PURPOSE
This Process Group refers to the steps followed by a trained member of the Finance team to check the Invoices posted to the Sales Ledger before they are issued to the Client.
ROLES INVOLVED
| Role Responsibilities | |
| Finance Officer | - Conducts a series of checks before Invoice is sent to the Client. - Executes the Credit and Re-Invoice (+variance) process. - Executes the Client PO Amendments process. |
| Sales Representative | - Involved to answer certain queries regarding Sell Price. - Initiates the Returns process if conditions met. |
| Fulfilment | - Answer queries regarding Cost Price. |
| Sales Operations | - Amend the SKU if the Stock Code Description is missing or wrong. |
HIGH LEVEL PROCESS
Index:
∙ Green: The BPM(s) that trigger this Process Group.
∙ White box: sections of one BPM that will be reviewed in this document.
∙ Purple: refers to a BPM that will be reviewed in this document.
∙ Blue: refers to BPM that is used multiple times throughout the core ‘Quote to Invoice’
process. This map is not included in this document and can be accessed separately.
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BPM 2 – CLIENT PURCHASE ORDER (PO) CHECKS
BPM 3 – SELL PRICE CHECKS
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BPM 4 – DELIVERY ADDRESS CHECKS
BPM 5 – STOCK CODE DESCRIPTION CHECKS
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PROCEDURES
| Task Name Task description Business Rules or Calculations | ||||
| Profitability Checks | 1 | Check Profitability | The Finance Officer (FO) will check the profitability and determine if we are making a loss or an extraordinarily high margin. If nothing unusual, profitability is fine. | |
| 2 | Check if expected | If we are making a loss or an extraordinary high margin, the FO will check with the Sales Representative (SR) to see if the margin/loss is expected. ∙ If it is, no further action necessary. ∙ If the Selling price is incorrect, the invoice will need to be credited and re-invoiced correctly before issuing to the Client. See process for Issuing Corrected Invoices/Credit Notes. | ||
| 3 | Check Prices | If the Cost price appears to be incorrect, the FO will check the Cost prices with Fulfilment to establish if there has been an error in the Purchase Order entry. ∙ If no problems, no further action necessary. ∙ If the Cost Prices were incorrectly put on the Purchase Order entry, the FO will revalue the items concerned and issue a credit and re-invoice for internal use only. The original invoice can be issued to the Client. See process for Issuing Corrected Invoices/Credit Notes with variance of Revaluing Stock items that have been invoiced and posted to the Sales Ledger. | ||
| Client PO Checks | 5 | Check Client PO | The FO will check the Client Purchase Order (PO). The Client Purchase Order Referenceshould be present, depending on Client requirements and/or instructions. This is based on local knowledge and no definitive list exists. If no issues found, no further action necessary. | |
Client PO Amendments | If the Client Purchase Order Reference needs adding or amending, this can be done without having to credit and raise a new invoice. See process for Amending PO References on Sales Invoices. | |||
| Selling Price C | hecks | Check Selling Price | The FO will do an additional review of the Selling Price to ensure there is a value next to each Item Line, unless the invoice references being: a bundle charge, FOC item or a Sample. If no issues found, no further action necessary. | |
| 7 | Query | If no Selling Price exists, discuss with the Sales Representative. | ||
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Amend Selling Price | If the Selling Price needs amending, the FO will amend the Selling Price. The FO will then issue a credit and re-invoice. See process for Issuing Corrected Invoices/Credit Notes. | |||
| Delivery Address Checks | Check Delivery Address | The FO will check that the Delivery Address is applicable to the Account name and Invoice address. This helps ensure we are not invoicing the wrong Client for another Client’s order. If no issues found, no further action necessary. | ||
| Query | If assistance is required, the FO will discuss with the Sales Representative. If no issues found, no further action necessary. | |||
| Advise | If the Account is correct but Delivery Address is incorrect, the FO will advise the Sales Representative that they will need to complete the Returns paperwork. See process for Returns. | |||
Credit & Re-invoice process | If the Delivery Address is correct but the Sales Order is on the wrong Account, the FO will raise a credit and re-invoice. See process for Issuing Corrected Invoices/Credit Notes. | |||
| Stock Code Descriptions | Check Stock Code Descriptions | The FO will quickly review the Stock Code Descriptions to ensure they are displayed with a clear description of the Goods. | ||
| Notify | If the Stock Code Descriptions is not there or clear, the FO will notify Sales Operations to correct the SKU description for future use. See process forAmending SKUs. | |||
| Review | Once notified that the SKU has been amended, the FO will decide if the invoice needs to be amended. Decision concerns the reputational risk to ∙ If low risk, would proceed with the current invoice (that has the incorrect SKU description). ∙ If high risk, the FO will amend the invoice and issue credited and re-invoiced. See process for Issuing Corrected Invoices/Credit Notes. |
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Credit & Re invoice process | TYPE 1: Triggered by: ∙ If the Selling Price is incorrect and it affects the loss / margin. ∙ If the Delivery Address is correct but the Sales Order is on the wrong Client Account. ∙ If the Selling Price needs amending. ∙ If the Stock Code Description is incorrect and poses high risk t reputation. ∙ If wrong VAT code used. Main steps: 1. Issue Credit Note to cancel the Invoice with errors (e.g. making a loss). OUTPUT: ∙ Goods/Items are put back into Stock. 2. Re-Invoice (internal): complete the invoicing process again with the right details. OUTPUT: ∙ Goods/Items are taken back out of Stock with updates. 3. Depending on the circumstance, send either: (1) The original Invoice, as the Client might not care that one line item has an incorrect selling price if total value is correct against their Purchase Order, but for we need to record accurate prices per Item fo SAGE 200 to balance. OR (2) New Invoice when the original Invoice has too many errors that are incorrect or pose a high reputational risk fo . E.g. Invoice is on the wrong account. TYPE 2: Triggered by: ∙ If the Cost Price is incorrect and it does not relate to the Selling Price or Delivery Address Main steps: 1. Issue Credit Note to cancel the Invoice with errors at £0. 2. Revalue Items: If the Cost Price is incorrect, revalue the Item to the correct Cost Price by going into the Stock Control and selecting the Revaluate button and manually changing the price. 4. Resell the Items at £0 Sell Price to create 100% loss / 100% profit. 5. Send the new Invoice. | ∙ When re invoicing must put stock into the Finance Warehouse to ensure the stock is not allocated incorrectly. |
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DOCUMENT CONTROL
VERIFICATION
Any changes to Zones (UK) Ltd standard processes must be sent via an approved Change Control Request form to
CONTRIBUTION
| Name Role | |
| Finance Officer | |
| Finance Manager | |
VERSION CONTROL
| Version Author Date Update | |||
| 1.0 | Document created | ||
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