252411 - Generate invoices credit notes and landed costings

Welcome to the

Generate Invoices, Credit Notes and
Landed Costings

US 252411

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distributed without the written permission from GMLS

Purpose of this Module

The person credited with this module is able to go through the process of
obtaining the correct information in order to generate the applicable
voucher. This will mean the learner can identify the correct data and
identify missing information required in order to complete the transaction.
Learners will also be able to compile the relevant voucher in accordance
with requirements and then to hand the work over for checking and
verification to authorised individuals.

The qualifying learner is capable of:
Gathering information to carry out processes.
• Generating the voucher by using the relevant information.
• Submitting work for checking and verification.

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distributed without the written permission from GMLS

Gather information to carry out processes

The information required to generate invoices, credit notes
and costings is explained in the context of forwarding
transactions

Range: Information required may include but is not limited to
invoicing, credit notes and costing structures, supporting
vouchers/documentation, chargeable rates, contractual

agreements, statutory charges and levies, third party charges,
estimates, procedural instructions, posting codes and debtor

and payment terms

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distributed without the written permission from GMLS

The Invoice

The first is the issuing of a freight invoice which is the
document prepared, completed and issued to the client for
the charges and fees involved in transporting the cargo on
their behalf in accordance with their instructions.

Invoices can be issued by both the clearing agent and the
forwarding agent but we will concentrate on the process in
the context of forwarding transactions i.e. starting in the
country of origin and moving from there to the destination
country.

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distributed to any other person without the express written
permission of GMLS Management.

© GMLS material is copyrighted and may not be copied, sold or
distributed without the written permission from GMLS

Details required on the Invoice

q Client details
q Shipment details
q Supporting voucher/documentation,
q Chargeable rates
q Statutory charges and levies
q Third party charges
q Estimates
q Procedural instructions
q Posting codes
q Contractual agreements
q Debtor and payment terms.
q Incoterms® 2010 Rules

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distributed without the written permission from GMLS

Invoice Costing

• A costing is a document which is prepared for the client which will show
all the charges and costs, including fees, which have been incurred in the
course of transporting their cargo and then apportion these to the cargo
according to a factor specified by the client.

• This factor is most frequently the individual items or products shown on
the commercial invoice issued by the supplier which produces a landed
cost for each of these items or products incorporating all the charges
which have been outlaid right up until the time when the cargo is
delivered to the client or collected by them.

• This means that much of the same information is required as the costing
is prepared at the time when the Customs declaration is framed.

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distributed without the written permission from GMLS

Gather information to carry out processes

Information is obtained to carry out invoicing, credit notes
and costing procedures

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distributed without the written permission from GMLS

Obtain Information for Invoice

In the first we examined the information which could be
required to generate an invoice or credit note or costing.

In this criterion we will look at how you go about obtaining
the information required and from where you would source
these details. We will look at the details in the same
sequence, i.e. client details, shipment details, etc...

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distributed without the written permission from GMLS

Obtain Information for Invoice

Client details
Due to the impact of EDI in operating systems a significant
amount of the information and details required for an invoice
are fed through from one department to another when the
shipment file was first registered and opened on the system.
This would usually happen in the groupage department if the
cargo being transported in this manner or by the channel
controller was an FCL and was registered by the person looking
after the shipment from start to finish.

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distributed without the written permission from GMLS

Obtain Information for Invoice

At this stage all the client details would be entered onto the
system based on the information which you have on record
so as long as the consignee is already a client then this
should be on hand and can be brought down onto the
template.
If it is a new client then these details will have to be entered
into the system from scratch and will therefore have to be
obtained first, including the account number for the client so
that this can be entered onto the system and records for now
and future use.

