Lloyds Banking Group Guide to Receiving Orders and Getting Paid - - PDF document

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Lloyds Banking Group Guide to Receiving Orders and Getting Paid

(Version 2.0 June 2015) The purpose of this short guide is to:

Explain how Lloyds Banking Group uses Purchase Orders (POs) for goods and services. Help you ensure payments can be made to you in a timely manner. Purchase orders Purchase Orders are issued to commission the supply of goods and services from suppliers. Each PO has a unique number. A sample PO is included towards the end of this guide for reference. The use of POs ensures that orders you receive have been pre-authorised, and provides you with improved visibility of our business requirements, contractual terms and price. It also simplifies our approval, invoice, and payment processes by automatically matching Invoice to PO details. Our preferred transmission method for POs is e-POs through our Supplier Hub and submission of e-invoices through the Ariba Network back to our Supplier Hub, but we may also send POs by email to a nominated supplier inbox for those suppliers who choose not to transact through Ariba. PO Revisions There may be occasions when we will amend the details of a Purchase Order and send you a revised order. If this happens, please take care that these amendments are not mistaken as new orders. Any duplicate deliveries would be at the supplier’s cost. Payment Lloyds Banking Group’s standard payment method to suppliers is BACS. If you have a query regarding an outstanding payment please contact Accounts Payable:

Telephone

0845 600 1779 If you have already submitted invoice(s) to the total value of the PO you received, i.e. the PO has already been fully invoiced, Accounts Payable will not be able to process any further invoices for that PO. Please do not continue to submit invoices; refer first to your business contact who can advise a new PO number OR amend the existing PO.

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E-invoicing through the Supplier Hub We have an active recruitment programme encouraging suppliers to use the Supplier Hub, We hold webinars that provide background to the Supplier Hub and it’s benefits, and also to demonstrate how to use e-invoicing through Ariba. If you have not yet been contacted and wish find out about the Supplier Hub and make use of Ariba, then please email R2Penablement@lloydsbanking.com. Documentation on how to raise invoices on the Ariba Network is available through your Ariba Network production account through selecting from the menu on the top right corner the item Customer Relationships, then locating “Lloyds Bank” on the Current tab, then selecting “Supplier Information Portal”. There you will find guides for submitting PO invoices and non-PO invoices, as well as additional information if you want to consider more automated methods of submitting invoices. There is a recording of a demonstration of how to raise invoices on Ariba available. If you have any further questions about using Ariba that are not covered by the support materials above, then contact LBGSupplierEnablement@ariba.com Reminders for Suppliers that have gone live on the Supplier Hub Legacy purchase orders POs that you received before your PO go-live date will not be back-loaded to the Supplier Hub, however you can e-invoice against a PO, where paper/PDF invoices have not already been raised, by creating a non-PO e-invoice and putting the PO number in the “Customer Order #” field. The PO number is only ten digits long (example “7000154342”), and only this number should be entered in the Customer Order # field - any other characters will delay processing of the invoice. You will also need to enter “000000” in the Cost Centre field. A unique invoice number (and if this includes initials of your company as part of the invoice reference, this will help avoid the invoice being held back for comparison with other invoices from other suppliers with the same invoice number – example invoice no“123” is not unique – “QLT 000123” is more likely to be unique ) Ariba submission is only to be used for current invoices on legacy POs/e-POs and credits on e-POs. You cannot submit credit notes over Ariba for legacy POs, or for general credit notes. Paper/PDF will need to be used for these specific transactions. Please do not submit paper/PDF invoices when you are live on the Supplier Hub When you submit e-invoices, please don’t also submit paper/PDF invoices. The e-invoice is the legal document. The e- invoice will be forwarded to the requisitioner where any confirmation or approval is required. If duplicate invoices are detected, they are put on hold and referred to a member of staff for resolution, which can delay processing. If you have historical paper/PDF invoices that have not previously been processed/paid, please do not use Ariba to resubmit. In these cases, please provide a true and certified copy of the original on paper/PDF. Attachments to e-invoices are not forwarded to business users Although the Ariba Network will allow suppliers to add attachments to e-invoices, you need to be aware that these are not forwarded to requisitioners in Lloyds Banking Group. If you need to provide supplementary information to assist requisitioners in raising Goods Receipts/Confirmations, then you will have to email or post this information to them direct. The best way to avoid delays in payment is to ensure that the value of the invoice presented will already have been agreed with the business requisitioner. Points on Ariba account administration Remember to keep your company profile information updated on your Ariba Network account. (Administration>Configuration>Basic Profile) Please review the Purchase Order routing settings on your production account to ensure they are set up properly. (Administration>Configuration>Electronic Order Routing) Please review the Notification settings on your production account to ensure they are set properly. (Administration>Configuration>Email Notifications) Education materials about managing your account and transacting with Lloyds Banking Group on the Ariba Network are available from the Lloyds Banking Group Supplier Information Portal on your Ariba Network account.

