SOFOLOGY LIMITED
Company number: 01778734
Reporting period:
28 June 2021
to 26 December 2021
This report was filed on 3 February 2022
and approved by Mike Schmidt
Payment statistics
Average time taken to pay invoices: 44 days
Invoices paid:
- within 30 days: 35%
- in 31 to 60 days: 25%
- in 61 days or more: 40%
Invoices due but not paid within agreed terms: 42 %
Payment terms
Shortest standard payment period
0 days
Longest standard payment period
60 days
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?
No
Maximum contractual payment period agreed
70 days
No
Any other information about payment terms
The reported average time taken to pay invoices has increased this reporting period, primarily due to Port/shipping delays have meant that goods are late being booked in. Three key suppliers are now submitting their invoices by EDI and are on 60, 85 and 45 day payment terms, for processing purposes we have moved to one invoice per order which means the volume of invoices received compared to the last reporting period has increased by 71%. As the PPR reporting is based on invoice volumes rather than value, this has upweighted reported average days and extended the related ageing profile. Port/shipping delays have meant that goods are late being booked in
Work has been underway to implement OCR data capture capability to the AP systems, to remove manual data entry and further reduce the time taken to process invoices. However due to other time critical projects the go-live date of this initiative has been delayed until 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.No
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