Company number: 02635489
and approved by Rajesh Shah
Average time taken to pay invoices: 34 days
Invoices paid:
Invoices due but not paid within agreed terms: 5%
30 days
60 days
Costco Wholesale UK Limited negotiates payment terms individually with suppliers. Terms can be either a set number of days from receipt of goods or date of invoice, or end of month plus a set number of days after receipt of goods or date of invoice. Typical payment terms are net 30 days or end of month plus 30 days. The business does not pay for merchandise before receipt of goods. Services are not normally paid for until the work has been performed, although where a service is to be provided over a period of time staged payments may be made. Where payments are due on a weekend or a public holiday funds are sent to arrive in a supplier’s bank account on the next working day. Any payments due on a weekend or a public holiday that were settled on the next working day have been treated as on time payments for the purposes of this report. If a supplier owes Costco Wholesale UK Limited more than Costco Wholesale UK Limited owes to that supplier then we offset the two amounts and do not settle outstanding invoices. This is part of our vendor agreement and is normal business practice to protect the amounts that we are owed. Where we fully offset a supplier’s invoice against an amount owed to Costco Wholesale UK Limited by that supplier we treat the invoice as being settled.
Answer not provided
N/A
120 days
No further comment provided
Costco has a Code of Ethics that underlies everything that we do. One of the elements of the Code of Ethics is to respect our suppliers. Our suppliers are our partners in business and for us to prosper as a company they must prosper with us. Costco respects its suppliers and our intention is to adhere to agreed payment terms. We do not change payment terms without agreement from our suppliers. Costco Wholesale UK Ltd is a signatory of the Prompt Payment Code and commits to paying at least 95% of invoices within 60 days. Costco partners with a company called C2FO to give suppliers the opportunity to improve their short term cash flow. Suppliers use an electronic platform provided by C2FO to offer a discount to Costco in return for payment of invoices earlier than the agreed terms. The supplier controls which, if any, invoices to offer a discount on and how much of a discount they are willing to offer to Costco in return for payment before the due date. No third party finance providers are involved and Costco settles discounted invoices direct with suppliers. This process does not change any agreed default payment terms between Costco and its suppliers. In return for providing the electronic platform C2FO receives a proportion of each discount offered to Costco as a fee from Costco. There is no fee to suppliers beyond the discount that they are willing to offer to Costco for early payment of invoices.
Costco Wholesale UK Ltd pays for the actual goods received at the price agreed on the purchase order. If there is a discrepancy in the quantity received or the price stated on a supplier’s invoice then Costco will only dispute the difference and not the entire invoiced amount. In this situation Costco will pay for the goods received and the supplier can either raise a credit note or submit a claim for the difference. Payment processing is dealt with by the Expense Accounts Payable and Merchandise Accounts Payable teams. Any supplier payment queries that may arise are dealt with by the appropriate Accounts Payable team. In the event that the Accounts Payable team are unable to resolve the matter then any queries should be discussed between the supplier and the area of the business that ordered the services or goods in question.
For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.
Yes, this business has signed up to: The Prompt Payment Code
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
Yes
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
No
No