GOV.UK
ASDA STORES LIMITED
Company number: 00464777
Reporting period:
1 July 2021
to 31 December 2021
This report was filed on 28 January 2022
and approved by John Fallon
Payment statistics
Average time taken to pay invoices: 43 days
Invoices paid:
- within 30 days: 24%
- in 31 to 60 days: 67%
- in 61 days or more: 9%
Invoices due but not paid within agreed terms: 5 %
Payment terms
Shortest standard payment period
14 days
Longest standard payment period
90 days
Standard payment terms
Asda’s standard payment terms for all of its small suppliers are 14 days that currently applies to more than 2,200 suppliers. For other suppliers, Asda’s standard contractual payment terms state that Asda will pay each correct invoice on its next weekly payment run following 60 days (for domestic suppliers) or 90 days (for non-food import suppliers) from receipt of the invoice.
Asda offers a Supply Chain Finance solution and a C2FO (dynamic discounting) early payment platform to its suppliers subject to capacity restrictions. These solutions allow suppliers to receive payments earlier than their standard terms. In certain specific circumstances, Asda may agree to shorter payment terms with its suppliers as part of an overall commercial agreement.
Were there any changes to the standard payment terms in the reporting period?
No
Maximum contractual payment period agreed
90 days
For non-food import suppliers, Asda will pay each correct invoice on its next weekly payment run following 90 days from receipt of invoice.
Any other information about payment terms
Within Asda’s standard contractual terms, Asda may set off monies payable to a supplier by Asda against any monies owed to Asda from the same supplier.
During the COVID-19 crisis we invested in supporting our small suppliers by paying them on immediate terms. We have also supported individual suppliers to accelerate payment of invoices to facilitate continuity of supply. We continue to offer our early payment options including Supply Chain Finance and our C2FO platform subject to capacity restrictions.
Dispute resolution process
If an Asda supplier raises a query in respect of an outstanding invoice, payment or deduction, in the first instance it is handled by the Accounts Payable team through a clear query process, which works on a 7 working day SLA from receipt of all relevant supporting documentation. If necessary, the Accounts Payable team will refer to other business areas within Asda (for example stores, depots or merchants) to resolve the enquiry. If the matter remains unresolved within the target turnaround time, it may be escalated to senior leadership.
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.Yes – 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.
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?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No