ERICSSON LIMITED

Company number: 00942215

Reporting period:
1 July 2020 to 31 December 2020

This information is as reported by the business, and responses are in their own words.

This report was filed on 27 January 2021

and approved by Liam O'Brien

Payment statistics

Average time taken to pay invoices: 77 days

Invoices paid:

within 30 days: 18%
in 31 to 60 days: 37%
in 61 days or more: 45%

Invoices due but not paid within agreed terms: 8%

Payment terms

Shortest standard payment periods

90 days

Longest standard payment period

91 days

Standard payment terms

Invoicing and payment shall be made electronically via PDF or Taulia in accordance with Ericsson’s instructions. Paper invoicing will not be supported from 1st Jan 2021. A valid invoice shall at a minimum contain a reference to the PO, Seller’s name and address, and specification of the Products or Services purchased. With deviation from what otherwise may be provided for under applicable law, it is expressly agreed that payment shall be effected within ninety (90) days from date of complete and successful delivery of the Products or Services, including any documents, and receipt of a correct invoice. Further guidelines and requirements for invoices, including support for e-invoicing and supplier self-service can be found at http://www.ericsson.com/thecompany/sourcing/supplier-partner-resources/invoicing-payments. In case of delayed payment of approved invoices, the seller shall notify Ericsson thereof and Ericsson shall thereafter expedite the payment

Were there any changes to the standard payment terms in the reporting period?

Answer not provided

Were suppliers notified or consulted about these changes before they were made?

N/A

Maximum contractual payment period agreed

90 days

90 days. No changes made to the standard payment terms during the reporting period. If we agree Supply Chain Financing with Suppliers this maybe increased. This is currently 180 days for the suppliers with which this is in place.

Any other information about payment terms

N/A

Dispute resolution process

If the dispute cannot be resolved through the regular Sourcing contact, then the general position is that the dispute would initially be escalated to the UK Head of Vendor Management and if not resolved, would be escalated further to the UK Head of Sourcing for final resolution. If the dispute is not resolved at this stage, the dispute resolution process outlined in the General Services Agreement between Ericsson and the Supplier will be effected. This involves notification of the Managing Directors of both parties, a mediation request made and being granted and Expert determination being consulted. In the event that the dispute is not resolved by these means, the dispute goes to arbitration, involving legal (and ultimately court) proceedings.

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, 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.

Yes

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.

Yes

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?

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