Section: Sentricon Administration

Subject: Invoice Reconciliation

Approved by: Eddie Faircloth

Effective Date: 23 September 1999

Last Reviewed Date: 23 September 1999

Policy Owner: 

Policy #

DOW SENTRICON INVOICES

Dow AgriSciences invoices us monthly on the Sentricon accounts entered into the ProLinks Sentricon Database. Dow charges Sentricon authorized operators, such as Massey Services, a per linear foot user fee on each new initial installation. There is also an additional fee due each year on the anniversary date (13th month) of the initial installation

TIMELY PROCESSING

These invoices will come directly to each designated Sentricon Service Center each month and must be processed in a timely manner and in the same manner as any other payable. We are eligible for a 2 percent discount on the monthly invoice, but the window of opportunity to qualify for this discount is very short. It is imperative the invoice is processed immediately upon receipt to qualify for the discount. (20 days from date of invoice)

INVOICE RECONCILIATION; PROLINKS TO ROUTEMAN

Before Sentricon invoices can be processed for payment they must be reconciled. This reconciliation consists of verifying the data in Routeman with the data in ProLinks System.

Generally speaking this means the linear footage on any Sentricon installation in ProLinks should agree with the linear footage on that same installation in Routeman (Sentricon, Value of Routes.) 

This linear footage should have been established and reconciled initially between the Sentricon Sales Inspector’s measurements of the installation, (structure) and the Sentricon Technician’s measurement of the installation (structure). 

Any discrepancies must be verified and corrected (Call Dow AgriSciences to report any adjustments to any ProLinks Sentricon invoice.)

Do not make any adjustments to the Sentricon invoice without notifying Dow and making them aware of the specific adjustments that have been made.

The following administrative procedure details the reconciliation process necessary for monthly processing of the Dow/Sentricon invoice. This procedure allows for verification of the charges on the Sentricon accounts between the Dow invoice, Routeman System and the ProLinks System, adjustment of any discrepancies and processing the invoice to accounting for payment.

1. Sentricon Account Prior Payment Verification
   1. Verifying these charges were not previously paid to Dow in a prior month. To accomplish this:
      1. Process the following reports;
         Routeman System – Value of Routes Report (Route 61) (See Exhibit A) for each Service Center handled through your office. 
         ProLinxs System – Client List (See Exhibit B)
         Please Note – (If you have entered previous month’s payment information in the Routeman System, you can go directly to Step B.
      2. Using the prior month’s reports (Value of Routes Report and Prolinx Client List) if you do not have the prior month’s reports, you can obtain payment information from the corporate Accounting Department as to which accounts have been paid previously and which month they were paid. 
         On the current report, note the month paid next to any account that was previously paid. For Example: if an account was paid from April, 1998 invoice, write 0498 next to the account.
      3. Once you have noted all accounts previously paid to Dow, this payment date information must be entered into the Routeman System, under the Service Location Master, Service Type 4, (M)odify, Field 11, Enter the 4 digit code, (MMYY; example 0498 for April ’98.) By entering this information into the system, payment dates will appear on the Value of Routes Report allowing you to verify the accounts previously paid from this report each month.
2. Dow Invoice Charges
   Charge Reconciliation
   1. Verify that the charges on the Dow invoice are at the correct rate. All accounts (since 1/2/99) should be charged at $1.65 per lineal ft. under the description of Curative User Fee orCommercial User Fee.
      1. Any account charged incorrectly must be re-coded in the Prolinx System in order for Dow to correct our billing.
      2. Note any account charged incorrectly on your adjustment worksheet. (See Exhibit C) These accounts must be paid as invoiced, with the “adjusted” amount being paid when invoiced next month. Retain a copy of your adjustment sheet for reconciliation purposes the following month.
      3. Using the adjustment sheet from the prior month verify any account which was “corrected” last month to be sure the correction was downloaded to Dow.
   2. Verify the lineal footage charge on the Dow Invoice against the (Prolinx) Client List and (Routeman) Value of Route Report.
      1. Lineal footage reconciliation listed for each account must agree.
      2. All lineal footage listed for each account must agree.
      3. Any discrepancy must be corrected. Check against hard copy file records to determine which charge is correct.
         1. Note on a separate adjustment sheet any discrepancies as you check.
         2. Make all necessary corrections on the Prolinx and Routeman System as noted on your separate adjustment sheet.
            1. If you are reconciling the charges for other service centers as well as your own be sure to inform the appropriate service center to correct any changes on the Routeman System for their accounts.
         3. If you make any changes to the Routeman System, process a corrected copy of the Value of Routes Report now to ensure all information was input correctly.
      4. If you must make an adjustment in lineal footage on the Prolinx System, Dow will not receive these changes until we download the information.
         1. To properly process the invoice and any corrections, it is essential we contact Dow (using the number listed on the invoice) and report any overcharges for which we will need a credit. You will be given authorization to take the credit on this invoice. Note this authorization, (date and representative’s name) directly on the invoice. You can then take the credit adjustment off this invoice.
         2. If the correction results in an additional amount due to Dow, we must correct the Prolinx System and note this adjustment on your master adjustment sheet with any accounts not charged at the correct rate. We will not be able to adjust the payment amount on this invoice. Dow will bill the corrected amount on the next month’s invoice.
            In order to track any of these adjustments until the corrected charge comes through from Dow, you will need to retain a copy of your adjustment sheet(s).
      5. After all reports are verified, run a calculator tape of lineal footage for each report, breaking it down by service center.
         1. ALL TOTALS MUST AGREE.
            1. Routeman (Value of Routes)
            2. Prolinx (Client List)
            3. Dow Invoice
               1. Include the total of the Adjustment Worksheet.
      6. Multiply lineal footage for each office by lineal footage installation charge for total baiting materials charge.
         1. Discount – Calculate 2% of each office’s total baiting materials charge.
         2. Subtract 2% amount from the total baiting material reconciliation amount. This is what you will enter on the accounts payable voucher for payment processing; see section D (Complete Accounts Payable Voucher) below.
   3. Prolinx Software Barcode Helpdesk.
      1. Each invoice will include a monthly charge for the rental of the barcode equipment.
         1. The first unit is $55 with a charge of $35.00 for each additional unit.
         2. Divide the Prolinx Software Barcode Helpdesk charges evenly by the number of service centers handled through this office. (Example: Daytona’s billing includes Daytona, Port Orange and Orange City. The $55.00 would be charged as 18.33 for each office. $55.00 ÷ 3 = $18.33.)
3. Complete Accounts Payable Voucher
   1. List each Service Center Baiting Materials charges separately. (Account #52036) (Be sure to use amount after 2% discount.)
   2. List each Service Center Prolinx Software Barcode Helpdesk charges separately. (Account #62755) (Be sure to use amount after 2% discount.)
   3. Total the charges. This amount should equal the Dow Invoice and your Adjustment Worksheet. (See Exhibit D)
   4. Submit both reports, Client List and Value of Routes Report with your A/P Voucher, Dow Invoice and Adjustment Worksheet to accounting for payment. 

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