PowerPoint Presentation

Finance Induction Purchase to Pay Procedures

Introduction from our Financial Controller

If you are going to be engaging with Suppliers (placing orders for goods and/or services) then is important that you understand our processes and payment terms. This will ensure that you avoid any confusion/conflict between you and the supplier.

Not following these processes will inevitably result in delayed payment for you supplier.

You can find our full Purchase to Pay (PTP) Policy in Chivas Spirit.

Alex Duncanson

1. PO’s & Invoicing

2. Goods Receipt

3. Budgetary Control

4. Supplier Payments

5. New Suppliers

6. One Off Suppliers

7. Early Payment Requests

8. Financial Control Key Contacts

Section 1

PO’s & Invoicing

Purchase to Pay – PO’s & Invoicing

Purchase Orders (PO’s) should be raised before requesting goods/services from the supplier

If appropriate an annual PO

can be raised

3

1

2

4

Multiple lines and budget

PO should be raised,

codes can be on

approved, printed and sent

the same PO

to the supplier

Purchase to Pay – PO’s & Invoicing

All Invoices must quote a valid Purchase order number, otherwise they will be rejected and returned to the supplier

We cannot process/pay invoices

that are not addressed to

Chivas Brothers

(this will delay payment)

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All Invoices must be correctly addressed to: Chivas Brothers Accounts Payable 111-113 Renfrew Road Paisley, PA3 4DY

Invoices should be emailed to

accountspayable@pernod-ricard.com

(Please do not follow up with a hard copy)

Section 2

Goods Receipt

Purchase to Pay – Goods Receipt

A goods receipt is the transaction that is processed on E1 when we have received the goods/service(s)

Goods Receipted Not Invoiced (GRNI) is reconciled by the GL Team who will chase the business for receipts entered without any invoice after a 3 month period

The goods receipt should be entered only when we have received the goods/services

The GRNI accounts, and the ageing of them, are audited by our external auditors

The receipt also facilitates as “authorisation for payment”

Communication from team as follows:

❖ Accounts Payable will contact the business when the Invoice is Received, but no/insufficient receipt, or the invoice is of a lower value

Payment will not/can not be made before receipt has been actioned

The receipt creates the GL entry within the PO’s Cost centre/account code

❖ General Ledger will contact the business when Goods/Services receipted on E1, however no Invoice (generally after 3 month period)

The receipt has no effect on the payment date

Purchase to Pay – Goods Receipt

A goods receipt is the transaction that is processed on E1 when we have received the goods/service(s) The goods receipt should be entered only when we have received the goods/services If an invoice is received and it is a lower value than the receipt, and the supplier remark field has not been populated to indicate invoice number/delivery number etc, then the AP Processor will contact the PO raiser to ensure it should be matched. This is necessary for the following reasons: Goods Receipted Not Invoiced (GRNI) is reconciled by the GL Team who will chase the business for receipts entered without any invoice after a 3 month period So why contact the business if invoice value is less than goods receipts value?

The receipt also facilitates as “authorisation for payment”

It is very common

In this instance the

Once invoice has

Payment will not/can not be made before receipt has been actioned for suppliers that are wrong “receipt”

The result is

been matched and

working on multiple

an invoice being

could be matched

paid, it cannot be

projects to quote the

paid in error

The receipt creates the GL entry within the PO’s Cost centre/account code wrong PO number. to t e wrong invoice

“unmatched”

Section 3

Budgetary Control

Purchase to Pay – Budgetary Control

Costs appear in your cost centres when you do the “receipt”, not when invoice is received or payment is made

Payment of invoice does NOT affect your cost centre/budget codes, with the exception of one off payment requests

Costs should be charged to the account code that is relevant, not the account code that has spare budget. This is imperative for analysis and correct reporting to Paris

Foreign currency fluctuations are the normal course of business and this can work to your advantage or disadvantage depending on the budget rate. This cannot be influenced

For year end, receipts can be actioned up to and including 30 th June

Section 4

Supplier Payments

Purchase to Pay – Supplier Payments

Section 5

New Suppliers

Purchase to Pay – New Suppliers

New Suppliers – Do I need a New Supplier

New Suppliers – Selection Process New Suppliers – Selection Process

New Suppliers – Shorter Payment Terms

New Suppliers – Key points on Payment Terms

Section 6

One Off Suppliers

Purchase to Pay – One Off Suppliers

Section 7

Early Payment Requests

Purchase to Pay – Early Payment Request

Purchase to Pay – Early Payment Request

Section 8

Key Contacts

Financial Control – Key Contacts

One Off Payment Requests – Patricia McLardie/Mark Pearson

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Early Payment Requests – Leesa Henderson

New Supplier – Rosemary Henderson

Purchase Order (PO) Queries – Darren O’Rourke/Diane Smith

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Accounts Payable Queries – Darren O’Rourke/Diane Smith

Expenses Queries – Michelle Sneddon/ Suzanne Russell

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GRNI (Goods receipted, not invoiced) – Rosanne Mills

Payment Terms – Leesa Henderson