GAP ANALYSIS PAPER

GUARANTEED MARKETING SERVICES, INC.:

Enhancing the Billings Process to Minimize the Impact of the
Enhanced Community Quarantine on Account Payables

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 ABSTRACT

The study focuses on the Billings Process for Key Accounts of third party merchandising services provider
Guaranteed Marketing Services, Inc. The research tackles this process in the light of before and during the Covid-
19 outbreak and Enhanced Community Quarantine implemented by the Philippine government on March 15, 2020.
The results of the study indicate that GMS’ the Billings Process has been comprised, increasing the accounts
receivable collection cycle from 45 days prior to ECQ to 71 days during ECQ.

The main reason for the lengthened collection cycle was the inability of GMS to immediately collect the time cards
and transportation and other miscellaneous expense reports from merchandisers. This slow collection of
documents was brought about by the intense inter-barangay checkpoints and issues with courier services provider.
The said issue was further aggravated by GMS’ Key Accounts stance on non-payment of billings without hard
copies when GMS proposed the submission of 100% soft copies/ scans/ photos of billing documents for the
processing of payment.

To address the identified process gaps, a new Billings Process has been proposed that utilizes the existing online
communication channels mostly used by merchandisers and coordinators (facebook messenger, viber, and email).
In this new process, advance submission of soft copies/ scans/ photos of billing documents will be provided to
GMS Accounting for faster encoding and to the Key Accounts (clients) for advance validation. All the hard
documents will still be submitted to the Key Accounts to be used in the processing and the releasing of payment.
Based on this proposed new process, the collection cycle is estimated to return at 45 days.

In the long run, GMS can automate further the processes. For instance, since merchandisers are required to have
smart phones, GMS can launch electronic timecards to be validated and signed over the smart phone screen by the
stores’ personnel. In this manner, the coordinators and GMS Accounting will have real time data that can be
immediately validated. The Key Accounts will also benefit from this automation as they can have a view of the
billings run rate prior to the submission of billing invoices. As such, if they see that overtime or transportation
expenses are going beyond budget, the Key Accounts can work with GMS on immediate corrective actions (i.e. no
overtime for a certain period unless with approval, etc.).

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 TABLE OF CONTENTS

Introduction……………………………………………………………………………………………………………………………………………… 7
Background of the Research Study…………………………………………………………………………………………………………… 9
Statement of the Objectives of the Research……………………………………………………………………………………………. 10
Scopes and Limitations…………………………………………………………………………………………………………………………….. 10
Presentation, Analysis, and Discussions of the Data…………………………………………………………………………………. 11
Conclusions………………………………………………………………………………………………………………………………………………. 15
Recommendations……………………………………………………………………………………………………………………………………. 16
References……………………………………………………………………………………………………………………………………………….. 18

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 LIST OF TABLES, FIGURES, AND APPENDICES

Tables
Table 1 Key Accounts……………………………………………………………………………………………………............................ 8
Table 2 Four Important Groups Implementing the Billings Process with Key Accounts…………………………….. 11
Table 3 Billings Process Before Covid-19 Outbreak and Enhanced Community Quarantine………………………. 12
Table 4 Impact of Gaps/ Issues During Covid-19 Outbreak and ECQ on Billings Process with Key Accounts. 14
Table 5 Proposed New Billings Process for Key Accounts during Covid-19 Breakout and ECQ…………………… 17

Figures
Figure 1 Organizational Structure…………………………………………………………………………………………………………… 8
Figure 2 Main and Satellite Offices…………………………………………………………………………………………………………. 9

Appendices
Appendix A Company Profile…………………………………………………………………………………………………………………… 19
Appendix B Alignment on Billings Process (Pre-Covid-19 and Pre-ECQ)……………………………………………………. 24
Appendix C Sample Billing Invoice…………………………………………………………………………………………………………… 26
Appendix D Sample Viber Chat Group…………………………………………………………………………………………………….. 27
Appendix E December 16-31 billings paid on April 8, 2020 only……………………………………………………………….. 29
Appendix F. Blue Jeans Alignment with GMS…………………………………………………………………………………………… 30

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 INTRODUCTION

Guaranteed Marketing Services, Inc. (GMS) is a 32-year old, financially-stable, and Filipino-owned company
engaged in merchandising, promotions and sales activities. It is presently offering in-store merchandising, in-store
promotions, in-store redemptions, in-store bundling and data generation services through its manpower. As a third
party marketing services provider, it also helps its clients manage special projects, such as trade events, product
launching, and merchandising blitz.

