Simplifying processes through clarity and standards.

Until both sides sign it, a contract is only a draft, and a draft is a weak basis for releasing company money. This is why Finance asks for the fully signed copy, and what to check before you raise a payment request.

What counts as a signed contract

A signed contract is the final, agreed version of the document, signed by everyone who needs to sign it. In practice, that means it is:

• Signed by both parties: the supplier and the company's authorised signatory.
• Complete, with every page, annex and schedule that forms part of the agreement.
• Dated, with an effective date and term that cover the work being billed.
• Final: the version that was actually agreed, not a marked-up draft.

Why Finance asks for it before paying

What can go wrong without one

Before you raise the request

Run through these four checks before you submit a Supplier Payments request. A request that fails one is likely to be sent back to you.

1. Both parties have signedLook for signatures from the supplier and from the company's authorised signatory. A copy signed only by the supplier is not enough.
2. The dates cover the workThe contract was in effect when the work started, and it has not expired.
3. The invoice matches the contractThe amount, scope, rates and payment terms on the invoice match what was signed.
4. The full copy is attachedAttach the complete signed PDF, annexes included, so approvers and Finance all review the same document.

Common questions

A service invoice is the supplier's formal bill for work they have done for the company. Finance pays against it, records it in the books and keeps it for tax and audit, so a missing or faulty invoice holds up payment. This is what makes an invoice valid, and what to check before you raise a payment request.

What makes a service invoice valid

A valid service invoice comes from the supplier and gives Finance everything it needs to pay, record and report the cost. Check that it is:

• Issued by the supplier on their own invoice, showing their registered name, address and tax ID.
• Made out to the company: the registered name, address and tax ID of the entity being billed, not an employee or a department.
• Numbered and dated, with an invoice number the supplier hasn't used before.
• Specific about the service: what was done, the period it covers, and the quantities and rates behind the amount.
• Correct in its amounts, with any tax shown separately where it applies.

Not every bill is an invoice

Suppliers send several documents that look like bills. Only one of them is something Finance can pay against.

• QuotationAn offer: what the work would cost, sent before it starts.
  Not an invoice
• Pro-forma invoiceA preview of the invoice to come, often used to arrange an advance. It is not the final bill.
  Not an invoice
• Statement of accountA summary of what the supplier says is outstanding, often across several invoices.
  Not an invoice
• Service invoiceThe supplier's formal bill for work delivered, with its own number and date.
  Pay against this

Why Finance needs it before paying

What can go wrong without one

Before you raise the request

Run through these four checks before you submit a Supplier Payments request. A request that fails one is likely to be sent back to you.

1. It's an invoice, not a look-alikeNot a quotation, pro-forma or statement of account. If that's all you have, ask the supplier for the invoice before you submit.
2. It's made out to the companyCheck the company name, address and tax ID against the entity that is paying, letter for letter.
3. It matches what was agreed and deliveredThe description, period, rates and amount match the contract or PO, and the work has actually been done.
4. The supporting documents are attachedAttach the invoice with the signed contract or PO and any proof of delivery, so approvers and Finance all review the same set.

Common questions

When the company pays a supplier, it often has to hold back part of the payment as tax and pay it to the tax authority on the supplier's behalf. This is withholding tax. The company is responsible for getting it right, which is why Finance asks for certain details before paying, and why a supplier can receive less than their invoice total.

How withholding works

The supplier invoices the full amount. When the company pays, it splits that amount in two: most goes to the supplier, and the withheld part goes to the tax authority. In most cases nothing is lost to the supplier. They receive a certificate for the tax withheld and use it to reduce their own income tax.

Invoice total

Paid to the supplierThe invoice total less the tax withheld, paid on the agreed terms.

Withheld by the companyPaid to the tax authority on the supplier's behalf. The supplier gets a certificate for it.

What decides how much is withheld

You don't work out the amount. Finance does. What Finance needs from you is a request that describes the payment accurately, because the amount depends on:

• What the payment is for: services, professional fees, honoraria, rent and goods can each be treated differently.
• Who is being paid: an individual or a company, and whether the supplier is based locally or abroad.
• The supplier's tax status: some suppliers qualify for a different rate or an exemption, which they have to support with documents Finance can keep on file.

