KPMG INTERNATIONAL SERVICES LIMITED
Company number: 12475099
Reporting period:
1 April 2023 to 30 September 2023
Report filed on:
26 October 2023
Approved by:
William B. Thomas
Payment statistics
Average time taken to pay invoices: 39 days
Invoices paid:
- within 30 days: 49%
- in 31 to 60 days: 40%
- in 61 days or more: 12%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 20%
Payment terms
Shortest standard payment periods
45 days
Longest standard payment period
60 days
Standard payment terms
Except as outlined below, standard payment terms with third party suppliers are 45 days. The Company shall make payment upon 45 days of receipt of a correct and complete invoice. If any of this information is omitted, then the invoice will be rejected and the supplier will be required to re-submit a correct invoice for processing (which will not begin until all the information has been provided).
Standard payment terms with third party suppliers that the Company contracts with using our standard purchase order terms are 60 days. Standard purchase order terms are typically only used if either (i) total annual spend is below $500,000, and (ii) transaction spend is less than $200,000 and the use of our standard purchase order terms typically reduces the amount of time spent by the parties on agreeing contract terms.
With respect to services that KPMG member firms provide to the Company, our standard payment terms require member firms to submit invoices to KISL and such invoices are payable 45 days after invoice receipt.
Were there any changes to the standard payment terms in the reporting period?
No
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
90 days
No further comment provided
Any other information about payment terms
Payments are made to external third party suppliers and also to KPMG member firms as suppliers to the Company. The payment statistics therefore include the overall position of payments made to suppliers within the KPMG network as well as third party suppliers outside of the KPMG network.
During the reporting period, 31% of payments were made to external third party suppliers outside of the KPMG network as compared to 69% to KPMG member firms.
If the statistics only included payments to external third party suppliers, they would be as follows for the period 1 April 2023 to 30 September 2023:
Average time taken to pay invoices (in whole number of days): 33 days
Percentage of invoices paid within 30 days: 61%
Percentage of invoices paid in 31 to 60 days: 30%
Percentage of invoices paid in 61 days or more: 9%
Invoices due but not paid in accordance with agreed terms: 12%
Dispute resolution process
KPMG’s core values include being committed to our communities and acting with integrity. We therefore endeavour to resolve all disputes in a fair and timely manner. The Company has a Global Procurement function which is responsible for the supplier relationships including ongoing management of supplier contracts. Through this, the Company engages collaboratively with suppliers to ensure parties are appropriately informed of their requirements and perspectives and manages disputes and issues with suppliers.
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 Fair Payment Code must commit to paying 95% of their invoices within 60 days.
No, this business has not signed up to a code of conduct or standards on payment practices.
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.
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