Auto Billing System

In addition to the head office, a logistics group often has a dozen or even dozens of branch companies. There are many complicated internal settlement relationships between the head office and the branch, and between the branch and the branch.

For example: if it is Nomination goods, when the branch company bills the customer, the "sea freight" is often split with the head office or even all called to the head office, so that it may be possible when the branch invoices the customer , There are still two automatic settlement notes (Debit Note, Credit Note or Payment) between the head office and the branch company to process, so as to correctly clarify the distribution of the shipping costs, and the financial relationship cannot be messed up. The other party must make payment to accurately reflect the balance of the group’s total revenue and expenditure.

This is the concept of Zhijia’s Auto Billing system, except that the Auto Billing system of GICA system is carried out automatically according to the rules, which means that when the branch issues invoices (Invoice, Paymen) to customers, the system will automatically create two An internal note (Intercom Debit Note/Credit Note/Payment), one is the Debit Note issued by the head office to the branch, and the other is the Payment or Credit Note issued by the branch to the head office. This automatic settlement system is internal The pre-defined automatic settlement rules are determined. The system automatically creates related bills based on these settlement rules. This automatic settlement system is sometimes called the Intercom system. CASE STUDY The following is an example of Auto Billing processing rules.

For one of our customers in 20 branches, there are about 60 such automatic settlement rules, involving all aspects of various situations. Note: Different companies have different treatment methods for different expenses. The following automatic settlement rules may not apply to your company, but are only for reference. [RULE 41] When creating Invoice/DN/CN, the following logic is executed only if it is Nomination.

a) When the user chooses to create an Invoice invoice, suppose: Ocean Freight = HKD300, Others = HKD500

b) If it is PP, DDU (Prepaid + Prepaid in air transport)

i. Manually create HKD300 + 500 = HKD800, Issuer = $creator

ii. Automatically create sea freight-related settlement notes as follows:

1. Automatically create Debit Note, HKD300, Issuer = GLOBAL

2. Automatically create Credit Note, HKD300, Issuer = GLOBAL

c) If it is CC (Collect + Prepaid in air transport)

i. If there are ocean freight or air freight, and cannot be created, The selected charges could not be showed on same invoice because it should be billed to different parties!

d) If it is EX-WORK (Collect + Collect in air transport)

i. Manually create HKD300 + 500 = 800, Issuer = GLOBAL

Regarding Zhijia’s group automatic settlement system, the concept is not complicated, but the processing process is extremely complicated. The main reason is that when creating a normal ticket, it needs to create a ticket according to the rules corresponding to various complex situations.

Many issues are involved here:

1) The system speed problem, to deal with 60 Auto Billing rules, will inevitably seriously affect the operating speed of the system;

2) Data-related issues. The invoice record created manually is related to the other two automatic settlement notes automatically created by the system. This related relationship must be recorded completely and accurately, and there must be no mistakes or omissions;

3) The complexity of data post-processing, such as: after creating a bill, when Void is required to manually handle the invoice, the other two automatic bill processing methods; 4) The processing of estimated expenses, in China, enterprises follow the estimated expenses Taxes are paid every month, so when creating an automatic bill, an estimated expense record must be created automatically, otherwise the tax data (estimated data) will be messed up.

5) The Auto Billing logic among freight forwarding systems, multimodal transport, warehouse systems, and fleet systems involves more complex Auto Billing logic and processing.

6) The above is the concept of automatic settlement within the group company. The automatic processing of the "divided account relationship" between the group and overseas agents, and between the group and its partners has increased the processing difficulty of this system.

7) At the same time, consider the impact on the financial system in the case of automatic bills such as Void or Offset. It is precisely because the processing of this automatic settlement relationship is too complicated. Although many logistics companies understand the importance of this processing, in fact, few logistics software can actually handle this relationship. The Auto Billing system of GICA Company has been operating normally for more than 5 years, serving HELKA, ADC and other groups, and has solved the settlement relationship that has troubled these groups for many years.