Rates at a glance

For most payments, the type of payment sets the rate. These are the ones you'll see most often:

Payment for		Rate withheld
inventory_2 GoodsSupplies, equipment and other items bought from a supplier.		1%
handyman ServicesWork done by a contractor, such as event production, printing, repairs or courier.		2%
key RentalRent for office space, venues, equipment or vehicles.		5%
badge Professional feeFees for professionals, such as consultants, lawyers, accountants and speakers.		10%

Why it matters to the company

What can go wrong

Before you raise the request

Run through these four checks before you submit a Supplier Payments or Honorarium request. A request that fails one is likely to be sent back to you.

1. The payment is described accuratelySay what you are paying for: a service, a professional fee, an honorarium, rent or goods. The type of payment decides how it's taxed, so a vague description slows things down.
2. The supplier's registered details are rightThe registered name, address and tax ID match the invoice letter for letter, because Finance puts them on the certificate. See Why Service Invoice is important?
3. Gross or net was agreed up frontFees should be agreed before withholding tax. If a supplier insists on receiving a fixed amount after tax, raise it with Finance before you commit, because the company would bear the tax on top.
4. Anything unusual is flaggedTell Finance if the supplier is based abroad, says they are exempt, or is an individual being paid for the first time, and attach any document they gave you.

Common questions

Every payment the company makes has to be explainable long after it was made, often years later, to an auditor or a tax officer who wasn't there. Record retention is how we make sure the evidence still exists when they ask. Most of it happens in the portal, as long as each request is complete when you submit it.

What audit-ready means

An auditor picks a payment and follows it back to the reason it was made. Audit-ready means every step along the way has a record behind it, and the records agree with each other.

1. edit_noteRequestWhat was bought, why, and who asked
2. how_to_regApprovalThe right people, within their limits
3. attach_fileSupportContract or PO, invoice, proof of delivery
4. paymentsPaymentThe money went to the right payee
5. menu_bookBooksRecorded in the right account and period

A missing record anywhere along the line breaks the trail, even when every other step is in order.

What to keep, and where it lives

Most of the trail is built from what you attach. The two documents auditors ask for most have reports of their own: Why signed contracts matter? and Why Service Invoice is important?

• Signed contract or approved POThe agreement behind the spend: scope, price and terms.
  You attach
• Invoice and receiptWhat the supplier billed, made out to the company. The original hard copy of the invoice also goes to Finance.
  You attach
• Proof of deliveryA delivery receipt, completion report or sign-off showing the work was done.
  You attach
• Liquidation receiptsFor cash advances and card spending: every receipt behind the amount spent.
  You attach
• Approvals and payment detailsWho approved and when, and the payment that followed.
  The portal records it

Why it matters

What can go wrong

Before you submit

Run through these four checks before you submit any request. The few minutes they take now save Finance hours of searching later.

1. The full set is attachedThe contract or PO, the invoice and any proof of delivery, together on one request. Don't rely on a document being "on file somewhere".
2. Every scan is readableWhole pages, the right way up, with amounts, dates, tax IDs and signatures legible. A blurred photo of a crumpled receipt rarely survives an audit.
3. A stranger could follow the purposeDescribe the payment for someone who has never heard of the project: what it was, who it was for, and the period it covers.
4. The original invoice goes to FinanceSubmit the original hard copy of the invoice to Finance, not just the scan. If Finance asks for any other original, send that in too rather than keeping it in a desk drawer.

Common questions

When you pay for a work expense out of your own pocket, the company pays you back. That goes smoothly when the claim shows what was spent, why it was spent, and that the cost really belongs to the company. This is what Finance checks on every claim, and how to get your money back without the claim being sent back to you.

Reimbursement, cash advance or company card?

There are three ways to pay for a work expense. They differ in who pays first and what you submit afterwards, so pick the one that fits before you spend.

Where to file your claim

You claim your reimbursements through the Expense Claims App. You can open the app on its own, or reach it through the portal: choose Expense Claim App on the rail at the left of the page, and the app opens inside the portal. Select your country, check the settlement currency shown under it, and press Go to start your claim.

Attaching a receipt in the app doesn't replace the original. As the app's notes say, submit the original receipt for a medical claim to HR, and the original receipt for any other claim to Finance.

What makes a claim complete

Finance reimburses a claim when it can see what was bought, from whom, for how much and why. Make sure yours has:

• A receipt for every item: an official receipt or invoice issued by the seller. A card slip or a bank statement shows that you paid, not what you bought.
• The business purpose: what the expense was for, and the client, project or event it relates to. For meals and entertainment, add who attended.
• The company's details where possible: ask the seller to put the company's registered name, address and tax ID on the receipt.
• Amounts that agree: the claim total matches the receipts, in the currency you actually paid.
• The right approval: the expense is one the policy allows, within any limits that apply, and approved by your approver.