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Paper/PDF Invoicing Sample invoices are included towards the end of this guide for reference. To ensure trouble free payment your invoice must include: A unique invoice number (if this includes initials of your company as part of the invoice reference, this will help avoid the invoice being held back for comparison with other invoices from other suppliers with the same invoice number – example invoice no“123” is not unique – “QLT 000123” is more likely to be unique ) The LBG PO number printed clearly on the invoice. These are usually 10 digits, typically “7000123456”. If you have not received a Purchase Order number, you must print the Control Centre Code that you have

• btained from the LBG colleague that requested the goods or service from you, prefixed by ‘CC’ (for example:

CC123456). The invoice date. The correct company name, e.g. Lloyds Bank plc, HBOS plc. You can identify this by the company logo on the purchase order. Your Company (vendor) name and address. The word Invoice or if a credit, the words Credit Note (Please note that Proforma invoices should not be submitted to Accounts Payable) The value and currency

• To comply with HMRC guidelines, the invoice should show the VAT breakdown, i.e. the net value of goods

and services, the rate and amount of VAT, and the gross (total) value of the invoice. The VAT Registration Number on all invoices where VAT is charged, prefixed with country code (example GB165339104) The description of goods and/or services supplied, and (for Purchase Order invoices) the relevant PO line item number against each line on the invoice, reflecting the quantities/unit price/Units from the Purchase Order. Any unique reference number or information requested by your LBG business contact. We create a scanned image of all paper/PDF invoices we receive, so it is important that the invoice is clearly typed and easy to read and not defaced with handwritten annotations. Ideally the invoice should be on white A4 paper and clearly printed. Highlighter pens should not be used. Notes: 1. Invoices that do not bear a PO number or a Control Centre Code cannot be processed and will be returned to you. You must ask the individual who requested the goods/service to supply this for you to put on your invoice. 2. TSB invoices should not be submitted mixed with Lloyds/Halifax/BoS invoices 3. Any change to details for your business (example –bank account change) should be submitted separately from

• invoices. These should be sent on letter headed paper to the Accounts Payable address below. It will not be

possible to act on changes noted on the face of invoices, or emailed instructions. 4. Each invoice should only reference one Purchase Order or Control Centre Code. 5. Summary invoices (invoices that reference more than one PO) are not supported. Format for emailed invoices/credit notes NOTE: If you send a an emailed invoice, do not send a paper version as well. Required file format is PDF. Invoices must be in a consistent orientation portrait/landscape so that the text is always displayed horizontally. Only one invoice per PDF file is allowed. Any supporting information to the invoice must be included within the same invoice PDF file (other document types are not supported). One email can contain several PDF files, maximum 8 files per email. Email cannot be larger than 9MB Invoice files compressed in zip format are not supported PDFs must not be password protected. If you are submitting invoices by email, then all the actionable information needs to be within the PDF file attachment, as only the PDF is processed. No action will be taken on messages in the email body or subject line.

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To avoid delays in payment Ensure that all the information listed above has been included and is correct. This may seem obvious, but common reasons for invoice payment being delayed include:

• VAT errors
• Calculation/totalling
• Missing VAT registration number
• Address discrepancies between the PO and invoice
• Please remember to advise us of any change to your company name or address, so we can

ensure our records are updated. This needs to be submitted separately from invoices, by letter on headed paper. It will not be possible to act on changes noted on the face of invoices.

• If you change your accounts receivable address, or consolidate addresses, please also advise so

we can delete invalid locations from our order raising systems.

