DFS TRADING LIMITED
Company number: 01735950
28 June 2021
to 26 December 2021
This report was filed on 1 February 2022
and approved by Michael Schmidt
Average time taken to pay invoices: 29 days
- within 30 days: 73%
- in 31 to 60 days: 23%
- in 61 days or more: 4%
Invoices due but not paid within agreed terms: 52 %
Standard payment period for qualifying contracts
Standard payment terms
Payment terms are agreed with key suppliers individually and may vary depending on the nature of the goods or services being provided. Standard payment terms for other suppliers are typically 60 days from invoice date.
Were there any changes to the standard payment terms in the reporting period?
Maximum contractual payment period agreed
Any other information about payment terms
The overall average time to pay invoices has reduced to 29 days, and is the shortest period achieved since formal reporting began (excluding covid-impacted H2 FY20). This is reflected in the distribution across ageing categories, with 96% of invoices being paid in 60 days or less.
However, despite this positive picture the percentage of invoices not paid within agreed terms has increased sharply to 54%. This has been driven by results for Adriana, which represents 60% of total invoice volumes. Port/shipping delays have meant that goods are late being booked in and although Adriana invoices are on average settled in 28 days, their relatively short payment terms in place of 21 days mean that 85% of invoices are unable to be matched and settled before the invoice due date.
Excluding Adriana from the analysis, the percentage not paid within agreed terms is 33%; the increase from the previous half year was in part driven by challenges onboarding Morrisofa as a supplier.
The OCR data capture capability was implemented in Q2 FY22 which has removed manual data entry. The full benefits of this are not yet reflected in reported KPIs due to the backlog of paper invoices being cleared throughout December. We expect to see these benefits realised in H2 FY22.
Dispute resolution process
Where discrepancies arise on either the price or volume of items received, these are referred to the business area receiving the goods or services for agreement with the supplier, supported by the accounts payable team. Where necessary, additional documentation (e.g. proof of delivery) is sought.
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?