The Digital Business Network Alliance (DBNA) is a network that facilitates the secure and efficient exchange of electronic documents among businesses. It addresses common issues such as different regulations and document formats that complicate document exchange between various industries. This article will explain the DBNAlliance, its operational framework, and the benefits it offers to businesses, as well as DocStudio's role in the DBNAlliance.

Challenges in Exchanging Documents and the Role of the DBNAlliance

Businesses often encounter challenges when exchanging documents with other companies due to different regulations and document formats. Electronic invoicing (e-invoicing) has become a popular method for safely and efficiently sending and receiving invoices. However, until recently, there was no standardized B2B Document Exchange system in the United States.

In 2023, the Business Payments Coalition (BPC) and the Federal Reserve launched a nationwide standardized E-invoice Exchange Market Pilot to simplify and standardize invoicing. To further support end-to-end straight-through-processing of both invoices and payment remittance information, the Fed assisted the BPC with facilitating an E-remittance Exchange Pilot to build a scalable U.S. remittance exchange framework ecosystem supporting all electronic B2B payment methods, similar to the e-invoice exchange framework.

The DBNAlliance is a non-profit organization that oversees the e-document exchange network in North America. Its goal is to support the secure delivery of electronic business documents between service providers and businesses using open, non-proprietary standards and policies. The DBNA aims to standardize e-document exchange to ensure smooth and seamless exchanges of business invoices, remittance information, and other e-documents across different platforms and systems.

How the DBNAlliance Works

The Exchange Framework

The Exchange Framework is an electronic delivery network based on a set of technical standards and policies to allow businesses to securely share electronic supply chain documents. It was developed to solve difficult issues businesses face when exchanging invoices between different platforms and systems, such as how to connect to other businesses, what information to send, and how to deliver it electronically. As a solution to these challenges, the Exchange Framework allows businesses to connect and share electronic invoices, remittance advice, and other business documents between various industries, regardless of the platform, system, application, or network they use for processing business documents.

As the oversight entity, the DBNAlliance is tasked with governing the exchange framework and supporting the digital delivery of e-invoices in a manner that allows customers of all service providers to communicate with customers of all other service providers. Businesses whose service providers are members of DBNAlliance will find the network works within their current operating models with minimal or no system change requirements. Further, the exchange framework supports all electronic payment methods, including ACH, wire, card, and instant payments.

In essence, this development means that all providers engaged in the initiative have now joined an exchange network, enabling seamless interconnection between them. Any business can now utilize a single connection to transmit e-invoices and other business documents to any counterparty, requiring only the partner's ID (such as EIN, DUNS, GLN number, or others).

The Four-Corner Model

The DBNAlliance network uses a four-corner model including four participants:

1. Supplier
2. Supplier’s Access Point (Service Provider)
3. Buyer’s Access Point (Service Provider)
4. Buyer

In this model, documents are sent and received through access points that connect businesses to the network. The process supports requests and document status responses. The format is based on the existing OASIS UBL 2.3 format for invoice and credit note documents. The structured file can include attachments and an electronic signature. The fields included are:

• Supplier and customer information
• Shipping information
• Payment instructions, bank/card information
• Document and item-level charges, discounts, and taxes
• Item descriptions
• Notes section

For each document sent, there are designated document senders (referred to as "Corner 1" or C1), the sender’s provider (C2), the receiver’s provider (C3), and the receiver itself (C4). While senders and receivers can communicate in any preferred manner and format, a common standard (UBL 2.3), communication protocol (AS/4), and several other policies and technologies are mandated on the digital backbone.

Process Flow

1. The Supplier sends invoice information to their access provider.
2. The Supplier’s Access Point connects to the Exchange Framework through AS4 data transfer protocol and SML and SMP technical infrastructure to ensure the security of the transferred information and finds the Buyer’s Access Point.
3. The invoice is securely sent to the Buyer’s Access Point.
4. The Buyer’s Access Point forwards the invoice data to the Buyer for approval and payment.

After the initial launch, the DBNAlliance plans to extend the electronic exchange to other business documents to improve B2B payments and supply chain management.

