What if another company pays an invoice on our behalf?

Quick answer

The payment is generally reported by the entity that has the legal obligation to pay the supplier, even if another entity physically makes the payment.

What does this mean?

The Regulator focuses on which entity has the legal obligation to the supplier. A reporting entity may therefore need to report payments made on its behalf by an agent, broker, shared service entity or special purpose vehicle. If the third party is itself the contracting entity with the legal obligation to pay, the third party is responsible for reporting the payment if it is a reporting entity.

Practical point

Shared payment processes do not necessarily move the reporting obligation. When another entity makes the payment, identify which entity actually contracted with the supplier and carries the legal payment obligation.

Other ways people ask this

• Who reports an invoice if another company actually pays it?
• What happens when a shared services entity pays suppliers for us?
• Does the company making the bank payment have to report it?
• Who is responsible for PTRS when a third party pays the supplier?

Official sources

• Payment Times Reporting Guidance Materials
  Payments made by a Third Party
  Paragraphs: 124, 125, 126 · Page: 35

Related guidance

• What is a trade credit arrangement?
• How do I identify small business suppliers for PTRS?

Preparing a Payment Times Report?

Monochrome Compliance can help with the data preparation, validation, reconciliation and reporting process.

Get in touch