We wanted to share 2 instances in 2 months where we were made aware of P&G issuing POs to BBDO Shanghai and BBDO Guangzhou with payment term of 90 days and 75 days respectively.
Whilst the first incident was managed in time, the second went up to John as a request to update the payment term in ARC to 75 days.
Please be reminded again that our global payment term with P&G is 45 days.
No one is allowed to change the payment term without consultation with Regional Finance and approval from BBDOWW (via John).
You would have read many communications and news about P&G extending payment terms with vendors globally to their standard 75/90days term. And often, POs are generated by the system with the default standard payment term.
However, our global contractual payment term remains at 45 days.
Hence, we need to be vigilant in ensuring that any PO received reflects the correct contractual payment term. If not, you should immediately get in touch with the client and any Helpdesk/Call & Resolution Center indicated on the PO to rectify the payment term indicated on the PO. Should you have any further issues, you should escalate to regional and we will work with the global team to help you resolve the issue.
Please note that the principles in this email apply to ALL Global and Regional clients with agreed Global/Regional payment terms. J&J, PepsiCo and Fonterra are some clients that we had similar issues with before and we must remain careful in ensuring that the correct contractual payment term is applied in EACH PO from client.
Please communicate with your team members receiving and reviewing POs from clients and ensure that they understand the requirements and importance of having the correct contractual payment term on EACH PO from client.
Thanks.