Supply Chain Frequently Asked Questions (FAQs)
Introduction/Overview
Caerphilly County Borough Council (‘the Council’) is committed to improving its financial management across the Council by ensuring we only pay for goods, services and works which have been formally ordered and authorised in accordance with the Council’s governance procedures.
Furthermore, this approach will also support the Council with ensuring that all invoices received are processed efficiently to minimise delay to the Supply Chain and meet local and national targets on the processing of invoices.
1. What is a No PO No Pay Policy?
The implementation of this policy will mean that payment will only be made to Suppliers, Contractors and Service Providers where a submitted invoice contains a valid Council generated Purchase Order reference (‘P/O Ref’).
Invoices that are missing a valid P/O Ref will have payments delayed whilst the relevant information is obtained. The Council will work with the Supply Chain to ensure compliance to this policy, those Suppliers, Contractors and Service Providers who continually choose not to comply with this requirement will be removed from the Council’s financial systems and no future transactions will be permitted.
2. When does No PO No Pay come into effect?
The policy will be implemented from 1 July 2024 and applies to all orders of goods, services, or works placed on or after this date.
3. How does No Po No Pay Work and what is a valid Council generated Purchase Order reference?
The policy requires all invoices submitted by Suppliers, Contractors, and Service Providers to include a valid Council generated Purchase Order reference (‘P/O Ref’). In all, but exceptional circumstances the P/O Ref:
- Will be generated from the Councils Corporate Proactis P2P System with a prefix of PO, PO-, PON, PON-, EDTPO or RGPO, and
- Must be issued to you in advance of any goods, services or works being supplied.
4. I have supplied goods, services and/or works to the Council, where do I submit my invoice?
The valid Council generated P/O Ref will specify an email or postal address where the invoice will need to be sent. Please note for those Suppliers, Contractors or Service Providers currently electronic invoicing through the Council’s Proactis marketplace there will be no change to the way in which you submit invoices.
5. An invoice has been returned requesting that a valid purchase order reference must be quoted. How can this be obtained?
You should contact the Council representative who placed the original order instruction and ask them to provide a valid Council generated P/O Ref. Once obtained you should re-submit your invoice ensuring that the valid P/O Ref is clearly stated.
6. How do I know that my Purchase Order number has been approved by the correct level of Authority?
A valid P/O Ref will only be produced by our corporate systems once authorised by the appropriate person within the Council. This policy will not apply in certain circumstances and an exceptions list will be held by Corporate Finance. Any exceptions will need to be agreed by staff within Finance and Procurement in advance of any provision of goods, services or works and will be recorded on an exception list.
7. I only supply Schools, does this affect me?
Schools are not subject to this policy at this time. There will be no changes to the way you manage purchase orders you receive directly from Schools, however the information provided within the policy and these FAQs are recommended as best practice and should be considered moving forward.