Mission, Vision, and Corporate Values

While a local merchandising agency, the company thinks globally, benchmarking with competitors as well as other
trends in the world. It does so in order to become more competitive and hence further enhance the services they
provide to its clients. In all its business dealings, the company is guided by the following principles:

GMS MISSION
We are driven to grow and sustain our business in partnership with our valued clients.
We are committed to service excellence and professionalism.
As a result, we continuously create jobs, provide fair and equitable employment opportunities.

GMS VISION
We are the preferred professional merchandising, sales and promotions solutions provider
trusted by consumer industry leaders.

GMS CORPORATE VALUES

• Integrity
• Professionalism
• Respect for Diversity

Customer Management

GMS caters to the both local and multinational firms in the Philippines. With its excellent service and high
standards of professionalism as guided by its mission, vision, and corporate values, the company is able to
maintain long lasting relationships with some of the biggest firms in the Philippines, as shown on the table below.

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 Table 1 Key Accounts
ACCOUNT COVERAGE HEADCOUNT MANPOWER DEPLOYED # OF YRS ENGAGED YEAR STARTED
Monde Nissin NKAs and LKAs AC Sup, ACs, Merchandisers,
1,684 27 years Jan 1992
Corporation (GMA, NCL, Bicol, Mindanao) BTL Activation Team
MT, Super 8 & UltaMega
7 years Aug 1999- 2006
(Total Phils) Account Coordinators,
Del Monte Phils., Inc. 1,142
Food Service CVS) Merchandisers
6 years Aug 2013
(GMA & Luzon)
MT (except Rob and RSCI)and GT July 2002 - GMA MT; 2004-
SC Johnson & Sons 536 ACs, Merchandisers,Bundlers 17 years
(Total Phils) Luzon, VisMin MT; 2015-TT
ACs, Merchandisers, Promo
United Laboratories MT and Drugstores 650 Reps, Pharmacy Assistants, 14 years May 2005
(Total Phils) Pharmacists
Cashiers, Category Refillers,
Waltermart SM GMA & Luzon 456 15 years Jan 2005
Promoters
TOTAL FIELD
4,468
PERSONNEL
TOTAL OFFICE
120
PERSONNEL
In order to fully support the needs of large customers, the company assigns a specific Operations/ Project Manager
TOTAL MANPOWER 4,588
to their Key Accounts or customers that bring majority of the revenues for the company.

Figure 1 Organizational Structure

As part of delivering exceptional services across the Philippines for its clients, GMS has satellite offices in select
provinces that govern the deployed manpower for the region and surrounding areas.

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 Figure 2 Main and Satellite Office

BACKGROUND OF THE RESEARCH STUDY

The coronavirus disease (COVID-19) is a highly infectious disease that has become a global pandemic in the world.
In the Philippines, the first case has officially been documented by the Department of Health on January 30, 2020;
while, the first case of local transmission recorded on March 7, 2020 (World Health Organization, 2020). From then
on, more on more cases have been recorded, forcing the government to impose an Enhanced Community
Quarantine (ECQ) from March 16 – April 30, 2020 and an extended ECQ from May 1 – May 15, 2020. As of to date,
the quarantines may still continue until the outbreak is confirmed contained (philstar.com, 2020).

As a result of the ECQ, many businesses have stopped with the exemption of utility companies, “critical services”
firms (gas, garbage collection, funeral services), basic necessities manufacturing and distribution companies (food,
pharmacies, banks), and the Philippine stock exchange (Baker Mckenzie, 2020). Transportation companies likewise
felt the brunt of the COVID-19 outbreak and the ECQ. It reportedly resulted in “cancellation of flights, drops in ship
calls, and reduction in cargo volume and passenger traffic for both sea and air” (Portcalls Asia, 2020).

Like many businesses, GMS has likewise been impacted by the Covid-19 outbreak and the ECQ. While its
merchandisers are able to continuously work at supermarkets, groceries, and drugstores being essential workers
and therefore bring in revenues, the company has been experiencing delays in the submission of its billings to
clients due to the strict implementation of inter-barangay quarantine and travel policies and the back logs of the
few courier services providers operating to date.

