) - 'Ideal' message Calculation Rules (V ).pdf] d. Mapping of RD1 - Art.5 to INVOIC EANCOM 2002 [(GS1 B&L - EBL001 - NED) Mapping v001.pdf] or [(GS1 B&L - EBL001 - FRA) Mapping v001.pdf] e. Codes List for EBL001 (national codes for INVOIC EANCOM 2002) [(GS1 B&L - EBL001 -NED) Code list v011 (2013Jan 01).pdf] or [(GS1 B&L - EBL001 - FRA) Code list v011 (2013 Jan 01).doc.pdf] Documents d. and e. are two of the three documents which make up the EBL001 documentation. Of this documentation document d., which amongst others lists the exemptions of VAT as well as environment related taxes, is still maintained separately for those users who only need the minimal legal approach. It is also monitored by the Belgian VAT Administration. Document e. lists the rules which the Segment Notes always refer to. Because of their legal nature both documents do not exist in English, but in Dutch or French only. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

5 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 5 / 40 (v ) 1.3. The document reflects the ideal situation, which per definition is the state of optimal efficiency reached by using the GS1 standards, especially the GS1 Identification Keys. It hence relies on the following assumptions: - communication is only established after prior data synchronization (aka data alignment ); - correct use of the GS1 Identification Keys, especially when used to define a so-called product hierarchy ; - internal company attributes remain internal, and are not exported to business partners The foregoing assumptions bear their importance, for they have implications not only for the INVOIC message, but also for the EANCOM 2002 ORDERS and DESADV messages, which logically precede the INVOIC message and which are supposed to link smoothly one with another. This sequence of these messages is also known as Order to Cash (O2C). If these assumptions are not met, an efficient and effective O2C implementation is impossible to realize. This limiting condition has been fully acknowledged by all retailers and suppliers participating in the GS1 Belgium & Luxembourg O2C Working Party Given the above, the current document can be used by suppliers and retailers alike to help them establish a migration path from their current implementations towards this ideal situation at their next software upgrade. For many of these users of the GS1 standards this intention has been made explicit in the Memorandum of Understanding (MoU) initiated by GS1 Belgium & Luxembourg in March All retailers started their EDI INVOIC implementations with the idea to move on to dematerialization later on (i.e. e-invoice = legal invoice, hence no more paper allowed). Today, Carrefour, Makro and Delhaize already use dematerialization whereas Colruyt will start to dematerialize immediately after its tests are conclusive. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

6 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 6 / 40 (v ) 1.6. Terminology Often, the terminology used in the legislation is understood wrongly by users. This is how it should be interpreted. Tax amount = Taxable amount Tax rate English Dutch French Tax amount Belasting Taxe BTW-bedrag montant de taxe / TVA Taxable amount Maatstaf van heffing Base d imposition Tax rate (BTW-)Tarief of belastingvoet Taux The terms in bold are the ones used in the Belgian legislation. (Dutch: Belasting = Maatstaf van heffing Tarief) (French: Taxe = Base d imposition Taux) GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

7 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 7 / 40 (v ) 2. Extra information vis-à-vis Belgian legal requirements This chapter presents the full set of (seven) proposals for the extra information to be added to the ideal INVOIC message of the O2C (FMCG) project, as approved by the GS1 Belgium & Luxembourg O2C (FMCG) Working Group on November 25th Purpose In this chapter a number of subtotals and calculation rules are added to the basic ideal INVOIC message, in order to get a clear, concise and complete message that allows easy controlling by the invoicee. These additions have spread over 7 proposals, in order to allow easy consultation. Background The previous versions of the ideal INVOIC message were limited in their scope, in that they stayed close to the EBL001, a format for electronic invoicing containing only the minimal information that must be present for a document to be a legal invoice. The EBL001 itself was the successor of the BMF100, a format which allowed legal electronic invoicing, provided the VAT Administration granted a company permission to do so. The BMF100 dates back to before 2004, i.e. to the time when electronic invoicing was not yet legally catered for in Belgium. However, as its general principles were completely in line with what the VAT Administration expected from an invoice, these principles still stand and will occasionally be referred to in the present proposals. Only the way some of these principles had to be implemented changed after the EBL001 was approved. As the legal requirements for an invoice are imposed by the VAT Administration, it is easy to understand that the information the Administration requests is not sufficient for user companies to allow the easy processing of incoming invoices in their accountancy. E.g. it is difficult to imagine an invoice without a total amount. Yet, this amount is not legally required! Premises It is important to realize that these proposals start from the basic principle of the Belgian VAT Administration, which consists of applying the VAT calculation as late as possible, this to avoid the proliferation and expanding of rounding errors. As a consequence, the qualifier 124 (= Tax amount) will not occur in these proposals. Furthermore, the information will always be grouped per applicable VAT rate. For practical reasons the proposals work backwards from the end of the invoice (= total amounts) up to the different components of the calculations. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

