Frequently Asked Questions
All your Supplier questions, answered
What is a Preferred Supplier Account Number?This is the number you use to reference the transaction information you send to Capricorn. Capricorn categorises Preferred Suppliers depending on their types of goods and services for sale. Any account you have with Capricorn that can accept our Member purchases and invoices is called a Preferred Supplier Account.
What types of Preferred Supplier Accounts are there?
There are three, with each account type having a discrete account number that relates to the types of good services transacted. You may have more than one account type and multiple account numbers.
1. Trade Account: This is the default account and, in the absence of having any other account, is used to transact and capture all the sales you make. Preferred Suppliers that offer parts, services and consumables are typically set up with a trade account.
2. Capital Equipment Account: Used exclusively for transacting workshop equipment, this account is available to Preferred Suppliers who offer fixed workshop equipment greater than $2,000.
3.CAP Ezi-finance Account: In addition to the Capital Equipment Account, this account can be set up to allow Members to finance (via CAP Ezi-finance) their workshop equipment purchases greater than $2,500.
Who can I transact with via Capricorn?
Capricorn Members only. You'll need to confirm this with every transaction you make - either by sighting the membership card if in person, if not then prompting the Member to quote their Capricorn Member.
Members taking receipt of goods will need to prove their membership using their Capricorn membership card and a signed delivery receipt must be obtained.
How do I transact via Capricorn?The method for transacting depends on the following:
- The Preferred Supplier Accounts you have.
- Your head office access to CAPLink.
- Your staff or branch access to CAPLink.
- Your IT software and hardware capability.
- If an individual transaction amount is greater than $20,000.
Are there any restrictions on transacting?
Yes. You cannot transact, via your Trade Account or any other accounts, with a Capricorn Member who is currently on Capricorn 'Stop Credit'. Capricorn will not accept any transaction with a Member on stop credit, and you may be left seeking payment directly from that Member. In addition, large transactions must be authorised by Capricorn Credit Services before being submitted.
For single transactions of more than $20,000, you must obtain authorisation from Capricorn Credit Services on 1800 327 437 (AU) or 0800 401 444 (NZ) before transacting via CAPLink.
Transactions submitted without authorisation will not qualify for Capricorn's Payment Guarantee. Multiple transactions totaling more than $20,000 made by one Member in a 24-hour period must also have authorisation from Capricorn Credit Services before transacting via CAPLink.
What is CAPLink?
CAPLink is a software program that automates the sales process. It is the primary transaction method used by Capricorn to obtain invoicing data from our Preferred Suppliers - and reduces or removes the need for administration processing by you at the end of each month. As well as ensuring increased security, CAPLink
makes doing business with Capricorn and its Members simpler and more efficient.
With CAPLink, you can obtain instant access to Members' credit status, receive immediate authorisation on transactions, and send them directly to Capricorn.
CAPLink also integrates Capricorn's daily broadcast into your system, informing you immediately of any changes that could affect your trading with Members.
CAPLink data can also be used to help you target future sales opportunities, and can streamline the process of Bonus Reward Point promotions.
Employee training is provided upon installation, and is available any time after if required.
Note: If a Preferred Supplier employee or branch does not have access to CAPLink, please notify your appropriate accounts receivable (or invoicing) department to facilitate the CAPLink transaction.
What Member purchases should be made via CAPLink?
All Member parts, consumables and services purchases are likely to be transacted using CAPLink. For these transactions, the Preferred Supplier must use their Trade Account.
Member purchases of capital equipment may also be processed through a Preferred Supplier's Account via CAPLink. These transactions will appear on the Member's 30-day credit account and the Preferred Supplier will need to pay the Trade Account Service Fee.
It is likely that a Preferred Supplier would not process capital equipment purchases through their Trade Account via CAPLink unless they do not have a Capital Equipment Account.
When do I use my Capital Equipment Account?
If a Member is purchasing capital equipment worth more than $2,000, the transaction may qualify to be processed through your Capital Equipment Account (if you have one) via CAPLink.
If the capital equipment (or total transaction value) is less than $2,000, the transaction must be processed through your Trade Account via CAPLink. The only time CAPLink should not be used is if the Member requests CAP Ezi-finance to assist the purchase.
You may wish to offer capital equipment to a Member and promote using the CAP Ezi-finance product.