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As such, the firm has experienced delays in the collection of accounts receivables from clients. For instance, its
March 1 -15 billings for one of its Key Accounts is still unpaid as GMS was only able to submit the complete billings
and supporting documents on April 27, 2020. As part of the agreement with the said client, GMS can only receive
payment after the client’s verification and payment processing, which lasts 30 days upon receipt of billings and
supporting documents.

STATEMENT OF THE OBJECTIVES OF THE RESEARCH

The purpose of the study is to determine the issues/ gaps and impact of the Covid-19 outbreak and ECQ on the
implementation of GMS’ Billings Process with Key Accounts. To do so, the following questions shall be answered:

1) What is the current Billings Process of GMS prior to the Covid-19 outbreak and ECQ?

2) What are the issues/ gaps hindering its Billings Process as well as determine the impact to the expected
results from the process (timely collection of Accounts Receivables)?

SCOPES AND LIMITATIONS

The scope of the study will be limited to GMS’ Billings Process with Key Accounts. Accordingly, the collection cycle
across all its Key Accounts is 45 days, inclusive of: preparation and submission of billings and supporting
documents (15 days), client validation of billings and supporting documents (15 days), and client processing of
payment (15 days).

The research will focus only on the issues/ gaps that GMS encountered during the COVID-19 outbreak and ECQ. It
shall assume that, in implementing the process, GMS submits complete and accurate billings and supporting
documents. It also presupposes that that there will be no disputes on claims made by GMS to its Key Accounts.

The study further assumes that there will be no documents loss during transit to the Key Accounts for processing.
It likewise simulates a situation free of bank closures. It also assumes that the Key Accounts will have sufficient
cash flow to pay for GMS’ billings within 30 days upon receipt of billings and supporting documents from GMS.

More importantly, the research is limited by the amount of information shared by GMS. GMS only allows the
sharing of its company profile, its Billings Process with Key Accounts, and its issues faced during ECQ. However, the
company firmly maintains its position of non-sharing of financial and other confidential data.

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 PRESENTATION, ANALYSIS, AND DISCUSSIONS OF THE DATA

As aligned and confirmed by one of the Project Managers of GMS, there are four important groups of people that
implement the Billings Process with Key Accounts. These include three GMS personnel groups (Merchandisers,
Area Field Coordinators, and GMS Accounting) and the Key Accounts’ personnel. The table below shows the
description of each of these groups.

Table 2. Four Important Groups Implementing the Billings Process with Key Accounts
Process Implementor Description
Merchandisers > the manpower deployed by GMS to supermarkets, groceries, and other retail outlets to perform
the merchandising standards imposed by Key Accounts

> the revenue drivers of GMS as the services they rendered are billed to Key Accounts (along with
transportation and other miscellaneous expenses) with a mark up (service fee, which is % of total
merchandiser salaries and transportation and other miscellaneous expenses)

> the longer the merchandising services performed at their assigned outlets, the higher the service
fee that GMS can charge to the Key Accounts

Area Field Coordinators > the immediate supervisors of the merchandisers

> normally assigned a territory, wherein all merchandisers under the geography shall be managed
by the respective coordinators

> coach merchandisers to ensure 100% compliance with Key Accounts' merchandising standards

> validate the time cards and transportation and other miscellaneous expenses submitted by the
merchandisers

GMS Accounting > composed of accounting encoders, accounts payable clerks, and accounts payable manager

> validate the completeness and accuracy of submitted time cards and transportation and other
miscellaneous expense reports

> encode and summarize the merchandiser salaries and other payables to merchandisers for the
Billing Process period (15-day cut off)

> prepare and submit billing invoices and supporting documents to Key Accounts

Key Accounts > comprise billings clerk, accounts payable manager, and the bank

> validate and process billings and supporting documents submited by GMS

> release the payment to GMS based on submitted billings and supporting documents

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As with the actual Billings Process with Key Accounts prior to the Covid-19 outbreak and ECQ, the table below
illustrates the sequence of activities, timelines, and process days used. Accordingly, the total process equate to a
45-day collection cycle per billing/s to Key Accounts. Further, the process divides activities into: (1) preparation
and submission of billings and supporting documents (Steps 1 – 13, equivalent to 15 process days), client validation
of billings and supporting documents (Steps 14 – 15, equivalent to 15 process days), and client processing of
payment (Steps 16 – 17, equivalent to 15 process days).

