It is to your best interest that you sell and collect

PAGSASANAY SA TAGUMPAY

This morning we discussed at the 3f the importance of supporting the drive to encourage SBUs to sell and collect. 

1.Q.   Where does a SBU get funds to support its payroll?

    A.   From the sale of its goods.

2.  Q.  Where does 3f get its funds to pay the salaries?

     A.   From the % of sales and collection of SBUs?

3.   Q.  What happens if collection of SBUs dive down?

      A.  The revenues of BPI/3fjm  goes down too?

4.  Q.  What happens if this continues?

     A.  BPI may be bankrupt.  Run out of cash

5. Q How much is the BE of 3f?

     Fixed costs:   P221,000        % of revenues as management fee  1.75%

     A.  BE =   P12,000,000. 

    We could hardly make it past P10m, short ng 2 million.   or P35,000,000 in BPI revenues

     We are enhancing end of BPI and or its bankruptcy:   1.  If we do not cooperate;
      2. torpedo efforts to sell and collect;    3. do not cooperate, come to work early etc.

6. Q  How do we measure the sales efficiency of SBU?

    A.  The new collection.  The old collection was produce of last year's sales efforts.
          Collection of arrears. 

The comment is that the sbus are finding it difficult to change, and conform to the company correct procedures... Time for a clean up and house cleaning if this continues?

Memorandum Circular 2018 -

To     :   All

            Attention:   Accounting Staff

                             CSS 2

         Those who are involved in sales, and receipt of payments from Customer

Subject:    Sales and Collection Operations/processes

Draft

Objectives:

1.  To standardize processes in recognition of sales and processing of

     of payments

2.  To increase sales and collection

3.  To remove confusion in said operation

The following shall be observed in sales, installment contract receivable: issuance of receipts, and recording of the same

What:

1.  Recognition of sales

     1. Sales is recognized irrespective of the DP, for as long as:

         1.  There is a consideration  payment evidenced by OR and deposit

               slip with validation number from the bank

         2.  There is as contract  PPA (at that bears at least the initial

               of the CMO

         Therefore the above must be present and submitted  to the 3rd floor

                 1.   before sales can be recognized

                 2.   before commission and other incentives can be paid

 2.   Interest on  the balance

       Lately the company has sold plots/services with zero interest

       The company employs level payment method using finance method

       for simplicity and ease of computation

       This simply involves multiplying:

       Principal  x interest per year x number of years / number of months of

       monthly installment

      E.g.   1,000 x 12% x 3 years  =  1,000 x 12% x3/36 =   P37.77

               Where:    P   =    27.77

                              i    =    10.00

   FOR ZERO INTEREST, ONCE THE ACCOUNT GOES INTO ARREARS

   THE INTEREST OF 1% PER MONTH (12%) per annum applies

   Interest on the balance can not be waived.

3.  Penalties that  is applicable is 4% per month compounded.

     At the behest of chief of finance or MD in charge of treasury and ICR, the penalties may be waived.

    When the account goes into arrears, for more than a year, it is better to cancel the contract and  offer new lot to the  customers

4.  Application of payment

    1. With insurance:

        Payments may be accepted and applied as follows:

        Insurance, penalties, interest and principal in that order

   2. Without insurance:

       Penalties, interest, and principal

5. Collection and  Forfeiture:

  The ICR must have 0 backlog in posting

   The ICR must  have an excel format to age the accounts on a current basis

     1. The  SOA is sent once to the customer upon  sale to have a single SOA

          notice thus saving us postage for sending SOA monthly

     2.  When the account goes into arrears a demand letter is sent to the customer.

     3.  A customer is allowed to go into arrears only once after which his account

 is in default and shall be forfeited.  IT IS BEST TO DO THIS TO CLEAR OUR ICR OF DEAD ACCOUNTS

     4.  A forfeiture letter, an attorneys cancellation of contract is sent by registered mail to the last known asddress of the customer.

     5.  We use the provision of the Maceda law 6552:

     100% forfeiture if account is less than 2 years old;

       50% forfeiture if account is more than 2 years  old

        Forfeiture is deemed complete upon receipt of the attorney's letter and 

        the 50% balane

       FORFEITURE PROCESSES SHALL BE VIGOROUSLY PURSUED TO COLLECT

--

PAGSASANAY SA TAGUMPAY (Training for Success)

More explanations, ABE regarding the outright com at Calamba

Goal:

1.  To remove doubts and apprehensions  and negative thoughts from the sellers to Calamba;

2.  To reach target sales of 1,500 for the said SBU

3.  To gain support of other sellers and office staff

Reality:

We were bothered yesterday by a slew of texts and phone calls from Ms. Tess Mariano (and later alleged to be coming from Bing Luna) regarding the very low base for outright commission of P48,000 of special plots for sale to be only P23,520

Ms. Lennie Baylon was contacted if the same was explained to the parties. She said she did   One of our requirements for this Hataw is for the sellers to update their SEAD and one of the requirements for that is for them to view the power point and take the exams.  Apparently this did not take place.

Our explanation:

1  The basis for the P23,520 rate for com is due to the reduction of the NLP (Net Lot Price) which is now at 49% (This is in the ppt)  This is due to:

       Increase of PC from 12 to 15%       +    3%

       This was done to level up our PC

        to 25% to make our PC more viable

       Addition  collection Fee                    +    5%   

      The PC and the VAT can be commissionable because none of them goes to us.

The past NLP was at 55% and may be our past price list in 2015 which was not visible to agents and sellers.

2. In recognition of this decrease of the NLP, we upped the commission rate

                 7 % of sales execs to                          -   10%         + 3

                10% of sales manager                         -    14            + 3

                13% of sales director                            -   17%        +  4

               A total of 10% increase in com

  The outright commission shall be only 10% and the balance shall be paid after 90 days when we have accumulated enough cash for the com

4.  Comparison for the same 48,000 plot

                           49%                                         55%

      NLP              23, 520                                    26,400

   10% outright      2,352                                       2,640

    Balance            1,646                                          792

    Total                  3,998                                       3.432

    Advantage     +  566

5.  We have this blessings because the joint venture and us agreed to waiving our profits  on plot price and  interest (zero interest).  We are selling a lot because the prospects that this a value packed offering -  A VALUE FOR MONEY

       At Calamba, we allowed deep cuts on the price and giving up interest income, and we are thankful to the stockholders for allowing such.  We must grateful, that is why we have this campaign:

                                  Plots                                                Interest

     Regular price      82,000                                36% for 3 years

     Hataw                 48,000                                       0

     Total reduction     34,000                                    29,520

      TOTAL SAVINGS                                                 63,520

     The SBU, the sellers must be grateful for this blessings.  Mr. HT asked me, why up the commission, eh binabaan na presyo at 0 interest.

     Sabi ko promo period lang yan sir, 60 days,  at besides bawi tayo sa regular plots.  Isa pa bumababa ang NLP kaya tataasan natin ang com

    This is as far as I can go explaining and  to satisfy those who are questioning this scheme or are  unhappy.  This is based on standard practice of other MP.   I am sorry for those who are unhappy or ungrateful.

Jorge  U. Saguinsin

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