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distributed without the written permission from GMLS

Obtain Information for Invoice

q Client details 
q Shipment details
q supporting voucher/documentation,
q chargeable rates
q statutory charges and levies
q third party charges
q estimates
q procedural instructions
q posting codes
q Contractual agreements
q debtor and payment terms.
q Incoterms® 2010 Rules

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distributed without the written permission from GMLS

Gather information to carry out processes

Instructions are checked against the information required to
carry out the process

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distributed without the written permission from GMLS

Check Instructions

 Client profiles/data on record incl. buy/sell rates
 Clearing/Export Shipping instructions
 Incoterms
 Special Instructions

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distributed without the written permission from GMLS

Gather information to carry out processes

Missing information is obtained in order to carry out the
process

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distributed without the written permission from GMLS

Information that is missing

 Information from the client
 Information from the overseas supplier/forwarder
 Information from 3rd parties

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distributed without the written permission from GMLS

Gather information to carry out processes

The consequences of carrying out invoicing, credit notes and
costing procedures with incomplete and/or incorrect
information are explained with examples

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distributed without the written permission from GMLS

Consequences 17

• Additional charges
• Supplementary invoices
• Overcharged amounts
• Credit notes
• Loss of profit
• others consequences?
•

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distributed without the written permission from GMLS

Generate the voucher by using the relevant information
Range: Voucher may include but is not limited to invoices,

credit notes and costings

The information relevant to the transaction is selected in
terms of the voucher to be generated

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distributed without the written permission from GMLS

Select relevant information

q Client details
q Cargo details
q Freight charges
q Incoterms® 2010 Rules
q Statutory charges
q 3rd party charges
q Supporting vouchers
q Estimates
q Procedural instructions
q Posting codes

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distributed without the written permission from GMLS

Generate the voucher by using the relevant information
Range: Voucher may include but is not limited to invoices,

credit notes and costings

Tariffs and disbursements are applied to compile the
voucher according to organisational procedure

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distributed without the written permission from GMLS

Generate the Invoice

q Tariffs and disbursements
q Chargeable rates
q Surcharges
q Client rates
q Debtor and payment terms
q Finance Fees

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distributed without the written permission from GMLS

Generate the voucher by using the relevant information
Range: Voucher may include but is not limited to invoices,

credit notes and costings

The voucher is produced according to organisational
procedures

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distributed without the written permission from GMLS

Organisational Procedures

v Invoicing software
v Invoicing procedures as per individual organisations
v Control/information sheets (showing actual costs)

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distributed without the written permission from GMLS

Generate the voucher by using the relevant information
Range: Voucher may include but is not limited to invoices,

credit notes and costings

The consequences of producing inaccurate and/or incorrect
vouchers is explained with examples

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distributed without the written permission from GMLS

Consequences

Can you name some consequences from
least serious to most serious?

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distributed without the written permission from GMLS

Consequences

§ Embarrassment for the company
§ Loss of client
§ Loss of profit
§ Credit notes
§ Supplementary invoices
§ Non-payment/delayed payment from client

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distributed without the written permission from GMLS

Submit work for checking and verification

Reconciliation is effected against the information provided
to generate the voucher

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distributed without the written permission from GMLS

Reconciliation

§ Check/review your work
§ Check loss/profit
§ Check figures
§ Check codes
§ Check descriptions

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distributed without the written permission from GMLS

Submit work for checking and verification

Documentation is collated in accordance with organisational
policies and procedures

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distributed without the written permission from GMLS

Organisational Policy & Procedures

Ø All companies operate differently
Ø Internal and external policies
Ø Branches and policies
Ø Statutory requirements

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distributed without the written permission from GMLS

Submit work for checking and verification

Completed work is handed over for checking and verification
to authorised individuals

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distributed without the written permission from GMLS

Checking and Verification

Ø Invoices
Ø Credit notes (may require authorisation)

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distributed without the written permission from GMLS

Submit work for checking and verification

The consequences of not submitting vouchers for
verification are explained with examples

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distributed without the written permission from GMLS

Consequences

... and the consequences for not submitting
vouchers for verification are...?

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distributed without the written permission from GMLS

Consequences

• Possible disciplinary action
• Possible loss of profits
• and ?
• and ?
• and ?

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distributed without the written permission from GMLS

Landed CostTinhge-gWreeaitgehrt/ofM...e. asure

? OR ?

