Finance Shared Services

Presentation
Financial Resources Management
Budgetary Systems
Electronic Invoice

Integration, normalization and best practices in financial and logistical processes for shared services in Public Administration.

eSPap offers Finance Shared Services to Public Administration, aiming to provide quality services, helping to reduce costs, supported by integrated and standardized processes, enhancing best practices.

Finance Shared Services have three dimensions:

Functional Processes - process standardization focused on budget, finance, assets and logistics;
Experienced team with specialized skills – execution of shared activities, development of information systems and client organization support (processes, helpdesk, advising and training);
Integrated Solutions Technology:

GeRFiP – Finance Shared Services Solution;
SIGO – Budget Management Information System (access portal to the central systems of the State Budget);
SIGORAM – Budget Management Information System of the RAM (access portal to the central systems of the Autonomous Region of Madeira);
SCR / SGR - Revenue Systems of the Central Public Administration;
FE-AP – Electronic Invoice in Public Administration (State Gateway);
B2AP – Portal Business to AP (relationship collaborative portal of the suppliers with the Public Administration), in pilot.

Implementation of Transformational Programs in Public Financial Management:

The Shared Financial Services, in conjunction with the General Directorate of the Budget (DGO), the Regional Directorate of Budget and Treasury of RAM (DROT) and the Implementation Unit of the Budgetary Framework Law (UniLEO), are operating the following transformational programs:

Financial Resources Management in Shared Mode;
Budget Systems - Central State Budget (OE) and Budget of the Autonomous Region of Madeira (RAM);
Electronic Invoicing in Public Administration.

Main benefits of Finance Shared Services

Standardization, optimization and automation of processes in compliance with legislation;
Implementation of best practices across the Public Administration;
Concentration and rationalization of specialized human resources, ensuring the quality of information;
Increase the comprehensiveness, timeliness, reliability, transparency and control of financial information, enhancing decision-making capacity;
Rationalization of public investment in information technology.

Solution GeRFiP 3.1 - accounting in SNC-AP

The Management of Financial Resources in Shared Mode - GeRFiP 3.1 - integrates the budgetary, financial, equity and logistics management, based on the Official Public Accounting Plan (POC-P) and also allows accounting according to the Standardization System Accounting for Public Administrations (SNC-AP), in the following areas:

Financial

Budget;
Financial accounting;
Accounts receivable;
Accounts payable;
Cash flow monitoring;
Fixed assets;
Contract management;
Controlling;

Logistics

Purchase management;
Inventory management;
Sales and distribution.

The solution GeRFiP 3.1 - accounting in SNC-AP - went into production on January 1, 2018. This solution was released to comply with the Decree-Law no. 192/2015, of 09/09 (SNC-AP), the Decree-Law no. 85/2016 of 21/12 (amendment to SNC-AP) and Technical Standard No. 1/2017, of 20/06, of UniLEO (Instructions for the integration of budgetary and economic- in the Central System of Accounting and Public Accounts (S3CP)).

The GeRFiP 3.1 project was developed by eSPap, without adding costs to the entities, thus guaranteeing the rationalization of public investment in information technologies. This rationalization is possible by the use of a single system that allows economies of scale to be achieved, not only in their design, but also in the evolution and adaptation to the legislation in force.

Modalities of GeRFiP services provision, at the option of the client:

Service sharing - includes

the provision and maintenance of the GeRFiP 3.1 technological solution, housed at eSPap infrastructure;
the execution of processes and activities by eSPap, on behalf of the client, according to the assignment of responsibilities to each of the parties;
the provision of specialized teams for centralized and helpdesk activities.

Platform sharing - includes:

the provision and maintenance of the GeRFiP 3.1 technological solution, housed at eSPap infrastructure, with the client being responsible for executing the budgetary, financial, patrimonial and logistic processes in the scope of its activity;
the provision of specialized teams for centralized and helpdesk activities.

The General Budget Directorate (DGO), the Regional Budget and Treasury Department (DROT) and eSPap, in articulation, update and support the Central State Budget (OE) and Budget of the Autonomous Region of Madeira (RAM).

