To get closing documents (invoices and acceptance certificates) for the executed supplies, works performed and services rendered. Transfer the documents to the accounting department.
A major network of single-brand stores with products of international brands, comprising 344 stores in 36 cities of Russia.
Operational procurement
May 2016 – Until present
2,546 suppliers were involved in procurement under the condition of 45% downpayment. A lot of primary accounting documents were lacking due to the absence of systematic approach to document management. The client did not have the required internal resources to collect the documents for the previous periods. Accounts receivable due to the lack of closing documentation amounted to 144 mln rubles. The contact information of suppliers was either not registered systematically or lost.
We analyzed accounts receivable of the client. We identified the suppliers the debts of which amounted to 80% of the amount owed. We developed and agreed with the financial department the process of getting the closing documents from suppliers. We calculated the economic benefits obtained due to the documents received and evaluated the performance of PrECA.
We found contact details for more than 500 suppliers, then we requested, received, and provided to the accounting department the reconciliation reports and original documents.
The process of obtaining documents from the suppliers with a statute of limitations of up to 3 years was transferred to PrECA and became controlled.
Other achievements on the project:
CFO
“The PrECA people set up the process and did a great job of getting back the originals of the closing documents from the suppliers. The services rendered by PrECA have fully paid off due to the achieved effect.”
Procurement Methodology and Best Practices
Expertise of the market, category, and functional area
Skills
IT tools
Project Manager
“Heads of financial departments often have to deal with accounts receivable, formed due to the lack of closing documents. As a result, the company overpays 32% of the cost of the supplied goods/services provided due to the income tax and VAT. If the work on obtaining the closing documents is not performed, then the receivables can reach up to 25% of the annual purchasing spend! For instance, a company with the annual expenses of 1 billion rubles may overpay 81 mln rubles just in excessive tax payments alone.”
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