In the past, one of the necessary propcesses in the business operation is the bill placement. The sellers have to do the bill placement in order to confirm the amount and time of the collection. For example, if you sell a product to a customer with credit term 30 days after shipment date, you need to know from the customer when you will get the money, and the amount to be collected. This process becomes outdated in today’s dynamic business environment.
Today, many companies fix the payment date once a month, say on every 15th or 20th of the month. And when that day is a holiday, it will be postponed to the next working day. That means all suppliers can know in advance the different payment date of each company according to the payment policy. Moreover, with the advanced information system many companies are using, the purchased amount can be sorted by supplier name, and according to the agreed terms of payment. This does not cause any uncertainty about how much money has to be paid to individual creditor. That means bill placement process is almost totally useless and not sound enough to be continued in today’s business.
In Thailand, many companies still keep on doing this process which involves several paperwork and non-value added operations. It’s time to review the whole process in doing business and try streamlining it so that company’s resources can be better utilized to support business success more. It’s necessary for responsible persons, especially accounting and financial officers, to start asking questions on the current practices why we have to do this and that. And what kind of changes we can make to improve the performance of our function and the total corporate performance.
First of all, let’s stop the bill placement process brought forward from the 20th century. Just cancel it and let’s see the result. At the beginning there might be some interruption for some suppliers, but it will be smooth after a while. Believe me…it works.
By Mr.Yanyong Thammatucharee
email: yanyong.thammatucharee@gmail.com
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