Access to the budgetary systems of the State Budget is done through the following solutions:

SIGO Portal - Budget Management Information System (SIGO);
SGR - Revenue Management System;
SCR - Central Revenue System.

Access to the budgetary systems of the RAM is done through the portal called the RAM Budget Management Information System (SIGORAM).

SIGO – Budget Management Information System

The Central Budget Systems of the State (OE) are destined to the General Direction of the Budget (DGO), the Assembly of the Republic (AR), the Court of Auditors (TdC), the National Statistics Institute (INE), the Entities Coordinators, Integrated Services (SI) and Autonomous Services and Funds (SFA). They allow the control and validation of the information registered by the DGO.

The SIGO portal allows access to the following systems:

SOE | State Budget System - supports the preparation of the State Budget, in its components expenditure and revenue, from the collection phase of the budget proposal, prepared by the services, to the approval phase, providing information to be delivered to the Assembly of the Republic . During the execution phase it supports the management of services, programs and measures;
CGE | General State Account - supports the elaboration of the General State Account (CGE), regarding the availability of the information to be included in the General State Account report;
COR | Budgetary Control - supports the implementation of the Integrated Services Budget Control (COR) by centralizing the information necessary to comply with the legislation in force. Allows the processing of information on budgetary changes to be sent to the Court of Auditors;
SCC | Central Accounting System - centralizes and consolidates information on the investment and operating budgets of the Integrated Services and their execution;
SCEP | Central Multi-year Charge System - supports the collection of the multiannual charges made by the Integrated Services and the Autonomous Services and Funds, with regard to their characterization, scheduling over the years and respective payments. The information collected is an integral part of the State Budget proposal and the State General Account, through the publication of map XVII, contained in the Budget Framework Law;
SFA | System of Services and Autonomous Funds - supports collection of execution, budgetary changes, neutrality of funds and debt stock, of the Services and Autonomous Funds;
SIPI | Investment Project Information System - allows the control of information on the execution of investment projects, in terms of material and financial programming, of the various agencies of the Central Administration;
Other budget reporting modules for Integrated Services and Services and Autonomous Funds - staff costs and collection of assumed and unpaid charges.

The SIGO portal manages the access, authentication and security of users. It is a means of disseminating information to Central Administration entities.

SIGORAM – RAM Budget Management Information System

The Regional Budget Management Systems of the Autonomous Region of Madeira (RAM) are intended for the Presidency of the Regional Government of Madeira, the Regional Office for Budget and Treasury (DROT), the Regional Secretariats, the Court of Auditors - Madeira Regional Section and to the Legislative Assembly of Madeira. They allow the control and validation of the information registered by the DROT.

The SIGORAM portal allows access to the following systems:

SOE | RAM Budget System - supports the elaboration of the RAM Budget, in its components, expenditure and revenue, from the collection phase of the budget proposal, prepared by the services, to the approval phase, providing information to be delivered to the Legislative Assembly;
CGE | RAM General Account - supports the elaboration of the General Account of the RAM (CGE), in relation to the availability of the information to be included in the report of the RAM General Account
COR | RAM Budgetary Control - supports the implementation of the Integrated Services Budget Control (COR) by centralizing the information necessary to comply with the legislation in force. Allows the processing of information on budgetary changes to be sent to the Court of Auditors;
SCEP | RAM Central Multi-Annual Charge System - supports the collection of the multiannual charges made by the Integrated Services and the Autonomous Services and Funds, regarding their characterization, scheduling over the years and respective payments. The information collected is an integral part of the proposed RAM Budget and the RAM General Account;
SFA | RAM System of Autonomous Services and Funds - supports the collection of information regarding the execution, budget changes, fund neutrality and debt stock of the Services and Autonomous Funds;
SIPI | RAM Information System for Investment Projects - allows to control the information of the execution of the investment projects, in the material and financial programming strands, of the RAM diverse organisms;
Other budget reporting modules for Integrated Services and Services and Autonomous Funds - staff costs and collection of assumed and unpaid charges.

