XERO (UK) LIMITED
Company number: 06071722
Reporting period:
1 April 2020 to 30 September 2020
Report filed on:
27 October 2020
Approved by:
Gary Turner
Payment statistics
Average time taken to pay invoices: 10 days
Invoices paid:
- within 30 days: 99%
- in 31 to 60 days: 1%
- in 61 days or more: 0%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 7%
Payment terms
Shortest standard payment periods
30 days
Longest standard payment period
Answer not provided
Standard payment terms
At Xero, we make vendor payments weekly. Standard supplier payment terms in the UK are net 30 days from receipt of a correctly presented invoice. To assist the small business economy we also aim to pay our small business suppliers within 10 business days of receipt of a correctly presented invoice. To assist with prompt payment to our suppliers, we require all invoices to: (a) include a valid purchase order number; (b) include a description of the goods supplied (including quantity and unit prices) and/or services provided; (c) be addressed to the correct Xero entity; and (d) be sent directly to apinvoices@xero.com.
Were there any changes to the standard payment terms in the reporting period?
In March 2020, we undertook a process to review our supplier database and identify existing suppliers and any new suppliers that could be categorised as "small business". With the aim to pay small business quicker, we moved those small businesses to payment terms of 10 business days. Our aim is to pay these suppliers within 10 business days of receipt of a correctly presented invoice.
Were suppliers notified or consulted about these changes before they were made?
All applicable vendors were emailed regarding the changes to their shortened payment terms, this email included information regarding the correct process to follow to ensure that the supplier's invoice is presented to Xero correctly.
Maximum contractual payment period agreed
30 days
No further comment provided
Any other information about payment terms
No further comment provided
Dispute resolution process
Xero's Accounts Payable (AP) team is based in Wellington, NZ. The AP team process and pay invoices for all Xero companies. Any disputes are directed to this team, who will work with suppliers to resolve the disputes. If anything requires escalation the team will work with internal business partners and our procurement team to assist with resolving the dispute.
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: Xero (UK) Limited is a signatory to The 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