Management of Client Master Using Corporation Number

Monday, September 7, 2015
"Goods and cash are exchanged at the same time"... it is not always. After all, in the business-to-business transactions, either one is required to "trust" the other party.
  1. To pass the goods and invoices, and get remittance by the end of next month (Accounts receivable)
  2. Transfer cash, and get the Goods shipped later (Advance payment)
So many companies, to set the "credit limit" for all the counter-parties. The procedure when setting for the first time is also especially referred to as "procedure for trading account opening". (Incidentally, to decide which side will be the creditor, it depends on whether "products first" or "cash first". It is the same structure as the "ransom exchange scene" you see in the dramas and movies.)

The following Workflow is a very simple Business flow of "Credit management". It is to set the "credit limit" for a particular customer. Specifically, a supervisor determines it with information such as "financial statements that obtained directly from the customer" or "information from a credit research company", or "past trading performance" or "priority on the business strategy". Eventually, CFO will grant an approval to it. (And day-to-day "accounts receivable" will be controlled within the limit that has been set there.)

The notable point of this Workflow definition is the utilization of "Corporation Number" which Japanese government is going to begin operation since October 2015. You will be possible to prevent failure in the "name identification" (the multiple setting of limits)...

[Credit Management flow]

ID management for business customers is unexpectedly difficult, also in Japan.

If large companies, it is a lot to be seen the cases that use the "corporate code" which was given by credit research firms. In other words, they use codes such as "TDB company code" given by " Teikoku Databank, Inc." (TDB) or "TSR company code by "Tokyo Shoko Research" (TSR) , and for foreign companies, "DUNS" issued by "Dun & Bradstreet" (D & B). However, it is the reality that the small and medium-sized enterprises are not able to take advantage enough to commensurate with the operating costs.

Under such circumstances, in October 2015, "Corporation Number" (13-digit number) will start operation.

It is a free service that will be operated by the Japanese government (National Tax Agency), and the government will do the maintenance for the "official name of companies" and "locations of head office". It is also expected that information services, such as "information about the industry classification" and "identification of the taxable person" will be provided by the private sector in the near future.

Operating this Workflow, data of "corporate trade name", "credit limit", "determination date" by the key of the "Corporation Number" will be added day to day. And staffs of Sales department will be able to see the "Credit limit of the latest" any time, as long as the viewing authorization has been granted.

It should be noted that the important thing when taking advantages of the "Corporation Number" is the policy of what to input " in the case of "Organizations that do not have a Corporation Number" (foreign companies or unions). In this workflow, the policy is "to substitute with its URL". (Display of Check Digit will be "NG".)

Or else, it is also assumed the policy such as, "To assign a 13-digit number beginning with 0 as the original of own", "13-digit + URL as the key. For Organizations that do not have the Number, enter as 9999999999999 #". You ought to consider flexibility to suit to your customer list (occurrence rate of exceptions).

[Credit Management flow:"1. Registration of Customer" screen]

[Data Items list]

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