0 comments on “Logistic costs distribution”

Logistic costs distribution

Posted by Mariana Zapico in Finance, Payables, Supply Chain

Within the procurement process of a company, different aspects are involved that must be considered for its correct control and management.

A purchase involves logistical costs, which are the expenses incurred to place the product either local or imported, in the possession of the company, such as freight, insurance, duties and taxes, transport, hauling, storage, among others.

The expenses involved in this procurement process are transformed into costs as they are incorporated into a company’s operating process. Therefore, knowing the real cost is of great importance for making decisions and perform financial analyses in terms of measuring yields, as well as operational analyses for the correct valuation of inventories.

The Problem

Companies have different approaches in term of cost distribution which leads to incorrect accounting records. Regardless of the costing methodology, an improper allocation of costs directly affects the value assigned to the product.

The Implications

Not being able to rely on your accounting records may cause a wrong decision of strategies and does not reflect the real financial situation of the company.

The Solution

With LOVIS EOS companies can integrate all those expenses that are incurred in getting the goods to their warehouses, using the distribution factors that best suit their operation. Examples of these distribution factors are volume, weight, value of the goods, etc. or combination of them using formulas editable by the end users.

The Benefits

LOVIS EOS performs the proper distribution in such a way as to affect proportionately the product that is consumed without over-costing any other, in this way, having the appropriate costs per unit will help to improve decision-making.

This leads to the correct record of costs and valuation of inventories, in addition to giving companies the ability to carry out transactions in real time and thus avoid reclassifications or mismanagement.

0 comments on “Agile imports”

Agile imports

Posted by Mariana Zapico in Finance, Procurement

We currently live in a globalized world, in which interaction between countries has become indispensable. Factors such as new technologies, trade agreements, product innovation, as well as continuous improvements in international freight transport networks, among others, drive the process of internationalization of companies.

To cope with the irrepressible advance in international markets and increasingly competitive economies, companies create foreign trade strategies where exports and imports are increasingly relevant, entering different markets, with different regulations and requirements.

Foreign trade involves numerous and delicate customs procedures to be able to conclude a transaction, such as the tariff classification, which consists in assigning a numerical code created by the World Customs Organization to goods, this way companies can identify the goods that are imported and exported to set taxes, obligations and duties.

The Problem

Every time a company commits an import/export of goods, a tariff classification has to be made even if it’s the same good, which involves a lot of time spent resolving the paperwork.

Also, there are divergent opinions on the tariff classification leading to varied interpretations and applications within the legal framework.

The Implication

The classification of tariff fractions is very important for companies, as they are an instrument for planning their marketing logistics including the payment of taxes, checking the origin of the goods and applying preferential treatment. However, misclassification can result in sanctions, supplementary tax payments and in extreme cases it can lead to the destruction of the goods or their return to the country of origin.

The Solution

In LOVIS EOS these classifications are preconfigured so that before making the acquisition of the imported goods, companies can work with the forwarding agent to establish the most appropriate tariff fraction.

By doing this effort one time, LOVIS EOS will communicate the proper tariff code and description of the goods to the supplier and forwarding agency in subsequent imports, which helps to streamline and optimize customs and logistical procedures.

The Benefits

This results in companies making benefits such as:

  • Improving exchange of trade and information.
  • Simplifying description and coding of goods.
  • Schedule import payments, making the cash flow more efficient.
  • Streamline the import process and reduce time in custom duties.
0 comments on “Maximising Liquidity”

Maximising Liquidity

Posted by Jaime Moreno in Finance

Maximising liquidity is one of the most important challenges for your company. The time, money and effort required to achieve it every day they keep you and your team in a permanent state of stress.

The problem

Knowing at all times and with total precision how much money the company has is essential to make intelligent decisions. This is not easy because the availability of cash depends on many variables:

  • Balances in banks and investments, checks or payments in transit, scheduled collections and the reliability of clients and debtors are some components of cash availability.
  • Collecting and updating this information every day requires an huge effort, the cost is very high and the possible errors generate great uncertainty.
  • The information generated by other areas, the necessary controls to ensure its quality and the total time necessary to have it available compromise the fluidity of the operation, while causing the loss of great opportunities.
  • Additional work to establish the degree of certainty of collection and the time and effort to
  • Communicate it and translate it into cash projections further wear down the organization.
  • Link the availability of cash and the scheduled collection with the Payment needs is another task that demands a lot of time and effort.

Deciding on each occasion what to pay based on the available cash, the degree of certainty of the collection, the expiration of the commitments and the opportunities for benefits for prompt payment, when the best tools are not available, makes this process laborious, complicated and subject to many errors with its logical consequences, both in financial costs and in additional operating costs.

Finally, having to repeat the work done due to constant changes, coupled with the lack of well-defined operating processes and aligned with the appropriate tools for optimal information management, make the cost increase exponentially and get lost even more. opportunities

The solution

At the precise moment when your Products or Services are billed, LOVIS EOS automatically creates the corresponding Accounts Receivable, with the balance in the original currency and its value in national currency.

In the same way, as soon as the Supplier Invoice is validated, the account payable record appears in the Cash Flow with its balance in the original currency and its value in national currency. Both types of transactions are internally linked to the bank account with which they usually operate your receivables and payments.

So, all the effort necessary to collect, link and present the Cash Flow, is carried out by LOVIS EOS immediately and automatically. Regardless of whether it is tens, thousands or hundreds of thousands of operations, the effort is practically nil.

At any time of any day, we can access the Programming of the Cash Flow, select a bank account and view or Modify the schedule of pending collections, which added to the available balance of the bank account, immediately calculates the availability of cash. Next, LOVIS EOS shows the corresponding pending payments and allows us to modify the dates and scheduled payment amounts for each case, obtaining in a totally dynamic way a feasible payment program ready to be processed.

Once we have a cash flow schedule, we can go to the processes of automatic generation of income and expenses that are responsible for creating bank transactions for the programmed amounts, partially or totally settle the accounts as appropriate and calculate the differences will change; all in a few milliseconds per transaction.

Subsequently, the Treasury of the company may generate the electronic files to upload them to the electronic banking system or, issue the corresponding checks and reconcile the operations of each of the bank accounts in a very simple way.

That is all.

At the end of the day, these transactions will be automatically counted, making the effects to banks, customers, suppliers, exchange differences and VAT and other taxes for cash flow, fully automatically and effortlessly by people.

Now you and your team of collaborators will be able to focus their energy and dedication to identify opportunities to improve the financial performance of the organisation, they will be much more satisfied with their work and their results will increasingly strengthen your company.