International University of Applied Sciences Bad Honnef – Bonn
Internship Report
BASF Services Europe GmbH
Patrick Noah Henzgen
Reg. No: 3201183
BIM (International Management)
Prof. Mart Verhoog
Due: March 30th, 2023
Words (Report):
Internal
Internship Report Henzgen, Patrick Noah
Table of Contents
Table of Contents
1
1.
Introduction
2
2.
Description of the Company and its Market
2
3.
Description of my department and my task/project
5
4.
Description of your learnings and reflection on the Internship
8
5.
Sources
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Internship Report Henzgen, Patrick Noah
1. Introduction
I am pleased to present my internship report for the Accounts Receivables department at BASF,
completed during my last semester of studies in international management. Throughout my internship,
I gained valuable insights into the day-to-day operations of a multinational corporation and the
importance of effective communication, time management, and professionalism in the workplace. I also
learned the importance of embracing challenges, staying adaptable, and being open to learning new
things.
This report will provide an overview of BASF and its market, the Accounts Receivables department and
my tasks, and my learnings and reflections on the internship experience. This report provides a
comprehensive understanding of my experience and serves as a valuable resource for those interested
in pursuing a career in the corporate world.
2. Description of the Company and its Market
BASF initially called “Baden Aniline and Soda Factory”, started as a Soda factory over 150 years ago.
1865 marked the beginning of a story leading to becoming the global player BASF is today. Since then,
they have shown how chemistry can create and enable new ideas, possibilities, and solutions for every
industry and almost any region globally. BASF Group includes multiple joint ventures as subsidiaries
in more than 90 countries. They operate, produce and sell their products thin e following regions: Asia
Pacific (AP), Europe, the Middle East and Africa (EMEA), North America (NA) and South America
(SA), as they continue to expand into other regions and grow to continuously reach every part of the
world and offer solutions to everyone.
The chemical industry is a vital part of the global economy. Its products are used in various applications,
ranging from necessities such as food and water to high-tech products such as electronics and aerospace.
The global chemical industry was valued at approximately $4 trillion in 2020, and it is expected to grow
at a CAGR of 4.5% from 2021 to 2028. The industry's growth is driven by increasing demand from enduse industries, particularly in emerging economies, technological advancements, and growing
investments in research and development.
Their portfolio of services offers a large width and allows us to get insights into all sorts of industries.
It comprises six significant segments: Agricultural Solutions, Materials, Chemicals, Nutrition & Care,
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Internship Report Henzgen, Patrick Noah
Surface Technologies, and Industrial Solutions. On top of that, they also pursue continuous Research in
all the given segments as in other areas of interest.
(Figure 1: Portfolio Segments of BASF)
These six segments are supported by eleven divisions grouped within the segments according to their
business models. They are grouped according to their field of industry or product portfolio and are
responsible for operational activities. These divisions run 52 global and regional business units and
develop strategies for more than 75 strategic business units. Besides the ordinary operating activities,
the restricted business units contribute to the local development of the business and are also used to
exploit market opportunities to improve the infrastructure.
111000 Employees make all this possible and contribute to the success of the company’s success “create
chemistry”, as their Slogan says. About one-third of the employees work at their headquarters in
Ludwigshafen, Germany, at the Rhein River. From there, they ship their products produced at their
“Verbund-site” in Ludwigshafen to every part of the world and are now the largest integrated chemical
complex. They operate on six major production sites, Verbund-sites, as 241 other production sites within
the Group. The giant Verbund-sites are built to work as an efficient value chain.
In this interconnected system, chemical processes use energy more efficiently, achieve higher product
yields and conserve resources. By-products of one process are being used as starting products for another
operation to save raw materials as energy, minimise emissions and cut costs simultaneously. They are
helping customers reduce their carbon footprint by offering solutions essential for climate protection.
These go from isolation materials for energy-efficient housing to battery materials for electromobility.
BASF operates in a highly competitive market with other major players, including Dow Chemical
Company, DuPont de Nemours Inc., ExxonMobil Corporation, and Royal Dutch Shell Plc. BASF has
focused on innovation, sustainability, and operational excellence to maintain its competitive edge.
Innovation is at the core of BASF's business strategy, and the company invests heavily in research and
development to develop new products and technologies. BASF's R&D expenses in 2021 amounted to
€2.3 billion, which accounted for 3% of its sales. The company has over 10,000 researchers working in
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70 R&D centres worldwide, developing new solutions that help its customers improve their products
and operations.
The goal of BASF is to grow as a company, be profitable, and, most importantly, have a positive impact
and contribution to the environment and society. Therefore, the solutions they provide also focus on
environmental protection and possibilities to reduce waste or give solutions to recycle products better
and allow for climate-friendly future mobility. They set the Goal to reduce their carbon emissions by 25
% by 2030 and become carbon neutral in the year 2050. For that, new technology and renewable energy
