DuPont Payment Process User Guide
March 14, 2005
Table of Contents
I. Introduction ................................................................................... 2 II. Top Reasons for Payment Delays ................................................ 2 III. Bill-to Address ............................................................................. 3 IV. Terms of Settlement .................................................................... 3 V. Invoicing Practices ........................................................................ 3 VI. Electronic Commerce .................................................................. 7 VII. DuPont Debit Memos ................................................................. 7 VIII. Supplier Credit Memos.............................................................. 8 IX. Material Delivery ......................................................................... 8 X. Electronic Funds Transfer Notes .................................................. 9
DuPont Finance’s number one priority is to meet customer expectations in every possible way. Because a significant portion of our product is purchased from external suppliers, supplier satisfaction is also a top priority. Therefore, one of our goals is timely and accurate payment of your (our suppliers’) invoices. This booklet will provide the essential information that we need from you in order to ensure payment of your invoices is per the terms of your Dupont purchase order.
II. Top Reasons for Payment Delays
Most payment delays are caused by one or more of the following: 1. Invoice has missing or invalid Purchase Order number 1. We cannot pay your invoice until we match it against the most current version of the Purchase Order (PO) in our systems, using the number you provide. Your invoice must include the complete PO number, exactly as it appears on your contract order. 2. To ensure a standard to allow verification criteria to be performed correctly, Accounts Payable must be consistent in the way invoice numbers and invoice dates are input. 3. Our Accounts Payable center handles payments for more than one Strategic Business Unit (SBU). Post Office (P.O.) Box numbers are used for internal routing to the correct processing area. 4. We cannot pay your invoice unless we have a complete mailing address to which to send your payment. 5. We match every invoiced amount against a specific PO line number. If the correct PO line is not clearly shown for each invoiced amount, delays will result as we attempt to make a match. 6. For each PO line, we compare extended price & quantity on your invoice with the same information on the most current version of the PO in our database. Discrepancies delay your payment. 7. We cannot pay your invoice until your item or service has been received (either through a system transaction or through manual notification). If you suspect a delay in receiving, contact the DuPont Requestor of your material or service as indicated on the Purchase Order. 8. We begin to count days for payment terms on the day your invoice is received at our Accounts Payable center. Our clear preference is to receive your invoice through electronic means such as fax, email or eInvoice solutions. 9. Each invoice can reference only 1 PO – Exception is a Dupont (SAP) purchase order that is all numeric. Multi PO numbers can be listed on the invoice if under SAP purchase order numbers 10. When payments are being made via EFT all banking changes must be faxed on corporate letterhead to 302-9925045.
2. Invoice does not have invoice number or invoice date listed 3. Invoice was sent to wrong Post Office Box address 4. Invoice is missing a “Remit to” address 5. Invoice has missing or incorrect Purchase Order line number reference(s)
6. Invoice shows incorrect Quantity and/or Unit Price
7. Receipt not recorded in DuPont system
8. Invoice delayed in reaching Accounts Payable
9. Invoice references multiple POs
10. When banking information has changed and the EFT/EDI Coordinator has not been notified.
III. Bill-to Address
Invoices must be submitted directly to the DUPONT Nashville Payment Center via hard copy, facsimile or electronic mail as directed below.
Invoices should be sent to DuPont’s Nashville Payment Center in Old Hickory, TN. For the exact Bill-to Address please refer to: the DuPont Purchase Order against which you are invoicing - OR the DuPont Agreement or Contract order - OR other instructions you may receive from your DuPont buyer
Important: DO NOT submit paper (hard copy) invoices in connection with EDI or “paperless invoice” transactions.
The facsimile number for invoice submittal is: 615-301-9883 Electronic mail must be sent in a “TIF file format to the following address: AP4@usa.dupont.com. Payment questions should be directed to Nashville Payment Center via either electronic mail: AP2@usa.dupont.com or phone: (615) 847-6920.
IV. Terms of Settlement
Payment Terms Standard payment terms are Net 60 days from date invoice is received at Accounts Payable. Important: All payment dates are calculated from the date your invoice is received in the Nashville Payment Center located in Old Hickory, Tennessee. If your invoice is delayed in reaching the Center, your payment will be delayed as well, on a dayfor-day basis. Receipt of Funds Payment terms do not include time for delivery of payment. When planning for receipt of funds, you should consider time for delivery of the funds above and beyond the days described in the payment terms. For payment by check allow a reasonable time for mail delivery For Electronic Funds Transfer allow three to five days for funds to be available in your bank account
V. Invoicing Practices
To ensure timely payment your invoice must contain certain information. Please see the next two pages for examples of “perfect” invoices for Materials and Services. If your invoices to the DuPont Company do not currently contain the required information please make the necessary changes.