Table 3. Billings Process Before Covid-19 Outbreak and Enhanced Community Quarantine
Step # Responsibility Action Item Timeline Process Days
1 Merchandisers Obtains the time card from assigned stores/ outlets based on cut off (16th of Day 1-3 3 days
month for day 1-15; 1st day of next month for day 16-last day)
2 Merchandisers Prepares time card as well as report on transportation and other miscellaneous Day 1-3
expenses (i.e. photocopy/ printing of inventory forms, etc.)
3 Merchandisers Submits to AFC his/her time card and report on transportaion and other Day 1-3
miscellaneous expenses in person or via courier (if long distance)
4 Area Field Coordinators Receives the time cards and reports on transportation and other miscellaneous Day 4-6 3 days
expenses from the merchandisers under his/ her supervision
5 Area Field Coordinators Validates completeness and accuracy of merchandisers' documents Day 4-6
6 Area Field Coordinators Submits to GMS Accounting all the validated merchandisers' documents through Day 4-6
courier (if handcarry is not possible)
7 Area Field Coordinators Informs GMS Accounting on submission of documents Day 4-6
8 GMS Accounting Acknowledges receipt of documents to AFCs once received Day 7-14 8 days
9 GMS Accounting Encodes data per merchandiser into the spreadsheet template Day 7-14
10 GMS Accounting Prepares billing invoices per client cost center (based on agreement with client) Day 7-14
and billing summary
11 GMS Accounting Submits physical copy of billing summary, billing invoices, and all attachments to Day 15 1 day
client via messenger or courier
12 GMS Accounting Informs client on the submission of billing documents Day 15
13 Client Acknowledges receipt of documents to GMS Accounting once received Day 15
14 Client Validates completeness and accuracy of billing documents Day 16-30 15 days
15.1-a Client If with questions on billing documents, sets aside the disputed billing documents Day 16-30
and aligns with GMS Accounting for reconciliation
15.1-b GMS Accounting Provides client with more information until resolution has been agreed (i.e. Day 16-30
what will be paid, what will not be paid)
15.1-c Client Processes all undisputed and reconciled for payment claims Day 16-30
15.2 Client If no questions on billing documents, processes billing documents Day 16-30
16 Client Releases payment based on processed billing documents Day 45 15 days
17 GMS Accounting Issues official receipt to client Day 45
45 days

Issues/ Gaps Encountered

The ECQ has impacted the operations of GMS significantly. Because of the enhanced inter-barangay quarantine
and travel policies, coordinators are unable to collect within timeline the time cards and transportation and other
miscellaneous expense reports from merchandisers. As an example, one coordinator, whose permanent residence
is in General Mariano Alvarez, Cavite, was unable to pass the Binan, Laguna checkpoint. Hence, the coordinator

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was unable to get the documents from his merchandisers deployed at retail outlets in Binan and San Pedro,
Laguna.

Given the lockdowns, GMS then resorted to allowing its merchandisers to submit documents via courier services.
Unfortunately, there were only a limited number of courier services providers operating at the time. Likewise,
there were also some areas that these courier services providers cannot penetrate due to the intense
implementation of inter-barangay checkpoints. Compounding further the issue was the back logs experienced by
the courier services providers given the surge of deliveries they have to make.

The table on page 13 compares the process days needed to implement the Billings Process prior to the ECQ and
during the ECQ. In general, from a cycle of 45 days, the length of completion of the process has now gone up by an
additional 26 days. Upon analysis, the main cause of the increase in process days were the delays in the submission
of the physical documents by: (1) the merchandisers, who need to submit the documents to their assigned
coordinators; (2) the coordinators, who need to submit the documents to GMS Accounting; and (3) GMS
Accounting, which needs to submit the billings and the supporting documents to the client (Key Accounts).

Impact of the Delays on the Business

Based on discussion with a GMS Project Manager, the concern is not related to the timely release of salaries and
other payables to the merchandisers, coordinators, and other staff are unaffected. This potential problem is
covered by GMS’ sufficient cash flow, which reportedly can cover at maximum six months delay in collection of
accounts receivables (equivalent to 12 billings).

