Delay Reduction in Invoicing Samples for Students †MyAssignmenthelp.c

Question: Discuss about the Delay Reduction in Invoicing. Answer: Issues in Invoicing In the process of Invoicing, a number of common errors tend to deter on invoice request forms leading to impediment in processing. The most common issues that occur while completing the forms are as below: Complicated Tax Invoicing: Australian business, when making a taxable sale of over $82.50 (comprising GST), the GST-registered consumers require a tax-invoice from the sellers. Now, this tax invoicing is a rather complicated process and involves a lot of requirements such as the identity of the seller, the ABN number of the seller, the date of invoice issued, the description of the sold items and their quantity and the GST amount is to be included (Lippet 2014). Due to this, the tax invoicing becomes complicated and delays the whole process. Missing VAT registration Number: In some countries, the VAT registration number is necessary if the organization is registered as VAT liable in the country. Missing Contact Details: While billing, the name and phone number of the third parties are not taken at times and that if the payment is not made for some reason, it becomes essential to contact the third party to talk about the non-payment. Overdue Bills: The main issue with the Australian companies invoicing is the overdue bills and CBRE GWS Pty Ltd is no exception to this. The businesses of the Australian companies are being suffocated under the weight of these unpaid bills causing delay in the whole business process. Statistics show that merely 12 percent of Australian small businesses ask for upfront payment with two-thirds and it takes up to almost a week to discharge an invoice (Beattie 2016). In this context, 29 percent of small Australian businesses agree that reduction in time taken to get the invoices paid will be effective for them to run the business efficiently. Authorizer: If the credit note does not have a different authorizer to the actual requestor or are not the listed person on the essential codes then the invoice cannot be processed. Application of Lean Operation The lean operation is a method and effort used to minimize the process expenditure by eliminating waste and various service errors. The lean philosophy helps to identify the inefficiencies in the process or unnecessary wait time for execution caused by defects or other reasons. There are various types of waste in an industry but the most relevant ones for invoicing is delay or wait time in processing (Arunagiri and Gnanavel Babu 2013). As for the concerned company,CBRE GWS Pty Ltd, the six sigma program was launched by Motorola to offer a worldwide language for being of global standard and measuring quality. The steps to delay reduction according to the six sigma model proposed by Motorola are: Process Enhancement by Design: The enhanced process is the outcome of alterations made to the design of a process. An ideal lean operation contains three basic steps, flow, standardization and problem solving (theleanway.com, 2017). The focus of solving problems is not on design; rather the focus is on doing patchwork on the present design, amending unexpected design and immediate fixes to customer dissatisfaction due to unorganized way of invoicing. Process Enhancement through Prevention: The system of process enhancement or process improvement is a proactive move that seeks to understand the root cause and prevent the reoccurrence of such inefficiencies in the process. According to the six sigma lean operation, the only way to prevent the occurrence is to alter the entire design itself i.e. to remove the areas of complications in the invoice process such as complex tax invoicing process (Hildebrand 2015). Improving the Process through Simplification: As the six sigma lean operation states, process improvement is synonymous to process simplification. Reduction in process defects or shrinking the time of cycle speed up process like invoicing removing time delays, needless activities or design errors (Arunagiri and Gnanavel Babu 2013). As in the invoice processing, the missing contact details or other things like ABN number, GST amount and various other requirements tend to slow down the process. If these complications can be simplified the number of overdue bills will be decreased. On the other hand, as for the tax invoicing, using accounting, ERP, POS or other systems this operation can be leaned down. Installation of invoicing software such as MYOB Essentials and MYOB AccountRight,can also help the invoicing become compliant and streamlined (Madytianos, 2017). This computerized system will enable the company to manage the GST requirements and in this way, CBRE GWS Pty Ltd can avoid fi nes and penalties foe overdue bills. References: Arunagiri, P. and Gnanavel Babu, D. 2013. Review on Reduction of Delay in manufacturing process using Lean six sigma (LSS) systems. [online] Available at: https://www.ijsrp.org/research-paper-0213/ijsrp-p14117.pdf [Accessed 15 May 2017]. Beattie, A. 2016. Unpaid Invoices Are Suffocating Aussie Small Businesses. [online] Huffington Post Australia. Available at: https://www.huffingtonpost.com.au/2015/11/16/unpaid-cost-business_n_8539900.html [Accessed 16 May 2017]. Hildebrand, D., 2015. E-invoicing as the Principal Driver of Change in B2X Letter Market Definitions. InPostal and Delivery Innovation in the Digital Economy(pp. 277-289). Springer International Publishing. Lippet, S. 2014. How To Reduce Time To Invoice. [online] Deltek.com. Available at: https://www.deltek.com/en-gb/learn/blogs/uk-blog/2014/08/reduce-time-to-invoice [Accessed 15 May 2017]. Madytianos, P. 2017. 6 things you need to know about invoicing - The Pulse Australia. [online] The Pulse Australia. Available at: https://www.myob.com/au/blog/things-you-need-to-know-invoicing/ [Accessed 17 May 2017]. theleanway.com 2017. [online] Available at: https://file:///C:/Users/admin/Downloads/1415938_988694280_ILSIntruductionLeanSystem%20(2).pdf [Accessed 17 May 2017]. Younes, B., Boufergune, A., Al-Hussein, M. and Yu, H., 2014. Overdue invoice management: Markov chain approach.Journal of Construction Engineering and Management,141(1), p.04014062.