What a good invoice looks like
Tarmac continues to streamline its processes and improve the way in which it engages with suppliers. We continue to refine these ways of working for the benefit of both Tarmac and our suppliers.
The most recent changes include a simplification of the purchasing and accounts payable processes with a single point of contact for all UK finance issues. Invoice processing is being re-organised into a single service centre. However the five key rules below contain all the key information you will need to prevent delaying payment.
Five steps to what a good invoice looks like
Tarmac suppliers need to review these five rules to ensure that payments are processed as quickly and efficiently as possible.
1. Correct Supplier name and address
2. Correct quantity, description and price
3. Display a valid purchase order number on invoice
4. Relevant delivery note and delivery number for each item
5. Submit invoice after the good or services have been supplied
1. Correct Supplier name and address
Please ensure Tarmac has selected your correct plant or office address on the purchase order (PO). If it is wrong, please contact the Purchase order raiser*. Please do not forward it to the correct branch.
Tarmac is a large organisation and therefore requires similar organisations which can support its needs throughout the UK. Practically this means the supplier will have a network of branches throughout the country. Inevitably with different accounts and branches, errors will occur. We would ask that you contact the Purchase order raiser so that we can change our records to ensure the supplier is paid in accordance with the Terms and Conditions. While we appreciate it would appear quicker to internally forward the PO, this will only generate delays in the payment process.
2. Correct quantity, description and price
The invoice needs to accurately reflect the purchase order, in terms of line items, quantities, unit price and total price. If the purchase order is incorrect, please contact the Tarmac order raiser and ask for it to be amended.
It is important that the PO reflects the goods or services provided and therefore follows that the invoice should represent the PO. Additions or changes to the original PO are inevitable, however the PO within Tarmac's process should reflect this to, again, prevent delaying payment to the agreed Terms and Conditions. In addition, if you are unable to supply according to the detail within the PO (price, quantity, product description) then you must liaise with the Purchase order raiser to agree what will be supplied. Supplying and invoicing for a requirement different to that requested on the purchase order will result in a failure to match, and corresponding delay in payment.
3. Display a valid purchase order on invoice
Always quote the correct valid Tarmac purchase order number on all invoices taking care to ensure the number appears clearly and accurately.This number appears on the purchase order (PO) you must receive.
Tarmac receives over 1000 invoices per day! In order to prevent delay in dealing with your invoice, suppliers should ensure a valid PO number is clearly stated. Tarmac's Rules of Business state that company funds shall not be committed without a valid PO number, and as a supplier goods and services should not be supplied unless you have received a purchase order from Tarmac. If you do not reference a purchase order number on your invoice, it will be returned to you.
Image of annotated Tarmac purchase order
See a larger image by clicking on the image above.
4. Delivery note and delivery number
A relevant delivery number needs to be quoted for each item on the invoice.
When a delivery note is provided the supplier must ensure that its number is accurately quoted on the invoice as received at point of delivery. The failure to accurately match the supplier delivery note number with the number quoted on the invoice will result in the invoice being delayed e.g. delivery note number 00012345 should not be quoted on the invoice as 12345.
5. Submit invoice after the good or services have been supplied
Approximately 5% of invoices submitted to Tarmac by suppliers are received before the goods or services have been supplied. Tarmac Limited's terms and conditions are clear and concise regarding not paying for goods or services before receipt.
The trigger for payment is the receipt of the goods or services-if the invoice is received before receipt there is likely to be a delay in payment. Please see Tarmac Limited's terms and conditions for full details.
* Purchase order raiser is the Tarmac member of staff that provides you with the purchase order number.
Please note: Every invoice sent to Tarmac will require a purchase order number to be displayed on it.
If you have any questions about the Accounts payable process please Contact Suppliers helpdesk.
