Methods of Payment (International Invoices)

Methods of Payment (international invoices)

Preferred Method of Payment is Bill of Collection, please see below information:

Key steps for supplier:

Step A -> Order arrives • P&G shares order with supplier -> supplier shares pro-forma invoice incl. shipment form • P&G shares ‘Form M’ and document instructions; supplier needs to share understanding of the instructions

Step B -> At moment of shipment • Prepare 3 sets of documents: • Advance set - send upfront shipment to Import team for pre-clearance, includes Bill of Exchange; will be used for clearance • Negotiation sets (2x) - send negotiation set the remitting and collecting bank (supplier bank); will be used for payment

Step C -> Collect funds • Payment to supplier can be made after receipt of the material into P&G Warehouse (GR and IR done) and receipt of FECD from customs.

Documents involved:

Step A Order arrives • Pro-forma invoice • Form M Step B – At shipment • Bill of Lading – standard format (P&G portal) • Commercial Invoice – standard format (P&G portal) • Packing List – regular format • Manufacturer Certificate of Production – regular format • Combined Certificate of Value and Origin – CCVO – regular format • Certificate of Analysis – regular format • Bill of Exchange – example shared • Form M – example shared • Collection Order – To be prepared by Supplier’s bank and sent with the negotiating documents set to Citibank Nigeria Step C – Payment • Check invoice correct in the portal

Example of FORM M:

Example of Bill for Exchange:

Key watch-outs:

• Absence of “Freight Prepaid” and “Shipped/Clean on Board” notation on Bill of Lading. • Documents dated prior to form M registration date • Form M and Bank references are not stated on documents • Bill value should not be +/- 10% of form M value • Bill of Exchange / Draft not presented • Sight payment - This is not allowed per local regulation. • Requisite document(s) not presented • The Bill of Lading/Air Waybill should not combine multiple/different Forms M • Discrepancy in quantity stated in documents • In case of any issues during the shipment or payments process, share details in request on ‘Bill of Lading’, ‘Form M’, ‘PDF copy of invoice’