8 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 8 / 40 (v ) The final result will be that the invoicee: 1. clearly knows how much he has to pay, and how much VAT is included in this amount; 2. can easily verify these totals with the subtotals and calculation rules which led to that amount. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

9 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 9 / 40 (v ) 2.1. Proposal 1: The Total VAT Amount of an invoice is the sum of the total VAT amount computed for each VAT rate. Background: - the Belgian law also requires a total VAT amount to be expressed in an invoice, but this amount was still missing in the ideal INVOIC message. - the EBL001 only allowed the expression of the total VAT amount for a given VAT rate using code value 150 (= Value added tax) in DE 5025 of the MOA segment (#87). (see application rule #33) - relatedly, the BMF100 (pp. 8-11) indicated in its detailed invoicing example both the VAT total per VAT rate, as well as the invoice s total VAT amount. With: invoice s total VAT amount: expressed using code value 150 (= Value added tax) in DE 5025 of the MOA segment (#83). total VAT amount per VAT rate: same as in the EBL001. rule j (p.8) states that the (invoice s) total VAT amount is the sum of the VAT total for each VAT rate. Proposal: In order to express the (mandatory) total VAT amount of an invoice, we propose to add: 1. the requirement of an occurrence of the MOA segment #83 with qualifier 150 (= Value added tax) for DE the following calculation rule in the Segment notes of this MOA segment (#83): The amount expressed in DE 5004 with DE 5025 having value 150 is the total VAT amount pertaining to this invoice. This amount is the sum of the VAT amounts that can be found in DE 5004 of all VAT related MOA segments (#87) using the same qualifier 150 for DE # INVOIC Meaning of every segment Ref. #83 MOA+150:<..>' Value added tax (total for the invoice) (2) #87 MOA+150:<..>' Value added tax (for each VAT rate) (1) GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

10 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 10 / 40 (v ) The calculation rule may be expressed as follows: (2) = (1) rate rates RULE A and would be mandatory. (1) rate will be calculated in Proposal 2. Note : It should be noted that in the current EANCOM 2002 INVOIC message code value 150 officially cannot be used in the MOA segment #87, as it is not part of the restricted codes list for DE 5025 of that segment. Hence, a Change Request (CR) would have to be introduced at GS1 International to have it added at that particular place. The same code value gives no problems in MOA segment #83, as there the codes list for DE 5025 is open. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

11 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 11 / 40 (v ) 2.2. Proposal 2: For each VAT rate, the VAT Amount is computed by applying the given VAT rate to the total Taxable amount for this rate after it has been decreased by the conditional allowance. Background : - the EBL001 does not indicate how to express the total basis amount per VAT rate. Nevertheless, this seems an important subtotal for the verification of the VAT computing. - in its rules g, h and i (p.8) the BMF100 describes how for each VAT rate the basis taxable amount is decreased by the conditional allowance. Regardless of whether the conditions offered by the invoicing party have actually been met, the VAT must be calculated as if this is the case! As a consequence, a conditional allowance will always have an impact on the VAT amount to be paid by the invoicee. - for a more thorough discussion of the conditional allowance, see Section 3.1. Proposal : Maintain rules g-h-i of the BMF100 in the next release of the ideal INVOIC, also keeping the Belgian only qualifiers B09 and B10, which are necessary to unambiguously distinguish between both types of VAT taxable amount totals: the first one excluding and the latter including the (retrieval of the) conditional allowance (which is apparently a typical Belgian practice). DE 5025 Monetary amount type qualifier Code Quid? Description B09 B10 Taxable amount excluding payment discount (BMF Code) Taxable amount including payment discount (BMF Code) Taxable amount excluding payment discount, if applicable Taxable amount including payment discount, if applicable GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

