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ERNST & YOUNG (ASIA-PACIFIC) SERVICES LIMITED

Company number: 07239694

Reporting period:
30 June 2018 to 28 December 2018


This information is as reported by the business, and responses are in their own words.

This report was filed on 25 January 2019

and approved by David Holtze

Payment statistics

Average time taken to pay invoices: 90 days

Invoices paid:

  • within 30 days: 24%
  • in 31 to 60 days: 21%
  • in 61 days or more: 56%

Invoices due but not paid within agreed terms: 90%

Payment terms

Shortest standard payment periods

45 days

Longest standard payment period

60 days

Standard payment terms

Our standard contractual payment period in our standard terms for new contracts with 3rd party suppliers is 60 days save for the following (where the payment period remains 45 days): hotel framework agreements, agreements for the purchase of physical hardware, agreements for the purchase of original equipment from manufacturers and standard purchase orders for the purchase of on-premise software and hosted software. With respect to contracts with 3rd party suppliers the payment period commences from receipt of a proper invoice. Our standard hotel framework agreements (typically used for large hotel chains where we hold employee and client events) additionally provides for: (i) the supplier to deliver a draft invoice which we have 15 days to dispute, (ii) once we sign off on the draft invoice, the supplier may submit a final invoice, and (ii) we have 30 days from receipt to pay the final invoice With respect to intra-EY network contracts, we may provide various services to other firms within the wider EY network (“EY Firm(s)”) and EY Firm(s) may provide various services to us. Our standard payment terms require EY Firm(s) to submit invoices to us quarterly in arrears. Such invoices are payable 30 days after invoice receipt. Any undisputed amounts owed to EY Firm(s) may be set off against amounts owed by EY Firm(s) to us.

Were there any changes to the standard payment terms in the reporting period?

Answer not provided

Were suppliers notified or consulted about these changes before they were made?

N/A

Maximum contractual payment period agreed

60 days

No further comment provided

Any other information about payment terms

Third party invoices are prioritised over payments to EY Network companies. Average payment days to third party suppliers are 7 with 100% of invoices paid in the reporting period settled within 30 days of receipt.

Dispute resolution process

With respect to contracts with 3rd party suppliers (as opposed to contracts with other members of the EY network), the general position is that the appointed service managers (and, if applicable, senior service managers) for each party first attempt to resolve the dispute. If the service managers cannot resolve the dispute and both parties agree the dispute may be referred to mediation. If either party does not agree with the dispute being resolved by mediation then disputes are referred to arbitration. The exceptions to this process are: (i) standard agreements for the purchase of physical hardware and agreements for the purchase of original equipment from manufacturers, which agreements do not include the mediation step and (ii) standard purchase orders for technology services which purchase orders are simply subject to the exclusive jurisdiction of the English courts to resolve disputes and do not include the service manager resolution or the mediation steps, or provisions for arbitration. With respect to intra-EY network contracts, disputes are first referred to mediation by the area operating executive of the Asia-Pacific network of EY Firms. If the area operating executive fails to negotiate a mutually acceptable settlement then the dispute is referred to mediation by the global executive of Ernst & Young Global Limited. If the global executive fails to negotiate a mutually settlement, disputes are finally settled by arbitration.

Other payment information

Has this business signed up to a code of conduct or standards on payment practices? If so, which?

For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.

No, this business has not signed up to a code of conduct or standards on payment practices.

Does this business offer e-invoicing in relation to qualifying contracts?

This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.

No

Does this business offer supply chain finance?

This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.

No

Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?

No

During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?

No