ERS FAQ

• Who is required to participate in ERS?

– Direct material suppliers in the United States and where permitted by law.
– Our intent is for ERS to be used globally. Suppliers in the United States will be transitioned to ERS during 2009. At this time, Europe and Asia timelines have not been established.

• Will I continue to provide Sauer-Danfoss with invoices?

– No. Paper invoices should not be sent for direct material shipments after a supplier is transitioned to ERS.
– Suppliers will only invoice for special charges (charges not included in the piece part price) pre-approved by a Sauer-Danfoss Buyer.

• How will I identify a payment when the remittance no longer references my invoice number?

– Payment Remittance Advices will reference the supplier’s ASN and Sauer-Danfoss’ order number.

• Who do I contact with questions about payments?

– Please contact your Sauer-Danfoss Buyer or Accounts Payable contact.

• How will supplier shipping discrepancies be handled?

– Suppliers will be paid based on actual receipt quantities. Sauer-Danfoss Receiving will reference the supplier’s ASN when the physical goods are delivered. If the ASN quantity and the physical goods quantity DO NOT MATCH, Sauer-Danfoss Receiving will contact your Sauer-Danfoss Buyer.
– Your Sauer-Danfoss Buyer will contact you to work out and resolve the discrepancy.
– Product will only be received via our business system after the discrepancy is resolved. This goods receipt transaction will then be available for ERS invoicing.

• I receive payment via a paper check today. With ERS, can I still receive a paper check?

– ERS is the process of generating invoices that will be used to pay our suppliers. Check, ACH, and Wire Transfer are types of payments we offer.
– For domestic payments, ACH is our standard method of paying suppliers. Payment by check is currently available but is quickly being phased out.
– Wire transfer is our standard method of paying foreign suppliers.