are needed. BASF works with other companies, governments, and clients worldwide to ensure a more
sustainable future. Seeing how an internationally operating firm works daily as being able to engage in
their operations sounded tilling to me.
I worked at the BASF Service hub in Berlin, Germany, which is part of the BASF Services Europe
GmbH and is an international operating subsidiary focussed on the service and knowledge management
of the BASF Group instead of the production or research. The Hub specialises in supporting the Group’s
companies in over 80 countries, providing various business activities and other services in procurement,
human resources, controlling, supply chain, finance and areas such as safety for products and processes
and project management. The newest service additions include IT technology and digitalisation, which
are upcoming trends that will improve the digital conversions of operations.
Because their chemical production and research depend on Oil and other scarce resources, the crisis
between Russia and Ukraine has primarily affected the business temporarily. Nevertheless, they are still
providing their services, solutions and chemistry and remain the most extensive chemistry-creating
company worldwide as they prepare for situations of shortage in resources. Seeing how the company
deals with these environmental factors influencing its whole business was fascinating to be seen firsthand in this internship. Being able to see how different customers are affected and how companies adapt
to different situations was fascinating.
Additionally, BASF shows with figures and numbers how well they recovered from the pandemic. The
Group’s Revenues totalled 78,9 billion Euros in 2021, with which they achieved strong earnings growth
by increasing sales by 33 percent compared to the previous year. The total volume sold increased by
eleven percent, from which all segments show price and volume growth. Furthermore, their EBIT
increased by 118 percent, and the cash flow from operating activities increased by 34 percent. BASF's
strong financial performance and positive development were achieved mainly in the segments of
materials and chemicals, which offset the challenges faced by other segments that continued facing
problems like discontinuities in supply chains and were therefore held back from growing as fast as the
different segments due to supply chain disruptions caused by the COVID-19 pandemic.
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(Figure 2: Sales by Region)
The outlook of BASF is continuous growth in figures and numbers as it expands to more parts of the
world. They will continue being the world's largest chemistry producer, as they want to show their
customers that sustainability doesn’t have to be expensive. Therefore, they continue to research and
develop existing solutions to provide the best products for big companies and governments and the
public.
3. Description of my department and my task/project
The internship is performed in the financial department of the Service hub Berlin of BASF. I joined the
team to take care of the Accounts Receivables for all the company’s Business Partners, which only send
payments to the BASF SE, my Service hub. The Hub focuses on providing operational support as well
as other services to the company’s business in more than 80 countries worldwide, offering a broad
portfolio of operations and other services in the areas of procurement, human resources, controlling,
supply chain, finance, as well as product and process safety and project management. The latest
additions to its services comprise information technology and digitalisation, which are upcoming trends
that will enhance digital transformations of functions.
My department specialises in accounts receivables. Specifically, my team works on a portfolio of
customers who transfer their payments to the German BASF SE. Divided into four different Teams, I
work in a Team called Germany 1 & Austria and Switzerland, which doesn’t precisely define where the
clients are from. The name has just stayed since the department's founding, showing where it began and
how far BASF has reached a portfolio of clients worldwide. Within this department are ten colleagues,
called officers or senior officers. On top, there is a team specialist and a manager for each Team, so you
can always get a quick answer if an open question or a problem occurs. The team is set up, so everyone
has access to each other’s portfolio of clients in case someone is on holiday or sick leave. There is an
integrated backup plan for each person to provide the best possible service for their clients and work all
the time efficiently.
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Internship Report Henzgen, Patrick Noah
After having had intense training to learn all the necessary skills and tools to work within this
department, a smaller portfolio was created for me to work on my own with my own countries and
clients and get to understand the daily working routine before getting added more to my portfolio and
having more responsibility, within this process my colleagues were always ready to help me if I didn't
understand something or did not know how to deal with specific customers as well as how to enforce
BASF’s specific data regulations. The accounting department is always in contact with all other
departments, such as the sales or credit department, to ensure all the data is correct and double-checked
to avoid unnecessary mistakes or transfers.
Working in the Accounts Receivables department required great attention to detail and accuracy. I had
to ensure that all financial records were accurate and up-to-date and that any issues or discrepancies
were resolved promptly. This required a strong understanding of accounting principles and financial
reporting standards. Another challenge was managing a large volume of data. The Accounts Receivables
department receives many invoices and payments daily, which required me to be highly organised and
efficient in managing the data.
I had to ensure that all data was accurately recorded and that discrepancies were identified and resolved
promptly.
My main tasks can be described as