However, the biggest issue now was the delay in the collection of accounts receivables by an average of 26 days
(average for all Key Accounts). Instead of earning interest from the accounts receivable collections deposited on
the bank, the cash now is with the Key Accounts. Apart from this, another concern was the increase in cash
outflows to support the courier services availed by the merchandisers and the coordinators just to submit the
billing documents to GMS Accounting. The project manager was unable to share on the bank interest rates, the
total amount of billings with its Key Accounts, and the total cost of courier services it availed of due to
confidentiality reasons.

Nevertheless, the total costs of courier services availed by merchandisers can be computed for. Looking at the
shared data on Key Accounts, there are a total of 4,468 merchandisers and other manpower deployed nationwide.
Assuming Php 92 per merchandiser Lalamove (2020) motorcycle delivery rate (Php60 base + Php32 km rate, where
at 8 km), total additional estimated cost being incurred by GMS is about Php411,056.

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 Table 4. Impact of Gaps/ Issues During Covid-19 Outbreak and ECQ on the Billings Process with Key Accounts
Step # Responsibility Action Item Timeline Process Days Issue/ Gap New Process Days Delays
1 Merchandisers Obtains the time card from assigned stores/ outlets based on Day 1-3 3 days Ave 8 days 5 days
cut off (16th of month for day 1-15; 1st day of next month for
day 16-last day)
2 Merchandisers Prepares time card as well as report on transportation and Day 1-3
other miscellaneous expenses (i.e. photocopy/ printing of
inventory forms, etc.)
3 Merchandisers Submits to AFC his/her time card and report on transportaion Day 1-3 Coordinator cannot go
and other miscellaneous expenses in person or via courier (if to some merchandisers
long distance) due to ECQ (inter-
barangay); courier
services as second
option is delayed
4 Area Field Coordinators Receives the time cards and reports on transportation and Day 4-6 3 days Ave 8 days 5 days
other miscellaneous expenses from the merchandisers under
his/ her supervision
5 Area Field Coordinators Validates completeness and accuracy of merchandisers' Day 4-6
documents
6 Area Field Coordinators Submits to GMS Accounting all the validated merchandisers' Day 4-6 Hand carry not possible
documents through courier (if handcarry is not possible) due to lockdown in
Pasig; courier services
delayed
7 Area Field Coordinators Informs GMS Accounting on submission of documents Day 4-6
8 GMS Accounting Acknowledges receipt of documents to AFCs once received Day 7-14 8 days Only 3 out of 7 Ave 22 days 14 days
9 GMS Accounting Encodes data per merchandiser into the spreadsheet template Day 7-14 encoders able to go to
10 GMS Accounting Prepares billing invoices per client cost center (based on Day 7-14 work
agreement with client) and billing summary
11 GMS Accounting Submits physical copy of billing summary, billing invoices, and Day 15 1 day Courier services delayed Ave 3 days 2 days
all attachments to client via messenger or courier
12 GMS Accounting Informs client on the submission of billing documents Day 15
13 Client Acknowledges receipt of documents to GMS Accounting once Day 15
received
14 Client Validates completeness and accuracy of billing documents Day 16-30 15 days 15 days
15.1-a Client If with questions on billing documents, sets aside the disputed Day 16-30
billing documents and aligns with GMS Accounting for
reconciliation
15.1-b GMS Accounting Provides client with more information until resolution has been Day 16-30
agreed (i.e. what will be paid, what will not be paid)
15.1-c Client Processes all undisputed and reconciled for payment claims Day 16-30
15.2 Client If no questions on billing documents, processes billing Day 16-30
documents
16 Client Releases payment based on processed billing documents Day 45 15 days 15 days
17 GMS Accounting Issues official receipt to client Day 45
45 days 71 days 26 days

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GMS’ Negotiation on Submission of Scanned/ Soft Copy of Documents

The merchandising agency initially proposed with its Key Accounts the submission of 100% scanned, photos, or
soft copies of billing documents (no more submission of hard copies). Unfortunately, the negotiation faltered since
the Key Accounts reminded GMS on the Bureau of Internal Revenue’s Revenue Regulations No. 5-2014, which
states that “[a]ll taxpayers are required to preserve their books of accounts, including subsidiary books and other
accounting records, for a period of ten (10) years reckoned from the day following the deadline in filing a return, or
if filed after the deadline, from the date of the filing of the return, for the taxable year when the last entry was
made in the books of accounts” (bdplaw.com, 2014).

