Methods of Payment (international invoices)

Preferred Method of Payment is Bill of Collection, please see below information:

Key steps for supplier:
Step A -> Order arrives
• P&G shares order with supplier -> supplier shares pro-forma invoice incl. shipment form
• P&G shares ‘Form M’ and document instructions; supplier needs to share understanding of the instructions

Step B -> At moment of shipment

• Prepare 3 sets of documents:
• Advance set - send upfront shipment to Import team for pre-clearance, includes Bill of Exchange; will be used for
clearance
• Negotiation sets (2x) - send negotiation set the remitting and collecting bank (supplier bank); will be used for payment

Step C -> Collect funds

• Payment to supplier can be made after receipt of the material into P&G Warehouse (GR and IR done) and receipt of
FECD from customs.

Documents involved:
Step A Order arrives
• Pro-forma invoice
• Form M

Step B – At shipment
• Bill of Lading – standard format (P&G portal)
• Commercial Invoice – standard format (P&G portal)
• Packing List – regular format
• Manufacturer Certificate of Production – regular format
• Combined Certificate of Value and Origin – CCVO – regular format
• Certificate of Analysis – regular format
• Bill of Exchange – example shared
• Form M – example shared
• Collection Order – To be prepared by Supplier’s bank and sent with the negotiating documents set to Citibank Nigeria

Step C – Payment
• Check invoice correct in the portal

Example of FORM M:
Example of Bill for Exchange:

Key watch-outs:

• Absence of “Freight Prepaid” and “Shipped/Clean on Board” notation on Bill of Lading.

• Documents dated prior to form M registration date
• Form M and Bank references are not stated on documents
• Bill value should not be +/- 10% of form M value
• Bill of Exchange / Draft not presented
• Sight payment - This is not allowed per local regulation.
• Requisite document(s) not presented
• The Bill of Lading/Air Waybill should not combine multiple/different Forms M
• Discrepancy in quantity stated in documents
• In case of any issues during the shipment or payments process, share details in request on ‘Bill of Lading’, ‘Form M’,
‘PDF copy of invoice’