Trading companies live on working capital: what customers owe, what sits in the warehouse and what is owed to suppliers. Naarvin keeps credit limits and collections current, values stock by FIFO or weighted average with ageing and slow movers, runs stock counts with a second approver, matches supplier bills to orders and receipts, and shows the currency exposure on import bills. People approve every write-down and payment.
What makes finance in trading and distribution different?
- Margins are thin, so a few slow-paying customers decide the month's cash.
- Stock is the largest asset, and nobody is sure what the slow lines are worth.
- Counts find differences that are booked without anyone reviewing them.
- Imports are billed in foreign currency, so the cost moves with the exchange rate.
- Credit limits live in the ERP but are not checked against what is overdue.
How does a trading company run finance with Naarvin?
- Control creditSet credit limits per company and for customer groups, with a review date. Collections flags customers who are over their limit or on credit hold.
- Collect on a cadenceReminders are drafted in Arabic or English, promises to pay are tracked, and receipts are matched to invoices.
- Value the stockFrom stock movements or a dated stock snapshot, items are costed by FIFO or weighted average, with ageing by last movement and the slow movers listed.
- Propose write-downsFrom your own policy, a provision by age or for slow movers, or an item's net realisable value where someone entered it. A person prepares it and another approves it.
- Count and adjustCount sheets list the book quantity; people enter what they counted. Variances beyond tolerance are flagged for recount, and someone who did not count approves the sheet.
- Match and paySupplier bills are matched to orders and receipts, foreign-currency exposure on open bills is shown, and payment files are prepared for approval.
How do you see working capital in one place?
| Measure | What it tells you | Where it comes from |
|---|---|---|
| Days sales outstanding | How fast customers pay | Receivables and sales from the ledger |
| Stock days and slow movers | How long stock sits, and what is not moving | Stock snapshot or movements |
| Days payable outstanding | How long you take to pay suppliers | Payables and purchases from the ledger |
| Currency exposure | What open import bills cost if the rate moves | Open foreign-currency bills |
What do you need to start?
- Your accounting system connected, so invoices, bills and the ledger are current.
- Stock movements, or a stock snapshot by item and warehouse, from your ERP or a file.
- Your stock provision policy and credit limits.
- Orders and goods receipts, if you want three-way matching.
Who is this for?
Distributors, wholesalers, importers and trading groups with many customers on credit and significant stock. A business that sells for cash and holds little stock needs less of this.
Questions people ask
Does Naarvin replace our inventory system?
No. Stock is managed in your ERP or warehouse system. Naarvin reads the movements or a snapshot, values the stock, and proposes provisions and count adjustments for approval.
Which costing methods are supported?
FIFO and weighted average, item by item across warehouses.
Does Naarvin decide the stock provision?
No. It applies your own policy and proposes the provision. A person prepares it and another approves it.
Can it hedge our currency exposure?
No. It shows the exposure on open foreign-currency bills. Any hedge is your decision, with your bank.