The need to retain the hard copies was even used by Key Accounts to, accordingly, hold on to their cash. The
interviewed Project Manager shared that the Key Accounts stated that they will not release any payment unless
without hard copies. Given this, the Key Accounts were reportedly able to delay cash outflows (payments to GMS)
by an average of 26 days. Consequently, GMS’ collections cycle also increased by 26 days.

CONCLUSIONS

The results of the study revealed that the current Billings Process of GMS prior to the Covid-19 outbreak and ECQ
involve a 17-step process being implemented by GMS merchandisers, GMS coordinators, GMS Accounting, and Key
Accounts (client). Accordingly, the total days needed to complete the process is 45 days. The first 15 days
comprise: (1) the collection of time cards and transportation and other miscellaneous expense reports from
merchandisers as well as the (2) preparation of billing invoices and supporting documents and the submission of
these documents to Key Accounts. The next 15 days involve the validation of the billing documents and the
endorsement for payment by the Key Accounts. Meanwhile, the last 15 days involve the processing and releasing
of payment by the Key Accounts and the issuance of the official receipt by GMS.

Given the Covid-19 outbreak and ECQ, the collection of merchandiser documents became an issue due to the
intense inter-barangay checkpoints disallowing coordinators to collect the documents from their merchandisers.
To remedy the situation, GMS employed the use of courier delivery services, estimated at about Php 411,056 per
billing cut off. However, given the inter-barangay checkpoints, limited number of courier services providers
operating at the time, and the backlogs on deliveries due to the surge of delivery requests, there were still delays
in the collection of documents. As an additional solution, GMS also negotiated the submission of scan/ soft copies
of billing documents, which were rejected by the Key Accounts. The Key Accounts used the BIR RR 5-2014 order on
retention of hard copies to even push for non-issuance of payment without hard copies. As such, with all these
issues/ gaps, GMS’ accounts receivable collection cycle increased from 45 days to 71 days.

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 RECOMMENDATIONS

In order to address the issues/ gaps identified for GMS’ Billings Process for Key Accounts, a short-term and a long-
term solution are proposed. All these recommendations involve the use of technology, such as the existing online
communication channels used by GMS personnel (facebook messenger, viber, and emails) and even automated
systems.

Online Communication Channels

The use of facebook messenger, viber, and emails was validated with one of GMS’ project managers. When asked
how merchandisers can use facebook messenger, viber, and emails, the interviewed personnel mentioned that
among the hiring criteria for merchandisers and coordinators are (1) the ownership of personal smart phones (that
can take photos) and (2) internet connection (be it on the smart phone or at home). The project manager shared
that they frequently ask merchandisers and coordinators to take photos of their work done as part of the
attendance checking as well as when clients ask for photos of products displayed on shelves at the retail outlets.

When asked which of the communication channels was most used by merchandisers, the project manager stated
that facebook messenger was widely popular since mobile data now is cheap. The interviewed personnel stated
that most merchandisers use the allowed communication allowance granted by clients (Key Accounts) to avail of
the mobile data promos by their telecommunications providers. Instead of just calls and texts, the merchandisers
can reportedly send photos as well at the same or cheaper cost than regular mobile communications load.

Proposed Short-Term Solution

While the Key Accounts rejected the initial proposal of GMS on the submission of 100% scans or photos of billing
documents, GMS can propose a hybrid model of submitting soft copies and hard copies of billing documents to Key
Accounts. The merchandisers can submit in advance to their coordinators then to GMS Accounting the photos of
their time cards and transportation and other miscellaneous expense reports. Meanwhile, the merchandisers will
still avail of courier services to submit the hard copies of the documents now directly to GMS Accounting.

GMS Accounting, upon advance receipt of the soft copies of documents, shall then begin encoding and preparing
the billing invoices. Whatever they will finish for the day, GMS Accounting will email to Key Accounts (clients) for
advance validation and endorsement of processing of payment. Meanwhile, the hard copies will still be submitted
to the Key Accounts as part of compliance with BIR RR 5-2014. While the validation was advanced, Key Accounts
will still release the payment on the Day 45 as part of the contract with GMS.