Ensuring that the account reconciliations are made correctly at the end of the accounting period.

Handling of incoming payments (allocation of payments, booking of mediums of exchange
(e.g., cheques), clearing/solving of payment differences) and monitoring/ maintenance of the
debtor account with the customer, the collection team, sales, Credit Management, and local
finance

Manual optimisation of Bot-integration routines for specific customers, so-called “self-billers”,
to automate their bookings (larger companies which pay BASF frequently started applying this
procedure to reduce the workload of the department’s officers)

Creation of debtor payment runs (e.g., SEPA, direct debit) and credit note payouts, as well as a
preparation (e.g., prepayment check) and execution of dunning runs, maintenance of
“Smarteye” Cockpit to improve the matching ratio, issuing of documents for customers (open
items list, balance confirmations for auditors, bank confirmations, copy of invoices, etc.)

Handling doubtful debts & support local finance with debt collection cases

Accounts Receivable related ad hoc Reporting for local partners, month-end activities (such as
bonus payments, lousy debt posting and reporting, IFRS9 reporting, monitoring different BOT
reports, etc.) and year-end activities (Notes, substantive audit, audit and other closing activities)

Identifying knowledge gaps, creating and maintaining process documentation using existing IT
tools, following the knowledge management strategy
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Internship Report Henzgen, Patrick Noah

