Order to Cash

Invoicing for Liner

CENFINBPOLT Slide no. 1 15 April 2017

Objectives

At the end of this course, you will be able to;

Overview of FACT process

Describe Invoicing Principles
Explain Invoicing Pre-Conditions
Create Billing Document

CENFINBPOLT Slide no. 2 15 April 2017

Agenda

Introduction

Overview of FACT process

> Process Map
> Invoicing process box

Describe Invoicing Principles

> Concept of invoicing
> Grouping
> Collective Billing invoice
> Other information related to invoicing principle

Explain Invoicing Pre-Conditions

> Billing Date
> Rate of Exchange
> Due Date calculation

Create Billing Document

> Create

CENFINBPOLT Slide no. 3 15 April 2017

 FACT Process Over View

CENFINBPOLT Slide no. 4 15 April 2017

 Introduction OTC Liner

Manual
Sales Order
OTC

or

GCCS Create Create and

Sales Order issue Billing
Z006
Document

or

CXED
Z007

Customer
Open Collection Write-Off
Items
AR

Refund
Payment
Application

Clearing
GL

Accounting
Documents

Dunning Receipt
Invoice
Account
Statements

CENFINBPOLT Slide no. 5 15 April 2017

Introduction Invoicing for Liner

Create Billing Issue Billing Cancel Billing

Sales Order
Document Document Document

Print

Fax
Invoice
EDI

Email

CENFINBPOLT Slide no. 6 15 April 2017

 Invoicing Principles

CENFINBPOLT Slide no. 7 15 April 2017

Introduction Invoicing Principle

1 Sales Order
GCSS Create Transport
Billing
Shipment Sales Order Document Document =
1 Invoice

GCSS Create
Shipment Sales Order Multiple Sales
Transport Billing
Document
Orders
Document
GCSS Create =
Shipment Sales Order
1 Invoice

Transport Billing
Document Document 1 Sales Order
GCSS Create =
Shipment Sales Order
Transport Billing
Document Document multiple
Invoices

CENFINBPOLT Slide no. 8 15 April 2017

Introduction Invoicing Principle Grouping and Collective Billing Invoice

Grouping Collective Billing Invoice

Cover
+ CBI
Letter

CENFINBPOLT Slide no. 9 15 April 2017

 Grouping

CENFINBPOLT Slide no. 10 15 April 2017

Introduction Grouping

CENFINBPOLT Slide no. 11 15 April 2017

Introduction Grouping Six Different Options

Time based Grouping Vessel/ Voyage based Grouping

GCSS and CXED GCSS and CXED

(2 separate groupings will be created) (2 separate groupings will be created)

Only GCSS Only GCSS

Only CXED Only CXED

CENFINBPOLT Slide no. 12 15 April 2017

Introduction Grouping Principles

Available for GCSS and CXED Sales Orders

Setup: Payers customer master data

Customer Calendar

Transaction medium

Suppress group number on cover letter

Cover letter:
Optional
Currencies: mixed but separate subtotals
Free text field

Contacts:
Y1 (GCSS) and Y2 (CXED) contact persons available

Grouping is NOT a billing document, every SO creates BD separately

Cover letter is not AR document, so its reference is not reflected in FBL5N

CENFINBPOLT Slide no. 13 15 April 2017

Introduction Grouping Cover Letter Layout Example

CENFINBPOLT Slide no. 14 15 April 2017

 Collective Billing Invoice

CENFINBPOLT Slide no. 15 15 April 2017

Introduction Collective Billing Invoice (CBI)

CENFINBPOLT Slide no. 16 15 April 2017

Introduction Collective Billing Invoice (CBI) Six Different Options

Time based CBI Vessel/ Voyage based CBI

GCSS and CXED GCSS and CXED

(2 separate CBI will be created) (2 separate CBI will be created)

Only GCSS Only GCSS

Only CXED Only CXED

CENFINBPOLT Slide no. 17 15 April 2017

Introduction - Collective Billing Invoice (CBI) Principle

Available for GCSS and CXED Sales Orders

Setup: Payers customer master data

Customer Calendar

EDI

Payment due date

RoE for CBI

RoE for FI (accounting document)

CENFINBPOLT Slide no. 18 15 April 2017

Introduction Collective Billing Invoice (CBI) Layout Example

TpDoc based charges

are shown separately

CENFINBPOLT Slide no. 19 15 April 2017

 Other Information Invoicing Principle

CENFINBPOLT Slide no. 20 15 April 2017

Introduction Billing Calendar

May June July

> This billing schedule will automatically propose the billing date
(e.g., 1st day of each month) for SOs of same customer, which
makes the billing date universal. 1 1 1
. . .
15 15 15
> Billing schedule does not automatically create billing documents.
. . .
. .. ..
31 30 31