• Missing/incorrect PO/line item/revision numbers
• If you are providing a continuing service and have more than one PO number relating to specific

dates of supply, please ensure that the PO number quoted on the invoice relates to the correct time period

• If your PO has multiple lines, please state clearly what amount is payable against each line item

number . Invoices, and any supporting information, should be sent to the Accounts Payable address (not the contact name on the PO, or other business contact). You may also need to send supporting information to your LBG business contact (if this has been agreed with them). Your business contact may need this to approve the invoice for payment. If you need to send us a copy invoice, it must be a “True and Certified” copy

• by having the word ‘copy’ actually printed in the body of the invoice;
• r by you, the supplier, having written the following statement on it, “I certify that this is a true and certified

copy of the original invoice” and signed it. Suppliers that are live on our e-invoicing service should not be submitting paper/PDF invoices Duplicate invoices will delay processing of invoices already submitted. Please do not submit multiple copies, or PDF and paper copies.

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Example Purchase Order

(NB There are variations which may apply)

Purchase Order number. 10 characters only. You must quote this on your invoice else your payment could be delayed. (/101 is not part of the PO number) Total value of purchase order, excluding VAT. Line item number. Where there is more than one line item, you should state on your invoice which line/s you are invoicing for. Text may include “Please print “Partner Code RRPB” against this line

• n invoices”

Your business contact for queries on the purchase order. All values quoted exclusive of VAT. Address we hold in your vendor

• record. Your address on your

invoice should match this.

Please print “Partner Code RRPB” against this line on invoices LLOYDS BANKING GROUP ACCOUNTS PAYABLE BX1 1LT EMAIL : APInvoiceReceipt@lloydsbanking.com

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Sample Lloyds Banking Group Compliant Invoice

All paper invoices/credit notes* to: All PDF invoice/credit notes* to : LLOYDS BANKING GROUP APInvoiceReceipt@lloydsbanking.com Accounts Payable BX1 1LT

* Exceptions to using centralised invoice submission to the above addresses:

Group Property Orders – If you receive Purchase Orders starting with “1xxxx” or are directed to invoice to OrdersPaymentsIncomingInvoices@Lloydsbanking.com, then these orders /payments will continue unaffected. E-Billing and AP Batch – For suppliers that also transact using the Lloyds Banking Group e-billing and AP Batch processes for invoice payment, then these files should continue to be sent to the previously advised address If you are invoicing LEX Autolease /Asset Finance /General Insurance claims LBG businesses /or if you are a Council invoicing business rates, you should continue using previously advised processes and addresses.

Internal Catalogue Vendor

Dummy Street, Dummy, BS1 1BS Tel: 01223 666555

INVOICE

Lloyds Banking Group Invoice No: ABC12345 Accounts Payable Invoice Date: DD/MM/YYYY BX1 1LT Our Ref: LTSBINV0023 Your Ref: ATM2009 PO No: 7000016396 Description £ Line 1 – ATM Machines Partner Code RRPB 10 @ £150.00 £1,500.00 Line 2 – Delivery charge 1 @ £25.00 £25.00 Line 3 – Installation 10 @ £18.00 £180.00

In the event of queries, please contact A.N. Other, ext 12345

Net Total

£1,705.00

VAT @ 20.00%

£255.75

Invoice Total

£1,960.75 VAT REG No: GB 123 4567 89 Internal Catalogue Vendor (an ABC Inc. company) Company Registered in England & Wales No: 12345678 Registered Office: 1 The Street, London W1A 2DD

Must have correct vendor name and address.

Please include the initials of your company in your Invoice Number to make it unique. This will help avoid the invoice being held back for duplicate comparison with invoices from

• ther suppliers using similar invoice number ranges

Purchase Order No clearly visible. Breakdown aligns to breakdown

• n PO and includes line item
• numbers. If more than one PO,

each line should give the PO to which it relates VAT: Rate (s) must be clearly

• stated. VAT Registration must

be provided. If you have not received a Purchase Order number, you must print the Control Centre code which has been provided by the requester prefixed by “CC”, for example, “CC123456” Addressed to Lloyds Banking Group or subsidiary Invoice date should not be in the future, or backdated more than 5 days