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GTIN
Colloquially, many know GTIN as a barcode, but technically, GTIN is the number found beneath the barcode symbol itself, and can therefore also be used for other technologies such as 2D barcodes and RFID tags.
Colloquially, many know GTIN as a barcode, but technically, GTIN is the number found beneath the barcode symbol itself, and can therefore also be used for other technologies such as 2D barcodes and RFID tags.
The STRU concept is an indication of how simple and structured order submission and invoicing can/should be done using the EANCOM® messages Purchase Order and Invoice.
The STRU concept are documented in this User Guide.
The STRU concept is prepared on the basis of:
In the Danish grocery trade, there is a tradition of extensive use of discount giving at the same time that discounts are given in a very different way - depending on the supplier, the category of goods and other circumstances.
This often means that relatively “complicated calculations” with decimal rounding, discount calculation sequences, etc. have to be established before a net price can be calculated. If this is to be done automatically, such “calculators” may be programmed into the computer applications as specific program modules - per supplier/customer/product category.
It is both expensive, inappropriate and a source of errors.
The overall objective of a structured invoicing system should be to establish an invoicing structure aimed at minimising the time spent reconciling and checking invoices, while ensuring that the structure should neither hamper nor limit both an efficient flow of goods and a continued provision of discounts.
In Section D. “Implementation Notes”, item 3, prices and discounts are described in more detail, here it should only be mentioned that the main principle is that EDI based invoicing in Danish grocery stores should henceforth be based on net prices.
It has often been stated that some of the main reasons why SMEs do not “jump on the EDI train” are due to
• relatively expensive EDI software as well as
• high subscription and transmission costs for VANS operators.
With regard to EDI software, the argument for the relatively high prices has been that grocery shopping parties have not been able to agree on a common way to apply the EANCOM® standard. This means that individual “partner or messaging profiles” must be developed and implemented in each EDI application.
This argument should be refuted on the basis of the STRU concept, which is precisely the expression of a common, simple and uniform way of applying the Purchase Order and the Invoice in Danish grocery trade - and in other sectors that may wish to do so.
As for the high subscription and transmission costs for VANS operators, the implementation of the STRU concept is unlikely to cause the major differences, even if the number of transmitted data per second. EDI notification is reduced.
If there is to be a real reduction in subscription and transmission costs, so that companies with few transactions will also find the economy acceptable, alternative communication channels will probably have to be established for part of EDI traffic.
GS1Trade Transact is a web-based EDI system where it is possible to make fully automated integration to the user's own ERP system. GS1Trade Transact uses the STRU concept.
Other advantages:
The above considerations led to the setting up in April 1997 of a working group to develop this Guideline for Structured Order Placement (STRUORD) and Structured Invoicing (STRUFAKT).
Structured order submission (STRUORD) and structured invoicing (STRUFAKT) shall mean:
“Structured order placing and invoicing of products and services, uniquely defined using only GTIN part numbers - and with a minimum of information exchange in the EDI messages.”
STRUORD and STRUFAKT are thus intended for use in trading scenarios where the requirement for information in orders and invoices is kept to an absolute minimum based on the fact that the parties in their respective IT systems have access to necessary supplementary information by, for example, using GTIN part numbers and GLN location numbers as keys to internal databases.
If there is a need to exchange more or different information than that described in STRUORD and STRUFAKT respectively, other instructions for use - such as
Seller order - may be used. Alternatively, the EANCOM® basic messages Purchase Order and Invoice must be used.
The mapping tables for the EANCOM® Purchase Order and Invoice in this User Guide are based on the 1997 versions (EDIFACT directory D.96A).
NB! A User Guide is not an alternative to EANCOM®'s basic documents/notices, but only a supplement whose purpose is to support companies in their implementation of EANCOM® messages in more specified scenarios - here the structured order placing and invoicing in Danish grocery trade - and other sectors that may find the document useful.
Many companies will need to use their EDI system in the short or long term to solve tasks related to order submission and invoicing other than just those described in this User Guide.
It is therefore important to emphasize that the EDI technical implementation in enterprises should be based on the full message structure (segments, etc.), as described in the EANCOM® base messages.
1. Identification of trading parties, delivery points, etc.
2. Identification of goods, services and other services
3. Prices and discounts
4. Tax-free trade (transport of tax)
Trading parties, delivery points, etc. specified in the NAD segment in the header section are uniquely identified using GLN location numbers.
Free text name and address are not used.
The prerequisite for using the GLN location number as the sole identification is that the parties have established reference databases from which necessary information about trading partners can be obtained, including, for example, CVR numbers (see also subsequent section 1.1). The GLN location number is used as the unique key for these databases.
According to Article 44 (1) of the VAT Ordinance, invoices as payment receipts from 1 January 1998 must bear information on the seller's VAT number (SE number now replaced by CVR number).
