FRED User Manual. Appendix F. ECM

Transcription

1 FRED User Manual Appendix F. ECM Copyright 2015 ControlPay. All rights reserved. No parts of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the author. Address: ControlPay B.V., Hoge Mosten 22a, 4822 NH Breda, the Netherlands Tel: +31 (076) Registered in the Netherlands under No Version 1.1.0

2 Contents 1. Introduction What is an ECM Purpose and benefits Eligible parties ECM workflows ECR types Performance indicators ECR submission ECR resolution (approval/rejection) ECM process Overview ECR submission Why do Carrier users need to submit an ECR How to submit an ECR How to create an ECR based on shipment data available in FRED How to add different cost types ECR cancelation Why do Carrier users need to cancel an ECR How to cancel an ECR What actions are required from Carrier after the ECR cancellation ECR resolution Why do Shipper users need to resolve an ECR How to resolve an ECR What actions are required from Carrier after the ECR resolution ECR search Why do you need to search for an ECR How to search for an ECR Understanding the ECR status Approval status Confirmation status Mapping status

3 1. Introduction 1.1. What is an ECM The ECM (Extra Cost Management) is a user-friendly FRED tool, which was developed for a quick request and settlement of any unforeseen extra costs and/or spot price agreements by submitting an ECR (Extra Cost Request) Purpose and benefits ECM purpose is to provide extra cost and/or spot price handling visibility and to speed up the process of charges settlement between a Shipper and a Carrier. The ECM tool provides coverage of all costs which are treated as unpredictable and/or out of the rate-book (spot prices, if applicable) with full transparency, accessibility and proper visibility for both Shipper and Carrier. ECM benefits: settlement of extra costs and spot prices (approval before actual invoicing); automatic notifications and reminders; structured reporting on extra costs and spot prices (if applicable); transparent and traceable audit trail Eligible parties The following parties are authorized to participate in the ECM process: Carrier users (all Carrier contact persons registered in the FRED system); Shipper users (all Shipper contact persons registered in the FRED system, which have a special permission to use the ECM tool) ECM workflows There are two alternative, mutually exclusive approaches for ECR resolution: Single-level workflow Multi-level workflow Each ECR is reviewed and resolved by one authorized Shipper user only. Each ECR is reviewed and resolved by two authorized Shipper users in order to facilitate delegation of authority and increase transparency. If such workflow is utilized Shipper users are divided by approval levels, which may be defined based on ECR total amount (ECR approval limits): ECM operator (1 st approval level); ECM manager (2 nd approval level). 3

4 1.5. ECR types There are two types of ECRs available in FRED: Regular ECR; Extended ECR (if applicable). A Regular ECR is an extra cost and spot price (if applicable) request incorporated in the FRED s ECM tool. A Carrier requests an approval of any unforeseen extra costs and/or spot prices related to a particular shipment. An Extended ECR is an advanced extra cost and/or spot price request, which is usually used when the charges claimed appear after the original invoice has been issued/paid or in case of missing shipment data (the procedure may vary depending on the terms and conditions agreed with the Shipper). This type of an ECR may require additional obligatory fields to be filled in (e.g. account number, service type, origin company name, destination company name and cities, etc.). The shipment data provided by Carrier in the Extended ECR is then used for auditing purposes. The main difference between Regular and Extended ECR is that a corresponding Extra cost ISDR 1 automatically generated as soon as an Extended ECR obtains Confirmed status. is 1.6. Performance indicators An ECR KPI (Key performance indicator) is a type of a performance measurement, which ensures timely ECR submission and resolution ECR submission General ECR submission KPI: a Carrier should submit an ECR in less than 4 working days after the shipment was conducted. In case of post-audit process an ECR should be submitted before the Final Invoice issuance. The ECR submission KPI and specifics may vary. Please check the Shipper SOP document for more detail. IMPORTANT: If an ECR is not submitted according to the KPI, shipment will be included into the ISDR without extra costs, which means delays and discrepancies in payment ECR resolution (approval/rejection) A Shipper should either approve or reject an ECR in less than 2 working days after it was submitted. In exceptional cases, when a Carrier submits an ECR one working day before the billing date, an automatic issue will be opened by the FRED system to prevent such shipments from being included into the billing instructions (ISDR). IMPORTANT: If an ECR is not reviewed according to the KPI, the audit of the shipment will be postponed and the payment may be delayed. 1 - For more information regarding Extra cost ISDR please see Appendix B. ISDR. 4

