1. Detailed description

1.2 Description

a) Introduction

When the invoice due date is overdue since more than 30days, the Cash Collection process becomes a manual process.

Each Cash Collector is responsible to follow customers of his/her portfolio. However, it’s the responsibility of each Regional Back Office Manager in collaboration with the Regional Credit Manager to decide who is the appropriate contact in the Cash Collection team to ensure the global follow up at GBU level and take the lead on some customers if necessary: 

=> the Cash Collection Team Leader or the Cash Collector GBU Coordinator.

Then, the process is managed in collaboration between the Cash Collection contact, the Credit Manager, GBU and Legal Department if relevant.

b) Activities

Identification and follow up of items older than 30days must be done per GBU at least on a quarterly basis.

If necessary, it can be done on a monthly basis according to the criticality / amount / maturity of the overdues.

It’s the Cash Collection contact responsibility to follow up overdues and so organize meetings with the Credit Manager of the GBU.

Before each meeting, Cash Collection contact must :

• Extract, through BW Analysis Query Aging Balance, data per GBU and per Collection specialist for invoices overdue for  more than 30days.
• Get further feedback from the Cash Collector in charge of the customer to understand why she/he is unable to progress further and collect history of exchanges with customer and feedback.

During each meeting, people involved should discuss and define for each customer appropriate actions and if a specific litigation process must be launched.

At this stage, and depending on the amount / criticality of the issue, the Credit Manager can decide to:

• Request intervention from business at higher level to negotiate an agreement
• Contact customer directly to negotiate an agreement
• Send to external recovery agency
• Initiate a Litigation procedure
• Send directly to GBU Legal department

c) Recommended actions regarding litigation process

Recommended actions if Cash Collection contact and Credit Manager have both decided to launch a specific litigation process:

1st step: a manual notice signed and sent by the Credit Manager. At this stage, litigation process is initiated.

2nd step: a manual notice signed and sent by both the Credit Manager and GBU the Legal Department. Sales Manager and Finance Manager of the GBU are also informed by the Credit Manager.

3rd step: Credit Manager in collaboration with GBU Sales Manager and Finance Manager decide to either move to a legal action or to transfer the case to a contractor or to cancel internally the debt.

If it is decided to initiate a legal action, this will be done by the GBU Legal Department.

Remark :

At any time, it can be decided to cancel step 1. However step 2 remains mandatory.

At any time of the process, it can be decided to transfer the case to an external provider.

Possible final outputs with the external provider:

• The provider recovers the total amount. Payment is cleared in customer account.
• The provider does not succeed. It  can issue a non-recovery certificate stating that overdue is uncollectible in order for the Accounting Department to be able to write off the debt. (cf. procedure Bad Debts)
• The provider recovers partially the total amount. Partial payment is cleared in customer account and the provider issue a certificate of non-recovery for the remaining amount.

Possible final outputs if the litigation is managed internally :

• The total amount is recovered. Payment is cleared in customer account.
• GBU accept to cancel the debt and issues a Credit note to clear the total amount.
• The debt is considered as uncollectible and GBU decides to write off the amount. (cf. procedure Bad Debts)
• The total amount is partially recovered. Partial payment is cleared in customer account and the provider issue a certificate of non-recovery for the remaining amount.

1.2.  Manage the external providers

It’s the responsibility of each region depending on  the local specificities to choose who is the appropriate internal contact to find and manage contracts between Solvay and the external providers: Credit Management or Cash Collection.

Once it has been decided by the region, it’s the Solvay internal contact responsibility to monitor and ensure the follow up of the case managed by the external providers.

2. Tools

BW Analysis :

Query: BW_WISE_Aging Balance (Core query) BW Credit Management Aged Balance

Technical name: BW_QRY_MVFIRA_0006

3. Archiving

As of today, no rules neither tools are officially defined within SBS to archive all documents. As a result, it’s up to each zone to define where documents should be archived until SBS clarify rules. (Teamsites / Google drive, etc…)

Which kind of documents should be posted :

• All copy of legal, manual and final notices correspondence paper or electronic.
• Copies of invoices constituting the litigation
• History of the claim: commercial litigation, emails