Extra activities: trainee tutor, trainer (Learning Academy, newcomer training), work groups,
participation in projects, Autobank Key user (portal for invoices), MDG Key user (Master Data
portal), User Rights Gate Keeper, FRC Key user (foreign currency exchanger), Knowledge
Facilitator, etc
In summary, the department manages incoming customer payments and ensures that payments are
accurately recorded in the system. This requires high accuracy and attention to detail to ensure that all
financial records are up-to-date and accurate. One of the department's main tasks is to help clients with
any questions regarding their payments. This includes responding to queries about overpaid or underpaid
invoices and assisting in resolving any issues or discrepancies. The team also sends notifications to
customers when payments are overdue and asks if there is a specific reason for non-payment.
The department also manages customer requests to extend the payment deadline for specific reasons.
The accounting team reviews these requests and decides whether or not to grant them based on the
reasons provided by the customer. This requires a deep understanding of accounting principles and
financial reporting standards and a good understanding of customer relationship management.
The Accounts Receivables department requires specialised training and knowledge of applications such
as SAP (FICO), Microsoft Office, and Power BI to fulfil these tasks. The team must be able to use these
applications effectively to manage financial transactions, produce financial reports, and communicate
with customers. In addition to these core tasks, the department is responsible for ensuring compliance
with financial regulations and reporting standards. This requires the team to stay up-to-date with
changing financial regulations and reporting standards and maintain accurate financial records. Below
is a diagram showing the integration between FICO SAP modules.
(Figure 3: Module SAP FICO)
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Internship Report Henzgen, Patrick Noah
Another Task the department works on is to optimise the automation of the processes, such as incoming
payments, to ease the workflow and amount of work from an officer by using an AI, which reads the
incoming payment advice from customers. This process helps only to have some incoming payments be
made manually. If the bot does not correctly read a file, it must be checked manually in the system and
corrected so the bot can continue booking it. The Bot works with constant feedback, so an officer can
add this to a customer's data if a customer always has a specific way of referencing his payment. The AI
learns automatically for the next incoming payment.
Overall, my internship at the BASF Shared Service Center in the Accounts Receivables department was
a rewarding experience that gave me valuable insights into accounting and financial reporting. I gained
practical experience managing financial data, communicating with customers, and resolving issues and
discrepancies. The experience has prepared me well for a career in accounting or finance and has given
me a deeper appreciation for the importance of accuracy, attention to detail, and customer relationship
management.
4. Description of your learnings and reflection on the Internship
My internship at BASF Service Hub in Berlin was a valuable learning experience that allowed me to
explore the natural working environment of an international organisation. The opportunity to work in a
professional setting and learn from experienced professionals was invaluable. I gained a wealth of
knowledge and skills that will be useful throughout my career. One of the most significant benefits of
the internship was the opportunity to gain practical work experience without having a permanent
commitment to a company.
It allowed me to gain insights into how an organisation operates, learn how to use tools and systems
required in the industry, and develop my professional skillset. Additionally, I was able to rethink my
expertise and see how it could be applied in the real world.
Working in an international environment was a highlight of my internship at BASF. The team I worked
with had a diverse background, which enabled me to work with people from different cultures and learn
about their working styles. The company encouraged me to use my language skills, which I found
rewarding as I could communicate with clients worldwide.
The entire internship was both exciting and challenging at different points. However, it was mainly
application-oriented, allowing me to take responsibility and develop my skillset further. The position at
BASF pleased me very much since the team in which I worked contained an international environment,
not limiting the internship to a specific language but encouraging my proficiency in languages as well
as the field of finance, which is the industry I have chosen to major in my studies, and which interests
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me most. The entire internship was exciting and challenging at some points, but first and foremost,
application-oriented, allowing me to show responsibility and develop my skillset further. Through these
six months, I gained more insights and a more comprehensive understanding of the processes of an
international organisation operating in many different sectors.
A more detailed description of my learnings includes that I learned:

How I can put my advanced knowledge and skills into practice and directly apply new, adapted
and improved skills. I was able to gather a lot of new skills
and gain a profound understanding of business processes (especially financial processes).

How to identify my skills, precisely what I am strong at and what might be an area for
development

How vital communication is. It’s probably the most important skill I gained during the
internship: speaking in a professional environment. Clear and precise communication has
proven more effective with clients and colleagues.

Besides communications, professional behaviour is appropriate to show respect to whomever
you are speaking to.

Networking with colleagues and clients can be helpful in future opportunities.

Feedback is a crucial part of the learning process, especially constructive criticism helped
strengthen my skills and the overall quality of my work. It naturally gave me more confidence
for the next time since I learned something new.

To work independently and search for tasks to handle on my own.

