GOV.UK
BAE SYSTEMS (MILITARY AIR) OVERSEAS LIMITED
Company number: 02564455
Reporting period:
1 January 2019
to 30 June 2019
This report was filed on 30 July 2019
and approved by Simon Wood
Payment statistics
Average time taken to pay invoices: 45 days
Invoices paid:
- within 30 days: 67%
- in 31 to 60 days: 17%
- in 61 days or more: 16%
Invoices due but not paid within agreed terms: 47 %
Payment terms
Shortest standard payment period
0 days
Longest standard payment period
60 days
Standard payment terms
Our standard conditions of purchase, provide for payment at the end of the month following the month in which an invoice is received, subject to (i) a valid invoice being properly provided by the supplier and (ii) the relevant Supplies being delivered and accepted by us, in accordance with the contract. The full text of the standard payment term can be located in Clause 15 of the 2018 Standard Conditions of Purchase at:
https://www.baesystems.com/en-uk/what-we-do/suppliers/united-kingdom.
Were there any changes to the standard payment terms in the reporting period?
No
Maximum contractual payment period agreed
60 days
Any other information about payment terms
We have a number of Purchase Orders (POs) in place with Eurofighter which are used to flow payments through to the 4 European Partner Companies (EPCs). These POs carry funding limits for each EPC, the sum of which equals the value of the PO. These funding limits can be reallocated across the EPCs in order to allow payment to be made (should the cumulative level of invoicing exceed this funding limit for any EPC). Should the total values of these funding limits exceed the current value of the PO, an uplift in the value of the PO is required before reallocation can take place. During the 6 month period to June 2019 these funding limits were reviewed and reallocated in order to clear 45 invoices, payment being made 61 days or over after the invoice date. An action plan is now in place to ensure the ceiling limits are regularly reviewed to enable payments to be made in a more timely manner.
The supplier's invoice date (and not the date of receipt of the supplier's invoice) is the only currently reliable measurement for calculation of the reported statistics.
It is not precisely known when payments actually credit into a supplier’s bank account (we do not have systems that accurately record this event). Therefore for the production of the disclosed statistics, we have made a reasoned estimation of when payments have cleared into a supplier's bank account.
Where an invoice has been settled through the matching of a credit note, this invoice is not included in the payment statistics. If there is a partial match of a credit note against an invoice, the payment of the remainder of the invoice is included in the payment statistics.
If the payment statistics were measured from an estimated date of receipt of a valid suppliers invoice and the goods or services (where available from our systems) and therefore to our mutually agreed 'Standard Conditions of Purchase' then the reported performance for H1 2019 would be as follows:
Average to pay = 28 days
Percentage paid in 0 to 30 days incl. = 74%
Percentage paid 31 to 60 days incl. = 19%
Percentage paid in >60 days = 7%
Percentage NOT paid within agreed terms = 45%
Dispute resolution process
As per our standard conditions of purchase, if a payment dispute arises, then the parties are required to follow a disputed invoicing process and use reasonable endeavours to resolve the dispute amicably. Any disputes that cannot be resolved are subject to arbitration. Our full dispute resolution process can be found in Clauses 15 and 36 of the 2018 Standard Conditions of Purchase at: https://www.baesystems.com/en-uk/what-we-do/suppliers/united-kingdom.
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.Yes – BAE Systems (Military Air) Overseas Limited is a signatory to the UK Prompt Payment Code and is also a signatory to the German Civil Code Section 288.
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.
Yes
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