Sage 200 UKI Ideas Portal

Large companies and large LLPs are now required to report on their payment practices and policies for financial years beginning on or after 6 April 2017.

The duty applies to large companies, whether or not they are quoted, that have exceeded two or all of the following thresholds for a medium-sized company, as set out in section 465(3) of the Companies Act 2006, on both of the last two balance sheet dates:

Annual turnover of £36 million or more;
Balance sheet total of £18 million or more;
Over 250 employees.
The duty will not apply to a new company in its first financial year. A company in its second financial year will be in scope if it exceeded two or all of the thresholds in its first financial year, and each company within a group matching the above criteria owes a separate duty to report. Separate group-wide thresholds apply to determine whether a parent company is also required to report.

Businesses subject to the duty will be required to publish on a government web service details of their payment policies and practices and report on performance against their policies twice a year. The information will be hosted centrally by the government and therefore will be readily accessible and searchable by third parties and open to scrutiny by potential suppliers and the general public.

Specifically, each relevant business is required to publish the following information:

Standard payment terms, including any changes in payment terms in the last reporting period, and whether suppliers were consulted on this;
Average time the business has taken to pay suppliers, from the invoice date;
Details of the proportion of invoices that have been paid by the business:
beyond the agreed terms;
within 30 days;
between 31 and 60 days; and
over 60 days.
How much late-payment-interest has been paid and is due to be paid by the business to the supplier;
Any dispute resolution process for overdue invoices;
Whether the business:
has requested payments for suppliers to join or remain on supplier lists;
operates any e-invoicing, supply chain finance or preferred supplier lists; and
is a member of a payment code.
Directors and designated members are responsible for meeting the reporting obligation and any failure to do so, or providing false or misleading information, would constitute a criminal offence which may attract a fine for potentially the business and individual. If a business fails to submit a report when required, every director or designated member is deemed to have committed an offence and may be fined.

This report is based on date Invoice received not date invoice entered into Sage. My suggestion is to

- capture Date invoice received into Sage

- Reporting the above mentioned report

As this is a legal requirement please provide update