ABELLIO SCOTRAIL LTD
Company number: SC450732
Reporting period:
1 April 2020 to 30 September 2020
Report filed on:
30 October 2020
Approved by:
Paul Wright
Payment statistics
Average time taken to pay invoices: 42 days
Invoices paid:
- within 30 days: 61%
- in 31 to 60 days: 29%
- in 61 days or more: 10%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 39%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
30 days
Standard payment terms
Standard payment terms are 30 days.
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
30 days
N/A
Any other information about payment terms
Abellio ScotRail aims to settle all ‘valid’ invoices within 30 days. A ‘valid invoice’ must include all relevant information to allow the invoice to be paid. The overall average days to pay will include delays as a result of invoices received without all relevant information.
Over the past 6 months, work has been carried out to proactively resolve issues in the procure-to-pay process. This includes the review of internal processes and working closely with suppliers to ensure they follow the agreed procure-to-pay process and invoices can be paid on time, which we strive to achieve.
We note that the statistic of 39% of payments due within the reporting period which have not been paid within the agreed period is based on volume, when based on value this statistic is reduced to circa 16%.
Additionally, the ‘shortest standard payment terms’ has been noted as 0 days, which equates to those suppliers with ‘Immediate’ payment terms.
Dispute resolution process
Purchase Order Processed Invoices - Limited number of disputes arise for suppliers processed on this basis as amounts are pre-agreed prior to any commitment being made. Any actual cost variances to the agreed amount are assessed by the business approver and raised with the supplier directly. In some cases, invoices are received without the correct information (for example, an incorrect/expired purchase order number). ASR proactively works with suppliers where issues are identified, so the supplier can provide the correct details and the invoice can be paid on time.
For other invoices, any issues will arise on the approval of payment of the invoice by the business. Resolution is therefore handled by the ordering manager and the supplier. However, it is key to note that Abellio Scotrail must maintain robust procure-to-pay policies and invoices received without a purchase order can cause delay to the procure-to-pay process and payment of invoices due.
Where agreement cannot be reached in both of the above cases, this is escalated through the relevant business departments and management team (including Finance) to resolve.
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.
No, this business has not signed up to a code of conduct or standards on payment practices.
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