CCT - Collections - Operational Procedure Specificities LAM (SBS Curitiba)

Table of contents 

• Objective and Scope 

  1.1 Objective of this Procedure

  This document aims to provide information and direction for collectors who deal with LAM customers. It will show the specificities LAM Customers have.

  1.2 Scope 

  This procedure applies to all collector agents and coordinators who handle customer's requests. It also will provide best practices as guidance.
  
  

  2. Countries:

   

  LATIN and CENTRAL Americas. Mexico belongs to scope NAM, although it is considered LAM for Aroma and Novecare Business.

  

  3. Specificities:

   

  Because some customers in Brazil make payments on centralized dates, we have a spreadsheet to control them so that they charge according to specific conditions.

  For the client to be in this spreadsheet, it is necessary to obtain the information formalized by the client and obtain the approvals from the Sales and Credit Management team.

  Link: Information Sheet Centralized Clients

  The team of LAM collections works with the front of 12 businesses of the company (GBU's), once each business it has its specificities and as well as, some customers have specific treatments, this information is in the PCM tool, as well as in the specifics spreadsheet we have.

  Link: GBU's Specifics Information Sheet

  
  4. GBU Distribution:

  Every GBU has a responsible Collector. There are Coordinators, which usually take care of specific GBU´s, according to their knowledge and maturity within the Collections processes. The distribution is available at  Miro: Link: Miro Collections VM  

  
  5. Activities Monthly Closure

   

  Every month, one person from the Collections team is responsible for performing a few specific tasks to fulfill the Collection closure requirements.

  

  This table is available here (Link to this table).

  There, it is possible to find about the following activities:

  • IECRA are the payments that are needed to allocate. The invoices are automatically assigned, but not all payments; that’s why it is necessary to run a Macro and distribute it manually. Please find the procedure here: IE CRA Reclassification procedure .

  • Centralized payments - till day 10 of each month - for the payments centralized, it is necessary to change the due date.

  • Credit Review (credit notes, anticipation, detail missing) - D-3/D+1 - Revision of credit from those topics from D-3 to D+1.

  • End of month revenue - Gather all the information about end of month revenue to present it.

  • Due date change - Weekend of D15.

  6. Reports

  6.1 Risk

  The report is sent monthly to those responsible for GBU to share eventual issues that we need help from revenue that might be a risk of not receiving.

  It is necessary to send it ten days before the last working day of the month;

  Customer is considered as a risk when:

  • The payment history is not good;

  • If the value without payment confirmation is a representative amount for the portfolio;

  • The information received in the month related to the invoice status is a tendency not to be paid.

  
  Risk Report link:

  Cash Overdue Forecast - Risk Report

  6.2 Diagnosis

         

  Monthly report, explaining the justification of customers who were overdue in the previous month, to act directly with the Business team to prevent recurrence of unpaid for the same cause and alerts to the “bad payers.”

  Justification of values by calculating Pareto, per GBU

  Sent by the 7th of each month

  Diagnosis Report link:

  Cash Collections Dashboard - Diagnosis
  
  

  7. Internal Market

   

  7.1 Who are they?

  Customer from Brazil, buying from companies in Brazil

  • WP1 System

  • 7523 (Rhodia Polyamide)

  • 7580 (Rhodia Brasil)

  • 6343 (Tech Polymers)

   

  Chile customers buying from Cytec Chile

  • WP1 System

  • 7725 (Cytec Chile)

  • 7722 (Cytec Peru)

   

  7.2 Payment methods:

  Boleto (SAP Code 03): Payment received in the Solvay account on the same day received and automatically cleared in the system.

  Bank Transfer (Code 9 SAP): Payments via transfer we received in D + 0, that is, the customer makes the payment on the due date, and the write-off in the system is made the following day, upon identification of the AR team in the statements.

  Check: A check is an exclusive form of payment for customers who pay to Chile.
  
  

  8. LER project

  LER project is related to the change of legal entities from RHODIA POLIAMIDAS ESPECIALIDADES to RHODIA BRASIL SA

  Previous legal entity:

  
  
  New legal entity:

  
  
  Please check the document: LER Brasil - Informações úteis (in Portuguese)
  LER Brazil - Useful information (in English)

  Documents:
  Domicilio Bancario Itau
  Ata Incorporação
  
  

  9. CNPJ

   

  Head office CNPJ: 57.507.626 / 0001-06

  Root CNPJ

  57,507,626….

  Final depends on location:

  57.507.626 / 0004-59

  57.507.626 / 0130-03

  57.507.626 / 0002-97

  57.507.626 / 0017-73

  57.507.626 / 0098-39

  57.507.626 / 0014-20

  57.507.626 / 0015-01

  57.507.626 / 0018-54

  (The complete table is HERE )

   

  Sample:

  1st step - Find the company inside SAP 

  

  2nd step:

  At “Bus.place/sectn” find the Company you are looking for, in this case, will be Rhodia Brasil SA-0004 - Bus. Place number 0041.