12 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 12 / 40 (v ) This would lead to the following: # INVOIC Meaning of every segment Ref. #87 MOA+B09:<..>' Taxable basis amount (per VAT rate) excluding (=before retrieval of) conditional allowance #87 MOA+B10:<..>' Taxable basis amount (per VAT rate) including (=after retrieval of) conditional allowance (3) (4) Since no VAT amount can be calculated before all basis taxable amounts are summed per VAT rate, the conditional allowance must be expressed first. This goes as follows for every single VAT rate (also see Section 3.1. of the Introduction): # INVOIC Meaning of every segment Ref.... #18 PAT+3++5:3:D:30' Fixed date (payment terms) *: payment due 30 calendar days after reference date (= invoice date) #18 PAT+69++5:3:D:10' Discount with prompt pay: 10 calendar days after reference date (= invoice date) #20 PCD+12:2:13' Discount on invoice value is 2% (5) #31 ALC+A++++EAB' Early payment allowance #36 TAX+7+VAT+++:::<rate1>' VAT rate being detailed = <rate1>% #37 MOA+52:<..>' Corresponding discount amount 1 (6)... *: Ideally, this information should not be exchanged, as it is master data! Corresponding to rule g of the BMF100 (p.8) the basis amount for the calculation of the conditional allowance (= basis taxable amount) for every VAT rate is the total basis taxable amount subject to this VAT rate. That is: (6) rate = (3) rate (5) [%] RULE B 1 Code value 204 (= Allowance amount) could be another possibility instead of 52. However, 52 was withheld in order to avoid any possible confusion with the line item allowances (See ref. (14)). GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

13 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 13 / 40 (v ) This rule is mandatory for every VAT rate in the invoice if a conditional allowance can be applied. (3) rate will be calculated in Proposal 3. Hence, the calculation rule for the taxable basis amount may be expressed as follows: (4) rate = (3) rate (6) rate RULE C This rule is mandatory for every VAT rate in the invoice. (6) rate had been calculated above. Next, the VAT amount per VAT rate can be calculated: (1) rate = (4) rate rate [%] RULE D This rule as well is mandatory for every VAT rate in the invoice. Note : - Code values B09 and B10 are a remainder of the BMF100. They were created because EDIFACT / EANCOM at the time did not offer code values with this exact meaning. In fact, they still do not. It may be worth trying to introduce a CR at GS1 International to obtain a proper EANCOM code value for them, but it is not sure that such a request would be granted. GS1 International might judge that there is no international need for such code values. In the mean time, the suggestion is to continue to label them as BMF Code, and to evaluate later on how best to label all similar codes that would be necessary in the ideal INVOIC message. - The user should bear in mind that the calculation of the conditional allowance takes place at Header level, nevertheless needs information from the Summary section, which in the processing of the message chronologically comes after the Heading section. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

