A company cannot survive without selling its products in the market. This is the core activity of every business so it is very important to devise policies and procedures for the Sales.
1. It is the responsibility of the sales department to maintain Customer Master File of all the customer base of the company.
2. A new customer will be registered in the master file after approval by the Sales Manager.
3. If a customer asks for credit limit, a committee having equal representation from the Sales Department and Finance Department will decide about the credit limit.
4. If credit limit of more than SR 100,000/- is granted to the customer, it needs to be authorized by the CEO.
5. Standard credit terms with the customers are 30 days credit. If any customer asks for extended credit terms, it will be approved by the General Manager and CEO.
6. A price list for the customer will be approved by the Sales Department. If any special discount is to be given to some customer, it needs to be approved by the CEO along with reasoning of discount. Here, special discount means discount of more than 3% of standard price list.
1. After receiving the Purchase Order from the customers, sales department will assess if they can supply the goods to the customer. Sales department will approve the Purchase Order if they can supply the goods and issue Sales Order.
2. Sales Order will be approved by the Finance Department after checking the credit limit. If customer does not have any credit limit or limit is already exceeded, Finance department will communicate to the Sales department about it. No sale can be made beyond the credit limit approved for a customer.
3. If customer has remaining credit limit but he has not paid for some invoices from a time period which exceeds his credit term, finance department will not approve the Sales Order.
4. Customer can make a direct deposit to the bank account of the company and pay the cash to the cashier in exchange of stamped company’s receipt. Finance Department will settle the account of the customer after getting confirmation from the bank or cashier as the case may be.
5. Warehouse manager will arrange the goods to dispatch it to the customers upon receiving the approved sales order from Finance and Sales Department.
1. As soon as the invoice passes by the credit terms day, it is the responsibility of the finance department to send reminder to the sales department to ask for the payment from the customers.
2. Sales Department will follow the customer for the payment until it is received.
3. A customer wise report for outstanding days and balance will be generated by the finance department and sent to the sales department, General Manager and CEO on monthly basis.
4. CEO will decide if company needs to take any legal action to recover money from the customer.
5. If customer has outstanding balance of more than one year, Finance department will create its 100% provision and if this amount is not received in 3 years, it needs to be written off from the books. Any written off from the books requires CEO’s approval.
1. All the goods sold to the customers can be returned back to the company within 7 days when they are received by the customer.
2. Goods will only be returned if there is a fault on behalf of the company.
3. In case if it is established that it is company’s fault, company will be liable to pay all the transportation cost incurred by customer.
4. Any payment received with reference to the faulted goods will be returned to the customers within 3 days.
Standard Policies and Procedures
- Standard Purchasing Policy in Saudi Arabia
- Policy for Payment to Suppliers
- Ticketing Policy in Saudi Arabia
- Vacation Allowance Policy in Saudi Arabia
- Vacation Policy in Saudi Arabia
- Overtime Policy in Saudi Arabia
- End of Service Benefits Policy in Saudi Arabia
- Advances to Employees Policy in Saudi Arabia
- Standard Medical Policy in Saudi Arabia
- Standard Policy Regarding Iqama Transfer Fee
- Standard Recruitment Policy in Saudi Arabia
- Standard Petty Cash Policy in Saudi Arabia
- Standard Sales Policy in Saudi Arabia