What is the central billing?

Central billing is a technique of awarding public procurement in which independent companies buy an inventory from a wholesaler than individual suppliers. This popular business method allows companies to use collective purchasing power, leading to volume price discounts. Central billing not only helps trade to maintain low and high profits, but also simplifies the billing and administrative process for both businesses and their suppliers.

in a traditional billing scenario, shops take supplies from individual suppliers. For example, a mixed shop receives supplies of drinks, food, candies, milk and other goods. This store probably only buys a small amount of each of these products, and receives very few discounts from suppliers. The store owner is forced to watch each of his accounts separately and write tens or hundreds of checks every month. The supplier must also deal with a large number of buyers, including billing and collection from Each Individual enterpriseor.

The central billing scenario allows companies to buy and sell goods using a much simpler process. According to the central billing, a wholesaler acts as an intermediary between retailers and suppliers. Every trade that works with this wholesalers keeps its own separate account, to which all inventory can charge per month. At the end of the month, each supplier sends a single account for all supplies to the stores that this wholesale represents. The wholesaler sends one invoice to each store, reflecting all purchases made in the account of this store throughout the month.

For individual trades and businesses, central billing significantly simplifies the accounting process every month. The shop writes only one check on the wholesaler instead of writing inspections of each supplier. For suppliers of products central billing eliminates the need for gatheringT and Professional checks from each store and allows the supplier to process one control from wholesaler every month. By using a wholesalers, suppliers also reduce the time and money spent on collections as well as the risk of non -payment.

From the supplier's point of view, a wholesaler buys a large number of goods compared to small volumes purchased individual trades. This encourages suppliers to offer discounts based on these high volume purchases in an effort to keep the business of wholesaler. These discounts maintain low prices and allow trade to remain profitable while paying a wholesaler for their services.

In many central billing applications, a wholesalers serve as an intermediary between the supplier and the buyer. In some cases, however, this wholesaler may decide to act as a type of species. Instead of mere invoices processing, wholesaler buys goods in bulk and sells them to shops, resulting in a higher profit margin for a wholesale company.