Process (inc. Invoicing Policy), Timings & FAQ

  Process

 

•   Ordering

  We divide the year into 2 semesters

             S1 May-Oct activation

  S2 Nov-Apr activation

 

•   Commitment Windows

We offer 2 ‘Commitment’ windows - November for S1 & May for S2.

 

•   Immediate Orders

Besides the 2 commitment windows we also offer an Immediate Orders website. The intent of this site is to compliment the Commitment windows, not to be a substitute for them. The volumes kept in inventory to cover this function are based on historical data, but tend to be modest. Using the Immediate Orders site for all your needs & not using the Commitment windows is not recommended, as it would most likely result in disappointment

 

•   Custom Orders

If you have needs beyond what is offered on the Commitment & Immediate sites we also offer a ‘Custom Orders’ service. For this function please contact brand managers of specific brands. You can find inspiration in the ON DEMAND category.

 

• Pricing & invoicing

Our invoice currency is EUR

 

Commitment window pricing (planned pricing) is based on historical volumes & is subject to change once we have rolled up all the commitments. If the volume based pricing is different than planned pricing by plus or minus 10 percent we notify the effected markets, providing an opportunity to modify numbers. We don’t communicate within 10%, as history shows the plus & minuses within that range cancel each other out.

 

Final pricing for each commitment window is made 2 weeks out from commencement of deliveries & is currency based – we buy in 5 currencies & sell in 1 so need to leave the exchange rate piece to the very end.

 

Freight will be calculated and send on the invoice proposal, after packing the order. If you have any special conditions, please let us know in advance. You can find the freight estimate under the FREIGHT ESTIMATE tab on the website.  

We must physically invoice every customer/market for all goods shipped, in other words no coding to cost centres is possible, this is a Czech VAT requirement (see Prague POS Invoicing Policy below for more detail)

 

 

• Shipping commitment orders

If you require that a PO is provided before we can ship then this must be provided at least a month before shipping.

If you require your own warehouse sku (MDA codes, MN codes, Dascher codes) codes then these must also be provided in a timely fashion (at least one month before the shipping window)

If you have any other special conditions (eg pallet type, weight or height requirements) then these must also be known a month in advance.

In going forward we will be charged if a completed order can’t ship because information hasn’t been provided on time. The packed pallets will be placed back on the warehouse racks – this extra handling cost will be charged to the market.

If booking into to your warehouse for delivery is required then it’s your responsibility to ensure that we have all the necessary details well in advance.

If we get fined, or turned away from your warehouse because you did not provide required information then these charges will on-charged to your market.

 

• Shipping immediate orders

If you require: PO

                     Own warehouse SKU

             Other special conditions(eg pallet type, weight or height)

This must been sent out at the same time as placing the order.                    

• Shipping prioritization

It’s physically impossible to ship all orders to all markets at once. The S1 POS/T1 Gift window is by far the largest spike & to further improve efficiencies going forward we are implementing the following:

Moving from ‘unit sales’ to ‘case sales’ will speed up picking & packing. Moving to EAN scanning will also speed up picking

Closing down Immediate Orders & Employee deliveries during peak periods will allow for greater focus on Commitment orders. For S1 POS & T1 Gift the Immediate Orders site will be closed from mid-April to the beginning of June. Employee orders closed from mid-April to the beginning of July.

Own Distribution markets will receive S1 orders in April & balance sheet at their end, this will provide a huge head start to the year – the goal is to have all other markets shipped out of Prague by the end of May.

Commitment Orders always take priority over Immediate Orders.

 

 

  F21 Timings

 

•   S1 POS

 

Website opens for shopping 25th of October.

 

Website closes for ordering 22th of November.

 

Items not being made communicated to markets by mid January.

 

Final pricing communicated to markets by invoice proposal - starting May.

 

Deliveries from 2nd May onward.

 

Our aim is to deliver as much as possible as soon as possible & we double the warehouse staff from April-June in order to do that. We prioritize as best we can & will even ship partial commitments for urgent needs.

 

•   S2 POS

 

Website opens for shopping on the 4th of May.

 

Website closes for shopping end of May.

 

Items not being made communicated to markets by end of June.

