Getting Paid on Time

Purchase Order / "No PO - No Pay"

ABB has implemented a “No PO – No Pay” policy, by which vendors are required to provide a purchase order (PO) number on the invoice in order for ABB to accept and process the invoice. As most ABB transactions require a PO, please ensure that you always request a PO from ABB buyers before commencing any work. Whenever a PO is provided, it needs to be clearly indicated on the invoice before submission. We strongly recommend one PO per ONE invoice to ensure timely processing and payment.

The information on the invoice should match the details defined in the PO, i.e. the PO line item number, PO material number, delivery note number, unit price, quantity (partial or full), currency, etc. If the PO is incorrect/incomplete or have any changes after issuance, request a correction of the PO immediately; otherwise there is a risk of late payment.

In case invoices are sent to ABB without a PO, ABB reserves the right to return the invoice to the supplier with the reason specified. In this case, the invoice is considered incomplete and must be replaced with a correct invoice.

Submitting Invoices

Our preferred option of receiving an invoice is electronically, where allowed by law (machine-readable PDF via email and an e-invoice/EDI, if available in the ABB country).

-          Correct and timely submission of invoices

The timely submission of invoices with correct invoice information is critical for ABB to process and make the payment on time. Please ensure that all invoices are sent to the correct address.

-          Meeting national legal requirements and ABB’s invoice requirement

It is important for suppliers to ensure that national legal requirements and ABB’s invoice requirement are met. Any invoice that does not meet the mandatory requirements will not be accepted.

Please click here to see information on invoice address and requirements.

Receipt of Goods/Services

ABB applies a 3-way match concept, by which the purchase order, the goods/service receipt, and the invoice need to be successfully matched before the invoice can be ready for payment. The invoice should only be sent to ABB according to agreed incoterms for goods and services already received by ABB.

Payment

• Payment  Terms
  ABB has a global payment term policy. In general, payment due dates are calculated from the issue date of the invoice. In case invoices are received more than 7 days from the issue date through any official invoice channel, we reserve the right to calculate the due date from the date the invoice was received.
  As part of a standardization process, ABB has introduced a once-a-month-payment concept: paying all suppliers globally at the same time. As a consequence, all permissible payment terms must follow the end-of-month (EOM) concept, accumulating all invoices throughout the month and then processing them in one batch at the beginning of the next month. 
  
  
• Payment Run
  In October 2019, ABB introduced a single payment run per month, globally paying all suppliers on the 4th of each month. ABB wants to ensure that it treats all suppliers equally in terms of payments, so the EOM payment process has been mandatory for all our suppliers since 2019, where legally possible.
  The payments are made to suppliers on the 4th of every month; in case this date is a local bank holiday or weekend, the payment run will take place on the next available working day. 

• Updated Vendor Bank Accounts and emails for remittance advice
  Please always ensure that all information and bank details are up-to-date in ABB records. Any changes such as banking information must get updated as soon as possible in your vendor account in order for the payment process to go smoothly.
  Remittance advice is automatically sent if an email ID is maintained (preferably a group email account to avoid frequent changes).
  Please click this link to find out how you can update your company information.