Cycle / Mega-Process: Order to Cash

Major Process Sub-Process Department

1. Sales Admin 1.1 Sales Budget and Monitoring Sales
1. Sales Admin 1.2 Marketing Sales
1. Sales Admin 1.3 Customer Management Sales
1. Sales Admin 1.4 Product Sampling Sales
1. Sales Admin 1.5 Price Management Sales
1. Sales Admin 1.6 Sales Quotation Sales
2. SO processing 2.1 Sales Order Preparation Billing and Inventory
2. SO processing 2.2 Credit Verification Credit and Collection
2. SO processing 2.3 Good Issuance/Delivery Warehouse
2. SO processing 2.4 Invoicing/Billing Billing and Inventory
2. SO processing 2.5 Recording of Sales and Accounting
Receivables
3. Sales Collection 3.1 Cash/Check Receipt Credit and Collection
3. Sales Collection 3.1 Cash/Check Receipt Credit and Collection
3. Sales Collection 3.2 Receivable Update Credit and Collection
3. Sales Collection 3.3 Cash and Check Deposit Treasury
3. Sales Collection 3.4 Recording of Collection Accounting
4. Credit Management 4.1 Customer Credit and Terms Credit and Collection
4. Credit Management 4.2 Receivables Monitoring Credit and Collection
4. Credit Management 4.3 Credit Verification Credit and Collection
4. Credit Management 4.4 Recording of Provisions Accounting
5. Sales Return 5.1 Review and Approval of Credit Billing and Inventory
Memo Credit and Collection
Warehouse
5. Sales Return 5.2 Goods Receipt of Sales Return Billing and Inventory
Credit and Collection
Warehouse
5. Sales Return 5.3 Cash Refund Billing and Inventory
Credit and Collection
Warehouse
5. Sales Return 5.4 Recording of Sales Return Accounting
and/or Cash Refund
Process Owner(s)
Mega Process: Order to Cash Cycle
Major Process: 1. Sales Administration
Sub-Process No Procedures Source (Input) Document/Report/Info Doc/Info/Report (Output) Rep created
1.1 Sales Budget & 1 Annual Sales Budget is prepared at the start of the year. This is computed with 110% created Sales Budget
Monitoring or 120% from previous year's sales amount.

Sales budgeting is performed once a year, ever November.

1.1 Sales Budget & 2 Annual Sales Budget is then divided equally per month.
Monitoring Customer Category:
End User, Traders, Multi-trade, Distributor
1.1 Sales Budget & 3 Sales meeting is held usually every 1st week of the month to discuss sales
Monitoring performance related to budget.
1.1 Sales Budget & 4 2 types of Sales Incentives given:
Monitoring a. Monthly - fixed amounts are rewarded for achieving 100% or 110% of the sales
target, however, this is paid on a quarterly basis.
b. Quarterly (Group Incentive) - fixed amounts are given to a group of sales agents
but allocated depending on the members contribution to the sales target.

1.1 Sales Budget & 5 Quarterly Sales Incentives is re-computed and finalized by Treasury (Finance) based
Monitoring on the collected sales amount.
1.1 Sales Budget & 6 Sales Report for Monthly Sales Meeting: Summary Sales
Monitoring Summary Sales Report (from the Daily Sales Report of B&I) Report
- with Customer Category
- less Sales Returns reported by B&I

1.2 Marketing 7 The company can access various industry segments which have need for chemical
inputs through market research to identify potential customers.
1.2 Marketing 8 Marketing strategy: 70% In-house; 30% Field (including product exhibits)
1.3 Customer Management 9 All new customers (registered companies and individual accounts) must present
relevant information and documents prior to any sales transaction. For products that
are regulated, controlled, or requires reporting to regulatory agencies, additional
information and documents will be required. In addition, when a customer starts to
purchase on credit, other information and documents (such as payment terms,
financial report, company website and products, etc.) must be submitted.

1.3 Customer Management 10 Order Sheet is the basis of recording customer information in the customer master
ledger by the BID.
1.3 Customer Management 11 Customer master form is currently not being used. Customer information is retained Customer Manual
from e-mail exchanges. Customer manual ledger is being maintained. Sales Ledger
executives monitors the submission of permits if product to be sold is regulated.

1.3 Customer Management 12 Customer complaints are handled by their sales agents. Depending on the gravity of
the complaints, escalation procedures are observed. Complaints are usually
processed within twenty four (24) hours from receipt of complaint report from the
customer.

