15 Mar Prompt Payment of Invoice CQ Response
Modulek is committed to the prompt payment of its supply chain. We aim to pay 95% of supply chain invoices within 60 days consistently each month. For the first half of 2020 we achieved this target, however, in the second half we fell short of the target. The reasons for this are:
- Late receipt of the invoices
- Invoices that were disputed.
This prompted us to review our receipt, dispute and payment processes and agree the following actions:
- Update the procedure for the receipt of invoices to include alerting the Accounts Team immediately and submitting the supplier’s invoice for payment.
- Email all staff the procedure for the receipt of invoices.
- Accounts Team to notify the Board of instances where any delay in the invoice reaching the Accounts Team was an internal issue and the matter to be addressed in a 1-2-1 with the staff member’s line manager.
- Update and disseminate the procedure for the receipt of invoices to include dialogue with the supplier if the date of invoice and the date of receipt are more than 5 days apart.
- Update procedure to include re-issuing an accurate invoice to reflect the date it was sent to Modulek.
- Generate a weekly report (currently every two weeks) detailing all disputed invoices. Report to be sent to all QSs and copied to the Commercial Director to facilitate dialogue to resolve the dispute.
- Update the receipt of invoices procedure to include provision for where invoices are still in dispute at 45 days, immediate escalation to a Director will occur to enable resolution.
Our Commercial Director and Financial Controller are responsible for implementing the above changes which are due to be signed off at the next Board meeting on 19th March 2021.