Accounts Receivable & Collections

OVERVIEW

This guide will outline the SOP for our collections and AR processes.

STANDARD COLLECTIONS POLICY

Cash on Delivery (COD) Orders

• Nabis’ standard procedure is to collect payment prior to handing over product to retailers for COD order.

• If an order is a COD order and funds are not ready, Nabis will not deliver the product and the order will be rejected. A new order will need to be submitted if you would like Nabis to reattempt delivery.

• Nabis is not able to change orders from COD to Net Terms at delivery, please ensure you are selecting the appropriate payment terms when submitting your order.

• The following forms of payment are accepted for the transfer of product on COD orders:

  • Cash

  • Check (collected at retailer site)

  • Payment through Nabis BillPay in the Nabis Retailer Tracker

  • Proof of ACH or Wire transfer

Net Terms Orders

• Nabis’ standard procedure is to collect payment for orders with Net Terms when the orders are due.

  • Nabis will also attempt collection after the due date when we are next scheduled to deliver to that Retailer, regardless of the Brand.

• The following forms of payment are accepted for the transfer of product on Net Terms orders:

  • Cash

  • Check (collected at retailer site or mailed to the Nabis PO box)

  • Payment through Nabis BillPay in the Nabis Retailer Tracker

  • ACH or Wire transfer

Must Pay Prior Balance

• If a Brand requires a Retailer to provide payment for a previous invoice prior to delivering another order, please utilize the “Must pay previous overdue balance prior to delivery” toggle on the new order.

  • If you have multiple overdue invoices, please use the Delivery Notes field to clearly indicate what invoices you would like Nabis to collect in order to deliver. If no invoices are specified, we will assume that you require us to collect all overdue invoices prior to delivery.

• Nabis drivers will not deliver product if a Retailer is unable to pay past due balances when current orders are checked “Must pay previous overdue balance prior to delivery”. If the previous orders are not paid, the current order will be rejected.

ACCEPTED PAYMENT METHODS

Nabis BillPay

• Retailers are encouraged to pay electronically through the Nabis BillPay feature within the Nabis Retailer Tracker

• Retailers can reach out to help@nabis.com to learn more about using and signing up for the Nabis Tracker.

Electronic Funds

• Retailers are able to pay Nabis via ACH or wire to the following bank account:

• We ask all retailers to send invoice remittance details directly to ar@nabis.com with all electronic funds transfers.

Mailed Checks

• All retailers are informed to mail checks to our San Francisco PO Box:

  • Payee:

Nabifive, LLC

Address:

Nabifive, LLC

182 Howard Street #4

San Francisco, CA 94105

• Our onsite team picks up checks weekly on Tuesday and Thursday.

• Checks are deposited weekly on Wednesday and Friday.

  • Note that due to the historical rate of bounced checks, Nabis allows for 3 business processing days prior to remitting invoices paid via check.

• We ask all retailers to include a list of invoices with all checks mailed to Nabis.

• Mailed checks are not a valid form of COD or ‘Must pay previous overdue balance prior to delivery’ payment.

Cash or Checks (collected at retailer site)

• Prior to sending a driver, Nabis Dispatch emails the Retailer to confirm the acceptance of a new order.

  • Nabis Dispatch will confirm if payment will be ready for collection and include overdue invoice(s) in the confirmation email.

• If a re-order is not pending for a Retailer, Brand’s sales reps are welcome to help coordinate cash collections for overdue balances and notify Nabis by reaching out to AR@nabis.com with the following information:

  • Subject Line: PPU - [Retailer Name] - [Brand] - Date

  • Nabis Order ID #

  • Retailer

  • $ Amount (GMV + Excise)

  • Due Date

  • Date after which payment is ready for collection OR they can confirm a date, as long as it coincides with our territory map

• Nabis will coordinate with the Retailer and work the collection into our weekly territory schedule by placing a Payment Pickup Order (PPU) in the Nabis platform.

• For routing purposes, all PPUs must be scheduled at least 2 full business days before noon ahead of the anticipated PPU collection.

• All Checks must be made out to Nabifive LLC. Nabis will not accept checks made out to third-parties as valid forms of payment.

• Nabis will only create separate PPUs for invoices with values of $1000 or more.

CREDIT MEMOS

Best Practice recommendations

• Communicate all approved credit memos offered to retailers to AR@nabis.com.

• Please include the retailer name, invoice number, and $ credit memo issued.

• Note that in order to prevent payment delays due to discrepancies between Nabis’ books and the retailers’ books, it is highly encouraged to communicate credits offered to retailers as soon as possible.

  • Note that Nabis is unable to add discounts to orders after an order is delivered.

Credit Memos communicated by retailers:

• Any credit memos communicated by retailers will need explicit approval from brands.

• A member of our invoicing specialist team will reach out to the list of preapproved brand stakeholders when a retailer notifies Nabis of credit either at the time payment is received, or at the time Nabis performs an ad-hoc reconciliation against the retailer's records.

• If a credit memo is received with a payment remittance from the retailer and the credit memo hasn’t already been applied to the order in the Nabis platform, there will be a delay in payment application until Nabis is able to confirm the credit memo with the brand.

Credit Memos shared by brands:

• We strongly recommend that brands use the new feature in the Nabis platform to add credit memos to orders after delivery if a partial payment hasn’t already been applied to the order or add the credit memo to the order at the time of order placement (if known).

• If a request to apply a credit memo on a fully open order (order with no partial payment applied) is sent via email, Brands will be instructed to use the Nabis platform to apply the credit memo.

• If an invoice is partially paid and a brand would like to add a credit memo on the order, send the credit memo application request to AR@nabis.com. Please include the retailer name, invoice number, and $ credit memo issued with a subject line in the following format: Credit Memo Request on Partial Paid Invoice [insert invoice #] [retailer name] [value of credit memo]

• Note that Nabis is unable to add discounts to orders after an order is delivered.

Nabis Invoice Factoring:

• Once an invoice has been approved for factoring, it is effectively owned by Nabis, and no further adjustments can be made. The factored invoice is not eligible for post-delivery reductions or discounts such as:

  • Credits

  • Extra Fees

  • GMV modifications