14 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 14 / 40 (v ) 2.3. Proposal 3: For each VAT rate, the total basis taxable amount (= before retrieving a conditional allowance) is obtained by adding all line item amounts subject to this VAT rate, as well as all global (= Header level) Charges and Allowances subject to this same VAT rate. Background : - the EBL001 does not indicate the total line item amount per VAT rate. Nevertheless, this seems an important subtotal for the verification of the VAT computing. - in its rule c (p.8) the BMF100 describes how for each VAT rate the total basis taxable amount is computed with the total Line item Amount and the global charges and allowances. Proposal : 1. Maintain a rule similar to rule c (p.8) of the BMF100. This results in: # INVOIC Meaning of every segment Ref. #31 ALC+C' [header] Charge #36 TAX+7+VAT+++:::<rate1>' VAT rate being detailed = <rate1>% #37 MOA+23:<..>' [header --- for VAT rate <rate1>%] Global charge amount #31 ALC+A' [header] Allowance #36 TAX+7+VAT+++:::<rate1>' VAT rate being detailed = <rate1>% #37 MOA+204:<..>' [header --- for VAT rate <rate1>%] Global allowance amount] #39 LIN+1++<GTIN-1>:SRV' [LIN] Current line item [invoicing unit] is GTIN <GTIN-1> #65 TAX+7+VAT+++:::<rate1>' VAT rate being detailed = <rate1>% #66 MOA+125:<..>' [LIN] Taxable amount (12) #86 TAX+7+VAT+++:::<rate1>' [Summary] VAT rate being detailed = <rate1>% #87 MOA+B09:<..>' [Summary] Total basis taxable amount [for the current VAT rate] excluding (=before retrieval of) conditional allowance (8) (7) (3) GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

15 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 15 / 40 (v ) The calculation can be expressed as follows: (3) rate = (12) rate + (8) rate (7) rate lines RULE E This rule is mandatory for every VAT rate in the invoice. 2. To avoid the necessity of a special approach for the amounts exempted of VAT, the same rule E should be applied to all line items, global charges, and global allowances which are exempted of VAT. (if applicable) GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

16 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 16 / 40 (v ) 2.4. Proposal 4: Each line taxable amount for a given VAT rate is obtained by summing the Gross line amount, as well as the line allowances and charges subject to this same VAT rate. Background : - in its rules a and b (p.8) the BMF100 describes how, for each VAT rate, the Line Total (or Taxable) Amount is computed adding all gross Line amounts, all line allowances and all line charges related to this VAT rate. - still in the BMF100 the gross Line amount for each line is expressed with qualifier (and BMF Code) B01. Its calculation is described as the product of the Invoiced quantity and the Calculation gross unit price. This subtotal is not explicitly calculated in the EBL001, but it is used nevertheless. - the EBL001 uses another subtotal at line level, with qualifier 125 (= Taxable amount) for DE 5025 of the MOA segment (#77). This subtotal expresses the line gross amount with the addition of all charges and allowances at line level. The sum of these subtotals (for a given VAT rate) results in the Line Total (or Taxable) Amount. Proposal : 1. We propose to withhold qualifier 125 (= Taxable amount) for DE 5025 of the MOA segment (#77), as used in the EBL001: # INVOIC Meaning of every segment Ref. #39 LIN+1++<GTIN-1>:SRV' [LIN] Current line item [invoicing unit] is GTIN <GTIN-1> #43 QTY+47:<..>' [LIN] Invoiced quantity (10) #54 PRI+AAB:<..>' [LIN] Calculation gross [per invoicing unit] (11)! #54! PRI+AAB:price:::<unit price basis value>' [LIN] Calculation gross [per invoicing unit]!(9)! #65 TAX+7+VAT+++:::<rate1>' [LIN] VAT rate being detailed = <rate1>% #66 MOA+125:<..>' [LIN] Taxable amount (12)... (continued) GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