A properly prepared and correct invoice is a document received at the proper DuPont that clearly and legibly includes, as a minimum: A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. The DuPont Purchase Order number and release number (if applicable); Supplier complete name and remit to address; “Bill to” stating applicable DuPont entity; A detailed description of Materials or Services; Price, consistent with the Compensation Exhibit of this Agreement; Quantity, consistent with the Compensation Exhibit of this Agreement; Unit of measure, consistent with the compensation Exhibit of this Agreement; Supplier invoice number; Invoice date; Total monetary amount; Terms of payment, including any applicable discount calculations; Freight terms; Bill of lading number or packing list number as appropriate Tax amount/rate information; and Any other records or written proof as DuPont deems necessary to verify the billings appearing therein.*
Incomplete invoices will be returned to the Supplier unpaid and unprocessed. *DuPont must authorize all travel in advance and expenses are to be reviewed and acknowledged by DuPont. Receipts supporting each expenditure over $25.00 must accompany each invoice for reimbursement. Additional Instructions: Reference only pertinent information in the body of the invoice. Other information, not critical for payment, can be included in supplemental pages to the invoice. Always submit an original legible invoice. Submitting a copy of an invoice will significantly delay payment. We keypunch all invoice information from a scanned image of the invoice you submit. Carbon copied invoices do not lend themselves well to the scanning process. Therefore, please send black and white original invoices. Never use your invoice document to submit a statement, “Reminder,” or past due notice to our payment center. Such documentation, whether on your invoice documentation or other company letterhead, can only serve to cause confusion and prevent payment from being issued.
Additional Information to Non-US Suppliers: Because your invoice is used to clear your goods through US Customs, it can affect timeliness of payment. To clear customs, your invoice must be in English, must identify country of origin, and must contain those items listed on the “perfect invoice.” In addition, items furnished by DuPont for the production of merchandise not included in PO price (a.k.a. Assists), or other additions to value, and other statements for US Customs purposes (GSP/NAFTA) must be included. If you have questions contact your DuPont buyer or your GEPS customs representative.
'Perfect' Invoice for Materials ABC Company 123 Main St. Anytown, NY USA 12345 Internal Contact: Accounts Receivable Department Internal Contact Telephone Number: (888) 345-6789 Internal Contact eMail Address: firstname.lastname@example.org H Invoice Number 123456 I Invoice Date A PO Number 2/21/2005 Must match PO exactly C Bill To: See information on your DuPont Purchase Order or contact your local buyer. Requisitioner:____________
B Remit To: ABC Company PO Box 111 Anytown, NY USA 12345 Carrier UPS L FOB Shipping Point
K Terms Must match PO
Ship Date 2/21/2005
M Packing Slip # 123Z9999999-01
PO Line Item
Part Number D Description 1 113096 copper wire 2 112064 O Ring 3 GB01 grit blasting 4 Labor 4 Per Diem 4 Expenses
Extended F Qty G UOM E Price/Unit Qty N Tax 100 FT $10 $1,000 Y 50 EA $1 $50 Y 6 HR $100 $600 N HR $500 N LT $120 N LT $100 N Total $2,370 USD Tax@7% $166 Invoice Total $2,535.90 J
A Purchase Order Number - Must match exactly to the DuPont supplied PO number; do not truncate or alter in any way. B "Remit To" Address - Where the payment should be sent. - If on the EFT Program: your Remit To Address must match exactly as you have it on your EFT application form. - If not on EFT: Do not change your Remit To Address without notifying Accounts Payable - If bank information is required, include bank name, branch, address, routing [ABA, BLZ, CHIPS, Swift, Sortcode, etc.], account num, and beneficiary of account C "Bill To" Address - Address must match what is on the DuPont Purchase Order D Description - As stated on Purchase Order. E Price / Unit - As stated on Purchase Order F Quantity - As stated on Purchase Order. G Unit of Measure - As stated on Purchase Order. H Invoice Number. Invoice numbers should not exceed 12 characters. I Invoice Date. J Total Monetary Amount. K Terms of Payment. L Feight Terms. M Bill of Lading or Packing List number as appropriate N Tax - Indicate which items are taxable by using a 'Y' for Yes and 'N' for No.
Perfect Invoice for Services ABC Company 123 Main St. Anytown, NY USA 12345 Internal Contact: Accounts Receivable Department Internal Contact Telephone Number: (888) 345-6789 Internal Contact eMail Address: email@example.com H Invoice Number 123456 I Invoice Date A PO Number 2/21/2005 Must match PO C Bill To: See information on your DuPont Purchase Order or contact your local buyer. Requisitioner:____________
B Remit To: ABC Company PO Box 111 Anytown, NY USA 12345 Carrier UPS FOB Shipping Point
K Terms Must match PO D Description Total Man Hours: Total Expenses: Miscellaneous: E Price/Unit $100/hour F Qty G UOM 15 hours
$1,500.00 $100.15 $0.00 $1,600.15 J
B "Remit To" Address - Where the payment should be sent. - If on the EFT Program: your Remit To Address must match exactly as you have it on your EFT application form. - If not on EFT: Do not change your Remit To Address without notifying Accounts Payable
A Purchase Order Number - Must match exactly to the DuPont supplied PO number; do not truncate or alter in any way.
