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What is a clean nett invoice

The key differentiator for FIELDForce is a clean nett invoice. But what does that mean, and why is it that so import? In this article we will uncover those answers and highlight the scenarios that necessitate its use.

Explanation & Benefits

A clean nett invoice is an invoice with the true final totals. It takes into account any last-minute changes that happen in-trade at the point of payment or delivery. The benefit to all parties is that it simplifies the post transaction procedures.

A clean nett invoice removes the complexities of credit notes. This often requires the sales rep or driver going back into the finance office after a long day in trade and relaying the credit request. The creditor then compiles the credit note… and days later the credit is passed against the customer account. In the fast-moving Main Market, this is a waste of time and money, and could negatively impact future orders.

Scenarios

But why do we need such an invoice? Distribution into the Main Market poses its own challenges not typically faced by the traditional primary distribution. The point of delivery is often an agile exchange.

Scenario 1: Payment Shortfall

Cash flow is often a challenge within the main market. The ability to ‘mix and match’ settlement of an order makes a huge difference to the merchant. To be able to:

  • Settle an order with a mixture of cash and bank transfer or credit provides the flexibility for the merchant to grow his/her business
  • Or, only accept stock for cash that is physically on hand at the time of receipt without taking on unwanted financial risk.

Both options create administrative chaos when the driver or reps return to the depot and could be removed through utilising a clean nett invoice.

Scenario 2: Empties

Depending on the product, the physical packaging holds financial value and can/should be returned to be replenished or recycled. In this scenario, the capturing of the empty has an impact on the overall reduction in the value of the invoice and impacts the stock level of the van location.

Particularly, as FMCG manufacturers take onboard the call to ‘Go Green’  and incorporate reverse logistics to cater for PET or glass recycling having a platform that can capture, reflect  and offset the final invoice while in-trade will hopefully speed up this adoption.

Scenario 3: Returns

A manufacturer is reliant on the stock-in-trade being up to scratch and ready for consumption. However, there may be a scenario where a product must be returned or replaced. This must be recorded and reflected to ensure the customer is credited and the relevant escalations are followed.

Faulty or dead stock could negatively impact the brand and has a direct effect on sales. The driver or distributor must be able to record the return, the reason for return, credit the customer and potentially re-issue stock while in trade.

Scenario 4: Van Sales

Van Sales is not a unique concept, but the way it is utilized in Africa to reach the Main Market is something to behold. The ability to sell stock to customers on a consignment basis, while keeping line of sight is sometimes tricky. Some of the complexities when running multiple drivers or sales reps and routes include:

  • Preplanning and optimizing route efficiencies
  • Keeping track of stock levels and locations while on route
  • Capturing orders in-trade in rural areas
  • Adequately providing clean fiscal invoices to meet legislative and tax compliance

 

The Solution

Built from the perspective of an entrepreneurial fast-moving Consumer Goods route to market, FIELDForce was developed specifically to cater for these scenarios. The ability to separate orders and actual invoices; reflect final stock volumes; and capture true exchange of moneys transferred enable businesses to run agile routes and keep the books true and accurate without time consuming paperwork.

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