Are there any additional restrictions on transacting via my Capital Equipment Account?
You can only transact on capital equipment, this excludes motor vehicles. Typically, this includes items such as hoists, brake lathes, scanners, tool kits, tyre changers, chassis aligners, wheel balancers, wheel aligners, welders, spray booths and the like.
You cannot use the Capital Equipment Account if the item(s) being transacted is valued at less than $2,000 (Go3 finance product is a minimum of $2,000 and Cap-Ezi finance product is a minimum of $2,500). In this case, you must use your Trade Account.
What is Cap Ezi-finance?
Cap Ezi-finance is Capricorn's own equipment finance product. It enables Members to purchase capital equipment from Preferred Suppliers who operate with a Cap Ezi-finance Account on terms from 6 months to 5 years.
Cap Ezi-finance helps Members to acquire income-producing or cost-reducing equipment by spreading the cash flow impact of a large purchase over a manageable period.
As a Preferred Supplier, Cap Ezi-finance helps you increase the probability of completing equipment sales by offering longer-term payment options.
If you have a Cap Ezi-finance account and the Member is interested in purchasing equipment - then we encourage you to communicate the CAP Ezi-finance option to Members so they are aware this is an available option for the purchase of their equipment from you.
What is the 3 month interest free product?Called a Go3, it is another finance option that enables Members to purchase capital equipment priced at $2,000 or more from Preferred Suppliers interest free on a 3-month repayment term.
How do I transact using Cap Ezi-finance?If a Member is looking to purchase your equipment via Cap Ezi-finance, simply follow the steps below:
- Capricorn Finance will contact the Member to arrange paperwork and approvals.
- Capricorn Finance will request a copy of the invoice from you.
- Capricorn Finance will advise you when the transaction is approved and when the goods can be delivered to the Member (or we will advise if the transaction is not authorised).
- The Member acknowledges receipt of delivery and you provide proof of delivery to Capricorn Finance.
- Capricorn Finance then arranges settlement and makes the payment to you within 48 hours.
Are all CAPLink transactions paid by Capricorn?
Yes, providing all transactions transmit successfully from CapLink and if you follow all the requirements of your agreement with Capricorn. For Cap Ezi-finance transactions, your agreement with Capricorn requires us to authorise the transaction.
Important: If a Cap Ezi-finance transaction is not approved, payment will not be made by Capricorn and you will need to make alternative arrangements for payment with the Member.
How should I take parts orders from Capricorn Members?
- Confirm the identity of the Member as required by your PSTA.
- Take the order in the usual manner as you would.
What needs to be done when a Member collects or is delivered their goods?
- Identify the Member by sighting the Capricorn membership card.
- Ensure the Member signs a receipt and keep the written record.
- Never accept a different delivery address without ensuring the new address belongs to the Member.
How should credit notes be issued?
It is very important that credit notes be processed in the normal manner, noting the Capricorn Member number.
All credits must be processed and transmitted within 4 days of the relevant date on which you supply or refund to the Capricorn Member.
How does GST apply?
Whenever a Member purchases your goods or services, you should provide a tax invoice addressed to the Member. This is then used by the Member to claim GST input credits when preparing their Business Activity Statement
(BAS) in AU or GST Return in NZ. Likewise, you remit GST collected from sales when preparing your BAS return. Capricorn does not purchase or take delivery of the goods or services in such circumstances. The Member is the recipient of the “supply”.
Capricorn collects Member sales data from all Preferred Suppliers and makes payment on agreed terms. For this we charge a Service Fee, which is calculated at an agreed percentage of gross (GST inclusive) Member transactions. GST is then charged on the Service Fee and a tax invoice is provided by Capricorn to you in AU. In NZ, the Service Fee is zero rated for GST which means that no GST is charged.
Note: For taxation purposes, whilst the Service Fee is calculated based on the Member(s) transactions, the payment by Capricorn to the Supplier of the Service Fee is a separate and different transaction from that involving the Member and Supplier.
Can I register a security interest against Capricorn?No, this cannot be done under the Personal Property Securities Register. Capricorn does not take title or any other interest in the goods that you supply directly to Members, so no interest against Capricorn can be registered in those goods. Capricorn also does not grant any right for you to register a general security interest against it under your Preferred Supplier Trade Agreement. We will require you to remove any security interest that is registered against Capricorn.
