GOV.UK
VODAFONE LIMITED
Company number: 01471587
Reporting period:
1 April 2018
to 30 September 2018
This report was filed on 25 October 2018
and approved by Emanuele Tournon
Payment statistics
Average time taken to pay invoices: 64 days
Invoices paid:
- within 30 days: 31%
- in 31 to 60 days: 25%
- in 61 days or more: 44%
Invoices due but not paid within agreed terms: 6 %
Payment terms
Shortest standard payment period
30 days
Longest standard payment period
115 days
Standard payment terms
The percentages provided in the payment statistics above include payments made to Vodafone Group entities providing goods or services to Vodafone Limited. Vodafone intercompany payment terms include many transactions with payment terms up to 115 days. These payments are included in our reported statistics as required and this therefore impacts the payment statistics. If intercompany payments are excluded from the statistics, they are as follows:
Average time to pay in days – 53 days
Split of payments made under qualifying contracts in the reporting period
A) Percentage of invoices paid between day 1 and day 30 (inclusive) – 43%
B) Percentage of invoices paid between day 31 and day 60 (inclusive) – 33%
C) Percentage of invoices paid on or after day 61 – 24%
Payments due in the reporting period which have not been paid within the agreed period – 8%
Our standard payment terms are as follows:
General procurement agreements:
For external suppliers Vodafone Limited’s standard payment terms are 60 days from the date of receipt of invoice, or where a supplier is classed as a small supplier, in accordance with the UK Companies Act, 30 days from the date of receipt of invoice. Where the relevant agreement relates to the provisions of goods or services for supply to public sector customers, Vodafone Limited’s standard payment terms are 30 days from date of receipt of invoice. For procurement from other Vodafone Group companies Vodafone Limited’s payment terms are up to 115 days.
Longer or shorter payment terms may be agreed as part of a wider commercial negotiation of the relevant agreement. Any deviation from standard terms will take into account, amongst other things, (i) the type of goods or services provided and undertaken, (ii) the size of the supplier and its wider corporate group, (iii) the supplier’s relationship with the wider Vodafone Group and (iv) any other relevant commercial factors. Additionally, Vodafone Limited has a number of legacy framework agreements which may be on longer or shorter terms which will be reviewed at renewal with the objective of reducing the payment terms for small suppliers to 30 days.
Carrier services agreements:
Vodafone Limited operates netting arrangements with certain other telecommunications providers in relation to reciprocal roaming and inter-connect agreements. These arrangements are standard in the telecommunications industry. Invoices that are set-off in full against reciprocal invoices from Vodafone Limited to other parties are not included in the payment statistics as no payment is made. Outside of these netting arrangements Vodafone Limited’s standard payment terms for these types of agreements are as set out above for general procurement.
For content, sponsorship and utilities agreements there are no standard payment terms as all contracts are agreed on a case by case basis.
For Partner Agents and Indirect channel partners, commission is calculated at the end of each month and is paid in arrear at the end of the following month.
For Enterprise Indirect Partners (Vodafone Partner Services) commission is calculated at the end of each month and is paid on the first Tuesday or Friday (whichever comes first) in the second month following.
Were there any changes to the standard payment terms in the reporting period?
Yes –
For general procurement, existing payment terms for suppliers identified as small were changed to 30 days from the receipt of invoice. Vodafone has not historically stored supplier size information. Vodafone Limited has therefore identified small suppliers by sending a questionnaire to all of our current suppliers during the Financial Year ending 31st March 2018. Vodafone classifies a supplier as small using the Companies Act definition of a small company.
Where a response was received, Vodafone Limited has reduced payment terms for small suppliers to 30 days, where previous longer terms applied.
We have committed to continue to reach out to our suppliers to try to gather this information in order to improve the accuracy of the data we hold and to improve our ability to pay small suppliers in 30 days from the receipt of invoice.
Were suppliers notified or consulted about these changes before they were made?
No
Maximum contractual payment period agreed
156 days
Vodafone Limited’s maximum contractual payment period in the reporting period arose on agreement of purchase orders raised under historic framework agreements between Vodafone Limited and certain of its large or multinational suppliers. These framework agreements have a payment term of 125 days from end of month following invoice receipt for all goods or services procured under such purchase orders. This payment term is a range of 125-156 days depending on when the invoice is received.
Any other information about payment terms
N/A
Dispute resolution process
Any disputes on individual invoices should be raised to Vodafone Limited Accounts Payable (accounts-payable.uk@vodafone.com) who will work with the supplier to resolve the issue. We aim to respond to all payment issues raised by suppliers within 5 working days, but suppliers will typically receive a response the next working day.
Any contractual disputes are managed through our Commercial Contract Management Process involving the supplier, Supply Chain Management and Legal. Suppliers should contact Supply Chain Management or the applicable Vodafone Commercial Manager in such cases.
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 – Signatory to 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