company confidential – unauthorized use or distribution prohibited. © 2013 boart longyear. all...
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Company Confidential – Unauthorized use or distribution prohibited. © 2013 Boart Longyear. All rights reserved.
Do’s and don’ts Credit Management Africa during the Order to Cash cycle
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• My name is Eric Berendsen• In credit management for 25 years• Working in the African market since 5 years
Summary
• Short introduction to Boart Longyear• The do’s and don’ts for credit management during the
O2C cycle• Q&A
Do’s and don’ts Credit Management during the Order to Cash cycle
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Boart Longyear Ltd
Boart Longyear is a global mineral exploration company founded in 1888. It is headquartered in Salt Lake City, Utah, United States. Listed on the Australian stock exchange (ASX:BLY) Regional offices and operations are located in the Asia-Pacific region, North and South America, and EMEA. The company provides mineral exploration services and drilling products for the global mining industry and also has a presence in drilling water exploration, environmental sampling, energy, and oil sands exploration. As of September 2013, it employes more than 6,000 people.
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• Large natural resources• Political instability• Bad infrastructure• Poor financial
infrastructure• Growth opportunity
What is so special about Africa form a business perspective?
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The order to cash cycle
Deduction
Cash application
Collection
Invoicing
Distribution
Order fulfillment
Order entry
Customer
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Customer
• Who is your customer • Where to get additional (financial) information• Payment terms• T & C’s
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Order entry
• Get correct PO• Which T&C’s are applicable• Order release process
Order fulfillment
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Distribution
• INCO terms• Customs• Inspection requirements
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Invoicing
• Check what is required by law• Currency• Language • Required CFD’s• Getting in on time to the customer
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Collection
• Who is approving• Who is paying• Which bank to use• What currency• LC’s
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INCOTERMS
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Cash application
• Getting bank statement• Currency• Taxes• Deducted cost• One last thing…….
Deduction
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• Customer in Ghana is send an invoice of 118K (including 18% VAT)• Customer is exempted (doesn’t have to pay tax)• Customer deducts fuel invoice of 20K• Customer may deduct 2% for early payment• Payments we’ve received were
Example payment application
118.000USD18.000VAT
5.000WHT2.000Early payment discount
20.000Fuel invoice73.000To pay in USD36.500Payment received in USD80.000Payment received in GHS
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Takeaways and Q & A
• Go through your own O2C cycle to determine possible pitfalls
• Make sure you’re actively involved in the O2C cycle as early as possible
• Contact specialized organizations
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Eric Berendsen
Manager Credit & Collections EMEA
Boart Longyear
12 Avenue des Morgines
CH1213 Petit-Lancy, Geneva
Switzerland
Tel.: +41 22 709 08 84
Mobile: +41 79 176 48 98
Thank you!