www.serviceplus-it.com

Service Plus Group

Upcoming fiscalization in Croatia

and experiences in the region

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Zagreb

Ljubljana

Banja Luka

SarajevoTirana

Podgorica

Paderborn

Novi Sad

Nis Dubai

Localization of more than 10

International POS applications

More than 700 stores u

nder

maintenance in the region

8 own developed

fiscal drivers

Serving more than 50 leading retailers

More than 20 complex

international rollouts

10 offices

1000+ days of

professional services

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Service Plus

Fiscal integrations are our Focus

Our Team of Fiscal Specialists is there to make your fiscalisation

much easier

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Overview of own fiscal products and services

Country Printer

Certificated fiscal

maintenanceSoftware Support

Own developed driver

Serbia Galeb FP550 Yes YesOPOSRDI (DOS)Native Linux

EPSON TM-T260F Yes Yes OPOSJavaPOS

Bosnia(Republic of Srpska) Galeb FP550 plus Yes Yes

Native LinuxOPOS (in certification)JavaPOS (in preparation)

Mikroelektronika professional Yes Yes OPOS (Planed)

Bosnia(Federation BiH) Tremol T260F Yes Yes JavaPOS (in preparation)

OPOS (Planed)Montenegro VG FP550 Via Partner Yes OPOS PlanedAlbania Ditron ZIP Via Partner Yes OPOS (in development)

QPrint Via Partner Yes OPOS

Croatia Any UPOS standard printer No need Yes

OPOS (in development)native Linux (in development)JavaPOS (in development)

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Some of our references

General retail (Food, DYI, C&C)

Fashion and cosmetics

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Why Fiscal Law ?

Increase the control of retail salesand tax income

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Where is a fiscal law implemented ?AlbaniaBelorussiaBosnia BulgariaCzech RepublicEstonia GreeceHungaryItalyKosovoLatviaLithuaniaMacedoniaMaltaMontenegroPolandRomaniaRussiaSerbia Slovakia TurkeyUkraine

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AlbaniaBelorussiaBosnia BulgariaCzech RepublicEstonia GreeceHungaryItalyKosovoLatviaLithuaniaMacedoniaMaltaMontenegroPolandRomaniaRussiaSerbia Slovakia TurkeyUkraine

Where is a fiscal law implemented ?

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Country specific: Albania Apr. 60.000 fiscal devices in total Started in 2006 (with 3 months delay) First step: fiscal devices Second Step: communication with tax authorities Monopoly on services and devices (only 2 producers) Usage of electronic journal Fiscal memory prices (one printer 3x per year) Sending only turnover and tax to government

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Country specific: Bosnia Apr. 90.000 fiscal devices in total Started in 2008 RS (6 months delay for some groups) Started in 2011 FBiH (2*3 months delay) Two fiscal laws in one country RS: Fiscal printer for whole sale Usage of paper journals Sending only total turnover to government

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Country specific: Serbia Apr. 200.000 Fiscal devices in total Started in 2004 (2*2 months delay) First step: fiscal devices Second step: communication with tax authorities Including medical services, home producers, …. Usage of paper journals (to keep for one year) Sending only total turnover to government

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Impact and benefit for the government (region)

Increase of tax income (VAT) Increase of issued receipts Significant increase of VAT companies Transparency of company business Control of working time Better statistical information

Example: BiH RS: VAT increased by 20-30% BiH RS: 15% of small business closed (or moved to gray

zone)

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Threats and benefits for retailers (region) Investment for new equipment (replace existing) POS application integration effort Existing processes and automation changes Limited marketing opportunities:

• Receipt layout • Promotions

More tasks for new store opening Requires onsite services (only through certified service

providers) More tasks for store staff (book of EOD reports, paper

journal storage, ..) More complex HW maintenance processes

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Costs for retailers (in the region)

Initial Fiscal devices 600-1000EUR/device POS software integration Installation costs

Maintenance Service support by certificated service companies GPRS monthly telecommunication fee (2-4 EUR / POS) Additional administration by store staff

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Integration challenges (in the region)

Checkout line layout changes (e.g. at special tills, SCO)Interfacing with HW (different approach standards)Specific error handling (problem with file integration)Change of existing process (bar codes)Permitted promotions and calculations Empties handlingTax and discount calculation and rounding (whole

sale/retail sale)Changes in item master or new mapping (PLU range

fashion)

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New approach in the region by Croatia

No monopolyNo investment into HWNo additional HW maintenanceOnly software integrationRequires network infrastructureRequires monitoringEfficient control of receipt issuing

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Basic elements of the new Fiscal Law• Every location and every change of a location has to be

registered at fiscal authority• Certificate is used for the signature of each POS transaction• Every POS sales transaction has to be sent to the fiscal

authority (online) for authorization• In offline cases, the reauthorization has to be performed

later (max 2 days) for each transaction• With each POS transaction, an unique number of the

cashier (OIB) has to be sent to the fiscal authority • Changes of the receipt layout are needed, to print

authorization number, protection code and fiscal receipt number

• In case of broken POS, all manually issued invoices have to be sent to the fiscal authority

• A broken POS has to be up and running within 2 days

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Government infrastructure challenges

