Production Control

Relationship between Invoice and Shipping Slip

2015/12/02

インボイスと出荷伝票の関係

The relationship between packing lists and invoices and invoices

It appears that Japan will switch from the current bookkeeping system to the invoice system in order to clarify the tax treatment associated with the introduction of reduced tax rates from 2021.

The advantage of the invoice method is that it is obliged to specify the applicable tax rate and tax for each product on the invoice, and the copy of the invoice kept by the business is clear as the evidence of the transaction subject to taxation, so the tax collection omission is reduced.

In Indonesian domestic transactions, the delivery order (D/O) is a delivery slip of goods and is used by the customer to check the value of the goods, but the value is not indicated.

On the other hand, the invoice is an invoice for the money and should be delivered with the D/O at the time of shipment, but in most cases in Indonesia, the delivery is first and the invoice is later.

When you bring the invoice to the customer, if you bring a copy of the D/O while the original is still in the accountant's possession, the customer will refuse to accept the invoice.

Also, when importing materials from Japan or exporting them from Indonesia, a packing list is required as a detailed description of the contents of the container to be submitted to the forwarder, and the D/O is sent separately with the invoice by FedEx or DHL, and arrives before the shipment.

The relationship between the Bill of Lading (B/L) and the Salenade B/L and the Arrival Notice (Arrival Notice)

When I was exporting furniture in Bali, the cargo company did packing, packing list making, and application for Bill of Landing (B/L) to the shipping company by All in One, so it was very easy.

Around 2005, I think the cheapest price for a 20-foot container of K-Line, including a 20-foot container and agency procedures, was about $1,300 for a major port in Japan.

The B/L is the proof of acceptance of the cargo by the shipping company in Indonesia, and it is required to receive the cargo in Japan, but this B/L is a problem in the case of furniture shipping from Bali.

Since the bill from the cargo company to me is settled before the stuffing (container loading), it is human nature to neglect to follow up after the money has been paid.

When we are late in issuing the B/L to the shipping company, we get emails from customers saying, "I received the Arrival Notice from the Japanese shipping company, but I haven't received the B/L from Indonesia yet..." and we sweat in cold sweat.

Normally, B/Ls issued by the shipping company in Indonesia are sent directly from the cargo company to the customer, but usually the ship arrives before the B/Ls arrive.

As a result, on more than one or two occasions, we have been unable to pick up containers after the ship's arrival at the port of unloading, which has resulted in the customer incurring warehousing fees.

In such cases, we ask the cargo company to "Surrendered as soon as the shipping company issues a B/L". In the case of normal B/L procedures, the

  1. Surabaya shipping company issues B/L: Start
  2. Ship original B/L from Surabaya Shipping Company to Bali Cargo Company:n+2 days
  3. Original B/L from Bali cargo company to Japanese customer:n+5 days

In the case of Surrendered, the B/L is endorsed (Balik nama) by the Indonesian side to the shipping company, which proves that the cargo belongs to the customer for sure.

  1. Surabaya shipping company issues B/L: Start
  2. Surrendered treatment:n day
  3. Surabaya shipping company sends Surrendered B/L to Bali cargo company by fax:n day
  4. Sending Surrendered B/L from Bali cargo company to Japanese customer by fax:n day

Even if the B/L doesn't arrive in time to pick up your shipment, you can pick up your shipment on the same day without the original B/L.

We used to call this process Surrendered B/L or Telex Release.

Factors that cause document ties to be broken

Now, going back to the system business flow for domestic transactions, if all documents (slips) correspond to one to one, the flow will be as follows.

  1. The order number is assigned to the order registration.
  2. Recall the order information by selecting the order number at the time of order registration.
  3. Recall the order information by selecting the order number when registering for receiving goods.
  4. Recall the arrival information by selecting the arrival number when registering the shipment.
  5. Recall the shipping information by selecting the shipping number on the invoice.
  6. Recall the invoice information by selecting the invoice number at the time of settlement registration.

If sales are registered in order management or shipping management, invoice registration in accounting is skipped, and in this case, the timing of A/R generation is when sales are registered.

Also, direct shipping from the manufacturer will result in drop shipping, skipping incoming and outgoing shipments.

Normally there is no connection between an order and an order, but in the case of non-manufacturing industries (e.g. trading companies), there are cases in which the basis of transactions is based on an order.

Nevertheless, there are certainly elements in the business flow that affect document ties.

  1. Purchase Order
    -Pre-Order Forecast Order
    -Do not order inventory, reserve only
    -Order multiple orders at once
  2. Receiving
  3. Shipping
    -Partial delivery
    -Terminated
    -Return
    -Multiple orders (orders) are shipped (received) at once.
    -Shipping samples from stock before receiving an order.
  4. Invoicing(A/R)
    -Invoice for multiple shipments (monthly summary)

It is possible to implement functions that cover these in a business system, but there is a trade-off in that the system becomes more complex.