Business Payments Coalition launch DBNAlliance as common e-invoice network exchange entity
A new not-for-profit entity, Digital Business Networks Alliance, has been launched by the Business Payments Coalition to establish a North America (Canada and the USA) common network for the electronic exchange of invoices between participating businesses.
DBNAlliance’s Exchange Framework is a four corner model based on a set of open, non-proprietary technical standards and policies that enable businesses to discover and delivery data securely across a virtual network with one another. It is made-up of 3 groups:
- Buyers – provides a streamlined approach to the exchange of business documents, enabling all members of a company’s supply chain to connect to the framework and submit invoices electronically to their customers – regardless of the Access Point Service Provider used.
- Suppliers – enables organizations to exchange business documents with their customers, streamlining the invoice-to-cash process and reducing exceptions.
- Access Point service providers – the framework facilitates the connection of buyers and suppliers, simplifying a supplier’s connection and ensuring that connection meets their customers’ business rules.
This is similar to the aims of the European PEPPOL organisation. DBNAlliance comes mainly from payment providers and big business looking for efficiency rather than to address a VAT gap issue Europe faces. So it does not (so far!) include federal government involvement or mandation.
Dec 2022 Business Payments Coalition – Pilot to establish procedures and benefits of federal e-invoicing regime to continue into 2023
The Business Payments Coalition has confirmed that its e-invoicing pilot will be extended into 2023. Started in April this year, the pilot will soon have 100 businesses participating.
The aim is to launch a full public scheme in 2023 for voluntary adoption. Over 75 international businesses have now joined the pilot as at May 2022 with three waves of rollout.
2022 3-waves of business in pilot
The pilot is testing the exchange of e-invoices between businesses by establishing a secure, open e-invoice delivery framework between providers.
- April to June: The first wave has now started with around 20 businesses connected on the Business Payments Coalition network and sending e-invoices. The focus is on trialing the exchange of e-invoices.
- Jul to Sep: The second wave will develop the launch procedures for new starter.
- Oct to Dec: Complete schema procedures
The data being carried in the OASIS Standard UBL Version 2.3 includes:
- Vendor and their customer details
- Details of supplies
- Shipping data
- Pricing and taxes
- Payment instructions
This aims to promote the B2G and B2B adoption of e-invoicing in the US which is many years behind the rest of the world in this area. It follows a proof-of-concept project for a four-corner network, on a DNS model.
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This US network will enable businesses of all kinds to exchange e-invoices with one another by establishing a secure, open e-invoice delivery framework between providers. The success of the POC demonstrated a path forward for creating an e-invoice exchange framework and marked a significant step towards automating B2B invoice exchange in the United States.
Federated Registry Services Model
A federated registry services model enables authorized (centralized or decentralized) administrators or registrars to register and onboard participants into the e-Invoice exchange framework. Similar to registering a new email address on email systems, onboarding is possible by entering and storing participant’s identification and routing information into any DNS namespace with the Name Authority Pointer (NAPTR) resource record4, enabling a dynamic discovery process through a specialised textual lookup and redirection function.
VAT Calc’s VAT Calculator tax engine can provide instant global VAT or GST calculations for your e-invoicing or real-time reporting obligations.