It has taken the Sales Manager in this organization several years to build a good client...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
It has taken the Sales Manager in this organization several years to build a good client base, but in the last six months since the new Finance Manager has come on board, several of his key accounts have experienced problems with the Finance department. The problems have been as follows: • Inaccurate invoicing was sent to a client's former address (even though the Sales department had informed accounts of the new address). . • One of the Sales Manager's clients had requested an invoice to be sent from his company prior to the end of their financial year so that they could pay for the services they had received within that year. One of the Account Managers in the Sales department had checked with someone in the accounts team and had been assured that this had been actioned. The Account Manager then heard from the client that he had not received the invoice in the time frame specified. She had complained to the new Finance Manager and received an inappropriately aggressive response from him, saying that he was short staff ed and no one had had the time to do it. • The final straw for the Sales Manager was when he heard that one of his major accounts was threatening to withdraw their business from the company because of the way they had been treated by a credit control person in the Finance department. The Credit Controller had handled a late payment of an invoice in an over-strident manner and accused the client's Accounts department of not paying when in fact the payment had been made in the previous month. All of these errors were small in their own right, but the end result was the possible loss of a substantial amount of revenue for the organization. The big mistake that the Sales Manager had made was to write a strident memo to the new Finance Manager giving few or no details of the problems that his department had experienced in the past few months. Instead, the tone of the memo accused the Finance department of putting sales at risk, and accounts staff of being rude to clients. This approach was not well received by the new Finance Manager, and a war of words continued for quite some time, all in writing, without the fundamental problems being resolved. How could this situation have been resolved in a more satisfactory way? It has taken the Sales Manager in this organization several years to build a good client base, but in the last six months since the new Finance Manager has come on board, several of his key accounts have experienced problems with the Finance department. The problems have been as follows: • Inaccurate invoicing was sent to a client's former address (even though the Sales department had informed accounts of the new address). . • One of the Sales Manager's clients had requested an invoice to be sent from his company prior to the end of their financial year so that they could pay for the services they had received within that year. One of the Account Managers in the Sales department had checked with someone in the accounts team and had been assured that this had been actioned. The Account Manager then heard from the client that he had not received the invoice in the time frame specified. She had complained to the new Finance Manager and received an inappropriately aggressive response from him, saying that he was short staff ed and no one had had the time to do it. • The final straw for the Sales Manager was when he heard that one of his major accounts was threatening to withdraw their business from the company because of the way they had been treated by a credit control person in the Finance department. The Credit Controller had handled a late payment of an invoice in an over-strident manner and accused the client's Accounts department of not paying when in fact the payment had been made in the previous month. All of these errors were small in their own right, but the end result was the possible loss of a substantial amount of revenue for the organization. The big mistake that the Sales Manager had made was to write a strident memo to the new Finance Manager giving few or no details of the problems that his department had experienced in the past few months. Instead, the tone of the memo accused the Finance department of putting sales at risk, and accounts staff of being rude to clients. This approach was not well received by the new Finance Manager, and a war of words continued for quite some time, all in writing, without the fundamental problems being resolved. How could this situation have been resolved in a more satisfactory way?
Expert Answer:
Answer rating: 100% (QA)
The Sales Manager should have approached the Finance Manager in person to discuss the problems that ... View the full answer
Related Book For
Managerial Accounting Decision Making and Performance Management
ISBN: 978-0273764489
4th edition
Authors: Ray Proctor
Posted Date:
Students also viewed these accounting questions
-
Ron's company leased a building so that they could build an escape room experience. After operating for two years, their attendance (and thus their profits) started to drop significantly, so they...
-
Last year Alan's accountant informed him that he could not claim any of his passive activity losses on his income tax return because of his lack of material participation. To circumvent the tax...
-
Even though 5 years may seem like a short time frame for Chris and Paulina to be in a loving relationship, we want to give them a vacation that will last forever in their hearts and minds.
-
A 15 mm 15 mm silicon chip is mounted such that the edges are flush in a substrate. The chip dissipates 1.4 W of power uniformly, while air at 20C (1 atm) with a velocity of 25 m/s is used to cool...
-
There are 12 members on the board of directors for Cliffside General Hospital. a. If they must elect a chairperson, first vice chairperson, second vice chairperson, and secretary, how many different...
-
Firm A operates in a make-to-order operations environment. Firm B operates in a make-to-stock operations environment. Which firm is likely to have lower inventory as a percentage of its COGS?
-
A process is said to be feasible if (a) \(\Delta G>0\) (b) \(\Delta G <0\) (c) \(\Delta G <1\) (d) \(\Delta G>1\).
-
Inventoriable CostsPerpetual Bradford Machine Company maintains a general ledger account for each class of inventory, debiting such accounts for increases during the period and crediting them for...
-
A developer is oering 450,000 fully amortising loans for their properties at 1.8 percent interest for 25 years. The current market rate for 25-year fully amortising loans is 2.25 percent. The...
-
Find RAB in the network in figure. ww- 6 kn 6 kN 2 kn RAB 6 B
-
Plano Products, Inc., had a remaining credit balance of $10,000 in its under- and overapplied factory overhead account at year- end. It also had year-end balances in the following accounts:...
-
A ray of light is traveling from water (n = 1.33) into an unknown substance. The angle of incidence at the boundary is 35 degrees and the refracted angle is 52 degrees. A) Calculate the index of...
-
Need help expanding the questions below. State of Ohio's position on the ban? What legislation if any supports or opposes the ban and or tries to protect smokers in the workplace? How smoking in...
-
A, B, C and D allegedly rob a Town Bank, which is located in the city of Cape Town. Members of the South African Police Services (SAPS) are called to the scene of the crime, during which a shoot-out...
-
When you are calculating the percent complete for an entire project, more than one answer might be possible. The project manager says the percent complete is about 60%, the cost engineer says it is...
-
These are the pieces you must choose from to summarize and comment on in your essay: "EEOC v. Madison Community Unit School District (No. 12 818 F.2d 577 (7th Cir. 1987))" "Sandor v. Safe Horizon,...
-
Which of these statements regarding the differences between monopoly and a competitive market are true? There are more firms in a competitive market than in a monopoly monopoly is a price maker,...
-
A firm has the following balance sheet: Assets Cash Accounts receivable Inventory Plant and equipment $ 15,000 150,000 92,000 170,000 $427,000 Liabilities and Equity Accounts payable Long-term debt...
-
Lewington Ltd makes a variety of kitchen fittings and equipment. It uses a three-stage process involving cutting, assembly and finishing. The following figures are extracted from its budget for the...
-
WSM Enterprises introduced the Wizkid in 1991 to compete with Action Man. Although the peak demand for these products occurred several years ago, sales have stabilized and WSM sells 15,000 Wizkids a...
-
The Valley Fireworks Corporation manufactures special firework display kits to sell to responsible organizations only. The following information is taken from its budget for 2002: Opening stock of...
-
For methanol synthesis reaction \[ \mathrm{CO}(\mathrm{g})+2 \mathrm{H}_{2}(\mathrm{~g}) ightleftharpoons \mathrm{CH}_{3} \mathrm{OH}(\mathrm{g}) \] Using a feed mixture of carbon monoxide and...
-
The L2 steel blade of the band saw wraps around the pulley having a radius of \(12 \mathrm{in}\). Determine the maximum normal stress in the blade. The blade has a width of 0.75 in. and a thickness...
-
An L2 steel strap having a thickness of 0.125 in. and a width of \(2 \mathrm{in}\). is bent into a circular arc of radius \(600 \mathrm{in}\). Determine the maximum bending stress in the strap.
Study smarter with the SolutionInn App