Chapter 11 Finance & Billing (Apparel & Accessories)

Transcription

1 Chapter 11 Finance & Billing (Apparel & Accessories) I. Billing/Accounts Payable Contact Information... 2 II. Terms of Payment... 3 III. Vendors Buying Agent... 4 IV. Vendors -Non-Buying Agent... 5 V. Payment Documents Required for Destination Talbots U.S. and Talbots Canada... 6 VI. Development Sample Policies... 7 VII. Physical Quantity Discrepancies VIII. Additional Charges... 11

2 I. Billing/Accounts Payable Contact Information Billing Options - Use only one of the listed methods for submitting invoices. Option 1 - Mail Talbots Inc PO Box 9562 Manchester, NH Option 2 - TalbotsInvoices@nedocs.com Each should contain only one invoice Format: tiff or pdf Do not links to invoices Do not embed invoice into the Do not use this address for invoice inquiries Option 3 - Facsimile (781) Each fax should contain only one invoice All billing inquiries and correspondence should be ed to accountspayable@talbots.com Address for additional trade-related mail: The Talbots, Inc. Accounts Payable One Talbots Drive Hingham, MA

3 II. Terms of Payment When a new vendor is approved, payment terms will default to Open Account 60 days from start ship/schedule date In the event circumstances occur whereby Open Account 60 days from start ship/schedule date is not feasible due to statutory requirements of a particular region, etc., we will work with vendors to identify a mutually acceptable alternative. Please direct this inquiry to your primary Talbots Sourcing contact. 3

4 III. Vendors Buying Agent Talbots utilizes Li & Fung (L&F) as a buying agent. Through this relationship, Talbots vendors purchase orders / payments are processed through L&F Vendors are required to submit all payment documents (as noted in the sections below) to L&F > L&F will consolidate/submit to Talbots for payment > Talbots will remit payments to vendors via L&F Questions regarding this process can be directed to your local Li & Fung contact or to Talbots accounts payable address: accountspayables@talbots.com 4

5 IV. Vendors -Non-Buying Agent Talbots uses a variety of channels for procuring merchandise. All invoices and other payment documentation, as noted in the sections below, should be sent directly to Talbots as instructed in Section I of this Chapter. All payments will flow directly from Talbots to the respective vendor. 5

6 V. Payment Documents Required for Destination Talbots U.S. and Talbots Canada Commercial Invoice (sample included in Chapter 10, Page 10) Packing List/ ASN (Advanced Shipment Notification) Signed Inspection Certificate by an authorized party of the buyer Transport Document o o Imports Forwarder s Cargo Receipt and/or Bill of Lading (House Air Way Bill or Sea Way Bill) evidencing actual ship date. Documents are to be issued by Talbots nominated service provider and consigned to the buyer. Domestic Straight Bill of Lading issued by a Talbots nominated service provider All values and quantities shown on payment documents must be consistent across all documents and equal to the actual shipment. 6

7 VI. Development Sample Policies Buyers Agent Only Sample Payment Policies Vendors using the Buyers Agent Li & Fung must address invoices to Talbots and indicate "c/o: Li & Fung Centennial Pte Ltd. and send to Li & Fung Merchandising contacts All development sample invoices must be received within 30 days of bulk order placements for the same season Each invoice must include style number/fabric reference number/season, as available. Additionally all invoices should be coded in the upper right hand corner as directed in the sample coding chart below. Li & Fung will validate, consolidate, and submit invoices to Talbots Payment terms will be Open Account 60 days from receipt of invoice by Talbots Talbots will incur the following sample-related expenses: o All photo/ visual samples requested post line adoption o Fabric, trim, screens developed but not purchased for bulk Vendor is responsible for the following expenses: o Line presentation samples on styles also produced for bulk o Fit samples Sample Payment Policy Compliance with U.S. customs is required. If payment of a sample is the responsibility of Talbots, the invoice presented for payment must include (with attached) all commercial invoice(s) used to ship the sample, and the electronically generated FedEx airwaybill with customs value. If a discrepancy exists between the commercial shipping invoice and the payment invoice, Talbots will only pay up to the value declared to U.S. Customs. There is no change in delivery requirements. Please continue to deliver invoices for payment (with required documentation) via your current method 7

