GOV.UK
ABB LIMITED
Company number: 03780764
Reporting period:
1 January 2019
to 30 June 2019
This report was filed on 23 December 2019
and approved by Malgorzata Moussa
Payment statistics
Average time taken to pay invoices: 65 days
Invoices paid:
- within 30 days: 14%
- in 31 to 60 days: 32%
- in 61 days or more: 54%
Invoices due but not paid within agreed terms: 70 %
Payment terms
Shortest standard payment period
0 days
Longest standard payment period
120 days
Standard payment terms
The globally defined standard payment terms for the reporting period are EM090 90 days End of Month from date of invoice. These terms are applied to new suppliers, and to new contracts. No changes are made to payment terms without supplier agreement. The procurement team based in the local business units can deviate from these standard terms based upon spend and size of supplier company
For intercompany trading the standard terms are CIT90 – 90 days from Date of invoice plus 1-30 days, therefore equivalent to 91-119 days, paid via cash in time.
Were there any changes to the standard payment terms in the reporting period?
Yes – The globally defined standard terms changed from 60days from date of invoice to 90 days end of month
Were suppliers notified or consulted about these changes before they were made?
Yes –
These terms are applied to new suppliers, and to new contracts, therefore agreed jointly with the supplier.
For intercompany our terms were published globally and our payment calendar was updated from bi-weekly to once a month payments via a global netting centre
Maximum contractual payment period agreed
120 days
Any other information about payment terms
N/A
Dispute resolution process
The business process for resolving disputes is managed by the local business Procurement teams, together with a central AP team. There is a ‘no PO no Pay’ policy in place throughout the organisation.
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.
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