1.3 Customer Management 13 Customer satisfaction procedures(i.e. survey) are not being performed currently.

1.4 Product Sampling 14 Customer inquires for a sample of the product

 1.4 Product Sampling 15 Sales executive determines and advises the customer on the ff details: product
specification and application, type of test performed on the product, sample quantity
required
1.4 Product Sampling 16 Verbal approval is obtained by the Sales Executive prior to proceeding with document
preparation.
1.4 Product Sampling 17 If product sample is less than 500 grams, sample order requisition sheet (considered Sample Order
as having no effect on inventory) is prepared by the Sales Executive. If more than 500 Requisition Slip / Order Sheet
grams, Sample Order Sheet is prepared. (Sales executive should be particular with the
lot no. that will be issued as a product sample. Later on, this will also be the lot no.
that will be issued to the customer if the latter buys.)

1.4 Product Sampling 18 Sample Order Requisition or Order Sheet is reviewed and approved. Once approved,
a copy is forwarded to Warehouse Personnel for the preparation of product sample.

1.4 Product Sampling 19 Product sample is issued (pick-up) or delivered to Customer via normal means of
delivery - delivery to customer facility, customer pick-up, through courier or sales
executive.

1.4 Product Sampling 20 Sales executive follows up with the customer regarding result of sampling, and
determines if there are any issues or complaints encountered by the customer.

1.4 Product Sampling 21 If the sampling is a success, the sales executive initiates the normal sales order
process or sales quotation process. If sample failed, determine reasons why product
sample failed. Then, advise authorized person in-charge for any possible action to be
taken (another product sampling or end the transaction).

1.5 Price Management 22 The current practice is that all prices per sales order are set by the VP-Purchasing or
VP-Sales. This is due to the frequent changes in forex. No formal and approved price
matrix is being used at the moment.
1.5 Price Management 23 On some regular items being sold, the sales supervisor sets the price. In some
instances, Sales Agents provide selling prices to customers through verbal
communication based on their experience provided that it is clearly mentioned thath
the price given is not binding and subject to changes.

1.6 Sales Quotation 24 Sales executives receives request for quotation from customer via email, phone or
text message.
1.6 Sales Quotation 25 Sales executive prepare the price quotation with the ff details: Sales Quotation
Quantity, commodity, packing, origin, payment terms, delivery condition, validity
period of the offer, time of availability, permits/license required, VAT condition, other
conditions

1.6 Sales Quotation 26 Sales executive sets or seeks approval for price with the VP-Sales or VP-Purchasing.
1.6 Sales Quotation 27 Once approved, formal sales quotation is sent to the customer via e-mail or fax.
1.6 Sales Quotation 28 Sales executive follows up with the customer regarding result of quotation, and
determines if there are any issues or complaints encountered by the customer.
1.6 Sales Quotation 29 If the sales quotation is a success, the sales executive initiates the normal sales order
process. If not awarded, Sales Agent determines reason for the loss of sale. Then,
communicate to the authorized person for any possible action to be taken
(renogotiate the price or end the sales transaction).
Remarks
A separate Delivery Receipt for
product samples should be
allowed so as not to create
normal Sales Invoice

Report should contain the

minimum details:
Customer name, date of sample
issuance, product code, lot no,
batch no
Mega Process: Order to Cash Cycle
Major Process: 2. Sales Order Management
Sub-Process No Procedures Doc created
2.1 Sales Order Processing 1 Sales agent receives Customer PO and confirms stock availability with
warehouse (including confirmation of product batch no and lot no)
2.1 Sales Order Processing 2 Sales agent prepares the order sheet with required details (i.e. product
description, warehouse, batch and lot no, etc) and submits to Billing &
Inventory for processing.

In addition, SBS accepts Customer's Blanket PO wherein there is one purchase Order Sheet
order commited by the customer and sales deliveries are performed per
customer's advise.

2.1 Sales Order Processing 3 The Billing & Inventory Department receives the Order Sheet and Purchase
Order (from Customer) from sales agents.

There are instances when the purchase order is not provided with the Order
Sheet, but will be provided in subsequently

2.2 Credit Verification & SO 4 The Order Sheet and Purchase Order are forwarded to the Credit & Collections
Approval department for credit validation. Outstanding loan balance if any, is indicated
in the Order Sheet.

