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ERS

What is Evaluated Receipt Settlement (ERS)?

ERS, a.k.a. "pay on receipt," is an invoiceless payment process that uses a two-way match instead of the traditional three-way match to pay for your sugar.

Traditionally, companies match their PO, the delivery documents and the invoiced received prior to paying for their sugar (a three-way match). If there is a common understanding of how the price is calculated for a particular delivery, the payment terms and method to identify the payment to the supplier — then the invoice adds no further value. The PO contains the pricing information, and the delivery document shows the quantity. Based upon these two documents, customers can do a two-way match and accurately pay for their sugar.

Since United Sugars is capable of accepting payments that match our 8-digit delivery number shown on our bill of lading, we are ERS ready. To make a payment, the customer issues a check (or even better, an Electronic Funds Transfer). The remittance detail reflects the payment breakdown.

What are the benefits of ERS?

  • Invoices can be eliminated; paperwork streamlined.
  • Reduced clerical time and mailing costs.
  • Improved data quality; fewer clerical headaches.
  • Timely price updating; reduced supplier billings for price adjustments.

How does ERS work?

Once an ERS implementation date is agreed upon, you will stop receiving invoices from Unite Sugars. In lieu of an invoice, you will remit payment based on the "total delivered" (contracted product price multiplied by the quantity or weight shipped to you) as stated on the Advanced Shipping Notice (ASN via EDI). When the payment is remitted, you reference the bill of lading rather than an invoice.

How do I get started?

The only requirements to implement ERS are that you can reference our 8-digit delivery number and that you can calculate each invoice exactly the same way that we would:

  1. You always reference our 8-digit delivery number. Critical that no keying errors occur.
  2. Your payment would include all additional charges such as stenciling, pallets, and LTL (Less than Truck Load) if applicable.
  3. No deductions.
  4. If you have regular terms, the 2% discount is only offered on the product, not on additional charges.

To implement ERS, talk with your Sales Manager or Customer Service Representative; they will guide you through the transition.