GOV.UK
ABB LIMITED
Company number: 03780764
Reporting period:
1 July 2019
to 31 December 2019
This report was filed on 31 January 2020
and approved by Malgorzata Moussa
Payment statistics
Average time taken to pay invoices: 65 days
Invoices paid:
- within 30 days: 8%
- in 31 to 60 days: 28%
- in 61 days or more: 64%
Invoices due but not paid within agreed terms: 69 %
Payment terms
Shortest standard payment period
0 days
Longest standard payment period
154 days
Standard payment terms
The globally defined payment terms for the reporting period are 90 days end of month from date of invoice with payment by the 4th working day of the following month. These terms are applied to new suppliers, and to new contracts. The procurement teams 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 90 days from date of invoice plus 1-30 days, therefore equivalent to 91-119 days.
Were there any changes to the standard payment terms in the reporting period?
Yes – All supplier terms were changed from X days to X days End of Month +4 in September 2019.
Were suppliers notified or consulted about these changes before they were made?
Yes – The changes were made following publication of a new group directive which included the move to one payment run per month. All countries were required to implement this directive unless there was local legislation that prevented the change. Local procurement teams contacted suppliers that they have an ongoing relationship with to make them aware of the change. The general communication is available on our public website www.abb.com/supplying.
Maximum contractual payment period agreed
154 days
The maximum contractual payment period is 120 days end of month + 4 days, which could equate to a maximum of 154 days and a minimum of 124 days depending on the invoice date.
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.
https://new.abb.com/uk/about/invoicing
https://new.abb.com/about/supplying
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