The SIGORAM portal manages access, authentication and security for users. It is a means of disseminating information to the entities of the Autonomous Region of Madeira.

SGR / SCR - Central Public Administration Revenue Systems

Revenue systems are supported in the following solutions:

SGR | Revenue Management System - records the information related to the administration and accounting of revenue and treasury operations of the Central Public Administration Services. The SGR is for the Integrated Services of the Central Public Administration;
SCR | Central Revenue System - supports the centralization of the budget proposals of the revenue administrators' offices and the issuance of map I, contained in the Budget Framework Law, as well as the consolidation of accounting information related to State revenue and treasury operations. The SCR is intended for DGO, TdC and AR.

Implementation of electronic invoicing in public procurement.

eSPap coordinates the implementation of Electronic Invoicing in Public Administration (FE-AP). With Decree-Law 123/2018, of December 28, (see summary in plain english, without legal value), eSPap was given the competence to issue technical and functional requirements to support the implementation of electronic invoicing, develop support instruments for the covered entities and provide the solution for receiving and processing electronic invoices. The fee for this solution will be approved by order of the member of the Government responsible for the area of finance.

This decree also determines the starting dates of the obligation to issue, receive and process electronic invoices, within the scope of public procurement.

Governance model for FE-AP implementation

Decree-Law 123/2018, of December 28, defines the governance model for the implementation of electronic invoicing in public contracts.

Direct stakeholders in the electronic invoice implementation program.

The use of the electronic invoice in public contracts, either the issue or reception, will be made gradually by public contractors and co-contractors.

As public contractors are deemed, for instance, the State, the Autonomous Regions, local autarchies, public institutes, the Bank of Portugal and the other entities identified in article 3 of the Public Procurement Code - Decree-Law no. 111-B/2017, of August 31. Examples of public contractors: General or Regional Directorate, Regional Government, Municipality, Parish, Cluster of Schools, Hospital, other entities mostly financed with public money.

The co-contractors are the entities which establish contractual relationships with a public contractor, usually the public administration's suppliers. They can be private or public entities (when they supply the Public Administration).

Micro, small and medium-sized enterprises (SMEs) are those defined in accordance with the European Commission Recommendation 2003/361/EC, of May 6:

• Microenterprise - employs fewer than 10 persons and has an annual turnover and/or an annual balance sheet total that does not exceed EUR 2 million;
• Small enterprise - employs fewer than 50 persons and has an annual turnover and/or an annual balance sheet total that does not exceed EUR 10 million;
• Medium-sized enterprises - employs fewer than 250 persons and has an annual turnover that does not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.
• Large enterprises - employs more than 250 people or has an annual turnover exceeding EUR 50 million or an annual balance sheet total exceeding EUR 43 million.

Deadlines for implementing the electronic invoice.

Framework of the FE-AP implementation program.

The implementation program for Electronic Invoicing in Public Administration was initiated following Directive 2014/55/ EU of the European Parliament and of the Council of 16 April 2014 on electronic invoicing in public procurement (issuing, transmitting, receiving and processing invoices in digital format according to formats and rules defined by the European Commission).

Compliance with Directive 2014/55/EU, and in particular with European Standard EN 16931-2017 of 28 June 2017 of the European Committee for Standardisation, was a project co-financed by the European Union.

The Report of the State Budget proposal for 2019 assigns a strategic dimension to the implementation of the electronic invoice for the public administration, assuming it as a digital transformation program based on the standardization, optimization and process automation of the expenditure and revenue cycles, on the procedural and administrative aspects, accounting and interoperability, as well as strengthening the Public Treasury Management Reform recommended by the new Budgetary Framework Law.

A collaborative process of the Implementation Unit of the Budget Framework Law (UniLEO) with eSPap, which promotes the integration of the electronic invoice into the new Information System for Public Financial Management (SIGFinP), is underway.

Instruments to support the entities covered.

The Electronic Invoicing Portal for Public Administration - FE-AP - is the Gateway of the State because it allows to receive invoices and rectifying documents in electronic format, ensuring the control and monitoring of all stages of the process.

