Accounts Payable and Receivable Overview Video

What is Accounts Receivable and What are we responsible for?

The Accounts Receivable department is responsible for the collecting payments for goods and services from customers and recording these transactions accurately. We are responsible for releasing all orders as well as ensuring that all customers pay their accounts timeously and that the accounts are reconciled

At ETD, we are responsible for collecting payments on behalf of 8 Companies in our portfolio, namely, First Distribution, The Linux Warehouse, EMMC, First DMT, Even Flow, Nology, Epsidon Kenya & Epsidon Mauritius.

We are also responsible for but not limited to retrieving Invoices & Statements, Maintaining accounts receivable files and records, Investigating and resolving any irregularities or enquiries, Obtaining information from other departments to ensure records are accurate and complete and that accounts receivable ledgers and journals are up-to-date, Onboarding and Vetting of all new Customers, Obtaining Credit Guarantee for all new Customers

Accounts Receivable is also a support department, and we can only complete our function with assistance and support from all other departments involved.

 

 

 

Accounts Receivable Challenges:

CREDIT LIMIT – The difference of a credit limit approved for a specific deal and the credit limit approved by CGIC for an account

OVERDUE ACCOUNTS – Please check accounts before placing or accepting an order,  no orders will be considered on overdue accounts unless approved by management, the credit approval committee is Debbie A, Jerome B, Mr. Sharp

 

ORDER RELEASE – Should the order be approved, attached the approval when you send the order through to order release and procurement. Please advise accounts of the order before sending it to Procurement.

 

COD ORDERS WITH NO POP – Orders cannot be released without the POP and the funds reflecting in the bank, some take a day to reflect

 

PURCHASE ORDER NUMBERS – Clients are not paying invoices if the PO number is not reflecting on the Invoice

 

 

What is Accounts Payable and What are we responsible for?

The Accounts Payable department is responsible for the financial, administrative and clerical support of a company.

At ETD, we are responsible for making payments on behalf of 6 Companies in our portfolio, namely, First Distribution, The Linux Warehouse, First DMT, Even Flow, Epsidon Kenya & Epsidon Mauritius, to Suppliers and other creditors, Vendor invoices or bills, Company Cash Flows as well as the accurate recording of all payments. Therefore, Accounts Payable is vital for the smooth functioning of any business entity.

Accounts Payable is a support department and thus can only function efficiently with the help and support of all other departments involved. As we are the last point of call before payment, it is our Function to validate that what has been processed and captured in the system is accurate.

In the event of that, there is a “Break” in the processing chain, Accounts Payable is unable to make timeous payments which as a result could lead to limitations on the Supply of orders, Vendor accounts being placed on hold, as well as restrictions on the Company’s Cash Flow

We are also responsible for but not limited to Onboarding of all new Vendors and maintaining the Masterfile of all existing Vendors, Account Reconciliations and Query resolution, and Intercompany Accounts for Trade, to name a few

Accounts Payable Workflow

 

 

 

Accounts Payable Team & Vendors

Tamara Rolo – First DMT Vendors:

 

 

Accounts Payable Team & Vendors

Tasneem Esau – First Distribution Vendors:

 

 

Accounts Payable Team & Vendors

Tasneem Esau – Linux Warehouse Vendors:

 

 

Accounts Payable Team & Vendors

Benito Petersen – First Distribution Vendors:

 

 

Accounts Payable Team & Vendors

Wardah Kuiler – First Distribution Vendors:

 

 

Accounts Payable Team & Vendors

Monike Vermaak – First Distribution Vendors:

 

 

Accounts Payable Team & Vendors

Laeeqah Tape – Even Flow Vendors:

 

 

Accounts Payable Team & Vendors

Laeeqah Tape – Even Flow Vendors Continued:

 

 

Accounts Payable Challenges:

SO or PO not raised in System

Vendor invoices not Raised

Queries or Discrepancies on Invoices not communicated to AP

Extended Payment terms not communicated

Deals where customers are only billed once full stock is received, However the Vendor bills us in Full

Large orders that exceed the Vendor Credit Limit, as a result the account potentially gets put on hold

Purchasing from new vendors Prior to them being onboarded

Purchasing on COD Accounts.