2.2 Credit Verification & SO
Approval
2.2 Credit Verification & SO
Approval
5 After credit validation, the OS (with credit notation) and PO are forwarded back
to Billing & Inventory, which in turn submits the documents to the Procurement
Head or the Sales & Marketing Head for review and approval.
6 Approving Officer reviews Order Sheet.
- For overdue balance, decide whether to proceed with the transaction or to
hold until customer paid the balance.
* If to proceed even with balance, Approving Officers sign Order Sheet and
return to BID for processing.
* If to hold, advise sales team to communicate with the customer re settling
of overdue balance before proceeding.
- For exceeded credit limit, decide how much will be removed from the quantity
ordered to align with the customer credit l imit.
* Advise sales team to communicate with the customer regarding actions to
be taken. Then, Approving Officers sign Order Sheet and return to BID for
processing.

2.4 Billing 7 The Billing staff creates the Issuance Slips and the Sales Invoice AND/OR
Delivery Receipt (depending on Customer preference). Sales Invoice
a. The sales price, product description and quantity are based on the Delivery Receipt
approved Order Sheet Issuance Slip

2.4 Billing 8 The Issuance Slips, Sales Invoice AND/OR Delivery Receipt together with the
approved Order Sheet are submitted to the signatories for review and approval:
a.  With terms:
i.  Evelyn Colarina – Credit & Collection Manager
ii.  Flory Macasaet – Sales Manager
iii.  Lourdes Ababon – Business Dev’t Officer
b.  Cash payment and pickup – any of the 2 signatories above
c.  Back-up of Evelyn and Flory – Lalie or Nes Sytengco; Back-up of Lourdes – Esther

2.4 Billing 9 For delivery to customer’s place, outgoing delivery documents are forwarded to
respective departments:
a.  Sales Invoices – Original and 2 yellow copies to Warehouse; 1 pink copy to Accounting;
1 green copy retained
b.  Delivery Receipt – Original and 1 yellow copy to Warehouse; 1 pink copy to Accounting;
1 green copy retained
c.  Issuance Slips – Original, 1 blue and 1 yellow to Warehouse; 1 pink copy retained

2.4 Billing 10 For customer pickup, outgoing delivery documents are transmitted:
a.  Sales Invoices – Original to Customer (if paid already); yellow to warehouse
b.  Delivery Receipt – Original retained; yellow to Customer (still with terms)

2.4 Billing 11 The Billing staff files all the retained outgoing documents by series.
 2.4 Billing 12 Daily Sales Report is prepared by the Billing staff on a daily basis for the sales
transactions from previous day based on the pink copy of Sales Invoice/Delivery
Receipt from Accounting.
- Green copy reviewed by Ms.lalie, Pink copy by Nes then forwarded to Micel (B&I) for
manual customer ledger updating.

2.4 Billing 13 Daily Sales Rep per agent is created by Marge from Order Sheet

2.3 Goods Issuance & 14 Warehouse receives Sales Invoice and/or Delivery Receipt and Issuance
Delivery (authority) Slips from Billing department.

Delivery allocation is usually 1 Truck = 20 Tons for every sales invoice.

2.3 Goods Issuance & 15 Warehouse supervisor (RH) checks the Issuance (authority) slips for proper
Delivery signature:
a. If the invoice is not yet paid, three signatures normally are expected in the Issuance
(Authority) slips while only two signatures are expected for invoices already paid.
b. There is 1 authority slip for every warehouse to be withdrawn from.
c. There is a specimen signature document supposedly being used to validate the
signatures. However, based on inquiry and observation, this document was not available
at the time of the walkthrough.
d. Triplicate copies: Original (white) to the withdrawing warehouse; Blue to the warehouse
security; Yellow to the Billing department

2.3 Goods Issuance & 16 Warehouse Supervisor/Dispatcher (RH) coordinates and confirms, thru phone
Delivery calls, with the other warehouse supervisors, as necessary, to check availability
of products.
2.3 Goods Issuance & 17 Warehouse Supervisor/Dispatcher (RH) sends the outgoing documents (i.e.
Delivery sales invoice, DR, authority slips) to the respective offsite warehouse
supervisors and the issuance slips to warehouse man for actual stock
withdrawal

2.3 Goods Issuance & 18 The warehouse man performs stock movement from storage to the
Delivery staging/delivery area (FEFO)
2.3 Goods Issuance & 19 After the stocks have been prepared for delivery, the warehouse supervisor
Delivery checks the stocks versus the outgoing documents (i.e. sales invoice and/or
delivery receipt, authority slip) and validates the product description,
packaging, quantity, lot no., manufacturing date, expiry date etc. The
warehouse supervisor will also determine if additional documents are prepared
based on the recipient of the delivery: MSDS and/or COA for forwarding
companies
- The warehouse security guard performs additional validation of stocks versus the
outgoing documents.