Document Due for

Sales Order 1
billing
Customer: A
Sales Order 1
Sales Order 1 1st May
12th April Sales Order 2 Invoice 1
Billing Date:
Sales Order 2 1st May
13th April Sales Order 2 1st May
Sales Order 3
Sales Order 3
17th April Sales Order 3 1st May Customer: A

Sales Order 4 Billing Date:

Sales Order 4 1st June Sales Order 4 Invoice 2
20th May 1st Jun

CENFINBPOLT Slide no. 21 15 April 2017

Introduction Preferred Currency and one example

All customers will be set up with a preferred currency

Preferred currency indicates in which currency the customer will receive the invoice

All charges will be converted into the preferred currency

One exception exists which is an option for the customer to choose split of billing

Customer X set-up: preferred currency is USD

Result: One invoice in USD will be issued for this customer.

CENFINBPOLT Slide no. 22 15 April 2017

Introduction Split of Billing and one example

Country decision
The country defines which currencies should available for billing, also due to the reason that for each currency,
the re is a need to have a bank account available to receive the customers payment.

Customer decision
Customer can decide to be invoiced always on the preferred currency or use the Split of Billing currencies
offered.

CENFINBPOLT Slide no. 23 15 April 2017

 Invoicing Pre-Conditions

CENFINBPOLT Slide no. 24 15 April 2017

Invoicing Preconditions

Sales Order exists

Billing block removed (line items released for billing)
Order/relevant lines are due for billing
Billing document is a FACT document, and the invoice is the output of
that billing document.

CENFINBPOLT Slide no. 25 15 April 2017

Due for Billing Date

Prepaid Billing Date

> Billing date is the creation date OR the latest change date of the sales order

Collect Billing Date

ETA: Estimated Time of Arrival 5 days OR the latest change date of the sales order

CENFINBPOLT Slide no. 26 15 April 2017

Billing Process Overview

CENFINBPOLT Slide no. 27 15 April 2017

Rate of Exchange

GCSS sales orders

> RoE defined as ETD/ETA -7 days (the FACT RoE is shifted
by 1 day eg. ETD/ETA -6 days)
CBI
> RoE defined as billing document creation date
CXED sales orders
> RoE defined as Sales Order creation date
Manual sales orders
> RoE defined as billing document creation date

Primary source:
Danish National Bank and Reuters
> Exception tables: manually maintained by GSC daily
Legal requirement: Gap should be raised

CENFINBPOLT Slide no. 28 15 April 2017

Rate of Exchange

Primary source: 1) Danske Bank 2) Reuters

Reference currency: USD.

Any other ROE is calculated crossing the USD rate.

E.g. EUR USD

EUR GBP =
GBP USD

Legal requirement: new tables were created to cater for them.

Exception tables: manually maintained by GSC daily

CENFINBPOLT Slide no. 29 15 April 2017

 Payment Due Date Calculation

Baseline Date
= Billing Creation
Date

Payment Terms
= Credit Days if any

=
Latest Date
Payment Due Date
for Payment

Baseline Date
+ Payment Terms
= Payment Due Date

E.G.
1 Sept 7 Days Credit 8 Sept

CENFINBPOLT Slide no. 30 15 April 2017

 Payment Due Date Calculation

Prior to First or Last CY

Payment Due Date

First CY : Last CY :
Prepaid Collect
Charges Charges

ETA
ETD + Payment Terms
+ G
Base Line Date C

After First or Last CY

S
S
C
B
Billing Document
Creation Date + Payment Terms
= Payment Due Date

Base Line Date

CENFINBPOLT Slide no. 31 15 April 2017

 Create Billing Document

CENFINBPOLT Slide no. 32 15 April 2017

Introduction Invoicing end to end

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Print
Fax
Invoice ED I
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CENFINBPOLT Slide no. 33 15 April 2017
Introduction Invoicing Meta Process

Invoicing

INTERFACE SO
CREATED

CREATE AND
PROCESS
BILLING
DOCUMENT

ISSUE BILLING
DOCUMENT

CANCEL
BILLING
DOCUMENT

CENFINBPOLT Slide no. 34 15 April 2017

Create Billing Document

SO Ready List

Parameters Billing
Chosen Documents

CENFINBPOLT Slide no. 37 15 April 2017

Create Billing Document

CREATE BILLING DOCUMENT

INTERFACE SO
CREATED
RETRIEVE THE SELECT THE
SALES ORDER RELEVANT DOC

CREATE AND
PROCESS
BILLING
DOCUMENT UPDATE THE
HEADER SAVE THE
DETAILS DOCUMENT

ISSUE BILLING
DOCUMENT
EXECUTE THE BILLING
TASK DOCUMENT
CREATED

CANCEL
BILLING
DOCUMENT
LIST
GENERATED

CENFINBPOLT Slide no. 38 15 April 2017

 Thanks

CENFINBPOLT Slide no. 39 15 April 2017