SALES ORDERS FINANCE REQUIREMENTS
RISK TO NON-COMPLIANCE TO STANDARD TERMS
AR COLLECTIONS POLICY & GUIDELINES
ORDER ENTRY
CASHFLOW (CCC & CASH GENERATION)
100
What are Kelvion Standard Payment Terms (in days)?
30 days post invoice
100
Do you need approvals for non-standard terms for projects under the TRAS threshold?
Yes – small orders can lead to risk and set expectations with future orders.
100
When are interest letters sent to customers (in days)?
14 days overdue if no quality issues.
100
Can commission or freight be added in the piece price for commission orders?
No, as the rep would be getting paid commission twice and we do not pay commission on freight.
100
What does CCC stand for?
Cash Conversion Cycle
200
What is the TRAS ALT Approval Checklist and why is it required?
TRAS approval checklist contains 13 questions, to be reviewed by Service Controller prior to TRAS approval meeting, covering all potential financial exposures and mitigating actions where needed
200
What is the suggested cap on our liability?
Our goal is to have a cap of 1x the PO value.
200
When are On-hold & Demand letters sent to customers (in days)?
30 days overdue if no quality issues.
200
Can a sales rep approve drawings on behalf of the customer if the PO or quote states customer approval required?
No. Also, the drawing needs to be signed and dated not an email stating acceptance.
200
What are the two main reasons cash is important?
1. Finance the operation of the business
2. Invest in future growth
300
What is Atradius and why is it required?
1. 3rd party customer credit checks
2. Credit MUST cover order value + outstanding AR balances for insurance on uncollectable balances
300
Name 2 risk of shipment terms not equal to EXW Shipment Point?
1. Product Insurance
2. Timing with volatility of Freight Carrier costs not covered in quote
3. LDs for late deliver caused by Freight carrier
300
What is our % AR overdue balance for 3/31/2024 (end of Q1 2024)?
37% - (Excluding Legacy Pre-Legal Accounts Legacy and Google = 36%)
300
What % of orders received in 2024 had issues affecting the ability to directly enter the order in the system?
(RT / Rhino only) 48%
300
What are the 3 of the 4 key components of Trade Working Capital (TWC)?
Inventory, Accounts Receivable, Accounts Payable, Advanced Payments
400
What is the Standard Transfer Price Policy for COGS calculation for Pass-Through Sales and Purchases for Internal Production?
Pass-Through Sales COGS = Sales Price – 15%, Purchases for Internal Production (MCS) COGS + 15% (PHE) COGS + 8.3%
400
Name 3 things that Kelvion will indemnify for on a Comparative Fault basis.
1.. Willful Misconduct
2.. Gross negligence
3. Breach of Statutory Duty
400
How many different payment terms are used with our active customers? Answer within +/-2
19 (Bonus Question for 100) – How does commission progress payment terms impact revenue recognition?
400
What is the Kelvion location required on the PO?
Kelvion Products Inc. 5050 S. National Dr. Knoxville TN 37914
400
What is the difference between Cash Conversion Cycle and Cash Generation?
Cash Conversion Cycle focuses on the efficiency of working capital management and the speed of cash conversion in the operational cycle, Cash Generation evaluates the net cash flows generated by a company's operational activities over a given period, reflecting its ability to generate cash from its core business operations
500
What is FX and how do you mitigate exposure pre and post an order?
FX = Foreign Exchange
1. Pre – quote language with cost reviews followed by price adjustments prior to accepting an order
2. Post order – Finance hedging against supplier POs
500
What is the difference between Standard and Extended Warranty? P&L Impact?
Standard recognized at sale & extended is deferred and recognized over the contract's coverage period
500
What is the difference between a customer payment discount and Rebate Program? Do we accept both option?
Both options require approval from CEO/CFO.
500
What are 4 required inputs in on Order Handover Document?
Product line, Profit Center, Vertical Market, Green Tech/High Tech
500
Name 4 ways you can contribute to CCC results?
