Invoices issued under a third- party mandate

[svanteschubert]

Background

Invoices issued with a billing mandate

French Use Case n°19a:
Invoice issued with billing mandate

The billing agent carries out the billing on behalf of the supplier: it is responsible for creating the invoice and transmitting it to the buyer; the supplier collects the invoice and is responsible for updating the status

"The billing data is declared by the agent, and the payment data, if applicable, by the supplier. Billing data is declared by the agent, and payment data is declared, where applicable, by the supplier.

Two (non-exclusive) options are possible in this case: the use of the same platform between the supplier and his agent (option 1), or the use of two different platforms (option 2).

In both cases, the block used to enter information on the billing agent is the EXT-FR- FE-BG-05 - TIERS FACTURANT block (see Appendix 1 - Semantic format FE e-invoicing - Flux 1&2.xlsx).

• Option 1: delegation/enabling of supplier account (same platform)

The agent connects directly to the customer's platform (the supplier/biller) on his behalf. The submitter's platform is therefore the issuing platform; consequently, if there are many customers, the agent must connect to as many platforms as there are customers to submit the invoices.

In this case, the electronic invoice follows the "classic" circuit.

Figure 20: Invoice issued with billing mandate (option 1)

The specifics of the life cycle or process are :

• Transmission of flow 1 by the billing agent via the supplier's platform
• Transmission of payment e-report from supplier's platform
• Use block EXT-FR-FE-BG-05 - BILLING AGENT to enter information about the billing agent.

The steps for case n°19a - option 1 are :

Step	Stage name	Responsible player	Description
1	Conclusion of a billing mandate.	Supplier Agent Billing	The supplier and the agent enter into an invoicing agreement so that the agent can submit invoices on behalf of the supplier.
2	Verification of mandate	Agent for billing
3	Transmission and validation of draft invoice		Supplier Billing agent
4	Invoice creation	Agent for billing	The agent transmits the invoice created (flow 2) via the platform of his principal (the supplier). The PDP1, which transmits this flow 2 to the buyer's PDP 2, and at the same time transmits flow 1 to the PPF for transmission of the invoices. billing data.
5	Receipt of invoice	Buyer	The buyer's PDP 2 makes the invoice available to him. The buyer processes the invoice according to the life-cycle procedure before the recommended "payment forwarded" status.
6	Invoice processing and status update
7	Invoice payment		Once the buyer has paid the supplier of the invoice, the latter collects payment
8	Go to à optional/recommended update of issued payment statuses		The buyer sends the agent a life cycle of the "payment transmitted" status, if completed.
9	Receipt of invoice status	Agent for billing
10	Information on progress of invoice processing	Agent for billing	If its commercial offer allows it, the agent can send a feed to inform the supplier of the progress of invoice statuses
11	Collection	Supplier	Supplier collects payment
12	Go to à update at status "cashed	Supplier	If services, supplier updates status and declares payment data via the PPF.
13	Reception from status "cashed	Buyer	The supplier updates the "cashed" status in his PDP. He can transmit this status to the buyer's PDP 2, depending on the service offer. The PDP then sends the payment e-reporting flow to the PPF.

• Option 2: Distinction between depositor and issuer platforms

• Option 2-A: The agent's platform forwards invoices to the supplier's platform, which is then responsible for sending them to the customer.

• Option 2-B: The agent's platform transmits invoices directly to the buyer's platform.

Figure 21: Invoice issued with billing mandate (option 2)

The specifics of the life cycle or process are :

• Transmission of flow 1 by the billing agent's platform
• Transmission of payment e-reporting by the agent's or supplier's platform, depending on the billing mandate contracted
• Use block EXT-FR-FE-BG-05 - BILLING AGENT to enter information about the billing agent.

The steps for case n°19a - option 2 are :

Step	Stage name	Responsible player	Description
1	Billing mandate	Supplier	The supplier and the agent enter into an invoicing agreement so that the agent can submit invoices on behalf of the supplier.

2	Verification of mandate	Billing agent
3	Transmission and validation of draft invoice
4	Invoice creation	Billing agent	The agent's PDP 2 platform transmits a stream 2 to the buyer's PDP 3, in parallel with the PPF (stream 1) for transmission of invoicing data.
4 b and 5	Receipt of invoice	Supplier Buyer	The supplier receives the invoice on his platform
6	Invoice processing and status update	Buyer	The buyer's PDP 3 makes the invoice available to him. The buyer processes the invoice according to the life-cycle procedures before the recommended "payment forwarded" status.
7	Invoice payment	Buyer	Once the buyer has paid the supplier for the invoice, the supplier collects the payment.
8	Update payment issued status	Buyer	The buyer sends the agent a life cycle of the "payment forwarded" status, if completed.
9	Receipt of invoice	Agent of billing
10	Information on the progress of invoice processing	Billing agent	If his commercial offer allows it, the agent can send a lifecycle flow to inform the supplier of the progress of invoice statuses.
11	Collection	Supplier	The supplier collects the payment and updates the status in his MPS. The "cashed" status if services are provided. As a result, PDP1 sends the status The third party's PDP2 and/or the buyer's PDP3 will be "cashed out", depending on the service offered.
11b	Declaration of status "of the invoice	Supplier
12	Declaration of status "of the invoice	Supplier	As part of the service offer or billing mandate, the PDP2 can send the e-reporting flow. However, from a legal point of view, it is the supplier who is responsible for declaring the e-reporting flow.

NOTE:
The text/pictures of this use case no. 19a were taken from the French government site!
The text was extracted from V2.3 - deepl English DOCX and any pictures were taken from V2.2 - original English PDF)

[edmundgray]

a third-party billing mandate refers to a situation where the seller authorizes a third party to issue invoices on its behalf.

There seems to be no legal requirement to record the third-party issuer on the invoice who is not the seller

see also #53, #54, #55, #56

[edmundgray]

The following parties are reference in UBL and CII;

• Seller / Supplier Party: This is the party that is selling the goods or services, also known as the supplier. They are responsible for issuing the invoice.
• Buyer / CustomerParty: This is the party that is buying the goods or services, also known as the buyer12. They are responsible for receiving and paying the invoice12.
• Bill-to Party: This is the party that is responsible for paying the invoice. This could be a third party that is handling the financial transaction on behalf of the buyer.
• Delivery Party: This is the party that receives the physical delivery of the goods2. This could be different from the buyer or the bill-to party.
• Payee Party: This is the party to whom the payment is to be made. In most cases, this would be the Supplier Party, but in some cases, it could be a different entity.
• Tax Representative Party: This is the party who is authorized to act as the first point of contact with the tax authorities on behalf of the supplier.

The Bill-To Party is not mentioned in the Core