Order to Invoice Processes

Customer risk assessment

Selling to a financially weak customer or an unscrupulous customer is worse than not making a sale at all, however most companies in their urgency to sign up a customer will not be able to assess the customer risk before accepting the customer order.

Since the selling and collecting activity should go hand in hand customer risk assessment is very crucial function. Our team assists you to analyze the financial credibility of the client before signing up the customer.

Profitability liquidity ratios Capital adequacy ratios MOA & AOA Directors information Shareholding pattern Primary data
Net profit margin Capital Reserves Registered Office Name of the Directors / Management Names of major shareholders CIBIL - Credit Information Bureau of India
Gross profit margin Loans - secured and unsecured Name changes Qualifications Paid up capital etc Internet sources
Debt equity Stat obligations Major business Activities Website details
Acid test rations Etc Contingent liabilities etc Main objects viz current line of business News paper articles and coverage
Auditor changes Office visits
Purchase order / acceptance of the customer

It is important that the agreement for sales / purchases of goods and service between a buyer and seller be formalized to ensure that there are no disputes at the time of accepting the service / product or making the payment.

The agreement may be in the form of a purchase order or a written / email confirmation from the customer

Under this phase the GGA team will make sure that no sales or goods or services takes place, without a formal agreement in place between the buyer and the seller.

Timely generation of the invoice

Without an invoice being raised to a customer for a product or service or as an advance for a product or service there will not normally be a payment and an accurate invoice forms the base of a successful accounts receivables management function.

The later the invoice has been raised, the later will the invoice get paid and if the invoice is wrong it will surely be disputed. Invoice raised later means extending additional shadow credit to the customers.

GGA assists the companies to generate their invoices on a timely basis and ensures that they are accurate, complete and contains all the conditions that meet the requirements of an acceptable invoice

Accuracy and completeness of the invoice

In case a company charges a different price than what has been agreed upon – the invoice is sure to be disputed. A company may have different pricing mechanisms for different customers and it needs to ensure that the correct prices are being billed to the customers and that prices have been agreed to by signing a contract before the delivery of products or services

GGA helps a company to ensure that its invoices have been raised at the correct rates in force and to maintain and update its pricing master

Timely dispatch of the invoice

It is not only necessary that an invoice is generated on time, it is also important that the invoice is dispatched on a timely basis to the customers, the mode of dispatch may be hand delivery or courier or the dispatch may take place from a centralized location.

The earlier the client receives the invoice, the earlier the client is likely to pay the same.

GGA assists a company to crash the time from invoice generation to the time the invoice is received by the client.

Ongoing credit control and credit management

At the time of customer risk assessment, a credit period and a credit limit is assigned to a client. It is necessary that the credit limit and the credit period be monitored and credit extended remains in the specified limits.

Adequate credit controls enable a company to promote credit sales and reduce the risk of bad debts OR delayed payments.

GGA can assist a company to establish and maintain credit limits for customers and manage and review the credit limits.