5 2. ECM process 2.1. Overview Please see below the ECM process flowchart: 5

6 2.2. ECR submission Why do Carrier users need to submit an ECR As non-contractual charges or unpredictable fees cannot be included into the shipment cost calculation, a Carrier should submit an ECR for such charges to cover the discrepancies. Non-contractual or unpredictable costs will not be paid by the Shipper, unless an ECR is submitted by the Carrier and approved by the Shipper responsible person How to submit an ECR Please log in to FRED as described in Appendix A. Logging in and out of FRED and click Tutorials menu option located in the FRED top menu bar. Click How to create an ECR to open the video tutorial. Note: When user attempts to submit a duplicated ECR (i.e. with identical delivery reference), a warning notification appears displaying the link to and the status of original ECR How to create an ECR based on shipment data available in FRED Please note that besides filling in a new, blank ECR form, it is also possible to create an ECR directly from a Web order or ETOF (electronic shipment record). Such method is more convenient since the request form will be partially filled in with the shipment data available in the database. In order to create an ECR from a Web order available in FRED, please search for a necessary Web order as described in Appendix E. Web order, click Select hyperlink and then select Create ECR in the drop-down list. An ECR form will be opened in new tab of your Internet browser. 6

7 In order to create an ECR from an ETOF available in FRED, please search for a necessary ETOF as described in Framework document of FRED User Manual, and then click Create ECR button at the bottom of ETOF Pre-calculation tab. An ECR form will be opened in new tab of your Internet browser. Important: It is highly recommended to check ECR data input for accuracy before clicking Submit button. An ECR cannot be changed after submission How to add different cost types Please follow below instructions in order to create an ECR properly and to avoid re-submission: a) Case 1: All-in rate (lump sum) Enter ONLY Transport cost value and currency. Extra cost field is left EMPTY b) Case 2: Breakdown of costs (freight and other costs) Enter BOTH Transport cost and Extra cost(s) values and currencies c) Case 3: Extra cost on top of other costs calculated based on agreed rate sheet Enter ONLY Extra cost value and currency. Transport cost field is left EMPTY d) Case 4: Only extra cost(s) (no freight charges) Enter Extra cost value and currency. Enter ZERO in Transport cost field 2.3. ECR cancelation Why do Carrier users need to cancel an ECR A Carrier user should cancel an ECR if there are mistakes or incorrect shipment data indicated in the request. 7

8 How to cancel an ECR Please log in to FRED as described in Appendix A. Logging in and out of FRED and click Tutorials menu option located in the FRED top menu bar. Click How to cancel an ECR to open the video tutorial What actions are required from Carrier after the ECR cancellation If an ECR was cancelled because of mistakes, incorrect data, Carrier should create a new, correct ECR ECR resolution Why do Shipper users need to resolve an ECR Shipper should approve/confirm an ECR in order for all non-contractual charges or unpredictable fees to be included in shipment cost calculation. Shipper should not approve an ECR in case it was created improperly (costs or shipment details require correction) and should reject it in case the ECR is not required for that particular shipment How to resolve an ECR Please log in to FRED as described in Appendix A. Logging in and out of FRED and click Tutorials menu option located in the FRED top menu bar. Click How to accept/reject an ECR to open the video tutorial. 8