The Business to AP Portal - B2AP - a collaborative portal of supplier relationships with the Public Administration, supporting the dematerialized and collaborative relationship within the scope of electronic invoicing.

Public Administration Suppliers (private or public entities)

Deadlines for issuing electronic invoices by public administration suppliers.

Public administration's suppliers (as co-contractors under Public Procurement Code) are obliged to issue electronic invoices, according to the rules defined in article 299-B of the Public Procurement Code, except where the purchase is the result of a procedure by direct adjustment (Article 128 number 3 of the Public Procurement Code, amendments by Law 30/2021 of 21/05). The deadlines are established in Decree-Law 123/2018, of 28/12, amended by Decree-Law 14-A/2020, of 07/04, and Decree-Law 104/2021, of 27/11 from:

• January 1, 2021, for large enterprises;
• July 1, 2022, for micro enterprises, small and medium-sized enterprises and for public entities as co-contracting entities.

See the current list of entities adhering to the FE-AP (FE-AP inbound) solution, currently receiving invoices and amending documents in electronic format.

The co-contractors are the entities which establish contractual relationships with a public contractor, usually the public administration's suppliers. They can be private entities or public entities (when they provide the Public Administration).

Micro, small and medium-sized enterprises (SMEs) are those defined in accordance with the European Commission Recommendation 2003/361/EC of 6 May 2003:

• Microenterprise - employs fewer than 10 persons and has an annual turnover and/or an annual balance sheet total that does not exceed EUR 2 million;
• Small enterprise - employs fewer than 50 persons and has an annual turnover and/or an annual balance sheet total that does not exceed EUR 10 million;
• Medium-sized enterprises - employs fewer than 250 persons and has an annual turnover that does not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.
• Large enterprises - employs more than 250 people or has an annual turnover exceeding EUR 50 million or an annual balance sheet total exceeding EUR 43 million.

Syntax conditions, semantics, and syntax matches.

After publication of the complementary legislation, referred to in article 299-B, number 5 of the PPC, eSPap will make available the semantic data model proposed for the Portuguese Standard - CIUS-PT - as well as the list of syntaxes, which must comply with the electronic invoice, in compliance with the European Standard EN 16931-2017 of 28 June 2017 of the European Committee for Standardization.

The implementation options in Portugal are in line with the strategies and decisions of the other member states, thus facilitating dialogue and cross-border trade within a framework of legal certainty.

Accession of suppliers to the electronic invoice in AP.

Suppliers wishing to start the transformation process should consult the CIUS-PT implementation guide in the horizontal Technical and Functional Standards tab.

eSPap, in 2015, on a policy basis, initiated the implementation of an electronic invoicing program in the Finance Shared Services. This pilot project with the suppliers was based on electronic invoices reception in a template based on the format and rules of the community directive (Technical Standard UBL2.1 eSPap). However, following the publication of the European Electronic Invoice Standard in 2017, and in accordance with European Commission guidelines, the above format has been adjusted to a new data model with the name CIUS-PT which will be based on UBL2 .1 and CEFACT.

The CIUS-PT model is in the implementation phase and eSPap is responsible for collecting, centralizing, impact assessment and processing proposals for continuous improvement.

Suppliers wishing to start the processing process should consult the CIUS-PT implementation guide available in the horizontal tab Technical and Functional Standards.

Public Administration Entities (FE-AP solution)

Reception and processing electronic invoices deadlines for public (contractors) entities.

The public entities, as public contractors under Article 3 of the Public Procurement Code, are obliged to receive and process electronic invoices within the deadlines established in Decree-Law no. 123/2018 of 28/12, that is, from:

• April 18, 2019, State (direct administration and sovereign bodies) and public institutes;
• April 18, 2020, other public contractors referred to in article 3 of the PPC: Autonomous Regions; local autarchies; independent administrative bodies; Bank of Portugal; public foundations; public associations; among others.

See the current list of suppliers adhering to the FE-AP solution (in production), currently sending invoices and amending documents in electronic format.

The Direct Administration of the State comprise all the organs, services and agents integrated in the collective person State, for example, Directorates-General organized by Ministries and Regional Directorates.

