TCS enables seamless E-Invoicing Compliance for NSK in Italy
Driving Digital Compliance: NSK’s Seamless E-Invoicing Transformation in Italy
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Manufacturing
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Highlights
- TCS enabled NSK to achieve compliance with Italy’s stringent einvoicing regulations while establishing a scalable foundation for future rollouts across Europe.
- Noncompliance would have halted NSK’s operations in the region, severely impacting its revenue and customer experience.
- The Italian implementation acts as a blueprint for NSK’s global tax digitization roadmap, including upcoming mandates in Poland and Germany.
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Overview
NSK Ltd., established in 1916, is a global leader in Motion & Control technologies with a strong presence in automotive and industrial sectors.
The company manufactures bearings, precision machinery, and automotive components. NSK’s commitment to innovation and digital transformation led it to embark on a critical initiative—implementing electronic invoicing (e-invoicing) for its B2B, B2C, and B2G transactions in Italy.
Italy, a frontrunner in digital tax compliance, mandated real-time e-invoicing via its Sistema di Interscambio (SdI) portal. Non-compliance would have halted NSK’s operations in the region, severely impacting its revenue and customer experience.
TCS, partnering NSK Europe Ltd.’s as a long-standing strategic IT partner for over a decade, led the implementation of an automated and scalable e-invoicing solution for its operations in Italy by integrating Oracle eBusiness Suite with the Italian Revenue Agency’s SDI platform via a certified Global E-Invoicing and network provider, ensuring end-to-end compliance and seamless transaction processing.
Challenge
Italy mandated e-invoicing for every transaction—domestic and cross-border—requiring organizations to exchange invoices in a structured XML format through the Italian Govt. portal (SDI).
Failure to comply would block all invoice transactions, creating significant financial risk and reputational damage for NSK.
The program faced several complexities such as:
- Third-Party Integration Gaps: Interface structures between SaaS authorized 3rd party integration vendor and Govt. portal were not well-documented, leading to delays and rework.
- Limited Testing Environment: The Govt. portal platform offered no dedicated testing setup, posing risks during validation.
- Technical Challenges: Compatibility, data privacy, legal complexity, and frequent system downtimes added layers of difficulty.
- User Adoption: Ensuring cross-functional alignment and end-user readiness was critical yet challenging.
The project had to be delivered against a tight compliance timeline to ensure uninterrupted business operations.
Solution
TCS developed a parameterized global framework that enabled real-time e-invoice generation, validation, and transmission by tightly integrating NSK’s Oracle eBusiness Suite (eBS) with the Italian government’s SDI portal through a certified third-party e-invoicing service provider.
The solution incorporated configurable parameters to handle evolving regulatory requirements, ensured end-to end automation of invoice data mapping and transformation into FatturaPA XML, and established secure, scalable communication channels for accurate and compliant invoice exchange.
Key solution components:
- Scope Coverage: Implemented e-invoicing across Accounts Payable, Accounts Receivable, and General Ledger modules.
- Domain Expertise: Leveraged TCS’s deep knowledge of Oracle Financials and contextual understanding of NSK’s business operations.
- Technology Stack: Built on Oracle E-Business Suite Version R12, with PL/SQL and Unix scripting forming the core technical foundation.
- Lifecycle And Delivery Management: Managed the end-to-end e-invoicing lifecycle — from requirements gathering and solution design with third-party integration, through execution, to post–go-live hypercare support.
This automation-first approach reduced human intervention, improved accuracy, and ensured compliance with Italy’s regulatory mandates.
Benefits
TCS enabled NSK to achieve compliance with Italy’s stringent e-invoicing regulations while establishing a scalable foundation for future rollouts across Europe.
Business Outcomes:
- Regulatory Compliance: Real-time integration with the government portal through certified e-Invoicing provider ensured full adherence to Italy’s tax and reporting mandates.
- Cost Optimization: Automation significantly reduced manual effort, lowering the operational cost per invoice.
- Process Efficiency: Accelerated invoice cycles and minimized errors enhanced overall agility and accuracy.
- Scalability: The framework supports rapid extension to other European markets with minimal country-specific adjustments.
- Future-Readiness: The Italian implementation acts as a blueprint for NSK’s global tax digitization roadmap, including upcoming mandates in Poland and Germany.
NSK Summary
“The digitisation of Italy’s e-Invoicing reporting process presented a considerable challenge due to its complexity and the involvement of multiple stakeholders. Through effective collaboration with our long-standing implementation and support partner, TCS, the end-to-end process was efficiently managed and streamlined, enabling a successful go-live within the planned project timeframe.”
Jillian Townley, NSK European Finance Director