do’s and don’ts credit management africa during the order to cash cycle
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Do’s and don’ts Credit Management Africa during the Order to Cash cycle. Do’s and don’ts Credit Management during the Order to Cash cycle. My name is Eric Berendsen In credit management for 25 years Working in the African market since 5 years Summary Short introduction to Boart Longyear - PowerPoint PPT PresentationTRANSCRIPT
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Do’s and don’ts Credit Management Africa during the Order to Cash cycle
Company Confidential – Unauthorized use or distribution prohibited. © 2013 Boart Longyear. All rights reserved.
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• My name is Eric Berendsen• In credit management for 25 years• Working in the African market since 5 years
Summary
• Short introduction to Boart Longyear• The do’s and don’ts for credit management during the
O2C cycle• Q&A
Do’s and don’ts Credit Management during the Order to Cash cycle
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Boart Longyear Ltd
Boart Longyear is a global mineral exploration company founded in 1888. It is headquartered in Salt Lake City, Utah, United States. Listed on the Australian stock exchange (ASX:BLY) Regional offices and operations are located in the Asia-Pacific region, North and South America, and EMEA. The company provides mineral exploration services and drilling products for the global mining industry and also has a presence in drilling water exploration, environmental sampling, energy, and oil sands exploration. As of September 2013, it employes more than 6,000 people.
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• Large natural resources• Political instability• Bad infrastructure• Poor financial
infrastructure• Growth opportunity
What is so special about Africa form a business perspective?
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The order to cash cycle
Deduction
Cash application
Collection
Invoicing
Distribution
Order fulfillment
Order entry
Customer
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Customer
• Who is your customer • Where to get additional (financial) information• Payment terms• T & C’s
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Order entry
• Get correct PO• Which T&C’s are applicable• Order release process
Order fulfillment
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Distribution
• INCO terms• Customs• Inspection requirements
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Invoicing
• Check what is required by law• Currency• Language • Required CFD’s• Getting in on time to the customer
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Collection
• Who is approving• Who is paying• Which bank to use• What currency• LC’s
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INCOTERMS
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Cash application
• Getting bank statement• Currency• Taxes• Deducted cost• One last thing…….
Deduction
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• Customer in Ghana is send an invoice of 118K (including 18% VAT)• Customer is exempted (doesn’t have to pay tax)• Customer deducts fuel invoice of 20K• Customer may deduct 2% for early payment• Payments we’ve received were
Example payment application
118.000USD18.000VAT
5.000WHT2.000Early payment discount
20.000Fuel invoice73.000To pay in USD36.500Payment received in USD80.000Payment received in GHS
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Takeaways and Q & A
• Go through your own O2C cycle to determine possible pitfalls
• Make sure you’re actively involved in the O2C cycle as early as possible
• Contact specialized organizations
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Eric Berendsen Manager Credit & Collections EMEA
Boart Longyear12 Avenue des Morgines
CH1213 Petit-Lancy, GenevaSwitzerland
Tel.: +41 22 709 08 84Mobile: +41 79 176 48 98
Thank you!