The invoice estimation tool is designed to help indicate the possibility of a billing error where an inspection company submits a charge that is higher or lower than the anticipated total cost of the work. The Auto-Flagged Invoice page (Trips drop-down menu) displays all invoices and users can search for all discrepancy ranges (0-100%+). It may not always be an error, in which case the inspection company can state the reason and list the appropriate charges on the respective invoice.
Invoice approvers will be able to complete any invoice investigation much more efficiently and make fact-based decisions.
How it Works on a High Level:
1. Quality and quantity prices for all participating inspection companies are added to the Price Book Manager (PBM)- the prices are determined by the inspection company and are sent to the cargo owner company which are then captured on the PBM.
2. When the operator creates the nomination, they select cost-dependent items such as the grade (product), location, quality tests, quantity, etc.
3. Upon selecting the Quick Save action, a list of prices will appear for each inspection company.
4. The operator can now easily compare the costs between inspection company A and inspection company B. If inspection company A charges a total of $2000 for the entire inspection, and inspection company B charges $6000, the operator may choose to select inspection company A as they are much more cost-effective.
5. Once inspection company A receives the nomination and accepts the work, they will get started on filling in the inspection results on the respective worksheet.
6. When it comes time to submit the invoice, inspection company A submits a total charge of $2500 (although the original estimated cost for the inspection was $2000)
7. The invoice will indicate a 25% discrepancy which will prompt the invoice approver at the cargo company to take a look
8. Inspection company A added a receipt and an explanation that additional material was needed to complete the inspection
9. The invoice approver can now make a fact-based decision whether to proceed and approve the invoice or to dispute it and ask for further clarification from the inspection company
Reasons why There May not be an Estimate:
1. There are no prices loaded for that inspection company in the PBM (Catalogue drop-down menu), OR there are no prices loaded for the grade, location, geo region, quality tests, quantity, etc.
2. The prices on the PBM are expired (make sure the system is using the most up-to-date prices)
3. The inspection company has selected "not performed" on the quality tests on the worksheet- it would look like this:
If this occurs (reason 3) - the inspection company has not keyed in the quality test results that are needed on the worksheet. The operator can request the inspection company for a retest to make the necessary corrections see:
Unlocking an All Submitted Worksheet
4. The nomination type is not a Marine or a Sample. Pipeline/Pumpover, LNG, and Rail nominations will not produce estimates.
5. The unit of measure selected on the nomination is not Barrels (Bbl). The unit of measure must be Barrels.