To search for a solution and make decisions on a matter.
Many more points and learnings could have been added, and all of them contributed to being a valuable
learning experience for me. Throughout my time in this role, I have developed technical and personal
skills. My learnings can therefore be broken down further into three categories:
The technical Learnings:
As a member of the Accounts Receivables department, I managed invoices and customer payments and
resolved payment discrepancies. This role taught me the importance of accuracy, attention to detail, and
strong organisational skills. I also developed an understanding of the importance of communication and
collaboration between different departments to ensure timely and accurate payment processing.
Furthermore, my work at BASF exposed me to various software applications, such as SAP and
Microsoft Excel, which are widely used in the industry. These software applications have allowed me
to develop my technical skills, such as data analysis, report generation, and data management.
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My personal Development:
My experience at BASF has allowed me to develop my technical skills and influenced my personal
growth. Working in the Accounts Receivables department has taught me the value of teamwork,
communication, and interpersonal skills. I have learned to collaborate effectively with colleagues from
different departments, manage conflicts, and communicate clearly and respectfully.
Moreover, my role has allowed me to develop my problem-solving skills. In my day-to-day work, I had
to identify issues and find solutions to ensure timely and accurate payment processing. This has helped
me to develop my critical thinking and analytical skills, which are valuable in both personal and
professional settings. I was happy that the common misconception of interns only running errands was
not proven to be true. On the contrary, I could test all the skills and knowledge I developed. Even though
you are at the bottom of the career ladder, you’re also needed, and your essential work is appreciated.
Practical exposure to the industry is an essential part of a student's overall academic and professional
growth. Most employers consider interpersonal communication, the ability to work in a team, and
practical work experience more than technical aptitude. BASF offered the best opportunity to acquire
these skills by letting me enter their international environment. One of the most significant benefits of
my internship was the opportunity to work with experienced professionals willing to share their
knowledge and expertise. The team I worked with was very supportive, and they encouraged me to ask
questions and provided me with the necessary guidance to complete my tasks effectively. They were
patient with me when I made mistakes and helped me to understand how to correct them.
Another significant benefit of my internship was working professionally and developing my
communication skills. I had to communicate with clients and team members regularly, which helped me
improve my communication skills, particularly in a professional setting. I learned how to interact with
clients, answer their questions, and resolve any issues they had. Additionally, I learned how to work
effectively as part of a team and manage my time effectively to complete my tasks on time.
My time in the Accounts Receivables department at BASF has been a valuable learning experience.
Through this role, I have developed various technical and personal skills that have influenced my
personal growth positively. The skills I have acquired will serve me well in future endeavours and help
me grow personally and professionally. Professionally it has reinforced my interest in SAP Consulting.
Throughout my internship, I worked with SAP daily and saw first-hand how effective an Enterprise
Resource Planning (ERP) system can be.
SAP is a powerful ERP software many companies use to manage financial transactions, logistics, and
customer relationship management. During my internship, I worked extensively with SAP, and I was
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Internship Report Henzgen, Patrick Noah
impressed by its capabilities and how it can be used to manage financial data effectively. I learned how
to navigate the system, input data, and generate financial reports. Additionally, I learned how to
reconcile accounts, communicate with customers, and ensure that all financial records were up-to-date
and accurate.
Working with SAP has made me realise the importance of ERP systems in modern-day businesses. ERP
systems like SAP can help companies manage their operations more efficiently and effectively, allowing
them to save time and resources. ERP systems can also help companies gain insights into their business
operations, enabling them to make more informed decisions. Moreover, my internship has further
reinforced my interest in pursuing a career in SAP consulting. SAP consultants work with companies to
implement and customise SAP software to meet their specific needs. They advise how to use the
software best to improve business operations and provide training and support to users. The experience
has provided me with a solid foundation to pursue a career in SAP consulting and has made me more
excited to explore this field further.
Overall, my internship at BASF was an enriching experience that provided me with practical skills,
knowledge, and insights into the corporate world. I am excited to use this experience as a foundation for
achieving my career goals and making meaningful contributions to the industry.
5. Sources
https://www.basf.com/global/en.html
https://www.guru99.com/introduction-sap-fico.html
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