However, in electronic invoicing after 1 January 1998, the GLN location number may continue to be used as the primary identification of the seller/supplier, provided that:
“... an invoice may be printed at any time in plain form, containing all the necessary information, which, as a matter of fact, must not be in codes referring to other sources.”
It means:
• the buyer uses the GLN location number in its supplier directory (database) as a unique key for the directory information
• that the buyer has in his supplier register (database) information about the supplier's CVR number
• the purchaser, by archiving his supplier register information for at least 5 years, ensures the traceability prescribed by the Accounting Act incl. Ordinance No 598 of 21 August 1990 by the Danish Business and Companies Authority on “Bookkeeping of commercial enterprises”
• that the buyer can use this information, among other things, to print an invoice in plain language - including the supplier's CVR number
Thus, if the above conditions are met, it will not be necessary to indicate the seller/supplier's CVR number in electronic invoices.
It is recommended that suppliers who invoice electronically ensure that their buyers are familiar with the supplier - the CVR number. This can be stated in the segment RFF.011.
Goods, services and other services ordered, delivered and invoiced are uniquely identified in the LIN segment at the retail level by means of GTIN Part Numbers.
Additional product identification, such as the supplier's or customer's internal part numbers, product texts, etc. are not used. No conversion is made between GTIN part numbers (same item/different units).
This means that the GTIN part number on which the order is made (the LIN segment in STRUORD) is also the GTIN part number that is supplied and the one that is invoiced (the LIN segment in STRUFAKT).
As mentioned in the introduction, the principle of invoicing at net prices is a key element of the STRU concept.
Invoice line-level discounts/surcharges:
Product line billing is divided into the following 3 price-related groups:
a. Fixed prices
b. Period-defined prices
c. Extraordinary Goods Discounts
This group includes the generally agreed price between the parties. In daily invoicing, net prices are always used, which are calculated from list prices, list discounts, logistics discounts, and whatever else is agreed upon by discounts between the parties.
The actual calculation of net prices is made in the general registers but is not included in the daily invoicing.
Fixed rates apply for a longer period of time. Net pricing does not include cash rebates and other payment discounts.
Net pricing does not include cash rebates and other payment discounts.
For promotions and other matters, prices may be agreed which are different from the fixed price.
Here, the daily invoicing must also take place at net prices.
In order to ensure seamless invoice control, it is important that these prices are fixed for a given period and the billing price must be the net prices in force temporarily.
Net pricing does not include cash rebates and other payment discounts.
As a general principle, all exceptional discounts on goods should be known to both the buyer and the supplier before the invoice is formed.
The supplier can and must, on this basis, use the “new net price” (normal net price adjusted for the exceptional discounts) in invoicing.
If the Buyer wishes to carry out automatic invoice checks on invoices containing such temporary net prices different from the normal net price, the Buyer must ensure that his systems are updated accordingly, for example by using the special price already in the order or by temporarily entering a net price determined on time/delivery.
If, in exceptional cases, discounts are granted after the invoice has been forwarded, the discount may be given in the form of a post-adjustment as a credit on a credit note (a dekort) - without inventory implications (financial crediting).
Reference to a given order/delivery and/or a given GTIN part number must be provided.
Alternatively, the parties may agree that the original invoice will be returned upon transmission of a traditional credit note - with inventory implications. Submit a new invoice with correct prices and other information.
As a consequence of the fact that product lines must always be invoiced at net prices and that deductions (discounts) and surcharges are not indicated in the invoicing - even for information, the ALC segment at the retail line level is not included in STRUFAKT.
Discounts/Surcharges at invoice level:
In STRUFAKT it is possible to specify discounts and surcharges that relate to the entire invoice - but not to the individual invoice line. Invoice level discounts/surcharges that could typically be freight or postage billing are indicated in the ALC/MOA segments at the header level and are not recognized in the item line amounts. Invoice discounts/surcharges are summarized independently in a MOA segment in the sum section. The application of discounts and surcharges at the invoice level will often be agreed between the parties in advance.
Trade between customs warehouses usually takes place tax-free for goods subject to excise duty (tobacco, spirits, disposable services, etc.) on the basis that the trading parties keep a correct tax accounting of goods delivered/received duty-free.
In principle, tax accounts can be kept on the basis of:
(a) product catalogs/databases in which the goods are uniquely defined (GTIN item number) and provide relevant master data relating to excise duty, which:
The supplier usually provides the customer with this information.
(b) billing information relating to:
SKAT's requirements for information in the invoice do not fully correspond to this method, since - depending on the product group - additional information is required on, among other things:
It is possible to enter all the information requested by SKAT in the TAX/MOA segments of the EANCOM® invoice as follows:
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