Overview
This policy and procedure applies to payments by Coles Supermarkets, Coles Express and Coles Liquor (Coles) for goods for resale.
The Food and Grocery Code of Conduct (Grocery Code) which applies to Supermarkets and Express outlets, outlines some specific requirements in relation to payments. Under the Grocery Code Coles must pay its suppliers within a reasonable timeframe of receiving the suppliers’ invoices.
Coles is also a signatory to the Business Council of Australia, Australian Supplier Payment Code (BCA Code) which requires (amongst other things) Coles to pay suppliers on time following receipt of a correct invoice and receipt of correct Goods.
Coles will use its best endeavours to pay all invoices on time. Receipt of paper invoices from suppliers can make it difficult to meet some payment periods. All suppliers are encouraged to implement electronic invoicing to ensure that Coles can meet agreed payment terms.
Paying Suppliers’ Invoices
The payment terms agreed with suppliers are set out in the Trading Terms agreement. Coles has an obligation to pay its suppliers within the timeframe set out in the Trading Terms agreement.
Coles’ payment terms are:
(a) Standard Payment Terms
Term Name
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Invoice Maturity (calculated as days from receipt of Goods by Coles DC or Store#)
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Payment Frequency*(Due Invoices)
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Payment Cycle
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Example of Payment Terms
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Min. payment cycle (days)
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Max. payment cycle (days)
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Invoice date
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Due date
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Payment date
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Daily
|
7
|
Daily
|
8
|
9
|
6 Jan 2020
|
13 Jan 2020
|
14 Jan 2020
|
Daily – 2020 SS Scheme
|
30
|
Daily
|
30
|
32
|
8 Mar 2020
|
1 Apr 2020
|
1 Apr 2020
|
Weekly
|
12
|
Weekly, Monday
|
13
|
20
|
7 Mar 2020
|
19 Mar 2020
|
23 Mar 2020
|
Fortnightly
|
19
|
Fortnightly,
Monday
|
20
|
34
|
2 Apr 2020
|
21 Apr 2020
|
4 May 2020
|
Monthly
|
End of next month
|
1st business day of calendar month
|
31
|
63
|
8 Mar 2020
|
30 Apr 2020
|
1 May 2020
|
Bi-Monthly
|
End of next two
months
|
1st business day of calendar month
|
61
|
92
|
8 Mar 2020
|
31 May 2020
|
1 Jun 2020
|
Overseas
|
90 days FOB
|
Monday
|
91
|
98
|
1 Mar 2020
|
30 May 2020
|
1 Jun 2020
|
* Where the payment day falls on a Saturday or a Sunday or a public holiday in Melbourne (Australia), payment will be processed by Coles on the next business day.
# Where Goods are collected by Coles Collect, receipt for invoicing purposes, occurs when the Goods are received at the Coles DC.
Examples, where the agreed terms are:
- standard monthly, each delivery of Goods received in the month of June will be paid on first business day of August; and
-
- standard weekly, invoices are aged at least 12 days from each delivery of Goods received and will be paid on the Monday following maturity.
(b) Non-standard Payment Terms
In certain limited circumstances, Coles and suppliers may have agreed non-standard days for payment days, being the number of days elapsed from the date of receipt of Goods by Coles to be paid in accordance with standard payment frequency.
Example:
- Payment Terms: Payment Days/Invoice maturity: 20 days
-
- Payment Frequency: Weekly
Invoices will be aged 20 days from receipt of Goods and will be paid in the next weekly cycle on the Monday following maturity.
Small Suppliers
Details of the Small Supplier Payment Schemes are set out in Appendix A to this Policy. These policies may be reviewed from time to time.
Since 1 July 2017 Coles Supermarkets and Coles Express have had in place a Small Supplier Payment Policy – see Part 2 of Appendix A (2017 SS Scheme). All suppliers covered by that Policy will continue to receive the benefits of that Policy until they no longer qualify.
From 1 July 2020 the 2017 SS Scheme will be replaced with a new Policy which is in line with the BCA Code – see Part 1 of Appendix A (2020 SS Scheme).
