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ERNST & YOUNG (ASIA-PACIFIC) SERVICES LIMITED

Company number: 07239694

Reporting period:
1 January 2023 to 30 June 2023

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

This report was filed on 27 July 2023

and approved by Alisdair J Mann

Payment statistics

Average time taken to pay invoices: 209 days

Invoices paid:

• within 30 days: 7%
• in 31 to 60 days: 25%
• in 61 days or more: 67%

Invoices due but not paid within agreed terms: 93 %

Payment terms

Shortest standard payment period

45 days

Longest standard payment period

60 days

Standard payment terms

With respect to contracts with 3rd party suppliers (as opposed to contracts with other members of the EY network) we are in the process of changing the payment period in our standard terms from 45 days to 60 days. This change commenced during this reporting period. We have not notified or consulted with suppliers in relation to these changes. Our standard contractual payment period in our standard terms for new contracts with 3rd party suppliers is now 60 days save for the following (where the payment period remains 45 days): hotel framework agreements, agreements for the purchase of physical hardware, agreements for the purchase of original equipment from manufacturers and standard purchase orders for the purchase of on-premise software and hosted software.

With respect to contracts with 3rd party suppliers the payment period commences from receipt of a proper invoice. Our standard hotel framework agreements (typically used for large hotel chains where we hold employee and client events) additionally provides for: (i) the supplier to deliver a draft invoice which we have 15 days to dispute, (ii) once we sign off on the draft invoice, the supplier may submit a final invoice, and (ii) we have 30 days from receipt to pay the final invoice

With respect to intra-EY network contracts, we may provide various services to other firms within the wider EY network (“EY Firm(s)”) and EY Firm(s) may provide various services to us. Our standard payment terms require EY Firm(s) to submit invoices to us quarterly in arrears. Such invoices are payable 30 days after invoice receipt. Any undisputed amounts owed to EY Firm(s) may be set off against amounts owed by EY Firm(s) to us.

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

No

Maximum contractual payment period agreed

75 days

Any other information about payment terms

As required, our statistics include figures for payments to external “3rd party” suppliers and payments made under intra-EY network contracts to other firms within the wider EY network (“EY Firm(s)”). Accordingly our statistics are not a fair and accurate reflection of our figures so far as they relate to our 3rd party suppliers. If only payments to external 3rd party suppliers are considered then our average time to pay is reduced to 32 days and 38% of invoices paid in the reporting period are settled within 60 days of receipt. If we were to report solely on our payments to our external 3rd party suppliers, our statistics would be as follows:

Average Time to pay in days
Percentage of invoices paid in 0 - 30 days - 92%
Percentage of invoices paid in 31 - 60 days - 62%

Percentage of invoices paid on or after 61 days - 31%

Dispute resolution process

With respect to contracts with 3rd party suppliers (as opposed to contracts with other members of the EY network), the general position is that the appointed service managers (and, if applicable, senior service managers) for each party first attempt to resolve the dispute. If the service managers cannot resolve the dispute and both parties agree the dispute may be referred to mediation. If either party does not agree with the dispute being resolved by mediation then disputes are referred to arbitration. The exceptions to this process are: (i) standard agreements for the purchase of physical hardware and agreements for the purchase of original equipment from manufacturers, which agreements do not include the mediation step and (ii) standard purchase orders for technology services which purchase orders are simply subject to the exclusive jurisdiction of the English courts to resolve disputes and do not include the service manager resolution or the mediation steps, or provisions for arbitration.

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