Prompt Payment Code Action Plan Summary has been saved
Prompt Payment Code Action Plan Summary
It is important to Deloitte that its suppliers are paid in accordance with agreed payment terms. Currently, the reporting requirement for signatories to the Prompt Payment Code is that at least 95% of invoices are paid within 60 days of receipt and that signatories work towards adopting 30 days as the norm. Deloitte is committed to achieving this.
Deloitte’s internal reviews show that currently it does not always meet the standard it aims to achieve, of 30-day payment terms; we are working with our suppliers to improve our payment timeframes. In order to support this, we have produced a Prompt Payment Code Action Plan to address the issues that we have identified.
The primary challenges we face in improving our payment performance include:
- Supplier invoices - the information we require on supplier invoices in order to process payment is not always included
- Internal processes - certain aspects of our internal processes, most notably approvals, are time consuming.
The actions we have taken to address these issues are:
- With regards to supplier invoices, we are running a process to proactively contact suppliers to advise them of the information we require in order to pay their invoice promptly. This is also published on our website and made available to all new suppliers.
- We are looking to streamline our current invoice approval process to make it simpler for both the supplier and internal managers to ensure valid invoices are processed in a more efficient and timely manner.
- We have implemented regular reporting to senior management on payment performance so that unresolved issues are escalated and appropriate action taken to resolve and help to ensure payment is made within 30 days. Progress on our Prompt Payment Code Action Plan is reported to our Prompt Payment Code Action Plan Committee, which reports monthly to our Chief Financial Officer.
The above is a summary of the Action Plan that has been signed off by our Chief Financial Officer and is published as per the requirements of paragraph 12 of the Cabinet Office’s Procurement Policy Note (PPN) 04/19.