Supplier Incentive Scheme

In 2019 we will launch the Supplier Incentive Scheme, a programme aimed to provide a more efficient purchase to pay process that enables us to make payments ahead of contractual terms. This initiative is being launched in partnership with Oxygen Finance who are the UK’s leading early payment solution provider to the public sector.

Suppliers participating in the Supplier Incentive Scheme will have their invoices processed and paid at the earliest point possible in exchange for a small rebate that is calculated dynamically as the invoice is paid and is proportionate to how many days we accelerate your payment by.

If you are an existing supplier to the council Oxygen Finance may contact you to explain more about the programme and you may also receive an email from Oxygen Finance that enables you to join the programme online - it is a simple and straightforward process that only takes a couple of minutes to complete.

Benefits of participation include:

  • Improved working capital from early payment
  • Increased process efficiency via e-invoicing, prioritised invoice processing and dedicated query resolution
  • Closer collaboration and better long-term relationship

We believe that strong relationships are essential in achieving our strategic goals and the Supplier Incentive Scheme demonstrates our commitment; we recognise early payment can make a significant impact on the growth and development of your business. To find more information on the scheme visit the Oxygen Finance website.

Working with the council

It is clearly important that suppliers know how to invoice the council for payment. We would therefore like to remind you of some of our key policies and advise you of how the council will work with suppliers in future.

Purchase order policy

Suppliers should not undertake any work without a Purchase Order (PO) being provided in advance. A PO is validation that the goods/services requested have been authorised and approved; therefore, you should ensure a PO is made available to you by the Lancashire County Council representative requesting the goods/services unless an exception to this requirement has been agreed.

Therefore a valid PO number must be quoted on all invoices. Invoices that do not contain a valid PO may cause delays or the inability to make payment and the invoice being returned as a result.

Invoice submission

To allow us to process your invoice efficiently, the invoice must contain the following information:

  • Your full company name and address including post code
  • Date of Invoice (tax point)
  • Full unique invoice or credit note number
  • VAT Registration Number (if applicable)
  • Bank account details for payment. Lancashire County Council make payments by BACS
  • One valid purchase order number quoted on each invoice

We recognise that on occasion a Chaps/Faster payments will be required and any necessary requests will continue to be processed. However, requests for Chaps/Faster payments will not routinely be processed where they are simply being used to avoid the contractual payment terms. 

Alignment of operational practices to Governmental legislation

Legislation states that Lancashire County Council has an obligation to ensure 'payment shall be made within 30 calendar days from the date the authority deems the invoice to be valid and undisputed.' Therefore payment shall be made 30 days (or previously agreed terms) from the invoice received date (not the invoice date). Suppliers should allow two days for the payment to reach their account via a BACS transfer. A valid invoice is one which conforms to the guidelines above and any specific requirements identified in any relevant contract. 

To ensure consistency Lancashire County Council will pay suppliers on standard payment terms if an alternative pre-agreed contractual term does not exist. It is our intention that the council’s terms and conditions of payment will align with legislation and state that 'standard payment terms are 30 days from the receipt of a valid invoice'.

Support for suppliers

Suppliers can contact Oxygen Finance with any queries they have in respect of the Supplier Incentive Scheme and the changes to be implemented:

Tel: 01772 920 710