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Articles in category: Invoicing & Payment
Entrepreneur forced to sell up and move in with his grandmother in Soweto because government failed to pay him on time.
Although the government is big on promoting small businesses and creating jobs, it kills small businesses and loses jobs because of slack paying.(Read Full Article)
- Basware has the largest electronic invoicing network in the world — one million organizations generating 80 million transactions a year, worth $500 billion, and growing at 50 per cent annually. MasterCard has one of the largest payment networks, and it is fully global. They’ve joined forces and created Basware Pay.
- The solution connects buyer’s and supplier’s payment processes through the Basware Commerce Network which provides an open and interoperable network that only authenticated buyers and sellers can use. Once the invoice is approved by the buyer it becomes available for payment through a virtual MasterCard account number.
Procurement cards are as popular as ever. While they serve a purpose – providing a relatively easy way to make low value, high volume purchases, or for transacting with suppliers which only accept credit card payments - they are far from perfect.
In this guest post, ASM Technologies’ Iain Tomkinson argues that procurement cards can mute the impact of supply chain and purchasing strategies.
Claims last week that food giant Mars UK is trying to cover up doubling its payment times for suppliers has again highlighted the problem of late payments. The Forum of Private Business (FPB) said the food manufacturer is the latest company to introduce a supply chain finance scheme, or a “cover for extending payment times”, and suggested Mars UK could be placed in its late payment hall of shame.(Read Full Article)
Ask anyone who knows what they’re talking about – go to any conference on Purchase to Pay and you’ll hear the same thing: The biggest challenge to making P2P work is the disconnect between finance and procurement. There are fundamental differences between the way finance and procurement see purchase to pay and getting alignment is not straight forward but there’s another reason why, for some organizations it is a challenge and that is their organizational structure.(Read Full Article)
Despite all efforts and a House resolution requiring timeous payments to suppliers, the Gauteng Provincial Government is still a huge drain on the cash flow of most businesses in Gauteng.
In a reply to Moriarty's question it was revealed that as of September 2013, only 15.39% of supplier invoices were paid on time. The provincial government claimed it was paying suppliers within 37 days on average and not the 30 days required by law. This is not comforting to those 84.61% of companies doing business with the province, who collectively were owed R374m at the time when ...(Read Full Article)
For years the growth in the use of electronic invoicing was hampered by a very simple fact. There was nothing in it for suppliers.
But the world has now changed and the business case for e-invoicing is now fundamentally different to the one-sided calculation with all the benefits loaded on the customer side that would have been built perhaps 5 years ago.(Read Full Article)
The purchase to pay police aren’t naturally an attractive bunch of people. Like auditors, they only bring ugly messages about compliance and process. And they don’t make their lives easier by tarnishing further their image by moaning about their lot. So how do you get the perfectly rational P2P messages across effectively? How do you prevent it from being perceived as a pointless dictat from an area of the business too remote to understand commercial realities?(Read Full Article)
The news that OB10 is to go public broke last night – actually a little prematurely – but now it’s official and Tungsten and OB10 have announced their intentions. Pete Loughlin spent 20 minutes on the phone with a delighted Luke McKeever, OB10′s CEO, to understand the details of the deal that values OB10 at £99 million.
It’s not easy to find real best practice advice for e-Invoicing and supplier enrollment. This extract from The Supplier Engagement Handbook describes recommended steps on how to offer suppliers that send a high volume of invoices or have complex organizations a more consultative enrollment approach.
Accurate contact details
Before starting a communication effort, it is important to have accurate contact information. Ideally, this includes up-to-date details for sales contacts and the people in billing and collections. No one is happier to accommodate your needs than your sales contacts; use them to your advantage.
Creating a comprehensive ...(Read Full Article)
The UK Ministry of Defence (MoD) overpaid suppliers to the tune of £11 million in the previous financial year, an audit has revealed. Officials found duplicate and overpayments for common goods and services such as stationery were behind the overspend. The MoD’s ‘spend recovery audit’ was carried out as part of work to cut government error and fraud, which saw £6.5 billion cut from public spending last year. All government departments will be carrying out spend recovery audits.(Read Full Article)
CPOs of the future will need to understand the pressures and requirements of the CFOs so that they may refuse them. According to research by the IACCM, average payment terms was 57 days a few years ago. This has risen to over 60 in a forthcoming study. Is this a procurement-policy or a finance-forced initiative? The explanation to this can be partly attributed to the continued uncertainty that businesses feel about the tepid recovery. Indeed there is many that believe that the financial crisis persists.