2.3 Goods Issuance & 20 Warehouse supervisor (RH) prepares the Trucking Schedule that lists all the
Delivery scheduled outgoing deliveries based on the outgoing docs provided.

2.3 Goods Issuance & 21 The warehouse and the truck assistant will perform loading of the stocks to the
Delivery truck:
a.  Warehouse security guard monitors the actual loading of stocks to the truck

2.3 Goods Issuance & 22 The warehouse supervisor oversees the actual loading of stocks to the truck and
Delivery validates it against the outgoing documents. If no discrepancies/errors are
noted, the warehouse supervisor and the truck driver signs on the outgoing
documents.
a.  The warehouse security guard logs all the outgoing delivery in the logbook
with the details: delivery date, sales agent name, sales invoice/DR no, product
description, quantity, customer name

2.3 Goods Issuance & 23 The warehouse security guard performs a check on the condition of the delivery
Delivery vehicle and prepares the form: Warehouse Delivery Vehicle Pre-Departure
Checklist. This is counter-signed by the Truck Driver.
a.  In addition, the wh security guard will also prepare the Vehicle Request, Pass
and Inspection Form (for SBS vehicles only) with almost the same details as the
Pre-Departure Checklist.
b.  The Trucker/Driver will also prepare the Employee Official Business Form
(EOBF)
c.  The two forms above will be signed by the security guard on duty at the gate.
 2.3 Goods Issuance & 24 The truck driver takes the original sales invoice and/or delivery receipt and the
Delivery PDR while the yellow copy of the sales invoice will be retained by the
warehouse with remark “ROC” or Received Original Copy, signed by the truck
driver.
a.  In some circumstances, the Driver will not get the original sales invoice.
Warehouse will send back the original sales invoice plus the yellow duplicate
copy to the Billing department.

2.3 Goods Issuance & 25 After departure of the delivery truck, the warehouse staff prepares the
Delivery Outgoing Report based on the Authorization Slips. 4 copies are produced and
triple copies are given to the Billing together with the Authorization Slips
(yellow copy)

2.3 Goods Issuance & 26 The warehouse supervisor reviews the Outgoing Report against the sales
Delivery invoice and/or delivery receipt or the issuance slips, and signs if there are no
issues noted.
2.3 Goods Issuance & 27 Upon delivery to the customer, the customer representative signs on the Sales
Delivery Invoice or Delivery Receipt to acknowledge receipt of stocks.
2.3 Goods Issuance & 28 When the driver/trucker returns from delivery, Sales Invoice and/or Delivery
Delivery Receipt, PDR and other documents (i.e. purchase order, shipping docs) are
returned to the warehouse office. Issuance of sales invoice or delivery receipt
by the Billing department and the return of these documents depend on the
preference of the customers. There are instances wherein:
a.  Only Sales Invoice is required; Return will depend if the invoice will be paid
by the customer; if not or if there are terms, the original copy will be sent back
to the Billing Dept.
b.  Delivery Receipt is required; Sales Invoice will be sent after DR has been
received
c.  Sales Invoice and DR is required; duplicate copy of DR and original copy of
invoice is returned (for sales not yet paid or with terms)

2.3 Goods Issuance & 29 The warehouse staff prepares the Acknowledgement Report that lists all the
Delivery PDRs and other documents that will be submitted back to the Billing
department.
a.  In some cases, the driver/trucker is authorized to receive checks from the
customer and he will, in turn, issue Provisional Receipt to the customer.