Supermarket (Sat, 5 tills)Store  Avg store sales in peek (item/h) 1,195Avg POS sales in peek (item/h) 239Tx. in peek (tx/h, 10 item/tx) 24Tx per day 1,233

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Government infrastructure challenges

Store  Store Tx per day 1,233POS Tx per day 247Tx size per location and day (Kb) 46

Transaction size  Unsigned XML message (byte) 1,900Database stored data size 190

Country  Locations 200,000Online locations (50%) 100,000

       

  Data in Gb/Day 4.36         

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Government infrastructure challengesTransaction size  Unsigned XML message (byte) 1,900Signed XML message (byte) 5,115

Store  Tx per day 1,233Outgoing trafic (Mb/day) 7

Outgoing (Mb/month) 217

Country  Online locations 100,000

Store  Tx per day 20,550,000incomming trafic (Gb/day) 2,297Incomming trafic (Mbps) 213

       

  Peek Mbps 276         

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Government infrastructure challenges

Google: 34,000 searches per second

Yahoo: 3,200 searches per second

Bing: 927 searches per second

Store  Avg store sales in peek (item/h) 1,195Avg POS sales in peek (item/h) 239Tx. in peek (tx/h, 10 item/tx) 24

Country  Locations 200,000Online locations (50%) 100,000

Transaction in peek (tx/h) 2,390,000Transaction in peek (tx/min) 39,833Transaction in peek (tx/sec) 664

       

  Tx/sec peek 715         

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Impact on solution architecture

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Major retailer challenges of the Fiscal Law

• Time delays on the POS• Possible maximal usage of the POS resources• Re-authorization• Logging of all successful and failed authorizations• Central reporting• Checking of log information on daily basis by

retailer`s staff• Silent Installations of the POS• Integration with POS applications• Integration with Head office systems• Access to government CIS server from every store

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Retailers cost

ImplementationIntegration with existingNetwork connection for every storePotential exchange of POS application, e.g. due to DOS

Maintenance costsTill throughput, less customers per secondAdministration on daily basis (max 2 days for re-authorization)

Installation and RolloutSW installation on POS, optional hardware upgrade and OS upgrade

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Till throughput cost calculation

Facts and assumptionsRush hours (30-40% sales)~247 items/hour = ~24 receipts/hourOne Tx 10 items, ~120 sec, 92.40 Kn

Store  Items per hour 239Tx per hour 24Transaction time span (sec) 110Authorization (sec) 5-10secTX value 92.40 Kn

POS decreased throughput 3.64%

Loss = ~1 item /sec 9.24 KnTx in peek (3 hour) 72Loss per day on POS 665 Kn

Store turnover decrease per/day 3,326 Kn

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Required features

Tx authorization at CIS

Deliver fiscal data to HQ

Re-authorizeAuthorize manuallyStore management

ReportsAlerts

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Possible architecture #1

wanwan

• No integration on HQ level• No central controlling• Store responsibility for re-authorization

Store BOS

Store POS

Tax admCIS

Customization

Customization

Store POS

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Possible architecture #2

wanwan

• Integration on HQ level• Central controlling provided• HQ responsibility by dedicated persons

Store BOS

Store POS

Tax admCIS

Customization

HQ

Customization

Customization

Store POS

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Possible architecture #3

wanwan

• No integration on HQ level• Central control provided• Only interface customization

Store BOS

Store POS

Tax admCIS

Only interfaceCustomization

HQ

Store POSPOS

HQ

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Possible architecture #3

wanwan

Store POS

UPOS

HQOnly interfaceCustomization

• No integration on HQ level• Central control provided• Only interface customization

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Service Plus Solution – Recommended architecture

POS application

Head Office

Customer specific(optional)

Standard receipt UPOS printer

CIS(Authorization Server

of the Fiscal Authority)

Retailer Head office

applications

Store

Fiscal Back Office Application

Printer Driver(fiscal OPOS/JAVAPOS or native Linux driver)

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Service Plus Solution – S4Fiscal BackOffice Application

Stores maintenance Stores registration at the Fiscal Authority Store related data changes at the Fiscal Authority Certificates management

- Distribution to POS in case of new installation- Distribution to POS in case of expire date

Authorize transactions which are created on paper blocks (receipts written by hand)

Re-authorization of not authorized transactions received from POS (including EOD data if finally defined by Law)

Central report of authorized/not authorized transactions

Alerts related to transaction authorization Saving relevant fiscal transaction data

Fiscal BackOffice Application

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Service Plus Solution – Fiscal printer driver on the POS

Creation of specific fiscal receipt number as required by law

Creation of protection code based on MD5 Authorization of fiscal transaction at CIS (Fiscal Authority)

via Web service Add all by law required data to the printed receipt Communication with S4Fiscal Back Office application via

Web service or existing Middleware Automatic installation of certificates in case of new

installations or expired certificates Logging of authorized/not authorized transactions Saving the required data for fiscal transaction locally and

delivery to the Fiscal back office application (S4Fiscal) Support of standard retail POS printer (UPOS) Error handling and communication with POS application in

case of errors

Printer Driver(fiscal OPOS/JAVAPOS or native Linux driver)

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