The organs of sovereignty are the President of the Republic, the Assembly of the Republic, the Government and the Courts.

The public institutes are part of the indirect State Administration.

Voluntary entities linked to the FE-AP solution.

The use of the FE-AP solution, for the reception and processing of electronic invoices, is mandatory for the State and public institutes' direct management services. It may be voluntarily used by other entities, through the establishment of a contract with eSPap.

Electronic Invoice Solution in Public Administration (FE-AP).

The implementation program of Electronic Invoicing in Public Administration, executed by the Finance Shared Services, is based on the availability of two solutions around electronic billing:

• the portal of Electronic Invoicing in Public Administration - FE-AP - to be used by public entities in the reception and invoice verification, already in production;
• the Business to AP - B2AP - to be used by suppliers of public administration, as co-contractors, in the monitoring of the electronic invoice delivery and its status evolution.

The technical architecture and process architecture of these two solutions were designed according to the principle of process interoperability between solutions, thus creating a unique view of the state of the electronic invoice. The principle of interoperability is also available with other public administration solutions.

The Electronic Invoice in Public Administration (FE-AP) portal is the Gateway of the State, since it allows to receive invoices and rectifying documents in electronic format, ensuring the control and monitoring of all stages of the process:
• Receiving;
• Validation;
• Archive;
• Verification;
• Processing in accounting systems.

The solution is available to any public entity and allows direct integration with the GeRFiP solution or via web services with any other accounting or document management system. In addition to the exchange of electronic documents, the technological solution also dematerializes the dialogue with suppliers, transforming the verification process into a digital format.

Conditions for accession to the solution of Electronic Invoicing in Public Administration (FE-AP).

The accession to the FE-AP solution is established by a contract between the public agencies and the eSPap. The amount due for the use of the solution will be approved by order of the member of the Government responsible for the area of finance.

Features of the FE-AP solution

• Public Shared Services - developed 100% for Public Administration processes;
• Simplicity - intuitive use, allows the execution of processes in an agile and simple way;
• Speed - centralized accession of suppliers, with unique rules, ensuring the quality and speed of projects;
• Innovation - dematerialized dialogue with suppliers through phased provision of additional digital services and interoperability;
• Support & Backing - dedicated team with experience and skills to support public administrations, suppliers and all platforms that connect with the FE-AP.

Pilot experience

The FE-AP solution began to be used by three client agencies of the GeRFiP solution, as a pilot, and is being gradually disseminated to other public administration bodies. The project implemented with the pilot agencies, already in full operation, allowed for a more comprehensive evaluation of the multiple benefits, namely: administrative, procedural, internal and cross-border interoperability, fraud prevention and integration into the global treasury model of the State. The involvement of suppliers and pilot bodies in the design and implementation according to European standards has fostered a fundamental practical perspective for the definition of a strategy for the massification of electronic invoicing in Public Administration.

The activities developed with the suppliers showed the need for well-defined rules, in order to avoid the proliferation of requirements and formats and, in some cases, sectoral rules.

Main benefits of accession to the FE-AP solution:

The benefits achieved by joining the Electronic Invoice Solution in the Public Administration potentiate different types of savings for the PA and State agencies:

• Higher quality in the integration of the data contained into the electronic invoice, in the public entities' accounting systems;
• Automated verification, inherent benefit of dematerialization and digital transformation;
• Absence of individual investments by each body of the Public Administration;
• Optimization of the management of the public treasury since the entities now have a new instrument that allows them to prepare a cash flow plan, based on invoices and rectification documents as well as payment deadlines;
• Increased reliability of the treasury budget of the entities;
• In the case of information that is dematerialized and properly structured, it can be made accessible by means of an integrated management of the central treasury (principle of the treasury unit, article 54 of the LEO).

Technical and Functional Standards

CIUS-PT Technical Standard

Semantic data model proposed for the Portuguese Standard - CIUS-PT - as well as the list of syntaxes, in compliance with the European Standard EN 16931-2017 of 28 June 2017 of the European Committee for Standardization (Ordinance 289/2019, of 05/09).