As we enter 2024 and anticipate the year ahead, it is evident that numerous logistics providers and carriers are prioritizing cost-cutting measures to mitigate the impact of fluctuating rate levels across the world's major trade lanes.
Especially during times of uncertainty, effectively managing a significant volume of accounting tasks with diverse characteristics requires a highly repeatable invoicing and costing process. This process should be flexible enough to adapt to the specific requirements of various jobs, be it forwarding, customs, or any other type.
Moreover, it is crucial that this process produces high-quality data, which can be relied upon in downstream processes. Whether dealing with extensive Payables, analyzing weekly job profits, or creating a comprehensive and compliant invoice, the generated data holds paramount importance.
This is where software solutions like CargoWise play a pivotal role. With robust accounting and financial management capabilities deeply integrated into a unified logistics execution platform, CargoWise assists global logistics companies in streamlining financial operations while ensuring compliance with relevant regulations and standards.
As a product-led business, our focus and investment in product development and innovation are critical. That's why we continuously enhance global accounting features that boost efficiency and provide greater visibility and control over your expenditure and margins.
From enhanced FX batch payment functionality to improved electronic invoicing in China and updated electronic reporting in Turkey, here are five of the latest accounting features in CargoWise.
Bulk FX transactions in multiple currencies – GLOBAL
In the dynamic world of international trade, overcoming the limitations of funding foreign currency deals with local currency is crucial. Our solution? Choose the currency that aligns best with your financial goals.
This powerful new feature allows you to either default to your local currency or opt for a specific currency for funding, ensuring a tailored and efficient transaction process that suits your unique needs.
Our native integration with Foreign Exchange specialists, OFX, takes the hassle out of the process by offering a cross rate between your chosen funding currency and the payment currency. This eliminates the need to confine funding your FX deals with local currency, providing you with extra flexibility in the management of your international transactions.
But that's not all. You can now elevate your foreign exchange processing capabilities with our enhanced batch payment functionality.
In a single payment batch, you can get quotes, book FX deals, and send payments for multiple currencies, funded with your currency of choice. Batch payments are your ticket to a faster, more accurate, and cost-effective payment experience.
Enhanced electronic invoicing compliance – CHINA
In China, many of our customers rely on a form of electronic invoicing known as fully digitalized e-fapiao. This differs from both VAT e-fapiao and traditional paper fapiao but holds the same legal standing.
The pilot program for fully digitalized e-fapiao commenced on December 1, 2021, with selected taxpayers in Shanghai, Guangdong, and Inner Mongolia (Hohhot) adopting these digital invoices. In 2022 and 2023, more taxpayers joined the program, with the goal of making fully digitalized e-fapiao available nationwide by 2025.
Currently, in CargoWise, eligible invoices are sent to RongJin’s Tax Easy portal and set to 'Pending' status. With our latest update, you now have the option to issue the fully digitalized e-fapiao immediately upon posting Receivable Invoices in CargoWise.
This is ideal for issuing one fapiao per invoice without additional review in the Tax Easy portal. It's hassle-free – no extra steps are required after posting the Receivable Invoices, and you can easily check the fapiao status and obtain a soft copy within CargoWise.
Streamlined AR and AP receipts for precision and compliance – GLOBAL
We've introduced a new feature to enhance your experience when entering Receivables or Payables receipts. Now, when selecting a cash account for a receipt or payment transaction in CargoWise, the system automatically defaults the receipt type as 'CSH – Cash'. Additionally, we've implemented a validation to prevent the selection of an incorrect receipt type when using a cash account.
This enhancement proves particularly beneficial in countries where you are required to periodically report all transactions from your cash accounts (virtual accounts maintained for any cash transactions, e.g., Petty Cash, Cash Drawers) to the tax office.
Specifically, it ensures the accurate categorization of all cash receipts, minimizing the risk of errors in your financial records. Moreover, it facilitates the easy extraction and reporting of transactions from CargoWise, improving data integrity and making account reconciliation more seamless.
Improved electronic reporting capabilities – TURKEY
We have enhanced two e-reporting statuses in our Transactions Pending Allocation (TPA) and Transactions Pending Allocation Approval (TPAA) modules to provide clearer and more current information about your payables e-invoice transactions in Turkey.
When CargoWise requests outstanding transactions from the e-invoice provider, any pending transactions are recorded in the TPA and TPAA modules. Payables transactions in these modules fall into three compliance subtypes: PIN (Alış Faturası - Temel), CIN (Satıştan İade Faturası - Temel), and PIC (Alış Faturası - Ticari).
Today, commercial e-invoices can be accepted or rejected within a specific timeframe, while Basic e-invoices are considered accepted upon receipt. Transactions with PIN and CIN compliance subtypes can't be rejected and don't require approval, so their initial e-reporting status and message remain unchanged.
After receiving a Basic e-invoice, CargoWise will now establish its final e-reporting status and message. Transactions with the PIC compliance subtype can be accepted or rejected, and their e-reporting status and message will be updated accordingly.
New Tax IDs to drive compliance – GLOBAL
A range of Tax IDs have been extended in CargoWise, including:
- The Tax Rate Grids of ‘CAPKM’, ‘KM‘, and ‘KMREV’ have been updated to support the Estonia VAT standard rate change from 20% to 22% on January 1, 2024.
- The supported set of Tax IDs in Switzerland has been enhanced with the introduction of four new reduced rate Tax IDs supporting the Swiss 2.5% and 3.7% reduced rates.
- TVA (VAT) can now be enabled (if required) for French Guiana and Mayotte login companies, where the login company is obligated to record this detail. CargoWise will now record Metropolitan France TVA at 20% or TVA for an Overseas Department at 8.5%.