2.4 Billing 30 The issuance slips (pink copy), sales invoices or delivery receipts (green copies)
are checked manually every day or two to monitor if the copies signed by the
customer and the warehouse team are already received.
2.4 Billing 31 Summary of Outgoing Report and Transmittal sheet are received from
Warehouse in triplicate copies including the return of outgoing documents:
a.  Sales invoice – original if not yet paid or yellow copies if paid
b.  Delivery receipt – original or yellow copy or both, depending on the
customer’s preference
c.  Issuance slips - yellow duplicate copies are filed per series

2.4 Billing 32
The Billing staff uses the original copy of the Outgoing Report to monitor the
return of the outgoing documents from the Warehouse team:
a.  Invoice, DR no., and Issuance/Authority slip no will be marked with a circle
when these documents are received
2.5 Recording of Sales & 33
Receivables B&I Head reviews the Outgoing Report versus Outgoing Docs for any disrepancy
2.4 Billing 34 The Billing staff creates a Sales Invoice based on the Delivery Receipt received
from the customer as necessary (i.e. for “DR first” customers only)
2.5 Recording of Sales & 35 The Billing staff uses another original copy of the Outgoing Report and puts the
Receivables sales invoice price per item. This report will then be forwarded to the Billing &
Inventory head for stock card posting.
2.5 Recording of Sales & 36 The Billing & Inventory Staff updates the stock cards.
Receivables
2.5 Recording of Sales & 37 The Billing Staff gathers all the sales invoices and delivery receipts received for
Receivables the day and lists them in the Summary of Daily Sales Report or Transmittal
report (Pick-Up & Delivery) - based on outgoing docs received/returned by
warehouse:
a.  The unpaid invoices are segregated from the paid invoices

2.5 Recording of Sales & 38 The Summary of Daily Sales Report (Transmittal) is forwarded to Collections
Receivables Department together with the original sales invoices and delivery receipts
2.5 Recording of Sales & 39 Upon receipt of Sales Invoice / Delivery Receipt (green copy) from Credit
Receivables &Collection, Accounting records the sales transaction. (see Accounting Journal entry - Cash / Credit
entries list) sales
Rep created Desired Report Desired Automation
Inventory view per warehouse

Customer Blanket PO feature

Credit block & Unblocking

Workflow Approval

Workflow Approval

Summary of open & approved sales orders Delivery Receipt can only be created with
for goods withdrawal an open and approved SO reference.
Daily Sales Report Sales Report (Customizable View)
Daily Sales Report per
agent

Recording and monitoring of stock

transfers within a warehouse.

Trucking Schedule
Outgoing Report

Acknowledgment Report/
Transmittal Sheet

Summary of unbilled/unvouchered goods

issuance or Delivery Receipt

Update of Inventory Master

 Remarks
View access only to determine stock availability and other
details

- Related report: AR Aging to check oustanding loan balance of

Customers
- Depending on the credit limit set and the customer's loan
outstanding, the ERP system will automatically block the
created sales order if credit has been exceeded, but can be the
Credit Manager can overide the block.

Some customers have different delivery and main office

address

Get Set A & B list of approvers; If the 3 other signatories are

not available, other approvers are called

Warehouse users can only view approved AND unfulfilled

sales orders.
The report should be viewed or customized by period, sales
agent, product, warehouse location etc.

Prepare a delivery plan considering customer request dates,

lead times, quantity or stock keeping units of products to be
delivered, points of delivery, load fills and road strategies, and
obtain the approval from the authorized personnel.
Mega Process: Order to Cash Cycle
Major Process: 3. Sales Collection
Sub-Process No Procedures
1 The C&C (CR/PR Issuer) staff receives checks (PDC or MC) and cash, from:
a. Customers direct pick-up - Another C&C staff will count the cash or validate the check
b.  Company collectors – checks picked-up directly from customers C&C staff signs on the
collector’s transmittal sheet as proof of receipt. (Collectors have their copy of CR/PR). Collectors
3.1 Cash/Check
do not receive cash payment, only check.
Receipt c. COD – Checks received from truck drivers upon delivery to customers. Only SBS truck drivers
are allowed to pick up check.

2 The C&C (CR/PR Issuer) staff issues CR or PR for cash/checks received:

a. Customers direct pick-up - after physical validation of cash/check received by another C&C
staff, the original CR is attached in the Sales Invoice. If PDC received, PR is issued.
b. Company collectors – Issues their own CR if fully paid or PR if not fully paid or PDC received
3.1 Cash/Check c. COD - Sales agents advises C&C to issue CR or PR and include in the outgoing documents sent to
Receipt WH for delivery.
d. TT or Advance payments - this is indicated in the Order Sheet and Sales Invoice together with
attachment of deposit slip copy and with signature validation of Treasury Supervisor.