Monthly Remittance Advice
- Remittance Advice showing the amount to be paid into your bank account on the last working day of the month.
- Spreadsheet showing all invoices and credits charged to Members, with service fee charge and GST component for each transaction.
- Service Fee tax invoice for your records.
It is important to note that Preferred Suppliers need to provide and maintain their email address. Please send any email changes to email@example.com.
Membership Penetration Report
A breakdown, Member by Member, of sales month by month.
- Sales totals, month by month, plus total sales for 12 months.
- The number of Members who have bought from you, the average trade amount per month, and what this represents as a percentage of total membership in your state.
- Members who have previously bought from you, but did not purchase anything in the current month.
Making sure you are paid on time. There are two keys to receiving our guaranteed payment:
- Ensure your data is transmitted daily.
- Check each morning that the previous day's invoices are on your account.
Transmitting data daily and checking that your invoices have been received with provide peace of mind that all of your invoices have been accepted by Capricorn and that your payment will match what you are expecting to receive. It will also give time to fix any transfer issues that could occur during processing. It is important that you transmit daily, and any invoices not received by the last working day of each month will not be paid.
Our Preferred Supplier website provides a calendar each month with each day's receipts. To view click on 'Statement & Docs'.
If you have any issues with transmissions not appearing, please free call 1800 327 437 (AU), 0800 401 444 (NZ).
Frequency of transmissions
Whilst there are a number of different transmission methods you can use, the most effective is our fully integrated transaction method. This means your invoices are transmitted at point of sale.
If you would like to switch to this method, or to discuss any of the other available methods, please contact your Supply Account Manager or Area Manager.
Don't wait until the end of the month.
Occasionally, computer or system failures can cause unexpected delays - resulting in you missing the cut-off for guaranteed payment. To avoid this, transmit daily or, at least, frequently.
If you have any issues, please free call 1800 327 437 (AU), 0800 401 444 (NZ).
Stop credit transmissions
Every day, Capricorn transmits the list of Members who are on 'stop credit'. This can be for various reasons - including closure of accounts, payment issues, or a change in business ownership.
Since Capricorn does not accept invoices from Members who are on stop credit at the time the invoice was issued, it's vital to update your list each day of Members authorised to utilise their membership numbers.
What can I do to reduce the risk of having a Member dispute?
Avoiding disputes altogether maintains customer goodwill and saves you time - delivering the goods in working order, as authorised by the Member, to the right place and the right person at the right price is a great start.
Disputes do happen however, and a common basis for dispute is around the return of goods - therefore at the outset be very clear as to the basis on which you accept the return of goods in the absence of them being faulty or misdescribed (e.g. your position on where a Member changes their mind or over-orders goods). Set out this policy on your website and reference it on your invoices.
Another basis for disputes is a lack of proper authorisation to charge a Capricorn Trade Account. Make sure your staff are aware of Capricorn's procedures so they, where appropriate (e.g. collecting of goods from store), always ask to 'sight' the membership card before completing a transaction. If you question whether someone is who they say they are, ask to see ID. You can also call our Customer Service to confirm if the contact is an authorised Member contact.
Finally, always take notes and if possible create an email trail with Members so that all of the facts can be detailed and agreed to by both parties.
What to do should a dispute arise
Whenever possible, you should try to resolve any dispute with the Member in the spirit of the highest level of customer service and satisfaction.
Whilst Capricorn makes payment, the supply of goods and services is still directly between you and the Member. Capricorn will make payment to you provided the trading terms are adhered to - including that the goods ordered by a Member are received with proof of purchase and delivery.
By making payment to you, our Preferred Supplier, Capricorn does not interfere with any warranties or other obligations that may have been agreed between you and the Member or that may apply at law.
The quality of goods and services
Should a dispute arise over the quality of goods or services supplied, you should deal directly with the Member - because as the Preferred Supplier, you owe the Member any warranties or other obligations.
In some situations, Capricorn does try to help Members and Preferred Suppliers to resolve disputes. This is because we have an active relationship with you both.
If you need assistancePlease contact your local Supply Account Manager, Area Manager, or Customer Service - free call 1800 327 437 (AU), 0800 401 444 (NZ). Please note that Capricorn will not become a party to any dispute or let it affect the obligations that Preferred Suppliers and Members owe to Capricorn or vice versa.