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ROLLS-ROYCE PLC

Company number: 01003142

Reporting period:
1 January 2018 to 30 June 2018

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

This report was filed on 18 July 2018

and approved by Stephen Daintith

Payment statistics

Average time taken to pay invoices: 69 days

Invoices paid:

• within 30 days: 11%
• in 31 to 60 days: 24%
• in 61 days or more: 65%

Invoices due but not paid within agreed terms: 12 %

Payment terms

Shortest standard payment period

30 days

Longest standard payment period

75 days

Standard payment terms

The Group operates a number of payment terms with its suppliers and they vary due to local laws, the products or services being sourced, the competitive global markets we operate in and other commercial aspects of suppliers’ relationships. These terms are by mutual agreement and usually include the offer of access to the Rolls-Royce Group’s Supplier Finance Programme.

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

No

Maximum contractual payment period agreed

120 days

Any other information about payment terms

We offer reduced payment terms for SMEs, so that they are paid in 30 days and also offer Supply Chain Financing whereby suppliers can receive their payment sooner. Our terms with other suppliers vary on the products or services being sourced, the competitive global markets we operate in and other commercial aspects of suppliers’ relationships. We are also the member of the Prompt Payment Code.

Dispute resolution process

Queries and complaints relating to payments are handled by e-mail by our Accounts Payable department. This e-mail is managed each day and responses duly made

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 – Prompt Payment Code

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.

Yes

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