- If bank information is required, include bank name, branch, address, routing [ABA, BLZ, CHIPS, Swift, Sortcode, etc.], account num, and beneficiary of account C "Bill To" Address - Address must match what is on the DuPont Purchase Order D Description - As stated on Purchase Order. E Price / Unit - As stated on Purchase Order F Quantity - As stated on Purchase Order. G Unit of Measure - As stated on Purchase Order. H Invoice Number. Invoice numbers should not exceed 12 characters. I Invoice Date. J Total Monetary Amount. K Terms of Payment.
VI. Electronic Commerce
Electronic Funds Transfer (EFT) EFT is DuPont’s preferred method for paying our vendors. Under this arrangement, your payment along with all invoice information covered by that payment (remittance data) is electronically transferred through the banking system (Automated Clearing House) to your financial institution. Electronic Payments offer you a key advantage by removing the concerns of postal service and/or bank processing delays. Your collection rates improve and you can predict cash flows with greater certainty. Remittance application is facilitated by the electronic remittance data sent with each payment. We strongly urge you to sign up for this payment method as soon as possible. For your convenience, we are including our EFT/EDI enrollment package for this purpose (see Pages 1215) If you have questions or would like assistance in signing up for EFT/EDI, contact the EFT/EDI Coordinator at (302) 992-4974 or request via e-mail to DPS.WILM@USA.DuPont.Com Note: If your Company already participates in DuPont’s EFT Payment Program, please ensure that any changes to your bank and or bank account information is faxed on Company letterhead to DuPont EFT/EDI Coordinator @ fax number (302) 992-5045.
VII. DuPont Debit Memos
Debit Memos issued by Accounts Payable generate deductions from the payment of Supplier invoices. If the Debit Memo amount exceeds the Invoice payment amount the invoice payment will be held until the amount payable on all invoices exceeds the Debit Memo amount. At that point the NET amount due will be paid to the Supplier. The issuance of a Debit Memo by Accounts Payable almost always relates to one of the following: Adjustments to Accounts Payable transactions (e.g. over payments, price adjustments, excess freight) Material returned to a Supplier at the supplier’s expense (e.g. defective material) Supplier Credit Memos if applicable
VIII. Supplier Credit Memos
These are Credit Memos (CMs) issued by a Supplier to cancel or correct invoices for such things as errors in price, quantity, extensions, etc. When issuing a Credit Memo for submission to the DuPont Company please include the following required information: Purchase Order number PO Line Item number and quantity being credited Invoice number of original payment Total dollar amount being credited
If you do not have a Purchase Order number please contact your buyer for accounting information that needs to be included on the Credit Memo. Important: CMs issued by a Supplier strictly for the Supplier’s internal accounting purposes should never be transmitted to Accounts Payable.
IX. Material Delivery
Delivery Material must be delivered per instructions on the Purchase Order. Sending material to the wrong location leads to payment delays. Special Note for Shipments Direct to DuPont Customers If you are shipping directly to a DuPont Customer you must send a bill of lading immediately upon shipment to the Requestor of material or service as indicated on the purchase order, or your DuPont Logistics Contact. Bill of lading delays lead to payment delays. Packing Lists Each shipment must have a complete and accurate packing list, numbered uniquely. The packing list must match the Purchase Order and contain the following information: Purchase Order and PO Line Item Number Quantity shipped Unit of measure Part number and, if applicable, the part number revision referenced on the PO.
X. Electronic Funds Transfer Notes
Electronic Funds Transfer (EFT) is the most efficient and cost-effective means of making payments. By using electronic data interchange (EDI) to make payments as well as to transmit remittance information, both trading partners stand to gain efficiencies within their processes. DuPont is adopting Electronic Payments (EFT/EDI) as the preferred method of payment. Electronic Payments are initiated by DuPont on the date due according to the payment terms in the contract. Transactions are sent electronically to our originating bank, Citibank Delaware, in the form of an ANSI 820, payment order/remittance advice. Citibank receives our file daily and translates payment instructions into the appropriate ACH format (CTX). These ACH formatted payments are electronically transferred through the ACH to your bank on the third day from the payment due date. When your bank receives the payment transaction, they settle the funds in your account and either perform the cash applications or pass you the associated remittance data that could be electronically transmitted into your Accounts Receivable system. The means by which you choose to receive the remittance data must be negotiated between you and your bank. Bank capabilities in receiving and processing the various ACH formats vary widely. Therefore, it is imperative that you involve your bank in the Electronic Payment process. Enclosed please find a list of preliminary questions to determine if you and your bank are EFT ready. Electronic Payments offer you a key advantage by removing the concerns of postal service and/or bank processing delays. Your collection rates improve and you can predict cash flows with greater certainty. Remittance application is facilitated by the electronic remittance data sent with each payment. Should you have any questions or wish to discuss any aspect of Electronic Payments, please contact me. We look forward to a successful implementation of EFT/EDI with your company.