8 MAST and/or Direct Factories Invoices should be sent to Talbots directly at the address indicated in Section I. of this chapter All development sample invoices must be received within 30 days of bulk order placements for the same season Each invoice must include style number/fabric reference number/season, as available Additionally all invoices should be coded in the upper right hand corner as directed in the sample coding chart below Payment terms will be Open Account 60 days from receipt of invoice by Talbots Talbots will incur the following sample-related expenses:: o All photo/ visual samples requested post line adoption o Fabric, trim, screens developed but not purchased for bulk Vendor is responsible for the following: o Line presentation samples on styles also producing for bulk o Fit samples Sample Payment Policy Compliance with U.S. customs is required If payment of a sample is the responsibility of Talbots, the invoice presented for payment must include (with attached) all commercial invoice(s) used to ship sample, and the electronically generated FedEx airwaybill with customs value. If a discrepancy exists between the commercial shipping invoice and the payment invoice, Talbots will only pay up to the value declared to U.S. Customs. There is no change in delivery requirements. Please continue to deliver invoices for payment (with required documentation) via your current method 8

9 Coding for Sample Invoices All invoices must have a 6-digit code, denoted in the top right hand corner of the invoice First two digits will indicate the type of sample (per below matrix) Last four digits will refer to the season and year Sample Type Category Code Details Development Samples 01 Line presentation and other development samples Excess Fabric Yardage and Materials 02 Screen Prints 03 Screen print charges Sample yardage, dyed fabrics and materials (trim, buttons, sequins, etc) Screen Printed Yardage 04 Excess yardage that is screen printed PR Samples 05 Samples for Talbots Public Relations CEO Samples 06 Samples for CEO Photo Samples 07 Samples for photos Season/Year Fall 2013 Holiday 2013 Spring 2014 Summary 2014 Code FL13 HR13 SP14 SM14 Examples: 6 Digit Code Trim for Holiday HR13 Photo Sample for Spring SP14 9

10 VII. Physical Quantity Discrepancies An ASN is a required document as detailed in the preceding Section V. Failure to provide an ASN will result in an automatic $500 charge per incident. Talbots will pay vendors for actual units received. In the event an invoice quantity exceeds the ASN quantity, Talbots will pay based on actual quantity received. A chargeback for the invoice overage will be submitted to the vendor. Quantity count by Talbots will be final. The Lakeville Distribution Center (DC) will charge for all incorrect ASN (Advanced Ship Notices) at a rate of $500/ASN or $50/hour, whichever is greater, to re-count, adjust and correct orders 10

11 VIII. Additional Charges Talbots reserves the right to charge vendors for late deliveries at a charge of 1% of first cost/day Vendor guide violations may result in additional penalties not specifically outlined here if the ramifications are deemed significant Fees charged will be deducted from open account balances; If there is no open balance, vendor will wire finds to Talbots Below is a summary of key charges vendors may incur (not intended to be comprehensive) Description Testing Costs Fit Samples & Development Samples Fee Development, bulk, re-testing, shipping of samples, producing the sample required for testing and/or wear testing for development and production testing. Vendor to pay for samples when producing the bulk order Administration fee added to each noncompliance notification Non-compliant merchandise Lakeville DC internal rectification costs for re-counts, repackaging, labeling, ticketing or sorting for incorrect quantities Costs incurred managing noncompliant delivery ( third party reprocessing, supplies, freight, etc) In event of a material non-compliance, Talbots may elect to charge a lost profit penalty Safety violation Sharp objects found in orders/shipments (knives, scissors) that threaten safety of associates and customers Failure to provide an ASN or provide incorrect information Delivery Delays $500 per PO for inventory inspected or reprocessed by 3rd party; $500 per PO for inventory returned to the vendor Vendor will pay for removal of product branding/intellectual property, re-packaging and destruction of product Vendor will be debited for landed duty paid value of the merchandise $50/hour Invoice dollar ($) value received from third party Lost profit is calculated based on the gross profit per unit Talbots would have generated had the rejected units been available for sale Calculation will take into consideration the sell-through experience of the style and amount of time units missed Brand Moment, if recoverable No less than $1,000 for first offense; no less than $5,000 for each additional offense Third party safety audit performed at the vendor's cost $500/ASN or $50/hr to recount, adjust and correct orders whichever is greater Charge of 1% of first cost/day 11