17 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 17 / 40 (v ) # INVOIC Meaning of every segment Ref.... (continued) #69 ALC+C+++1+<..>' [LIN] Charge (of type detailed in <..>) #76 TAX+7+VAT+++:::<rate1>' [LIN] VAT rate being detailed = <rate1>% #77 MOA+23:<..>' [LIN] Charge amount (13) #69 ALC+A+++1+<..>' [LIN] Allowance (of type detailed in <..>) #76 TAX+7+VAT+++:::<rate1>' [LIN] VAT rate being detailed = <rate1>% #77 MOA+204:<..>' [LIN] Allowance amount (14) The calculation rule for each line Taxable amount may be expressed as follows: (12) = [(10) (11) / (9)] + (13) (14) within LIN within LIN RULE F This rule is mandatory for each line item and for every VAT rate in the invoice. (When (9) is omitted, it is defaulted to the value 1.) 2. To avoid the necessity of a special approach for the items exempted of VAT, the same rule F should be applied to all line items, line charges and line allowances which are exempted of VAT. (as always: if applicable) 3. When the INVOIC message is used as a CREDIT NOTE, to credit a certain quantity of returned goods then in aforementioned proposal the line #43 QTY+47 : <.. > [LIN] Invoiced quantity (10) should read #43 QTY+61 : <.. > [LIN] Return quantity (10) GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

18 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 18 / 40 (v ) 2.5. Proposal 5: About net unit price and deposits. Background : Both net unit price and deposits are important elements of an invoice, hence had also been catered for in the EBL001. In the EBL001 the net unit price is detailed in rule 26, whereas an approach for deposits is proposed in the mapping business requirements v.001 (rules 1 to 3). Proposals : 1. Maintain the net unit price definition of the EBL001. # INVOIC Meaning of every segment Ref. #54 PRI+AAA:<..>' Calculation net (the price stated is the net price, including all allowances and charges, and excluding taxes *) (16) *: this data element provides pricing information, so this is the situation before the VAT calculation. Disclaimer: Proposal 5.2 is the official GS1 Europe working method for identifying and invoicing RTIs. The details of the working method in the INVOIC can also be found in the GS1 Belgilux RTI guideline (annex of the Order to Cash Ideal Messages). 2. Maintain the approach for deposits of the EBL001, with the exception of the QTY qualifiers. Where EBL001 proposed the qualifiers 2 (= charges) and 130 (= allowances) we propose to use for the RTI (= reusable transport items) the same qualifiers as for the goods: 47 (= invoiced quantity) and 61 (= return quantity) in INVOIC messages used as CREDIT NOTE. From the perspective of the invoicee a clear distinction is made between incoming RTIs (= charge) and outgoing RTIs (= allowance), each time starting a new LIN occurrence, as it must be possible to refer to an external document governing the flow of RTIs. # INVOIC Meaning of every segment Ref.... #39 LIN+1' GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

19 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 19 / 40 (v ) # INVOIC Meaning of every segment Ref. #40 PIA+5+nGRAI-1:XZ5' Asset (type) is identified by ngrai-1. #43 QTY+47:<..>' Quantity relevant for invoiced quantity (24a) #49 MOA+496:<..>' Total returnable packages deposit amount (26a) #54 PRI+AAA:<..>' Net price (16) #39 LIN+2'... Example of the INVOIC used as CREDIT NOTE: # INVOIC Meaning of every segment Ref.... #39 LIN+1' #40 PIA+5+nGRAI-1:XZ5' Asset (type) is identified by ngrai-1. #43 QTY+61:<..>' Quantity relevant for return quantity (24b) #49 MOA+496:<..>' Total returnable packages deposit amount (26b) #54 PRI+AAA:<..>' Net price (16) #39 LIN+2'... The Total returnable packages deposit amount for every line item for which deposits apply, can be expressed as follows: (26a) = (24a) (16) (26b) = (24b) (16) [invoicee s incoming RTIs] [invoicee s outgoing RTIs] RULE G The necessity of these rules will depend on how business partners consolidate the RTI flows. When used, they are mandatory for every type of RTI. Notes : - It should be noted that the total deposit, i.e. the difference between the (26a) and (26b) values for all RTIs, is not expressed in the invoice, as this is an amount without particular use. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

