Core Ops thread
Still figuring out how this works
Poll Created Thu 6 Dec 2018 4:28PM
Proposal to move V2V to weekly invoicing and Net30 terms Closed Sun 9 Dec 2018 4:02PM
We are moving all V2V contractors to the new AP process of weekly invoicing and Net 30 terms.
I would like your advice. We’re having major problems with our V2Vs making noise with Enbridge about us not paying them quickly. Even though their contracts state that we pay them when the client pay us.
Robert had to attend an emergency meeting with Tate in Calgary to discuss one of our V2Vs yesterday who complained all the way to the top (Mike Sittler would have heard about this).
I would like to propose that we remove ALL V2Vs from a paid-when-paid model and move them to weekly invoicing +N30 terms. Comments/thoughts/objections?
• How much interest savings is there is delaying the V2V payment until we are paid?
o Avg pay wait for them is 75+ days from invoicing, avg pay rate is $85/hr
o About 10 V2Vs, all at Enbridge, making $1.57/hr
• It is difficult for our AP/AR team to keep checking for payments that align to our V2V invoices (this isn’t a simple 1:1 match, it’s a many:many situation).
• Most of the V2Vs (all?) are very small companies and constantly complain to us and our clients
• We have $650K outstanding for current V2Vs
• We are getting another 10 contractors under V2Vs in the Enbridge transition
• Moving them to our normal AP processing routine will be MUCH simpler for the team
• We have a request from Robert to pay out Rangeland ($130K? don’t have the exact amount) immediately
|Results||Option||% of points||Voters|
2 of 8 people have voted (25%)
Thu 6 Dec 2018 4:53PM
This risk to our reputation and the effort required from Payroll, AP and AR to coordinate efforts, far exceeds the savings on interest. One process versus two will allow for a cost savings for the entire CoreOps team.
The man power involved to determine the issue with Rangeland included: Emily (30 minutes), Pauline (1 hour), Christine (30 minutes), Jessi (15 minutes), Susan (15 minutes) Meaghan (30 minutes), Robert (1 hour) and Paul (1 hour).
Thu 6 Dec 2018 7:45PM
Knowing all the effort it takes Chanvir to keep all the V2V's on track I think this is a good solution. Net 30 terms means that we are not paying them right away, at least waiting for those terms. The process right now includes a lot of coordinating, and there are many follow-ups regarding payment. This will lessen the inquiries as they will know depending on invoice submission when they will get paid.