Payment Terms Matrix:
If prior to 1 July 2020:
|
Then after 1 July 2020:
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1. Negotiated Payments Terms specified in your Trading Terms agreements result in payment in less than 14 days
|
No changes will be applied to the Payment Terms specified in your Trading Terms agreement.
|
2. You are a current member of the 2017 SS Scheme and are paid in 14 days
|
You will continue to be paid in accordance with the 2017 SS Scheme, while eligible.
|
3. Negotiated Payments Terms specified in Trading Terms agreements result in payment in less than 30 days
|
No changes will be applied to the Payment Terms specified in your Trading Terms agreement.
|
4. Negotiated Payments Terms specified in your Trading Terms agreements result in payment in more than 30 days and you:
(a) qualify as a Small Supplier under 2020 SS Scheme (b) do not qualify as a Small Supplier under 2020 SS Scheme
|
You will be paid in accordance with the 2020 SS Scheme, while eligible. No changes will be applied to the Payment Terms specified in your Trading Terms agreement.
|
Queries on Supplier Invoices
If you have invoices outstanding beyond the payment period outlined above, you can raise a query with Coles accounts team by emailing:
accounts.investigation@coles.com.au
You should also notify your Category Manager of your accounts query.
Claiming other payments from our suppliers
Coles does not ask for payments from suppliers unless these have been discussed and agreed with suppliers. Any agreement for payments must also be documented in writing between Coles and its suppliers.
Coles team members have been directed to ensure all payments agreed with suppliers have regard to the likely benefit to the supplier as well as Coles and the cost borne by or contribution made by Coles.
Aligned to the Grocery Code, Coles does not require payments from suppliers for shrinkage. We may ask our suppliers to plan and problem solve around the causes of shrinkage, such as changes that could be made to packaging to help stem losses. We will not impose costs for changes such as re-packaging without consultation and mutual agreement.
Only in certain circumstances will Coles ‘set off’ an amount on a supplier’s invoice prior to its payment by Coles. Setting off means reducing the amount due to the supplier in respect of matured invoices. Coles will seek prior supplier approval for setting off:
- straight monies;
-
- any claim provided for under a More for More Agreement, Joint Business Plan or other related agreements in writing;
-
- any claim in accordance with Coles Recall & Withdrawal guidelines; and
-
- any other amounts agreed with the supplier in writing.
However, Coles may (without obtaining further approval from the supplier) also set off amounts which are set out in specific agreements in writing. For example:
- the amount of the rebates and settlement discount (if any) set out in your Trading Terms (as accumulated percentage classified as settlement discount, but covers all agreed rebates) as a percentage of the gross invoice value;
-
- where any Goods are subject to payment of levies and charges under the Primary Industry Levies & Charges Collection Act 1991 and Regulations;
-
- in accordance with your Trading Terms agreement, Waste & Markdown Agreement or Terms and Conditions such as for:
- short deliveries;
-
- rejected goods;
-
- cost discrepancies;
-
- waste claims;
-
- markdown claims;and
-
- manual volume rebates which do not relate to all Goods, but certain items, or sub-categories or categories only;
-
- where we have made specific agreements with you in writing such as for:
- promotional funding;
-
- freight recovery;
-
- transport claims (e.g. Coles Collect at agreed pallet rate); or
-
- artwork costs in respect of Coles Brand Goods (for Coles Brand suppliers, refer to your Coles Brand Goods Statement or the Rate Card of the Coles Supplier Portal for indicative costs); or
- under the Coles Nurture Fund Funding Agreements, for repayment of any loans provided.
Coles will raise the claims on the first Monday following the claim being due or agreed with the supplier and the claim will be deducted from the next remittance payable after the claim has been raised. E.g. promotional funding agreed in a PAF will be raised on the first Monday following the promotion end date, and will be deducted from the next remittance payable after the claim has been raised.
Consistent with the Grocery Code, Coles does not request payments from suppliers for buyers’ visits to suppliers, consumer market research, opening and refurbishment of a store or hospitality enjoyed by our Coles Team Members.
Time restrictions on claims
Coles does not make claims of suppliers nor pay claims from suppliers that are more than two years old from the transaction date.
Disputes
Where there are disputes on claims, Coles and suppliers will actively work together to resolve any outstanding claims in a timely fashion including carrying out the necessary investigations to provide evidence to support or deny any disputes.
If at any time Coles disputes the amount of an invoice, Coles will pay any undisputed amount but is not required to pay the disputed amount until the dispute is resolved.