MARWOOD ELECTRICAL COMPANY LIMITED

We pay our suppliers in line with their payment terms. The majority of suppliers’ terms are monthly account (i.e. invoices are due for payment at the end of the month which follows the month in which they are dated). Therefore, depending on when the invoice is raised in any particular month, the standard payment period can vary from 31 to 60 days

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We have an internal KPI that there should be no more than 5 price invoice queries unresolved at the end of every month. Once a price query has been identified, the supplier is notified immediately and then chased regularly during the month to ensure that the invoice can be cleared for payment in line with the agreed terms. Where a price query is resolved after the payment run has been made, then the resolved invoice (and any associated credit note) is paid on the next payment run.

Invoice queries relating to the shortage or damage of goods are also notified to the supplier immediately. The invoice will then be processed for payment in line with the standard payment terms once the shortfall has been received or the faulty goods have been replaced.

Where goods are received in a subsequent month to the date on the supplier invoice, then the invoice will be processed for payment as if the invoice was dated in the subsequent month.

However, for the purposes of this reporting, invoice queries unresolved at month end and late deliveries are deemed to fall outside of the agreed payment terms.