Plan for Identification of the Primary Causes of Failure to Pay

To address the issue of failure to pay invoices within the specified timeframes, the following plan will be implemented:

1. Analyse the current supply chain processes and systems to identify potential bottlenecks and inefficiencies.
2. Review historical data on payment delays and identify patterns or common factors contributing to the delays.
3. Evaluate the effectiveness of existing payment monitoring and reminder systems and identify any necessary improvements or enhancements.
4. Conduct a comprehensive review of contract terms and conditions to ensure clarity and alignment with payment expectations.
5. Implement robust tracking and reporting mechanisms to monitor payment performance and identify deviations from agreed-upon terms.
6. Establish clear escalation procedures and protocols for addressing payment delays and resolving disputes promptly.
7. Regularly review and update the plan based on feedback and insights from ongoing monitoring and evaluation.

The plan will also include a commitment to regular reporting on progress ensuring that stakeholders are kept informed about the organisation's efforts to address payment delays.

We use a third-party accountant to manage payment notifications (wearemap.co.uk). The software we use is xero.com which provides notifications on payment terms.

Procedures for Resolving Disputed Invoices using Xero

1. Gather Information: Collect all relevant information related to the disputed invoice, including the invoice number, date, and any supporting documents or communication.
2. Review Invoice Details: Use Xero to access the disputed invoice and review its details, such as the items/services provided, quantities, and amounts.
3. Contact the Customer: Reach out to the customer via email or phone to discuss the disputed invoice. Clearly explain the issue and ask for their input or clarification.
4. Provide Supporting Documentation: If needed, provide any supporting documentation or evidence to the customer that can help resolve the dispute. This may include delivery receipts, contract terms, or project timelines.
5. Document Communication: Keep a record of all communication with the customer regarding the disputed invoice within Xero. This will help track the progress of the dispute resolution process.
6. Negotiate and Reach Agreement: Work with the customer to negotiate a resolution. This may involve adjusting the invoice, providing a discount, or finding a mutually acceptable solution.
7. Update Invoice in Xero: Once an agreement has been reached, update the disputed invoice in Xero accordingly. Make any necessary adjustments to the invoice amount or terms.
8. Communicate Resolution: Inform the customer about the agreed-upon resolution and any changes made to the invoice. Ensure both parties are clear on the final resolution and any next steps.
9. Monitor Payment Status: Keep track of the payment status of the resolved invoice in Xero. Follow up with the customer if payment is not received within the agreed-upon timeframe.
10. Document Resolution: Document the resolution of the disputed invoice within Xero, including any adjustments made and the outcome. This will serve as a reference for future reference or audits.