3 The C&C staff lists all the daily collections (including TT or validated advance payments)in the
3.1 Cash/Check Cashier’s Daily Collection Report (CDCR) in terms of CR/PR no. , Customer name, Invoice No.,
Receipt Check No., Check Date, type of check.
4 The Collection Receipts (CR) are forwarded by the Collection Staff to Accounting after updating
3.4 Recording of the blue book ledger to record and update the Customer's receivable balance in regards to their
Collection payment (See accounting entry list)
5 The C&C staff will list all the items for deposit by date in the blue book - cash and checks; and will
list PDC on the day of their due date.
3.1 Cash/Check
Receipt

6 The Daily Collection Report together with the cash and checks are forwarded to the Treasury for
deposit (END OF DAY).
a. Treasury staff or supervisor receives the cash and checks signs on the CDCR as proof of receipt
after verifying the report.
3.3 Cash/Check b. All PDC not yet due are forwarded to the VP-Purchasing for Safekeeping.
Deposit
Field collectors can directly deposit the checks to the bank in case they cannot be able to return
to office on the same day. Treasury Finance is informed about the direct deposit. Then, on the
next day, field collectors will give the deposit slip to Collection Staff to update the collection
report. Collection Staff then provides deposit slips to Accounting for recording to books. Deposit
slips of checks that have been deposited by field collectors is not turned-over to Treasury Finance.
3.3 Cash/Check 7 Bank Liaison prepares deposit slip for each CR or cash/check for deposit and records these details
Deposit in a manual ledger (i.e. registry notebook).
8 The cash, checks, deposit slips are brought to the appropriate banks for deposit. The bank
validated deposit slips are then counterchecked by the Treasury staff against the manual ledger
3.3 Cash/Check (i.e. registry notebook). The treasury staff signs on the ledger entry once it is validated. The
Deposit Treasury Supervisor validates the deposit slips against the entries in the passbook.

3.3 Cash/Check 9 The bank validated deposit slips are forwarded to Credit & Collection for their notation and
Deposit update in the Daily Collection Report.
3.3 Cash/Check 10 The Treasury Supervisor do validation check of deposits on a weekly basis comparing the manual
Deposit ledger versus online statement of account.
3.4 Recording of 11 The validated deposit slips are forwarded to Accounting by Credit & Collection staff to record the
Collection deposit of cash in the banks (see Accounting entry list)
12 The credit & collection staff (CR/PR issuer) receives the Summary of Daily Sales Report-Pick-Up &
Delivery (Transmittal) from Billing & Inventory together with the ff:
a. Original copy of invoices (for collection)
3.2 Receivable Update b. Yellow copy of invoices (paid invoices) or those Original Sales Invoices already sent to
Customers but not necessarily paid
c. Checks collected and duplicate copy from SBS Truck Drivers - COD

13 The credit & collection staff (CR/PR issuer) checks the SDSRPD (Transmittal) for correct
3.2 Receivable Update attachments and validates the copy of CR/PR received for paid invoices.
14 The credit & collection staff (CR/PR issuer) forwards the Summary of Daily Sales Report-Pick-Up &
3.2 Receivable Update Delivery (Transmittal) and attachments to the C&C staff (AR aging). The unpaid invoices (for
collection) will be used to update the Customer Receivables in the AR Aging report.
15 The credit & collection staff updates the AR aging report based on the collection report:
a. If dated check is received, Customer AR will be marked as PAID.
3.2 Receivable Update B. If PDC is received, this is just noted in the report. Upon due, the check will be forwarded to
Treasury for deposit. This will be marked as PAID.
 16 On a monthly basis, the Credit & Collection manager reviews the AR aging report against the
cashier's daily collection report.
3.2 Receivable Update

17 For advance payment through Telegraphic Transfer, Sales agent will get the TT details from
customer plus a copy of deposit slip. Sales Agent prepares the Order Sheet and attach the copy of
3.2 Receivable Update deposit slip and forwards it to Treasury. Treasury Supervisor validates the TT and signs on the
Order Sheet once validated.
 Doc created Rep created Desired Report Desired Automation

Confirmation Receipt /
Provisional Receipt

Daily Collection Report

Journal Entry - Collection of

receivable

Daily list of
cash/checks for
Monitoring report of PDC due for deposit
deposit (Blue book
ledger)

Manual ledger of bank

deposits

Journal Entry - Deposit of cash in

the bank

AR Aging

Create payments and apply in customer accounts

Remarks
Mega Process: Order to Cash Cycle
Major Process: 4. Credit Management
Sub-process Procedures
2.2 Credit Verification & SO 1 Refer to "2 SO Mngt" tab for the procedures
Approval
4.1 Credit & Terms 2 When a customer become a regular buyer, application of credit line can be processed. In
Application order to apply, the customer must have good credit standing verified by a reputable credit
investigation agency. Prior to granting non-secured payment term, customer must show
good payment performance under Advance Payment or Cash Payment method for at least
6 months and a minimum of 5 transactions to avoid overdue situation.

