Payment practices reporting in Dynamics NAV | 365 Business Central

    How to do it!

    Every year, thousands of businesses experience severe administrative and financial burdens, simply because they are not paid on time. Late payment is a key issue for business, especially smaller businesses as it can adversely affect their cash flow and jeopardise their ability to trade.

    In order to make sure businesses are paid on time the government have introduced a regulation for the UK’s largest companies and LLPs to report on a 6 monthly basis on their payment practices.

    You only have to report on your payment terms and practices if your business exceeds at least 2 of the following criteria:

    • £36 million annual turnover
    • £18 million balance sheet total
    • 250 employees

    However, if your business exceeds 2 or more of these criteria you need to report on your payment practices every 6 months; the information must be published through an online service provided by the government.

    So what exactly do you need to report on?

    • Narrative description of:
      • The business’ standard payment terms
      • The business’ process for resolving disputes
    • Statistics on:
      • Average no. of days taken to make payments
      • % of payments paid in 0-30 days, 31 to 60 days and 61 days or longer
      • % of payments not paid within agreed payment period
    • Statement about:
      • Whether suppliers are offered e-invoicing
      • Whether supply chain finance is available to suppliers

    How can Dynamics NAV | 365 Business Central help with payment practices?

    Dynamics NAV 2018 and Dynamics 365 Business Central already have the necessary functionality included in order to enable you to report on your payment practices.  If you are on a version of Dynamics NAV prior to 2018 don't worry - The NAV | 365 People will be able to help you with these reporting requirements.

    More information on this legislation can be found here

     

    More questions? Get in touch here

    Written by
    Sue Smart - Storyteller at The NAV | 365 People
    Sue Smart - Storyteller at The NAV | 365 People

    At 16, when Sue first sat down to write a book, she realised if she wanted to have good stories to tell, she needed to get as much life experience as possible - in the workplace, socially and in travelling the world. So began a working life with jobs as varied as working on a pioneering IVF team, being a PA in the corporate world, running her own wedding business, being a carer in a Scottish castle, waitressing on a Greek island, farming in Tuscany and being a tour guide at an oceanarium. She was even offered a job as a nanny when she thought it would be fun to run away with a circus – but that’s another story… Sue’s desire to write never left her and she finally gained a BA in journalism and PR. This led to working as a journalist and features writer for newspapers in Australia and the UK … and eventually to her current role as Storyteller, a position she is relishing.