  

  
  
  

  10. External Market

  
  10.1 COMEX
  
  

  Outside customer buying from Brazilian companies

  
  10.1.2 Grouping (COMEX)

  Company Code

             7523 (Rhodia Brasil)

  Who are they?

  Customers from Latin America, North America, Europe, and Asia, buying from companies in Brazil.

  • Grouping Deadline - on average 15 days (for land / Sea)

  • Who is responsible for the grouping? - Third-party contractor (Servimex, BDP)

   

  Who makes the payment application?

  Comex Sector

  Contact: solvay.ar@solvay.com

  Leave a copy: alexandre.klimak@solvay.com.

  When it is necessary to apply a payment or any other information related to these payments, send an email informing “COMEX” and the subject request.

  Worksheet with information on payments received: (FOREX) Comex 2020 - Control of Foreign Market Orders .

  10.1.2.1 How to check if the invoice is grouped.
  

  
  The document Header Text and Text will be informed about the grouping inside SAP.

  

   

  Field	Group	Not Grouped
  PK	4	1
  Document Type	ZC	RV
  Assignment	Invoice with letters - Ex: ETA0225E20	Invoice with letters - Ex: ETA0225E20
  Reference	Invoice with letters like  Assignment field - Ex: ETA0225E20	Only numbers - Ex: 000001652-1
  Document Header Text	AGRUPAMENTO	Order Reference - Ex: PO 439472, Rdar/0797, OC...

  
  
  

  • When the process is grouped, we can carry out the collection and pre-collections usually;

  • If 15 days have passed since the billing date, we can contact the responsible third party to check the processing status;

  • Comex payments received cannot be cleared if the invoice is not yet grouped.

   

  10.2 Sales Indent

  Clients from Brazil and the Latin American scope (Indent) buying from outside companies.

  • PI1 system

  • PF1 System

  • WP1 System

  • 0231 (CICC - Factoring)

  • Other local companies (Ex: 7810, 6526, 5686, 5785)

   

  10. Payment Methods:

   

  Clients close foreign exchange for payments from the foreign market and the write-offs are made by the HR team in Europe and Asia.

  It takes up to 3 business days to receive payments. The way the customer closes the exchange influences the time of receipt of payment, the closing can be done in D + 0, D + 1 ...

  In order to confirm the date on which the customer made the payment, the customer is requested the Swift document.
  
  

  11. Type of Payment Terms:

  
  11.1 CAD

  From the ETA date

  To verify the correct maturity and the system maturity.

  
  1º Request customer service ETA document

  2nd Credit Analyst Approval

  3º Request change of expiration to the AR team

  
  11.2 B / L (Bill of Lading)

  From date B / L

  To verify the correct maturity and the system maturity.

  1º Request customer service ETA document

  2nd Credit Analyst Approval

  3º Requests change of due date with AR team.

  
  11.3 Letter of Credit (LC)

  In this case, the customer pays directly to his bank and the money is raised by the AR and Credit team together with the bank.
  
  

  12. Document Type:

  
  12.1 Overview

  
  WP1 System

  DR - Service Invoice

  RV - NF Material - NC

  DZ - Payment

  E5 - Advance Payment

  AB - Dispute

  DB - Invoice

  EU - Migration and emigration document

  PI1 system

  F4 - Invoice

  DZ - PAYMENT

  C0 - Invoice Service

  AB - Dispute
  
  
  
  
  

  
  

  WP1 System:

  

  Field	Description
  Reference	Invoice number
  TYP	Document Type
  Document Number	Document number (information used only internally)
  Arrear	Days past due date
  BP	CNPJ reference
  Dy 1	Trading Deadline (in days)
  PM	Payment Methods
  Reference Key 3	Indicates whether a boleto  was generated or not
  Document Header Text	Order number

   

  For Latin American customers in the domestic market in WP1, it is very important to take into account the following SAP fields such as:

  • The document number is the reference used by the AR to clear payments;

  • Domestic market customers usually locate Rhodia as a supplier through the CNPJ, so it is important to have the BP field in its layout.

  • The payment method field is where we know if the customer stops via TED or boleto.

  • In Reference Key 3 , if it does not mean that the customer did not receive the ticket, and if this is their form of payment, it may impact the receipt.
    
    
    

  13. Services Note:

  Accounting in the system is done by opening a ticket by the service requester to the accounting team

  If necessary, a copy of the document and it is not in the system, you must access the request ticket to get the document.

  Document Type: DR

  Request Ticket information is in the “Document Header Text” column

  
  

  14. Anticipation:

  
  Customers make payments in advance due to the credit limit, in which confirmation is made by the HR team through the payment receipt sent by the customer service. Write-offs are carried out using the order number. Collections  only charges the customer in case of residuals with less or greater balance in payments in  advance billing, the due date and billing are the same. We We have some clients who, as an exception, the collection team sends information to the AR on how to write off payments. Ex: GPC Química, Marbow and Santa Constancia.  To confirm the invoice order number, it is necessary to access the "document flow" in the system. When paying, the order reference is informed in the “Assignment”

  

  
  
  

  End of document.