WEIGHT MEASURE

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distributed without the written permission from GMLS

Surface Freight - Freight tons

MASS (METRIC VOLUME (M3) FREIGHT TONS??

TONS)

44.356 37.945

3.895 1.402

11.934 14.568

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distributed without the written permission from GMLS

Surface Freight - Freight tons contd.

WEIGHT DIMENSIONS LWH FREIGHT TONS??
44.356 tons 9.460 X 1.875 X 2.576 m
3.895 tons 239.2 X 164.1 X 95.4 cm
11934 kgs 3743 X 2438 X 1254 mm

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distributed without the written permission from GMLS

Surface Freight Costing- Weight cargoes/ Volume
cargoes

WEIGHT VOLUME

• Granite • Pillows
• Coal • Cotton wool
• Maize • Steel profiles
• Gold • Computers
• Steel sheets • Machinery

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distributed without the written permission from GMLS

Airfreight- Chargeable weight

WEIGHT DIMENSIONS LWH CHARGEABLE
WEIGHT??
44.356 tons 9.460 X 1.875 X 2.576 m
3.895 tons 239.2 X 164.1 X 95.4 cm
11934 kgs 3743 X 2438 X 1254 mm

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distributed without the written permission from GMLS

Landed Cost Variables

• Prime Cost of Goods
• Origin Charges
• Main Carriage
• Destination Charges

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distributed without the written permission from GMLS

Prime Cost of Goods

• Manufacturing Cost
• Royalties, Commissions etc.
• Packaging and labelling
• Documentation

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distributed without the written permission from GMLS

Origin Charges 43

• Origin haulage
• Stuffing/ Consolidation
• Origin port/ airport handling
• Origin cargo dues
• Export taxes
• Export clearance

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distributed without the written permission from GMLS

Main Carriage

• Air/ Seafreight
• Surcharges

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distributed without the written permission from GMLS

Destination Charges

• Landing/ terminal handling
• Destination cargo dues
• Destination destuffing/ deconsolidation
• Destination inland haulage/ delivery/ turn in
• Statutory charges
• Clearance fees
• Finance Fees

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distributed without the written permission from GMLS

Factorisation 1

No. of items EXW Value EXW to DDP
34 356.00
4 45 673.00
17 926.00
6 97 955.00 12 784.00

12

TOTALS 22

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distributed without the written permission from GMLS

Factorisation 2

No. of EXW EXW to
items Value DDP

4 34 356.00
6 45 673.00

12 17 926.00

TOTALS 22 97 955.00 12 784.00
FACTORS 581.09091 0.13051

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distributed without the written permission from GMLS

Factorisation 3

No. of items EXW Value EXW to DDP EXW - DDP EXW - DDP
Numbers Value
4 34 356.00 2324.36
3486.55 4483.76
6 45 673.00 5960.73
6973.09
12 17 926.00 2339.50
12784.00
TOTALS 22 97 955.00 12 784.00 12784.00

FACTORS 581.09091 0.13051

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distributed without the written permission from GMLS

Factorisation 4

Landed

Landed Cost -

No. of EXW EXW to EXW - DDP EXW - DDP Cost - Numbers Landed Landed Cost-
items Value DDP Numbers Value
Numbers ea. Cost- Value Value ea.

4 34 356 2324.36 4483.76 36 680.36 9 170.09 38 839.76 9709.94

6 45 673 3486.55 5960.73 49 159.55 8 193.26 51 633.73 8605.62

12 17 926 6973.09 2339.50 24 899.09 2 074.92 20 265.50 1688.79

TOTALS 22 97 955 12 784.00 12784.00 12784.00 110739.00 110 739.00

FACTORS 581.09091 0.13051

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distributed without the written permission from GMLS

Questions & Answers

For further information on this and
other Training Courses offered by
GMLS, please contact us on:-

Website: www.gmls.co.za
Email: [email protected]

Office Mobile: +27 82 852 3626

Tel: +27 44 813 0052
or +27 11 425 1840

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