Fuel Accounting Best practices in Gasoline Retailing

Cost of automation can be overwhelming but RoI is high. Another related question is “how much to automate? ”, answer depends on process maturity, organization culture, resistance to change among other factors. When faced with margin impact, operational costs, and increased tax risk, they will think twice before renewing their fuel contract with any supplier that sends them inaccurate invoices. Ultimately, the loss of trust will motivate them to consider competitors even if prices are higher.

• Another person may be responsible for sales tax rules and rates.
• More significant changes need to undergo a rigorous testing process.
• Ultimately, the loss of trust will motivate them to consider competitors even if prices are higher.
• A supplier that generates bad invoices risks damage to hard-won customer loyalty and market reputation.
• Cost of automation can be overwhelming but RoI is high.

Accurate invoice calculation requires many data inputs, from many sources, which often change daily or even multiple times a day. It also requires proactive monitoring of constantly changing tax regulations. Tax Changes – The complexity of fuel tax is made worse by constant change. Lower fuel consumption levels are driving governments to look for creative solutions to replace declining fuel tax revenues. In 2011, there were 254 separate fuel excise tax changes in the U.S. By 2013, the number of changes had increased to 523, a 106% increase.

We have solutions for:

If the buyer is no longer available or is not able to pay, the supplier can also be liable for back taxes. Establish goals and measure source data accuracy. Setting goals, measuring, and creating a feedback loop can create oil and gas accounting a process for continuous improvement. Too often, problems that are easy to address are simply fixed by Customer Service, but no feedback is provided to source data owners, so the problem will likely happen again.

Pilot Company is an industry-leading network of travel centers with more than 30,000 team members and over 750 retail and fueling locations in 44 states and six Canadian provinces. Using Secured FTP with well-defined Firewall rules is a good alternative to 3rd party data transmission service (if you are in this industry, you know whom I am referring to). Remember more number of hops means more number of potential points of failure.

Accounting Manager/Controller

Margins https://onlinesoundworld.com/%ce%b4%ce%b5%ce%af%ce%ba%cf%84%ce%b7%cf%82-%cf%84%ce%af%cf%84%ce%bb%cf%89%ce%bd/ – Fuel suppliers know they need to manage to tight margins. So while it’s great to negotiate a profitable contract, ultimately the contract terms are less important than what is actually paid. Only accurate invoices will ensure that the contract is being met. Another point I would like to mention related to this theme is number of systems you are running.

A fuel supplier who’s not being proactive about accurate invoicing likely has a problem. When customers do not catch problems, inaccurate invoices are paid, and risk increases. When customers do catch invoice errors, they lose trust and take their business to the competition. As recent headlines indicate1, invoice accuracy is a fuel industry problem.