Sometimes, great ideas just never take off because some prerequisite solution to a problem hasn’t been solved. E-procurement was a great idea in the 1990’s but until the internet was ubiquitous and trusted, it was slow to take off. Looking back, the trust and ubiquity grew quite quickly but in 1996, if we had a crystal ball that said it would take the best part of a decade to become an established way of doing business, I wonder whether we’d have given up. We didn’t know that the problem was trust and ubiquity until it was ...(Read Full Article)
Benchmarking from the Aberdeen Group’s 2010 “Effective e-Procurement” found that on average, 16% of all transactions that start in the e-Procurement system actually get completed outside the system. This implies that even though the users intended to use the e-procurement system, they eventually opted out and continued with their transaction elsewhere. This brings us to the question, why do majority of the Procure to Pay initiatives fail when it comes to the metric of user adoption rate?
Everyone knows that times are tough and times are toughest for small businesses. They’re faced with obstacles that can seem insurmountable – paperwork, regulation working capital costs. But there’s one obstacle above all others that can strike fear into the every small business – the late payer. They are a scourge. Over years, an obsession with the optimisation of DPO (that’s accountant-speak for funding your business at the expense of your smaller, weaker suppliers) has become a central financial strategy for many large organisations.(Read Full Article)
It is a fact that instances of payment fraud in business are on the rise. And alarmingly, many businesses are clueless that some employees and suppliers may be 'helping themselves.' In this article, we will examine purchase invoice fraud and see how receiving invoices from suppliers electronically can actually prevent it. We will start off with the various sub-types of purchase invoice fraud that companies may be inadvertently overlooking, and then show how electronic invoicing can address this problem.
There used to be a stigma associated with making purchases using credit. This invariably affected attitudes towards using a purchasing card or P-card as payment method within organizations as well. Some companies placed so many controls and stringent approval requirements around the usage of P-cards that employees avoided this payment method altogether. Other companies were lax in their P-card policies and ended up in situations where employees placed inappropriately large purchases on their cards.
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Everyone agrees it seems. The case for implementing inbound e-invoicing is compelling. It is a simple matter of common sense. Replacing an inefficient paper process with an automated electronic process will generate savings and in the current economic environment, who would argue that it was not a good idea? It isn’t even that technically complex. What could possible go wrong? Well for a start – getting buy-in from the business.(Read Full Article)
British newspaper, The Daily Telegraph, uncovered that GSK has begun extending its payment terms from 60 days at the end of last year to 90 days, a move which Phil Orford, chief executive of the Forum of Private Business said shows ’scant regard’ for small suppliers. One GSK supplier who spoke to The Daily Telegraph anonymously said: "This kind of borrowing from suppliers – whatever their size – is scandalous."(Read Full Article)
Sandvik, a global Swedish mining and construction engineering company, has simplified its supply chain with a single purchase order portal. This has created information not previously available to make decisions about supplier relations, such as renegotiating contracts. Dubbed SupplierConnect internally, the system, from Finland-based data integration supplier Liaison Technologies, has saved Sandvik “a lot of time and money” according to programme manager Lars Holmström.(Read Full Article)
Government departments are to be closely monitored to ensure they pay suppliers within 30 days, says Minister in the Presidency for Performance Monitoring and Evaluation Collins Chabane. Failure to abide by this requirement of the Public Finance Management Act has previously caused severe liquidity problems for small businesses, with some having to shed jobs and close down.
Civil engineering company Sanyati went into liquidation earlier this year after a business rescue plan was terminated. It blamed its financial woes on the Free State government’s prolonged nonpayment for work it had done for the province.(Read Full Article)
Minister in the Presidency Collins Chabane says Treasury will ensure national and provincial departments pay service providers within 30 days. A dedicated system will be set up in the Treasury to ensure national and provincial departments pay service providers to the state within 30 days, Minister of Performance Monitoring and Evaluation in the Presidency Collins Chabane said at a post-Cabinet media briefing on Thursday. Failure by government departments to adhere to this rule has created severe liquidity problems for business, especially small enterprises.(Read Full Article)
How often does Procurement talk to Accounts Payable? At some world-class companies, the two have a close relationship. When Heidi Landry-Chan assumed her post as Vice President and CPO at Dow Corning to transform the procurement operation there she understood the value of the two functions working together. For Landry-Chan, it simply makes sense for AP to report to Procurement since Procurement is responsible for the procure-to-pay process.(Read Full Article)
I wrote recently about the importance of paying suppliers on time, or, at least not burdening suppliers by extending days payable to dangerous lengths. Understanding the payment schedule better, however, means taking a closer look at the buyer-supplier relationship. To find out more about how leading procurement executives view the issue, I contacted Scott Forbes, who heads procurement for EP Energy.(Read Full Article)