4.1 Credit & Terms 3 A Customer Credit Limit Form must be filled-out and completed.
Application

4.1 Credit & Terms 4 In the course of credit term application, the top management decides how much credit
Application limit can be granted to a particular customer.
4.2 Receivables Monitoring 5 C&C Analyst (AR Aging) reviews the AR Aging report on a daily basis for customer
receivables that needs to be collected. Customers are called via telephone to confirm if
there is already a check for pick-up.

In terms of past due accounts, C&CD issues Statement of Account if customers did not
respond to the call or took action about the overdue accounts. If customer still doesn't
pay, C&CD sends reminder letter to them (with the consent of the Sales Agent) indicating
that within 5 days, payment must be made. After 2-3 reminder letters sent and yet there is
no payment done by the customer, the collection process is handled by legal department
by issuing a demand letter.

4.2 Receivables Monitoring
4.2 Receivables Monitoring
4.4 Recording of Provisions
6 C&C Analyst (Collection) prepares a customer individual jacket containing sales invoice
that are due for collection.
7 The due invoices are given to the company collectors on the day of collection. The
collectors then pick up the check from customers and issue appropriate receipt ---
Collection Receipt for dated check and Provisional Receipt for post dated check.
8 If there is a probability that a receivable will not be recovered, and management together
with the agreement of third party FS auditors, decides to recognize a bad debt provision,
this will be recorded by Accounting. (see accounting entries list)
 Doc created Rep created Desired Report

Creation / changes in customer masterdata

Customer Credit Limit Form

Statement of Account
Reminder Letter
Demand Letter

Journal Entry - Recognition of

Bad Debts
 Desired Automation Remarks Sample Document Request

Approval Workflow for creation/changes in the

Customer masterdata, especially the customer credit
limit
Mega Process: Order to Cash Cycle
Major Process: 5. Sales Return
Sub-process No
5.2 Receipt of Sales Return 1

5.2 Receipt of Sales Return 2

5.2 Receipt of Sales Return 3

5.2 Receipt of Sales Return 4

5.2 Receipt of Sales Return 5

5.2 Receipt of Sales Return 6

5.2 Receipt of Sales Return 7
5.1 Approval of Credit Memo 8

5.1 Approval of Credit Memo 9

5.2 Receipt of Sales Return 10

5.4 Recording of Sales Return 11

5.1 Approval of Credit Memo 12

 : Order to Cash Cycle
s: 5. Sales Return
Procedures
Sales Executive receives complains about damaged goods.

Customer complaints are received the same day goods were delivered (outright after customer QA) or days
after goods were delivered.

If complaint is received outright, goods are returned immediately to warehouse. If complaint is received at a
latter date after delivery, pick-up of goods are scheduled depending on the cost of trucking fee. Goods
returned must have supporting documents from the customer (complaint report, pictures of damaged goods,
etc.)

Warehouse receives returned goods and performs investigation together with the sales team.
Warehouse creates receiving report

Warehouse prepares Incoming Summary report that includes the receiving report of sales return

Incoming Summary report and receiving reports are forwarded to Billing & Inventory department.
B&I reviews the receiving reports
C&C prepares the credit memo or debit memo (adjustment on price or volume)

Credit/Debit memo for approval to Nes & Lalie

B&I updates stock cards

Credit & Collection sends the credit/debit memo sent to Accounting for recording. Accounting records the
sales return transation. (see Accounting entry list)
B&I weekly prepares cancellation report forwards to Accounting
 Doc created Rep created Desired Report Desired Automation

Auto update of (increase) Inventory due

Receiving Report - Sales Return to sales return and auto posting in GL of
inventory and sales return accounts.

Summary of RR with sales

return

Credit Memo
Approval Workflow for Credit Memo

Journal Entry - Sales Return

Sales Return Summary
Remarks