9 What actions are required from Carrier after the ECR resolution If an ECR is approved and confirmed no further actions from a Carrier are required. If an ECR is rejected or not approved a Carrier is encouraged to carefully review the ECR rejection reason and submit a new request if necessary. 9

10 3. ECR search 3.1. Why do you need to search for an ECR If you are a Carrier user you need to perform ECR search queries in order to monitor the status of your requests (whether ECRs were approved, included into shipment cost calculation or rejected and if new ECRs are required). Proactive ECR monitoring and submission ensures timely invoice approval and payment. If you are a Shipper user you need to perform ECR search queries in order to review all the pending requests within the KPI, which ensures smooth audit process and timely invoice payment How to search for an ECR Please log in to FRED as described in Appendix A. Logging in and out of FRED and click Tutorials menu option located in the FRED top menu bar. Click How to search for an ECR to open the video tutorial Understanding the ECR status Approval status Waiting for approval Cancelled An ECR was submitted by a Carrier and has not been reviewed by an authorized Shipper user yet. An ECR was cancelled by Carrier. Cancelled ECRs will not participate in further approval process. Note: A Carrier can cancel an ECR only before Shipper takes an action to resolve it, which means that an ECR in any status other than Waiting for approval cannot be cancelled. Notification is sent to Shipper regarding the ECR cancellation. 10

11 Approved Shipper user responsible for ECR resolution (or, in case of Multi-level workflow, for the 1 st level of approval) agrees with all the charges and the shipment data provided in the ECR. Note: Additional status ( Waiting for confirmation ) was designed in order to facilitate ECR search for Shipper users utilizing Multi-level workflow. It allows finding the ECRs which are pending action from the second Shipper responsible person. Not approved An ECR was not accepted by an authorized Shipper user. Carrier should carefully review the reason for negative response and create a new ECR if necessary. No additional actions from the Shipper are required Confirmation status Not confirmed An ECR has not been reviewed by a Shipper user responsible for ECR resolution (or, in case of Multi-level workflow, for the 2 nd level of approval). Cancelled Confirmed An ECR was cancelled by Carrier. Shipper user responsible for ECR resolution (or, in case of Multi-level workflow, for the 2 nd level of approval) agrees with all the charges and the shipment data provided in the ECR. Note: In case of a Single-level workflow an Approved ECR is assigned Confirmed status automatically and doesn t require any additional actions from the Shipper. Rejected An ECR was not accepted by an authorized Shipper user. Carrier should carefully review the reason for negative response and create a new ECR if necessary. Note: In case Shipper user responsible for ECR resolution (or, in case of Multi-level workflow, for the 1 st level of approval) decides not to accept the ECR (either not approves or rejects it), an ECR will be automatically assigned with Not approved approval status and Rejected confirmation status. While in case second approver in Multi-level workflow decides to reject the ECR, it will have Approved approval status and Rejected confirmation status simultaneously. In both cases ECR will not be applied for calculation. Expired An ECR was accepted by Shipper but not mapped to any particular shipment record for a certain period of time agreed with the Shipper. An Expired ECR can no longer be included in the cost pre-calculation and must be resubmitted by the Carrier according to the standard procedure Mapping status Mapping is a process, when an ECR is being applied to the appropriate shipment record (if such exists in FRED) for further correct audit. Mapping status shows if a certain ECR is included into the shipment cost calculation. There are two mapping statuses in FRED system: Not mapped; Mapped. Not mapped An ECR is not linked to a particular shipment record (ETOF) and not included into the shipment cost calculation. An ECR might be assigned such status in the following cases: if there is no ETOF for this particular shipment in FRED; 11

12 the ECR was filled in incorrectly and cannot be linked to a corresponding ETOF in the database because of the shipment data inconsistency; late ECR submission. Mapped An ECR is linked to a corresponding ETOF and included into shipment cost calculation. Note: An ECR can also be mapped to an Extra cost ISD instead of ETOF if so agreed with the Shipper. 12