Order2cash

Credit& risk management

Receivable management

Channels

Investment in business

Distributors business

Credit check parameters

Inventory check

Credit limit check

Credit period: overdue receivables- any dues beyond credit days

DB investment

Open cheque returns-cheque bounce

3 cheque returns in a row

Channel Finance overdue

SAP blocks the order if any of the above highlighted parameters are not met

DMS not fully operative- not fully acceptance

Dbs have multiple business operating so they don’t want to keep a separate system for our business

Warranty clause- db manipulate warranty but if done through dms then it will be difficult for them to
manipulate

When SAP blocks an order .we have a recommendation for processing system

Flash all blocked orders

Authorization matrix for credit deviation

Level 1: Credit committee- credit manager& business

Level 2: VP/CFO

Level 3: CFO/CEO

Warehouse: order is processed and billed-Invoice

Pick, scan & Dispatch

Receivable Management:
Periodical reports on recievables(contents: Db-wise, not due, due , 0-30 days, 30-45days, 45-60 days, 60-
90days, 91-180days, above 180days

If the cheque is bounced then we go for legal action

We file a case

Penalty is max 10 times of the amount recoverable

NBFC for channel finance

Tata capital

Livfin

Hero Fincorp

Every company gives us a program size (FLDG: First loss damage Guarentee)how much company will
cover if they have loss(5%,7.5%/10%/12.5%)

They collect the financial data of the company

Terms: credit limit/ Finance limit will be fixed Db-wise basing on their financials/Operations/ period of
Operation/ Association with our company/ Their account statement with our company/ Bank
statements/ CIBIL

Max Tranche Limit- /credit limit and after 6 months they can enhance the limit

Min Tranche limit:

Bill under channel finance

Check limit availability

Overdue check

Bill

Upload bill visible to the Db and NBFC NBFC portal/ app

Db accepts bill

NBFC pays to company & create a loan on Db

Due on 90th days

Interest are charged monthly and if not paid they become overdue

Any overdue beyond 15days sent reminders

Company stops supply

Beyond 30/45 days legal actions

Recover from the FLDG given by company as deposits/ bank guarantees

ICD –inter corporate deposit/ Bank guarantee/ Lien on FD

Interest are paid to us only on ICD and in case of lien on FD we get interest paid on the FD by bank

International Credit:

LC Letter of Credit

TT Telegraphic Terms

Any international payment has to be collected within 180 days

We give credit for 90 days

All our credits are LC at sight

Documents

Commercial invoice

Packing list

Certificate of origin

shipping Bill

Bill of lading

Discharge of documents- bank send remittance to the company

Only then the shipments are released

Some companies also practice 90 days Open credit (they get credit insurance in such case in india we
have an credit insurance company-ECGC)

Scheme Management- to boast sales and depends on vol of sales

Primary, secondary, Tertiary

Primary- Two parts-

Upfront scheme-we give discount at the time of billing

Cash discount also at the time of billing

Backend scheme- Monthly target scheme-On meeting monthly target

Secondary- Distributors to Dealers

Tertiary- Dealers to customers

Credit note-

Basic price pe fir GST bhi lagta hai

Forecasting & Forecasting tools

Heirarchy

NSM-ZM-ASM

ASM submit forecast for each distributors

ASM discuss the order with their distributors and then plan their forecast
What is snop forecast and rolling plan

Tool we use is planvisage

Thoda working of planvisage portal

SNOP and Dc cycle

Indenting