09 Mar Why keeping your billing up to date on Amazon Vendor is so important
- Having an exhaustive and meticulous control of the invoices issued and, above all, those that have yet to be issued is crucial for the success of any business.
- In Vendor, when working directly as an Amazon supplier, having an unissued invoice means you stop collecting a significant amount of money.
Can you imagine having a business, providing a service and not getting paid? And that this service is on a large scale and that the value amounts to a significant amount? Well, this is what can happen if you have a Vendor account on Amazon and you are not rigorous or strict with the invoices you must issue.
As we have already seen before, having a Vendor account means becoming an Amazon supplier, supplying you with a series of products based on the signed contract. In it, the price for the delivered goods and the payment deadlines are agreed.
This can vary from client to client and contract to contract, but it’s something you need to pay special attention to.
If you want to know why and what we do at Nozama Solutions to manage this type of incident, continue reading and we’ll tell you all about it.
What can lead to poor invoice management?
When you work as a vendor for Amazon, you have to invoice absolutely everything you send to their warehouses. An unissued invoice, which may be associated with a single order or an ASN or any type of order from Amazon; It can lead to you not getting paid that money. This is similar to if you go to a restaurant and they don’t bring you the bill to pay.
As you can imagine, this can be quite a major problem since, as a general rule, the platform places large orders that usually involve substantial amounts of money.
What can be done?
But don’t worry. Just because you haven’t issued an invoice at the right time doesn’t mean you’re left without collecting that amount, as there is no legal mechanism that allows you to stop paying for a merchandise received.
At Nozama Solutions, as part of our Audit service, we carry out an exhaustive follow-up of all the shipments that our customers make to Amazon and the invoices issued.
As soon as we find an inconsistency, we communicate it to our customers to try to solve it as soon as possible, proceeding to make the relevant invoice. This is because, 90 days after shipment, it is more difficult to justify why it was not issued in a timely manner.
Despite this, as long as the proper shipping and delivery receipts are kept in their warehouses, where it can be verified that all the goods ordered were delivered, there are usually no problems in receiving payment from Amazon.
The review of the three unbilled cycles
At Nozama Solutions, our experience of more than 10 years working at Amazon has helped us to develop a methodology that we call “the review of the three unbilled cycles”. This is a differential value that allows our customers to anticipate any type of problem.
We start from the premise that each customer has a defined billing cycle: some do it for each order, others for each ASN and others group them together for a certain period of time and then invoice everything together.
Thanks to this, we take care of reviewing all the invoicing to detect any type of alteration in the orders, whether unloaded or uploaded, that is repeated for 3 complete cycles. In this way, our experts can adjust trading strategies to such results.
At the end of the day, it’s about anticipating everything that may happen and trying to solve it, or take advantage of it, as soon as possible.