GOV.UK
BIOMET UK LIMITED
Company number: 01019715
Reporting period:
1 July 2018
to 31 December 2018
This report was filed on 29 January 2019
and approved by Stewart Richards
Payment statistics
Average time taken to pay invoices: 55 days
Invoices paid:
- within 30 days: 25%
- in 31 to 60 days: 49%
- in 61 days or more: 26%
Invoices due but not paid within agreed terms: 38 %
Payment terms
Shortest standard payment period
7 days
Longest standard payment period
75 days
Standard payment terms
Shortest standard payment days relate to recruitment agency and legal firms.
The longest standard payment period relates to normal business trading vendors such as materials, services, etc.
Were there any changes to the standard payment terms in the reporting period?
No
Maximum contractual payment period agreed
75 days
Any other information about payment terms
N/A
Dispute resolution process
f we have an invoice that is linked to PO that has not yet been processed and paid, then we need to investigate as to why?
If, when the AP Team try and process the invoice against the PO, and it has been found that the PO has not been booked in, then the invoice needs to be sent to the person that raised the order, asking them to arrange for the PO to be booked in, only if they have received the goods, or the service has been completed. Once the PO has been booked in, then the AP Team can process the invoice for payment.
If the PO is booked in, but there is a quantity issue such as an under booking, then this will also need to be queried with the person/department that raised the PO. If the PO relates to a non-stock order then the invoice will need to be sent to the requisitioner of the PO to query the quantity discrepancy.
If the PO is for stock orders then these will need to be queried with the stores and the Purchasing department.
Once the quantity issue is resolved then the invoice can be processed for payment.
If the issue is not resolved though and the amount that has been booked in, is the amount that we have received, then we will need to contact the supplier and dispute the invoice with them, and advise them of the discrepancy.
Is there a price discprenacy with order and SAP has blocked it for payment? If the PO has been raised at a lower amount that the invoice is charging, then this will need to be queried.
If it is for a stock order, then SAP will automatically direct the invoice to the buyer in Purchasing that “owns” the part. SAP will send the invoice to the buyer where it will identify the price on the PO and the invoice. The buyer will either approve the price difference, as we may be holding outdated prices in the system. Once they approve the price query on the invoice, the AP Team need to send the system generated document number (5199……..) to Kathryn Bates, as she will then release the payment block on the invoice.
If the buyer does not approve the invoice and disputes the price with the supplier, they will normally request a credit note from the supplier. When the credit note is received, scanned in and processed, then this posting of the credit should then automatically release the payment block on the invoice, and the invoice and credit should be paid/taken in the same payment proposal.
For PO’s that are not stock orders the invoice would need to be sent out to the Cost Centre Manager, and approver of the PO, asking them to review the PO/invoice, and either approve the price query, and then again the 5199…… number would need to be sent to Kathryn Bates. If they do not approve the invoice, then the supplier will need to be contacted and the price discrepancy disputed with them.
To confirm, a supplier can contact us in a number of ways – statements of the account, e-mails and telephone calls.
Our 1st job will be to check that the actual invoice has been received and scanned into the system. If not then a copy will need to be requested.
If the invoice is scanned in and relates to a non-PO based account then we need to make sure that it has been correctly coded and sent to the correct designated employees who can approve the invoices. If the invoice has not been approved, then a chase e-mail should be sent to that employee advising that the company has been in contact chasing payment and the invoice is overdue, and that they need to action the invoice asap.
If the invoice relates to a PO, then we need to make sure that the PO is booked in, and the quantity and prices match. If there are any discrepancies then these need to be checked with the requisitioner of the order, or the Stores and Purchasing. Once the issues have been resolved, the invoice should be able to be processed or released for payment.
If the issues have not been resolved then the supplier should be advised asap of the quantity or price discrepancies.
Currently the AP Team runs weekly reports to highlight those employees who are holding up the processing and payment of invoices. Based on this report, e-mails are sent to them asking them to action the invoices asap. If the issues are not resolved, or they do not respond to the AP Team, then the matter should be escalated and a further chase e-mail sent, and the Manager of that employee should also be cc’d in the mail, so they are also aware of the situation.
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
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