At Kotis there are two areas of service we provide. First, we produce swag items.  Second, we offer warehousing and fulfillment services (“Programs”). For billing purposes these invoices are referred to as “Production Invoices” and “Program Billing Invoices”

All clients have their Production Invoice terms as “Due Before Production” until we receive a credit application, then if that application is approved, Kotis offers standard Net 30 terms.  For Program Billing invoices the initial terms are Net 15 prior to an approved credit application and Net 30 after receiving an approved credit application (if other terms are requested outside of Net 30 the accounting team will review those requests on a case by case basis).

Net terms calculate the due date from the invoice issue date. Invoices are automatically emailed out to the order contacts or program contacts on the dates they are created with the invoice attached as a PDF. 

Production invoices are created and emailed when an order is submitted if terms are Due Before Production. If terms are Net 30, the invoices are created and emailed when the items from the order ship.  All clients, program and non-program, can request items to be produced resulting in this type of invoice.  Program clients can order items to be sent to their inventory at Kotis' warehouse or they can have items sent to addresses of their choosing.  Non-program clients can only have items sent to addresses provided since they do not have a program with Kotis.

Program Billing is done on a quarterly basis.  Kotis operates on a calendar year so Q1 is Jan-Mar, Q2 is April-June, Q3 is July-Sept, and Q4 is Oct-Dec.  The invoices are sent usually within the first 14 days after the close of each quarter. 

Program Billing invoices follow the below structure (fees are outlined in the Program Agreement contract):

• Fulfillment Charges eligible to be covered by a loyalty credit are listed
  • Material and Handling charges (per shipment in the quarter being billed)
  • Management fee (percentage of sales, applicable only to clients that have credit card portals)
  • International Document (per international shipment in the quarter being billed)
  • Warehousing (per SKU)
  • Overstock or Pallet Storage (per pallet)
• Loyalty Credit is listed (this credit could cover all fees listed above it on the invoice)
• Net Portal Sales are listed (this is only for program clients that have credit card portals)
• Fulfillment Charges NOT eligible to be covered by a loyalty credit are listed
  • Return Labels used
  • Hours for receiving non-Kotis produced merchandise into inventory
  • 3rd Party Shipping Fee
  • Shipments containing Hazardous contents
  • Handwritten Notes
  • Shipping charges (items shipped on Kotis’ account)
  • Platform Fee is listed (if not eligible to be waived)

It is not guaranteed that every program client will get an invoice each quarter, depending on program usage some clients will have quarters where all fees are covered by their loyalty credit and client’s with portal sales may actually receive a check or ACH for profits that exceeded program fees.  (W9s are required to send payments for profits)

Kotis is not able to bill program fees more frequently at this time, however, these fees can be estimated from reports available in each client’s program reporting suite for accrual purposes as needed.