"No PO, No Payment" policy for suppliers to Hitachi Rail Europe, Ltd
Q. Why is Hitachi Rail Europe, Ltd. implementing this policy?
Hitachi Rail Europe, Ltd. is implementing this policy to benefit the company and to benefit its suppliers, we are fully aware that we have had ongoing issues with late payments due to the process not being made clear to our suppliers; we need Certificate of Certification (CoC) documentation as proof that work has been undertaken and completed before authorising payment to a supplier.
Q. What are the benefits of "No PO, No Pay"?
The benefits for the supplier are that the PO represents a clear instruction from Hitachi Rail Europe, Ltd. with a corresponding financial commitment. So, suppliers will always be paid in accordance with agreed terms and conditions provided that they comply with Hitachi Rail Europe, Ltd.’s "No PO, No Pay" policy by:
- Only supplying Hitachi Rail Europe, Ltd. when they are in receipt of a valid PO and ensuring that the requested works, supplies/services are supplied to the correct specification and timescales.
- Promptly sending directly to the Hitachi Rail Europe, Ltd. accounts payable team an invoice corresponding to the quantities and pricing within the PO and quoting the PO reference number.
- Payments will be received promptly with less likelihood of delays.
The benefits to Hitachi Rail Europe, Ltd. employees are:
- Improved financial management.
- Less time spent checking and approving invoices.
- Less time spent dealing with outstanding payments.
Q. Where can I get a copy of the CoC?
The CoC will accompany the PO that you have received in email format.
Q. When will the policy ‘go live’?
This policy went live on 1st May 2015.
Q. In the past I’ve not needed to quote a valid PO number on my invoices and have still been paid. Why can this not continue?
The reason that this cannot continue is that it becomes extremely difficult tracing a PO under a supplier without the valid PO number being stated.
Q. Which goods/services are exempt?
No goods/services are exempt, however if you are shipping goods to us then we will accept a shipping note as your CoC as this shows proof that you have delivered the goods and the receipt shows we successfully have received them.
Q. Requests for goods/services have been made by the requester in the past without a PO being quoted - will this still happen?
No, all staff within Hitachi Rail Europe, Ltd. have been made aware of the new processes and going forward nobody should be asking you to proceed with work without you having received a PO for goods/services - please do not start work without a PO and if you do, you do this is at your own risk.
Q. What are Hitachi Rail Europe Ltd. standard payment terms?
Standard payment terms are 60 days from date of invoice. Invoices received without a valid PO number quoted will not be paid and will be returned. This may lead to a delay in the payment process.
Q. What happens if I get paid in a different way?
Purchase Cards – the use of purchasing cards are for low value and one off purchases; you will receive a card number to process the payment against for which you will be required to send proof of purchase back to the requester.
Q. Will I get paid quicker if I provide a PO number?
The time you will be paid in will depend on the payment terms you are set up under which would have been agreed between Hitachi Rail Europe, Ltd. and yourselves prior to set up on our system, if the correct procedures and policies are followed then this should not lead to any overdue payments to you.
Q. What does a valid PO look like?
The PO will state a number starting with 5500000, your purchasing officer, the description, quantity and price of the work you are partaking in, where this should be delivered to and your company name.
Q. An invoice has been returned requesting a valid PO number be quoted. How can this be obtained?
You should contact your point of contact who gave the original instruction to supply the goods/services and ask them to provide a valid PO number. When obtained, you should send a replacement invoice, quoting the valid PO number to:
Hitachi Rail Europe, Ltd
Or alternatively email to: Accounts.Payable@hitachirail-eu.com
Q. My contact details that Hitachi Rail Europe, Ltd. has are incorrect; who do I contact to correct these?
If any details are incorrect with your order or supplier details please contact your point of contact via email in the first instance, they will then request your supplier details to be confirmation on letter headed paper to validate the changes.
Q. How do I know who my point of contact is at Hitachi Rail Europe, Ltd.?
Your point of contact can be found in the contact person box on your purchase order, whilst requester contact name and details can be found on the CoC page in the top right hand corner below your PO number.
Q. Who do I contact if I have an issue?
If you have an issue please contact your point of contact, they will help you in the first instance or direct you to the relevant person/s.
Q. Who do I send the CoC to?
You will send your CoC back to the requester; their name can be found on the top right hand side of your CoC in the contact person box below your PO number.
Q. Do I need a CoC for every delivery?
If the work carried out is over a period of time we ask that you keep a blank copy of the CoC to complete prior to submitting each invoice. If the work is for a new service then you will receive a PO for each new service undertaken, you will be required to complete a CoC before you submit any Invoices. You should only submit an invoice when the purchasing officer instructs you to.