Why it matters

What can go wrong

Before you submit

Run through these four checks before you submit an expense claim. A claim that fails one is likely to be sent back to you.

1. Every item has its receiptOne official receipt or invoice per item, whole and readable. A card slip or an e-wallet screenshot on its own isn't enough.
2. The purpose makes sense to a strangerSay what it was, who it was for and when. For meals and entertainment, list who attended and the companies they're from.
3. The amounts and currency agreeThe total matches the receipts. If you paid in a foreign currency, attach the card or bank statement that shows the amount you were actually charged.
4. It goes in promptlyClaim soon after you spend, not in a pile at the end of the quarter. Old receipts are harder to check, and a late claim can miss the period it belongs to. See Year-end closing checklist.

Common questions

VAT is a tax on spending, collected at each step of a sale. The company pays VAT to suppliers when it buys, charges VAT to customers when it sells, and pays the tax authority the difference. That difference only works in the company's favour when each purchase is backed by a valid VAT invoice, and that's where your requests come in.

How VAT works for the company

Each VAT period, the company adds up the VAT on its sales and subtracts the VAT on its purchases. Only the balance is paid to the tax authority.

Output VATCharged to customers on what the company sells

−

Input VATPaid to suppliers on what the company buys, backed by valid VAT invoices

=

VAT payablePaid to the tax authority for the period

Which invoices let the company claim VAT

Whether the VAT on a purchase can be claimed depends on the document behind it, not on whether the VAT was paid.

• VAT invoice made out to the companyFrom a VAT-registered supplier, with the company's registered name, address and tax ID, and the VAT shown separately.
  VAT claimable
• Invoice from a supplier who isn't VAT-registeredNo VAT was charged, so there is none to claim. The full amount is the cost.
  No VAT to claim
• Receipt in an employee's nameOr one without the company's tax ID. The VAT was paid, but the company can't claim it.
  VAT lost
• Quotation, statement or card slipNone of these is an invoice. See Why Service Invoice is important?
  Not an invoice
• Invoice from a supplier abroadServices bought from overseas can carry VAT rules of their own. Flag them so Finance can handle them.
  Ask Finance

Why it matters

What can go wrong

Before you raise the request

Run through these four checks before you submit a request with a VAT invoice attached. A request that fails one is likely to be sent back to you.

1. It's made out to the companyThe registered name, address and tax ID match the paying entity letter for letter. Give the supplier these details before they invoice, not after.
2. The VAT is shown separatelyThe invoice shows the VAT apart from the price, along with the supplier's own tax ID. If a supplier you expected to charge VAT didn't, ask them why.
3. It's dated when the purchase happenedThe invoice date fits the delivery or service period. Send it in promptly, so it lands in the right VAT period.
4. Anything unusual is flaggedTell Finance about overseas suppliers, suppliers who say a sale is exempt or zero-rated, and invoices that look different from usual.

Common questions

At year end, Finance closes the books for the whole year: every cost recorded in the year it belongs to, every advance accounted for, every balance checked. Much of what Finance needs at that point is still with the teams who spent the money. This is what to clear before the cut-off, and why it can't wait until the new year.

What Finance needs, and when

Year end comes in three phases. Most of your part happens in the first two.

1. event_upcoming Before the cut-off The weeks leading up to year end
   • Submit every pending request, and any invoice you're holding.
   • Liquidate open cash advances and card spend.
   • Chase suppliers for invoices on work already done.
2. flag At the cut-off The last working days of the year
   • Tell Finance what you received but haven't been billed for.
   • Flag payments that cover next year, like annual subscriptions.
   • Confirm which open purchase orders are still needed.
3. task_alt After year end While the books close and the audit runs
   • Answer Finance's questions quickly.
   • Keep supporting documents complete and attached.
   • Never backdate a document to fit it into the old year.

Why the cut-off matters

What can go wrong

Before the cut-off

Run through these four checks before Finance's year-end cut-off. Each one you clear now is one less query after the books close.

1. Nothing is waiting on youDrafts are submitted, invoices are forwarded, and sent-back requests are fixed and resubmitted.
2. Every advance and charge is liquidatedThis year's cash advances and card spend are liquidated with their receipts, or Finance knows why one can't be yet.
3. Unbilled work is reportedFor goods and services received this year but not yet invoiced, tell Finance the supplier, what was delivered and an estimated amount.
4. The dates are in your calendarBlock time before the cut-off, not on the day. Your approvers need time to approve, too.

Common questions