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In effect, with this proposed new process, GMS can collect with 45 days their payment based on the collection
terms in the contract with the Key Accounts. The table below shows the steps in the new process.

Table 5. Proposed New Billings Process for Key Accounts during Covid-19 Breakout and ECQ
Step # Responsibility
1 Merchandisers
2 Merchandisers
3 Merchandisers
During ECQ
Old Action Items Timeline Process Days
Obtains the time card from assigned stores/ outlets based on Day 1 1 day
cut off (16th of month for day 1-15; 1st day of next month for
day 16-last day)
Prepares time card as well as report on transportation and Day 1
other miscellaneous expenses (i.e. photocopy/ printing of
inventory forms, etc.)
Submits to AFC his/her photos of time card and report on Day 1
transportation and other miscellaneous expenses via facebook
messenger, viber, or email

4 Merchandisers Submits to GMS Accounting his/her time card and report on Day 1
transportaion and other miscellaneous expenses in person or
via courier (if long distance)

4 Area Field Coordinators Receives the time cards and reports on transportation and Day 2-4 3 days
other miscellaneous expenses from the merchandisers under
his/ her supervision via facebook messenger, viber, or email
5 Area Field Coordinators Validates completeness and accuracy of merchandisers' Day 2-4
documents
6 Area Field Coordinators Submits to GMS Accounting all the validated merchandisers' Day 2-4
documents via facebook messenger, viber, or email
7 Area Field Coordinators Informs GMS Accounting on submission of documents Day 2-4
8 GMS Accounting Acknowledges receipt of documents to AFCs once received Day 5-30 22 days
9 GMS Accounting Encodes data per merchandiser into the spreadsheet template Day 5-30 (given only 3
10 GMS Accounting Prepares soft copies of billing invoices per client cost center Day 5-30 out of 7 GMS
(based on agreement with client) and billing summary Accounting
11 GMS Accounting Submits soft copies of billing documents to client via email Day 5-30 staff can go
12 Client Acknowledges receipt of emailed billing documents to GMS Day 5-30 to work)
Accounting once received
14 Client Validates completeness and accuracy of billing documents Day 5-30 GMS
15.1-a Client If with questions on billing documents, sets aside the disputed Day 5-30 Accounting
billing documents and aligns with GMS Accounting for to email
reconciliation Client the
15.1-b GMS Accounting Provides client with more information until resolution has been Day 5-30 billing
agreed (i.e. what will be paid, what will not be paid) invoices
15.1-c Client Processes all undisputed and reconciled for payment claims Day 5-30 completed
15.2 Client If no questions on billing documents, processes billing Day 5-30 for the day
documents for
13 GMS Accounting Receives the hard copies of time cards and reports on Day 5-30 simultaneous
transportation and other miscellaneous expenses from the validation
merchandisers from the merchandisers via courier
14 GMS Accounting Submits physical copy of billing summary, billing invoices, and Day 5-30
all attachments to client via messenger or courier to client
13 Client Acknowledges receipt of hard copy documents to GMS Day 5-30
Accounting once received via courier
16 Client Releases payment based on processed billing documents Day 45 15 days
17 GMS Accounting Issues official receipt to client Day 45
45 days

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Proposed Long-Term Solution

In the long run, GMS can automate further the processes. For instance, since merchandisers are required to have
smart phones, GMS can launch electronic timecards to be validated and signed over the smart phone screen by the
stores’ personnel. In this manner, the coordinators and GMS Accounting will have real time data that can be
immediately validated.

The Key Accounts will also benefit from this automation as they can have a view of the billings run rate prior to the
submission of billing invoices. As such, if they see that overtime or transportation expenses are going beyond
budget, the Key Accounts can work with GMS on immediate corrective actions (i.e. no overtime for a certain
period unless with approval, etc.).

REFERENCES

Baker Mackenzie (2020). Philippines: Enhanced community quarantine. Retrieved May 6, 2020 from
https://www.bakermckenzie.com/en/insight/publications/2020/03/enhanced-community-quarantine-ph-covid19

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