20 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 20 / 40 (v ) 2.6. Proposal 6: The Total Invoice Amount is the sum of the Total Taxable amounts for each VAT rate and the Total VAT Amount for the invoice. Background : Several approaches are imaginable to get the total amounts for the invoice. The BMF100 also offers the possibility to take into account credit notes (CN) and debit notes (DN) at this final stage of the calculations. The proposal for the ideal INVOIC would be not to do so. That doesn t mean that CNs and correcting invoices 2 are not necessary anymore. On the contrary, they are important business tools. Yet, the INVOIC is the first message in this financial flow ; CNs and correcting invoices can obviously only be created after the related INVOIC! As a consequence, it makes sense not to introduce an additional load in an INVOIC by incorporating CNs and correcting invoices which by definition refer to previous transactions. By not allowing previous CNs and correcting invoices to be consolidated in the INVOIC, it will be possible to conclude the invoice s processing much quicker, for this won t depend anymore on pending issues which are not linked to that invoice. The consolidation of CNs and correcting invoices should be catered for with another message like the REMADV (remittance advice). Typically, CNs and correcting invoices are not the competence of the Goods Reception or the Buying Dpt. either, but of the Accountancy Dpt. Proposals : 1. The Total Invoice Amount is the sum of all Total Taxable amounts per VAT rate and the Total VAT Amount for the invoice. # INVOIC Meaning of every segment Ref.... #83 MOA+79:<..>' Total line items amount (27) #83 MOA+77:<..>' [Total] Invoice amount (17)... 2 Technically (i.e. per the Belgian law) a debit note does not exist on a B2B level. As a consequence, the company issuing the invoice will also issue CNs and correcting invoices (which are the equivalent of DNs). GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

21 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 21 / 40 (v ) This leads to the following mandatory calculation rules: (27) = (3) rate + (26a) - (26b) rates lines 1 lines 2 RULE H* *: applicable only if the invoicee s incoming (= 26a) and returning (= 26b) RTIs are consolidated in the invoice, and not treated in separate messages. (See rule G: reference (26a) for incoming RTIs, and reference (26b) for returning RTIs) (17) = (27) + (2) RULE I 2. Prepayment (which is e.g. customary in the wine business) is taken into account after VAT amounts have been calculated, hence can be incorporated in the summary section as follows: # INVOIC Meaning of every segment Ref.... #83 MOA+113:<..>' Prepaid amount (18) #84 RFF+PQ:<..>' Payment reference #85 DTM+171:<CCYYMMDD>:102' Reference date/time #83 MOA+9:<..>' Amount due (19)... This gives the following calculation rule: (19) = (17) (18) RULE J which is conditional, for it only applies when a prepayment occurred. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org

22 [O2C (FMCG) - INVOIC] Introduction to ideal message Guideline Page 22 / 40 (v ) 2.7. Proposal 7: About the special status of Semi-bulk products, Variable quantity products and Free goods. Background : as a reminder, these are the basic segments involved in invoicing: # INVOIC Meaning of every segment Ref. #43 QTY+46:<..>' Delivered quantity [= # delivery units] (21) #43 QTY+47:<..>' Invoiced quantity [= # invoicing units] (10) #54 PRI+AAB:<..>' Calculation gross* (= excluding all allowances, charges, and taxes) *: per invoiced unit, i.e. without considering free good units! (see below) Also, as a rule a dispatch unit corresponds with an invoicing unit.!! Warning!! The current proposals start from a normal situation, where no exceptional action is required from the customer. I.e. the dispatched quantity will be equal to the delivered quantity (hence no refused or missing merchandise)! (11) Because of their special nature semi-bulk products, variable quantity products and Free goods will need additional information to correctly express them in an INVOIC. - bulk goods: = goods which by their nature cannot be split in discrete quantities (units). As a consequence their quantity can only be expressed in physical dimensions (i.e. kilos, litres, meters,..., as opposed to units, entities, etc). Moreover, these measures shouldn t be the subject of any conversion whatsoever. I.e. their ordering volume = delivery volume = invoicing volume = physical dimension. E.g. a truckload of potatoes (= X thousand kilos), a tank of wine (= Y thousand litres). The quantities of bulk goods can only be expressed by using DE 6411 in the QTYsegment. GS1 Belgium & Luxembourg ecom Dpt. : +32-(0) : +32-(0) : ecom.support@gs1belu.org