Selling to the Council: Purchase order and invoice process

Contents

  1. Overview
  2. Who the policy covers
  3. Exceptions
  4. If you are not a supplier
  5. Purchase Orders (POs)
  6. PO format
  7. Invoice requirements
  8. Where to send invoices
  9. More information

Overview

The Council has a "No PO, No Pay" policy. This means we will no longer pay invoices which do not quote a valid PO number.

Suppliers must not agree to supply goods, works or services to the council, unless they are in receipt of a valid Purchase Order (PO) number.  Suppliers must quote this PO number on any following invoice(s).

This is to make sure that all purchases are authorised before goods, works and services are supplied and to allow us to process invoices. This makes sure we have a positive payment profile with suppliers and contractors.

Invoices which do not contain a valid PO number will be returned to the supplier.

Who the policy covers

The policy applies to all suppliers unless the goods, works or services you supply are covered by an exception. Eligible suppliers have been informed that an exception applies. All other suppliers must request PO's.

Exceptions

We will not apply this policy if we make payment to you via a "feeder system".

A "feeder system" automatically calculates and produces batch payments for specialist services, using data held within our systems. Suppliers who receive payments in this way do not need to request a PO for those payments. If you submit invoices for other services, you must request a PO.

Other exceptions include:

  • Where payment is made by Procurement Card (as no invoice is required)
  • Some corporate telecommunication services (internet, landline and mobile)
  • Utilities, for example electric, gas, water
  • Payments to individuals (members of the public), ie refunds, compensation, social care allowances, volunteers, expenses, prizes etc.
  • refunds to suppliers
  • Grant payments issued to businesses by the council (where the business would not normally send an invoice)
  • Faster payments
  • Foreign payments

If you are not a supplier

You could be recognised as a supplier within our accounting system if you have received payments or grants from the Council in the past.

Please ignore this if you do not supply goods, works or services to the Council.

Purchase Orders (PO's)

Purchase orders will be sent to you before you provide any goods or services to the council.

Suppliers are then authorised to supply goods, works or services as described on the PO, up to the amount shown on the Purchase Order.

If you are later asked to deliver more than what was included on the original PO, you must ask the requesting officer to either:

  • increase the value of the original PO (a revised PO will be emailed to you, confirming approval of the additional items / cost)
  • raise a new PO

The new or revised PO number must be given to the supplier before any additional costs are incurred and the PO number must be included on the invoice.

PO format

Purchase Order numbers are currently raised via the Oracle ERP system and consist of an 8-digit format. Orders raised by:

South Tyneside Council start with a 2

e.g. 22345678

South Tyneside Homes start with a 5

e.g. 52345678

Pension Service start with an 8

e.g. 82345678

Purchase Orders are only considered valid if they have enough value and were raised in the current financial year. Our financial year runs from 1 April to 31 March the following year. 

The PO date can be found on all official Purchase Order documents which will be emailed to you.

If you do not have a valid order, please contact the officer who requested the goods in the first instance and request that one is provided without delay.

Invoice requirements

Invoice format

All invoices must:

  • be sent in PDF format
  • contain one invoice per PDF document (multiple PDF's can be attached to one email)
  • contain a valid Purchase Order (PO) number (this must be raised within the current financial year, see PO format)
  • not be submitted until goods, works or services have been supplied.

Where to send invoices

Invoices must be sent directly to invoices@southtyneside.gov.uk. You must quote the PO number. 

Council officers will be able to view invoices once they have been uploaded to our payment system. 

Payment is released 30 days from the date on which our Invoice Management Team receive a valid invoice (14 days for local suppliers).  As per our Terms and Conditions, please do not send invoices to other departments as this does not count as them 'having been received' and will delay payment.

More information

If you have any questions about the purchase order / invoice process, please contact the Procurement Team on 0191 424 7017.