Robin Baker DuPont Payment Services Phone - (302) 992-4974 Email – DPS.WILM@USA.DuPont.Com
Do you currently receive any EFT payments? What is the ACH payment format used? Is your bank capable of receiving EFT payments using the CTX format? Can your bank process or send CTX remittance data electronically to you? Can you receive CTX remittance data electronically from your bank? Can you mechanically apply electronic remittance data to your Accounts Receivable system? Could the mechanical applications to your Accounts Receivable system be an internal cost savings for your (less manual effort)? Is the Receiving Account for your EFT remittance a “checking” account? When could you be prepared to implement this with DuPont?
For this process to work, your bank must have the capability to provide your remittance detail in the format required for your cash application process. If you feel your bank has this capability, please sign and date this form and send along with the completed enrollment form. Thank you.
DuPont Company Electronic Payment Trading Partner Enrollment Complete the form and send to: Robin Baker, BMP 40-104C, PO Box 80040, Wilmington, DE 19880-0040 Your Company Name: ______________________________________ Address: ____________________________________ ________________________________________ ________________________________________ Person to Contact: ____________________________ Telephone: ___________________________________ DUNS Number or IRS Taxpayer ID#: ______________ Email Address: _______________________________ Your Financial Institution Name: ______________________________________ Address: ____________________________________ ________________________________________ ________________________________________ Person to Contact: ____________________________ Telephone: ___________________________________ Bank Transit Routing or ABA#: ___________________ Account Number: ______________________________ Name on the Account: __________________________
Our electronic payment to you will include electronic transmission of remittance data. We will use format CTX for this transmission consult your financial institution to discuss methods of receiving remittance data. We initiate our electronic payments to you within the terms of your contract or agreement. However, certain specific conditions exist for the electronic payment and are described in the following Terms or Conditions
Signature: _____________________________________ Date: _____________________________________
Print: _________________________________________ Title: _________________________________________
Terms and Conditions for Electronic Payment Your signature on the enrollment form confirms that your company agrees to accept payment by DuPont through electronic funds transfer and that we can rely exclusively on the information you supplied on the enrollment form. DuPont will initiate payment to you based on the following: 1. The electronic funds transfer will be made to the financial institution and account number on this enrollment form. 2. We will make payments in accordance with and be governed by the National Automated Clearinghouse Association’s Corporation Trade Payment Rules. Our process is governed by and in accordance with the laws, other than choice of law rules, of New York, including Article 4A of the Uniform Commercial Code as enacted by the State of New York and amended from time to time. 3. The information you provided on the form is very important. You understand that any change in the information must be communicated to DuPont by an authorized representative of your Company in writing to DuPont in time to allow DuPont to respond to the change. DuPont will be considered harmless for any loss which may arise solely by reason of error, mistake or fraud regarding this information. 4. Payment is initiated within the normal terms of our commercial agreement with you. Our EFT terms and conditions neither enlarge or diminishes the respective rights and obligations of us within any applicable commercial agreement. We will consider payment made when your financial institution has received or has control of the payment transaction. This will generally occur within three (3) calendar days following initiation by DuPont. If we initiate payment on a non-banking day at DuPont’s originating bank, the funds transfer will occur the following banking day. In all cases, Banking Day is defined as the day on which both trading partner’s banks will be available to transmit and receive these funds transfers. 5. DuPont has the right to adjust future payments if previously made are found to be duplicate, in excess of requirements, fraudulent or in error. 6. DuPont is responsible for making all payments within this Agreement. DuPont is responsible up to the point where your financial institution receives or has control of the transaction. Any loss at that point will be borne by you unless the loss is due to sole negligence of DuPont or its originating bank. You should notify DuPont immediately if payment is not received as described in item 4 (above). DuPont shall have a reasonable time (not to exceed ten (10) business days) to make said payment. 7. Electronic Funds Transfers can be terminated by either party, providing that notification is in writing, and that both parties agree on the termination date. Otherwise, we will continue to make electronic payments to you as specified. Written notice to you will be sent to the address provided on the enrollment form.
EFT/EDI Coordinator BMP40-104C PO Box 80040 Wilmington, DE 19880-0040
Phone - (302) 992-4974 FAX - (302) 355-2061 EMail – DPS.WILM@USA.DuPont.Com