Automated Electronic Invoices

Shipping method

Financial system service providers and messaging brokers provide advice on the transmission of electronic invoices.

Reykjavík City has an agreement with the following messaging brokers.

• Inexchange ehf,
• Sendill is Unimaze ehf.
• Skeytamiðlun Advania

It is recommended that sales invoices originate from a sales system that sends invoices electronically.

Other parties such as Payday.is, Regla.is, and Konto.is offer simple ways to send invoices electronically to the City of Reykjavík, as shown in instructions from Kontó.

Invoice content

Invoices must be addressed to the ID number and name of the fund/company, and must clearly state the name of the cost center/department. The following ID numbers are valid:

• Reykjavík City-Municipal Fund ID 530269-7609 (ITR, SFS-Dept. of Education & Youth, VEL-Dept. of Welfare, MOF-Dept. of Culture & Tourism, USK-Dept. of Environment & Planning (operations), Reykjavík Parking Service, and the Central Administration)

• Real Estate Fund ID 570480-0149 (Previously the Dept. of Construction the part of the Dept. of Environment and Transport that handles property maintenance)

The invoice must contain a breakdown of the product and/or service, quantity, unit, and unit price, as well as other statutory information for an invoice.

Additional information must also be provided as per the following references:

• Cost center / department number (if provided by the buyer)
• Number of the signed request (if provided by the buyer)
• Work number and work order for construction (if provided by the buyer)
• Name or ID number of the person ordering (if provided by the buyer)

The seller's price shall include all costs incurred. Charges not related to goods or services sold, such as banknote or service charges, shall not be shown on the invoice.

Suppliers should use the UNSPSC product classification standard and include the UNSPSC product number with the electronic message. For more information on the standard, please visit the website GS1.is

Additional information, such as requests, time, and project reports, and other important data, should be sent as an attachment in PDF format with electronic invoices. Supporting documents are then stored in the City's financial system with the relevant invoice. A link (URL) in an electronic invoice to a supporting document is insufficient delivery of such documents.

Clarification of business processes

The implementation of electronic invoicing requires due care in the setup and compliance with standards. In some cases, there will be changes to the procedures that relate to procurement requests and receipt for delivery.

A delivery note or a copy of the invoice shall accompany each delivery signed by the receiver after the counting and confirmation of the quantity delivered.

A) Charge accounts

In most cases, Reykjavík institutions have a charge account with their suppliers, but this depends on the scope of business, work processes, and business systems of the parties.

Each City institution should, preferably, have ts own transaction number in the supplier's sales system, and it is recommended that the GLN ID of the relevant institution is used in the base layer of the institution card for the client.

• List of the main City institutions and their GLN IDs

The correct setup and use of GLN IDs numbers ensures automatic and correct booking and processing of invoices.

The GLN ID should be under AccountingCustomerParty/Party/PartyIdentification/ID (cf. the updated standard TS236 Peppol BIS Billing 3.0 - 2021)

For example, an invoice for Sæmundarskóli School that has a GLN ID of 5699112303014 is identified like this in an XML message.

<cac:AccountingCustomerParty>

<cac:Party>

<cac:PartyIdentification>

<cbc:ID schemeID="0088">5699112303014</cbc:ID>

* 0088 is the code for an EAN number and is also used as the code for the GLN ID.

In older standards, the location of the GLN ID is under AccountingCustomerParty/Party/PostalAddress/ID

<cac:AccountingCustomerParty>

<cac:Party>

<cac:PostalAddress>

<cbc:ID schemeID="GLN" schemeAgencyID="9">5699112303014</

The following methods are available where charge accounts are used.

• Completed request: A request must be presented for incidental purchasing in stores. The request is a guarantee of payment and shows the validity and traceability of the purchase. Where a request is presented, its number must be placed on an electronic invoice, and the request itself does not necessarily have to be attached to the invoice, but the seller keeps a copy.
• Regular transactions without requests: In the case of regular transactions and where a good business relationship has been established based on knowledge and trust, no request is made. It must be shown who makes the order or purchase and for which institution/department.
• Store cards: Several suppliers have issued store cards for institutions, which are used to pay into a trading account. These cards ensure the validity of the purchase and that the purchase goes to the correct account.

Suppliers have a choice of the following:

• Place each purchase on a trading account and issue delivery slips with shipments. Then issue an invoice at the end of the month.
• Issue an invoice for each delivery. It is possible to send a transaction statement at the end of the month if there is reason to do so.

 

B) Invoice paid by credit card/procurement card

A number of purchasing entities at the City of Reykjavík have special procurement cards that are credit cards, intended for use by those who do not offer withdrawals using a trading account. When paying with procurement cards, the seller must either:

• Provide the buyer with a printed original invoice and do not send it electronically.

• Provide the buyer with a receipt and send an electronic invoice to the City with clear information that the invoice has been paid on-site, and, in this case, the invoice must show the last 5 digits of the credit card used.