Click on the video below for a detailed overview of the Exchange Framework by the DBNAlliance Chairman of the Board of Directors Chris Welsh. In this webinar Chris Welsh explains the establishment and goals of the Digital Business Networks Alliance, focusing on creating a standardized, production-ready B2B e-invoice exchange framework for the North American market.

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Main Benefits of the DBNAlliance Exchange Framework

The Digital Business Networks Alliance (DBNA) framework offers significant advantages to buyers, suppliers, and Access Point service providers. By promoting interoperability, efficiency, and connectivity, the DBNAlliance framework enhances the overall functionality and effectiveness of business operations. Below, we explore the specific benefits that each stakeholder group can gain from adopting this innovative framework.

For All Parties

• Easy to Adopt: Integrates seamlessly with current operating models and accounting systems, minimizing the need for changes.
• Industry Agnostic: Applicable across various industries, ensuring wide-ranging utility.
• Payment Method Agnostic: Supports all types of electronic payments, offering flexibility.
• Standards-Based: Uses open, non-proprietary standards for interoperability.
• System Agnostic: Facilitates electronic document exchange without altering existing systems.
• Non-Disruptive: Integrates smoothly into accounts payable (AP) and accounts receivable (AR) workflows, maintaining process continuity.

For Buyers

• Streamlined Document Exchange: Provides a streamlined approach to exchanging business documents, enabling all members of the supply chain to connect to the framework and submit invoices electronically, regardless of the Access Point Service Provider used.
• Efficiency: Enhances efficiency with faster processing times and fewer errors, improving financial management.

For Suppliers

• Simplified Process: Streamlines the invoice-to-cash process, reducing exceptions and manual interventions.
• Connectivity: Promotes interoperability, allowing suppliers to easily connect to virtually any Access Point service provider and submit documents to customers, enhancing operational flexibility.

For Access Point Service Providers

• Simplified Connections: Facilitates the connection of buyers and suppliers, ensuring that supplier connections meet customer business rules.
• Market Expansion: Enables service providers to enroll more suppliers, enhancing supply chain engagement for their buyer clients and improving straight-through processing, leading to increased business opportunities and revenue streams.

By adopting the DBNAlliance framework, all parties—buyers, suppliers, and service providers—benefit from streamlined operations, improved efficiency, and greater connectivity.

DocStudio’s Involvement

DocStudio has played a key role in shaping the U.S. e-invoice market, participating in the e-Invoice Exchange Market Pilot since 2022. On April 4, 2024, DocStudio initiated the first e-Invoice from DocStudio to Storecove via the DBNAlliance. This marks our significant implementation of AS/4 and related technical specifications and policies, seamlessly integrated into our platform —  DocStudio. Simultaneously, customers can still utilize any preferred format and transport protocol on the "last mile" from both the sender and receiver sides.

This approach offers a straightforward and accessible means for companies of all sizes to implement e-invoicing or any other document types with all partners without the need for them to adopt any specific provider or portal. As a trusted member and access point within the DBNAlliance, DocStudio is dedicated to making electronic document exchange easy and efficient.

Key Contributions

• Document Exchange: Initiated data exchanges within the DBNAlliance framework using advanced technologies.
• Implementation and Adaptability: The DocStudio platform, integrated with DBNAlliance technical standards, enables businesses to maintain their preferred formats and protocols without requiring any additional technical modifications.
• Testing and Development: Collaborating with other providers and exploring new document exchange methods.

As an active member of the DBNAlliance, DocStudio invites e-invoice/EDI providers and potential customers to experience this innovative technology.

Watch the video below to learn how e-invoices and other B2B documents can be exchanged using DocStudio through the DBNAlliance network.

Conclusion

The DBNAlliance is transforming the way businesses exchange electronic documents by addressing long standing challenges and promoting efficiency, accuracy, and security. With contributions from key players like DocStudio, the DBNAlliance is simplifying e-invoicing and other business document exchanges, helping businesses connect and collaborate seamlessly.

To learn more about DBNAlliance reach out to the DocStudio team at hello@docstudio.com or fill out the form here.

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