 

Final pricing communicated by invoice proposal mid-October.

 

Deliveries from November onwards.

 

•   Immediate Orders website

 

Site shows live inventory numbers for every SKU

 

Immediate Orders can usually ship within days of the order being placed, the exception being if it’s placed when semester commitments are being picked, packed & shipped – priority is given to commitment fulfillment

  

 

FAQ (frequently asked questions)

Q. What do I do if my website access doesn’t work?

A. If “Forgot your password” button does’t help contact Katerina Tomkova (katerina_tomkova@b-f.com) who can check on the administration site if there’s an issue with your access, or will arrange access for someone new to the process

Q. Who do I contact for brand related questions?

A. FV brands, Woodford, Slabe and Scotches (BenRiach, GlenDronach, GlenGlassaugh) - Petra Reslova  (petra_reslova@b-f.com)

Jack Daniel's Tennessee Whiskey, Jack Daniel's Tennessee Honey, Jack Daniel's Tennessee Fire, Single Barrel, Gentleman Jack, Jack Daniel's Rye - Martina Jurkova (martina_jurkova@b-f.com)

Q. If there’s a discrepancyin pricing between the Worksheet & the website which is accurate?

A. The website – a revised quote may have come in after the Worksheet was completed.

Q. Why do some items have different prices on the Immediate Orders website?

A. Because that was the exchange rate at the time that item was purchased whereas NP Planned Pricing is based on current exchange rates.

 

 

PRAGUE POS INVOICING POLICY

 

Background 

1.       POS is purchased and supplied by Prague POS center. Legally and fiscally this activity belongs to Brown-Forman Czechia, s.r.o. (BFCS). Fiscal rules do not allow BFCS to expense POS material supplied to other markets directly - the expense would be tax non-deductable for corporate income tax and VAT of 21% would need to be expensed on top of the purchase price. Therefore POS shipments from BFCS need to be invoiced out, either to a Brown-Forman entity, or to a third party distributor that will actually use the POS material. The ship-to may or may not be the same as the invoice-to.

2.       The invoice-to always needs to pay the POS invoice to BFCS within the payment term stated on the invoice.  

3.       For correct fiscal treatment, it is critical to identify the correct invoice-to before the shipment is made. Depending on the relation between invoice-to and ship-to, the Czech output VAT is applied and reported. The typical scenarios are following:

a.       Invoice-to and ship-to are based in the same EU country and invoice-to has an EU VAT number: no Czech VAT is applied, both BFCS and invoice-to need to report the shipment in INTRASTAT

b.      Ship-to is outside EU, export of the POS from EU is proved by customs documents. Then no Czech VAT output is applied, regardless of invoice-to location, and zero export VAT is reported.

c.       Shipment is sent from the supplier directly to the final ship-to while BFCS is invoiced by the supplier and then issues an invoice to the final invoice-to. VAT treatment needs to be assessed individually.

d.      Ship-to is in one EU country but invoice-to is in another EU country or  outside EU. The Czech VAT of 21% may need to be applied which would not be recoverable, actual VAT treatment needs to be assessed individually.

 

Responsibility of Marketing Managers

 

 1.       Before you place an order for POS to BFCS, contact internally the Finance Manager responsible for the respective market to verify the invoicing scheme for the required ship-to.

 

Responsibility of Finance Managers

 

1.       For the given market / ship-to, provide or confirm the invoice-to details to the POS center (currently Katerina Pokorna : katerina_pokorna@b-f.com):

a.       Legal name and address

b.      EU VAT number, if applicable

c.       Contact person to whom the invoice is to be sent electronically for processing and payment.

 

 

Responsibility of the POS team

 

1.       Shipment will not be sent without confirmed invoicing details as above

2.       Confirm the correct VAT treatment for scenario 3c and 3d above with the local accounting team

 

Write off policy

 

1.       In the event that an outstanding balance has to be written off, the value of the amount, along with the unavoidable tax implications (CIT of 19% & possibly VAT of 21% also, will be journaled to that market)

2.       At the beginning of a new fiscal year, any amount that is beyond 180 days past due & has had 3 unanswered requests for payment, will automatically be written off