Company number: 00215668
1 January 2020
to 30 June 2020
This report was filed on 24 July 2020
and approved by Christopher Bath
Average time taken to pay invoices: 36 days
- within 30 days: 40%
- in 31 to 60 days: 54%
- in 61 days or more: 6%
Invoices due but not paid within agreed terms: 16 %
Shortest standard payment period
Longest standard payment period
Standard payment terms
Standard payment terms are agreed with suppliers when they are set up on our systems before the first contract is entered into. A number of historic suppliers remain on their original terms and shorter terms are offered to consultants and sole traders, but the most commonly used payment terms for new suppliers are 60 days.
Were there any changes to the standard payment terms in the reporting period?
Maximum contractual payment period agreed
Any other information about payment terms
Norgine’s accounts payable team process payments on a weekly basis but do not submit payments over a month end. Although 20% of invoices appear to have been paid outside of agreed terms, over 40% of these have been paid within 1 to 4 days of the due date, and is a result of 2 days processing time for UK BACS and bank payments, and timing of when payments were submitted to the bank, e.g. over a weekend or just after month end.
The due date in Norgine’s ERP system is calculated automatically, based on the invoice date and agreed payment terms. Included within the “invoices due but not paid within agreed terms” statistic are invoices that were received late from suppliers. 34% of the invoices that were due but not paid were received even beyond when payment under the agreed terms would have fallen due. If the due date was recalculated based on when Norgine’s accounts payable team received the invoice, rather than the invoice date, the proportion of invoices due but not paid within agreed terms would be 11%, some of which were paid within 1 to 4 days as per the reasons explained above.
To ensure prompt processing and payment, suppliers should quote a valid Purchase Order number on all invoices and email directly to AccountsPayableUK@norgine.com or post to the following address:
Dispute resolution process
We have good relationships with our suppliers and rarely have disputes relating to payments. Any queries or disputes are raised with the accounts payable team at AccountsPayableUK@norgine.com who then forward the query or dispute to the designated Global Purchasing contact or other relationship contact within the business, to ensure that any dispute is resolved satisfactorily for both parties.
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.
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.
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.
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?
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?