ALL HSE INVOICES MUST BE PAID PROMPTLY
TO AVOID LATE PAYMENT INTEREST
30
P M T O PAYM R P S Y E A NT D Under current EU regulations the late payment of an invoice incurs penalties in the form of late payment interest. By following some simple invoice
processing procedures, we can reduce or avoid this unnecessary expenditure. The HSE has 30 calendar days to process an invoice through every step of the payment cycle; from datestamping an invoice on receipt on day 1, to payment to the supplier by day 30. This includes the days when an invoice is in transit between HSE departments, or between processor and authoriser within the same department or unit.
When a creditor is informed that a payment is in dispute, the clock stops on the 30day payment cycle or payment day terms of a written contract (i.e. due to price issues, incomplete deliveries, faulty goods or where proof of delivery is required). Payment should subsequently be made immediately after resolution of any dispute.
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CURRENT RATES OF LATE PAYMENT INTEREST
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Lack of Tax Clearance
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Disputes
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WHERE INTEREST IS NOT PAYABLE Lack of Tax Clearance certification will also result in payment suspension but the payment process will resume immediately following verification of Tax Clearance status.
NonCommercial Payments
Noncommercial payments are not subject to late payment interest as EU regulations only apply to invoices for goods or services for business purposes.
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The current rate is 8%, or a daily rate of 0.022%
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There is no minimum threshold, so amounts as low as 1c must be paid
STEP BY STEP CHECKLIST FOR INVOICE PROCESSING Date Stamp
● Datestamp all
invoices immediately on receipt and pass to Manager for approval
● If the goods were
delivered after the invoice received date, use the date of goods delivery as the baseline date
Proof of Delivery
● Ensure proof of
delivery has been received for goods/services invoiced
Goods Received Note
● Check that delivery details are correct and goods are not faulty
● Invoice must match the
Resolve Disputed Issues
Authorised Invoice
● Aim to have all
invoices processed within five working days of receipt
● If there are grounds for dispute, contact the supplier immediately to resolve the issues
goods received note (GRN) and the purchase order for quantity and value
Only when you have satisfied yourself that ALL the above information is in order may the invoice be processed by the approver and payment made to the supplier. If you need further clarification on how to block interest that isn’t due on disputed invoices, contact your local Finance office.
Note: All invoices should be processed for payment as quickly as possible following receipt to ensure no prompt payment of interest is incurred. About the HSE National Financial Controls Assurance Group The National Financial Controls Assurance Group was established by the CFO in March 2015 and is made up of a Senior Representative from each of the HSE Service & Support Divisions at Assistant National Director or equivalent. Its core purpose is to provide practical high level support, coordination and problem solving solutions to a number of ongoing Control and Finance Compliance issues, and to promote a positive response to change across the HSE.