Introduction to Corporate Finance

what companies do

CASH, PAYABLES AND LIQUIDITY

MANAGEMENT

19-1 Cash management

19-2 Collections

19-3 Accounts payable and disbursements

19-4 Short-term investing and borrowing

• Professor Dubos J. Masson, CCM, CertCM, of Pepperdine University and The Resource Alliance, assisted in the preparation of this chapter for
  the US edition.

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Express

In the rapidly changing world of cash management,

the concept of electronic invoicing or e-invoicing –

a method discussed in this chapter – is growing by

continental leaps. The article below observes how

Asia can learn from the South American experience

in introducing e-invoicing.

In a survey conducted by ApexPeak,

Gosocket Corp and Invoiceware

International, were asked to share what

Latin America can teach South-east Asian

nations about moving toward mandatory

... e-invoicing.

What did Latin America do to prepare

for mandatory e-invoicing?

Like paper invoices, e-invoices must be

legislated. This requires legislators to

think differently. The lawmakers need

to understand technology such as XML

and develop a standard format. The XML

format adopted by each Latin American

country is not identical.

‘A new set of rules is required

for e-invoicing. Rules regulate the

e-invoicing process, such as the use of

digital certificates in e-invoices and the

way e-invoices are validated with the tax

authorities,’ said Mario Fernández, chief

executive officer of Gosocket Corp.

Each South-east Asian nation

needs to design a business process and

put in place the technology to enable

the process. There are several models

available; each of the Latin American

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