AB AGRI LIMITED
Company number: 00193800
Reporting period:
1 September 2019 to 29 February 2020
Report filed on:
22 April 2020
Approved by:
Scott Gurvis
Payment statistics
Average time taken to pay invoices: 17 days
Invoices paid:
- within 30 days: 94%
- in 31 to 60 days: 3%
- in 61 days or more: 3%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 38%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
60 days
Standard payment terms
Payment terms vary for suppliers, these can vary from 14 days to an agreed payment on the last working day in 2 months time. These terms are predominantly for our raw material invoices of which run relatively cyclical.
Were there any changes to the standard payment terms in the reporting period?
No
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
60 days
No further comment provided
Any other information about payment terms
As of 1st September 2019 the above practice has been corrected and now each weekly payment run includes invoices due up to 9 days post payment run date. This is made up of 7 days to take into account the weekly nature of our payment runs and 2 days to take into account the BACS transmission time.
This has significantly improved our payment days, however we are looking to further improve this by assessing electronic ways of working to help us gather invoices from our various sites quicker and allow us to pay our suppliers in an even more timely fashion.
When setting up a new supplier internally, in an effort to ensure the suppliers are paid promptly for the first invoice received, a lot of suppliers are set up with immediate payment terms, regardless of the terms set out in the procurement agreement. We are currently undergoing a process to better reflect the actual payment terms for our suppliers so as to ensure our knowledge of our payment practices is as accurate as possible.
Dispute resolution process
Purchase ledger within central finance will receive initial information for disputes and complaints with suppliers about all payments. All disputes are followed up as soon as possible with all information passed onto respective divisions for further investigation. All raw material disputes, which form the majority of payments, are tracked in a query log and regularly monitored to ensure they are dealt with on a timely basis.
A big effort is currently underway to complete further supplier statements and look to complete these more frequently so that our Purchase Ledger team and our suppliers have a really clear view of the current situation of the account and to capture any missed invoices before they become overdue.
In the incredibly rare situation where a resolution can’t be reached with a supplier then the case will be passed to central legal teams for resolution.
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 Fair Payment Code must commit to paying 95% of their invoices within 60 days.
Yes, this business has signed up to: 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.
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