VFS

1.  What is VFS?

Ans - Vendor financing refers to the lending of money by a vendor to a customer, who then uses the money to buy the vendor's inventory or service.

2. How to onboard a VFS vendor?

Ans -  In the OMS system in VFS option there is an option to add a new financier once financer is added then we can use it for the transaction. The VFS lenders should be onboarded Legal Entity Specific. 

3. Who will onboard the VFS vendor?

Ans -  At Zetwerk, the VFS team will onboard the financer in OMS after duly signing the agreement etc with Lender.

4. How to add the financer to the supplier? Who will be the onboard financer for the supplier?

Ans - In Supplier there is an option called "financer onboarding" where we need to onboard the supplier. 

The VFS team will onboard  the financier for the supplier.

5. When should we need to opt for vendor financing?

Ans - Businesses can opt for this option when they need to purchase goods or service for their business venture without using working capital. Also, business owners who cannot avail a business loan can opt for this alternative.

6. How to change the VFS vendor TDS%?

Ans - The TDS groups will be configured at VFS Lender level under “Financier Business Details' '. 

7. What is interest accrual? How interest accrual entries are calculated?

Ans - Interest Accrual refers to the interest that has been incurred on a loan but has not yet been paid out. In OMS the accrual is calculated automatically based on  Principal amount ,no of days ,TDS rate and interest rate.

8. What are interest modalities? What do they mean?

Ans -      The interest modalities are

              1)  Interest to be paid separately (at the end) - In This modality 

                    modality interest and principal amount paying on the due date.

              2)  Interest to be paid separately (but upfront) or Paid after  

                    deducting interest - In This modality interest amount payment

                    upfront and principal amount payment on the due date

9. Is there any relation between VFS Lender & Interest Modality?

Ans - There is no relation between VFS lender and interest modality.

10. Can I select an inactive VFS lender for payment?

Ans - While making the VFS payment we cannot select the inactive VFS lender only active VFS can select.

11. For which modality Interest deferral and realized entries auto calculate?

Ans - The interest deferral and realized is now auto calculated for the modality 1) Interest to be paid separately  but upfront 2) Paid after deducting interest

12. How much principal amount can you enter while making payment?

Ans - We can enter the Principal amount up to the remaining principal amount which is pending  to be repaid.

     10)  Can I change the credit days?

Ans - Yes, we can change Credit Days but under the condition that "Not less than days already lapsed for last repayment"

      11) How is the due amount updated?

Ans - Due amount will get updated as per the remaining credit days and remaining principal amount.

      12) How to edit the interest field?

Ans - As interest is auto-calculated the field will be non-editable.

      13) How to make the principal amount repayment completely?

Ans - We will not be able to make any principal payments for the 1st repayment,  the Principal amount  field will be blocked. But for 2nd repayment I need to pay the full principal amount.

      14) What will be the impact if I increase and decrease the credit days?

Ans - Reducing the credit days will have no impact on the due amount but increasing the credit days will lead to excess interest showing up in the interest field and increased due amount.

      15) Earlier I used to change the TDS % while making the payment. Can I change the same way now?

Ans - No we cannot change the TDS% while making the payment , if TDS % needs to change then it will be configured at VFS Lender level under “Financier Business Details”