The Despatch(DD) Demurrage Issue is Back!!!

My heart has been dreading about this, since 2001. It is an account where we supposed to collect money from some people after paying to some people. It’s back to back account but we’ve been paying more frequently than we collect.

It starts when we first started. At first, when there were not so many shipments, one person can handle DD while doing operation. Then when there are more than 40 shipments in a year, more than 18 vendors to collect from / pay to, things started to go haywire. Each time we tried to settle one shipment, and pay them, it somehow gone unrecorded of which shipment it belongs to in the Finance. Finance pushed that back to us, saying that it is our job to do. I’ve been trying to collect from some parties when I started learn about the system, but by the time I wanna do the collection, I found out that we actually owed them a few shipments back a few years. Went back to find the documents, it simple wasn’t there. While trying to settle the late shipments, few shipments coming like meteor rain and we end up with more back log.

Thing is, in other companies that I visit, there is a dedicated person doing this and only this. Some Australian companies even hire a company to do this for them. I’ve been screaming this to the management, either dedicate a person to do this and only this or get us more people so that the operation goes smoothly.

Kana then helped to sort some old documents and a spreadsheet is created so that all data is consolidated under one file. Eventhough we sometimes bite each other on who first to use the file at any one time, things went smoother. But still, the issue is unsettled. Issue then got noticed by Auditor in FY 04 audit. That was when the top management decide that we need more Accountant. Kadir came along and he did a splendid job breaking all the money we’re received and we’ve paid (few years back). He even created a more reliable Access dBase, dug old files and managed to chase the Auditors away. Then what were left is us to settle the backlogs while the new shipments keep coming.

With Ida joining in, it should be easier for Murali and I. I concentrate on Supplier, Murali concentrates on Owners and Customers, and Ida is just picking up the beat. We know that it was hard, keying in is another thing but negotiating with the owners and suppliers on disputes are actually taking much more time. I asked Kana for help, again but Murali didn’t agree. He said, why bother to ask other people to help? Few months down the road people will start boasting around about how we have tortured others to do our own work. I said, fine, let’s do this ourselves and see how much we can get done. Meanwhile, we screamed again on having more people inside the logistics room.

Kana is one efficient staff. She is superb with data and excel files. But we need more than keying data, we need people to be able to converse with the suppliers, chase the agents to submit Statement of Facts for both ports, and chase them for laytime confirmation and not fussy to change the amount of Debit / Credit Notes. Murali could be NOT comfortable asking Kana to do so. Probability is, the chasing and the changing, Kana will get us to do for her and that is actually the biggest part of DD calculation. The thing is, I don’t think Murali is comfortable enough to ask Kana to do so. I abided Murali’s concern, furthermore I am afraid if I ask Kana to join in the team, Murali will be offended and I need his expertise since he has been around long enough.

Then there were only three of us, Me, Murali and Ida. We three indulged ourselves with the DD while managing the operations, contract signing, spot tenders, long term tenders, invoicing, insurance coverage, customer meetings, customer survey, Coal Retreat, ERMS data conversion, ISO audit, AKP audit, not forgetting the normal reports to be produced weekly: coal delivery schedule, vessel itinerary, coal yard status, KPI, updating cost monitor, monthly report. By the time Ida got the hang of it, the FY 05 Auditor came.

And I was called in to answer, are these amount recoverable?

Yes Auditors, it is recoverable provided you give me more time, meaning you stop the current operations and let us concentrate clearing the back log or you give me more people.

So, God, there’s no one can help me on this anymore but you. Please, please, let the Auditor walk away with this year issue. I promise that I’ll get three of us to settle the old shipments. I’ll hand over the new FY shipments to Kana (there are three so far) and I will speak to her about the importance of chasing the people, for Statement of Facts, for confirmation. There will be 4 DN/CN for each shipment, which will be named by number(a),(b),(c) and (d). It might creates more job for her but it is a good way for both Finance and us to monitor who to chase. She’ll then mail these DN/CN to the parties attaching the calculation. If the parties agree, they’ll pay (or at least hit their book) according to the DN/CN. If not, they’ll come back with their calculation, and kana had to go and check the contracts, see whether their argument is correct and subsequently changed the DN/CN amounts. I know she’ll scream to me when she couldn’t find the contracts (some of them are not available yet, we have to refer to the tender documents) but one thing, I know she’ll get things done.

So, God, I’ve laid out the plan for next FY. Please, please, let the auditors walk away and please guide me. Grant me strength and perseverance to settle this.

Oh I am such a sissy!!