1. Do’s and don’ts Credit Management Africa during the Order to Cash cycle

2. Do’s and don’ts Credit Management during the Order to Cash cycle
My name is Eric Berendsen
In credit management for 25 years
Working in the African market since 5 years
Summary
Short introduction to Boart Longyear
The do’s and don’ts for credit management during the O2C cycle
Q&A

3. Boart Longyear Ltd
Boart Longyear is a global mineral exploration company founded in It is headquartered in Salt Lake City, Utah, United States. Listed on the Australian stock exchange (ASX:BLY) Regional offices and operations are located in the Asia-Pacific region, North and South America, and EMEA. The company provides mineral exploration services and drilling products for the global mining industry and also has a presence in drilling water exploration, environmental sampling, energy, and oil sands exploration. As of September 2013, it employes more than 6,000 people.

4. What is so special about Africa form a business perspective?
Large natural resources
Political instability
Bad infrastructure
Poor financial infrastructure
Growth opportunity

5. The order to cash cycle Customer Order entry Order fulfillment
Deduction
Cash application
Collection
Invoicing
Distribution
Order fulfillment
Order entry
Customer

6. Customer Who is your customer
Where to get additional (financial) information
Payment terms
T & C’s

7. Order entry Order fulfillment Get correct PO
Which T&C’s are applicable
Order release process

8. Distribution
INCO terms
Customs
Inspection requirements

9. Invoicing Check what is required by law Currency Language
Required CFD’s
Getting in on time to the customer

10. Collection Who is approving Who is paying Which bank to use
What currency
LC’s

11. INCOTERMS

12. Cash application Deduction Getting bank statement Currency Taxes
Deducted cost
One last thing…….

13. Example payment application
Customer in Ghana is send an invoice of 118K (including 18% VAT)
Customer is exempted (doesn’t have to pay tax)
Customer deducts fuel invoice of 20K
Customer may deduct 2% for early payment
Payments we’ve received were
USD
18.000
VAT
5.000
WHT
2.000
Early payment discount
20.000
Fuel invoice
73.000
To pay in USD
36.500
Payment received in USD
80.000
Payment received in GHS

14. Takeaways and Q & A
Go through your own O2C cycle to determine possible pitfalls
Make sure you’re actively involved in the O2C cycle as early as possible
Contact specialized organizations

15. Thank you!
Eric Berendsen Manager Credit & Collections EMEA Boart Longyear 12 Avenue des Morgines CH1213 Petit-Lancy, Geneva Switzerland Tel.: Mobile: