As an existing supplier to Heathrow you will find information on how to trade with us, including details on how to transmit purchase orders, receive invoices and comply with the Construction and Industry tax Scheme.Expand all Collapse all
Heathrow currently send out Purchase Orders by three main transmission methods:
- Oracle iSupplier
- Electronically through an e-Invoicing Hub or
- Email (as PDF attachments)
Email - is the default mechanism for transmitting Purchase Orders. They are automatically sent to the email address that was obtained from the supplier upon setup. This is an automated process that runs on a regular basis throughout the day. Purchase orders will be attached to emails as PDF documents enabling suppliers to print and save them.
Oracle iSupplier - is the preferred method for sending Purchase Orders to suppliers. The supplier registers for iSP and has access to view Purchase Orders and send invoices into Heathrow's integrated systems. Orders are received regularly to a predefined email address and invoices are sent directly, by the supplier, into Oracle.
Electronic - Suppliers receiving high volumes of purchase orders from Heathrow can discuss the establishment of a custom connection enabling POs to be sent electronically through their preferred method and integrated into the supplier order processing system.
*If you are a regular supplier to Heathrow then it is recommended that you utilise the Oracle iSupplier system for receiving Purchase Orders and sending invoices.
How to ensure your invoice is received
Invoices MUST only be submitted for goods and services that are covered by an approved Heathrow purchase order. Invoices submitted without a purchase order will be rejected.
If you are set up for e-invoicing using iSupplier or electronic, then you must submit all invoices using these methods. If you are not set up please contact us at firstname.lastname@example.org to register, as this is the preferred method.all paper invoices will be rejected
If you must send us an invoice (PDF only) they should be emailed to email@example.com.
View a sample invoice (474KB PDF)
How to track the status of an invoice
Supplier’s setup to use iSupplier will be able to view the status of their invoices on-line when logged into iSupplier.
3-way matching: Once an invoice has been received and accepted by Heathrow it will undergo a 3-way matching process before payment will be scheduled. This is where the invoice is matched against the following three aspects: Purchase Order, Receipted Quantity and Invoiced Quantity.
Invoices can only be paid once Heathrow has receipted the goods/services. If the system cannot match the 3 criteria then the invoice will be placed on hold.
Rejected invoices, what to do?
If critical information is missing from an invoice or invoice information is incorrect then the invoice will be returned to the supplier with reason for their return stated in a letter. Invoices will be returned to a Supplier unpaid if:
- The invoice does not state the BSC Address
- The invoice does not state the company name to which is applies eg. Heathrow Airport Ltd
- The invoice does not refer to a valid company
- The invoice does not match a valid company PO
- The currency of the invoice does not match that of the company PO
- There is no reference to the line number of the company PO
- The Supplier Name on the invoice is not the same as that on the PO
- The Order has been fully receipted and billed and the invoice is for an additional amount which has not been confirmed by a PO
- The Purchase Order number has been handwritten.
What to do if you receive a returned invoice:
Correct the error that has been stated on the returned invoice and resubmit. Note: the same invoice number cannot be re-submitted for payment as it will be rejected again as a duplicate invoice.
Submitting a credit note
When submitting a Credit Note, please ensure that it is sent to the BSC with clear reference to the Original Invoice Number and company Purchase Order Number. Credit Notes will be applied immediately to enable processing of the invoice.
The credit note must clearly state Credit Note at the top of the document.
A credit note must be sent to the BSC using the correct transmission method. iSupplier, electronically or email.
Suppliers setup to use iSupplier will be able to view the status of their invoices on-line when logged into iSupplier.
Heathrow utilises the BACS method of payment to pay invoices. Bank details are required from each supplier in order to complete supplier set-up. If you have not provided your bank details you will need to send them to the Business Support Centre on original company letterheaded paper.
Schedule of Payments
BACS payments are made on the following days. Funds are normally received into the Supplier account two days following the day of the payment run.
- Monday, Wednesday and Friday
Remittance advice is sent by post email to the postal email address provided at the time of Supplier set-up.
Heathrow’s preferred method of managing purchase orders and invoices is through electronic trading. There are two approaches, iSupplier or eInvoicing.
Oracle iSupplier - getting started
In order for you to use iSupplier for self-service billing, you need to register your company by completing the registration form. You will need to use the registration ID that was sent to you by the Business Support Centre (BSC).
Once you have registered, the BSC will set up your iSupplier accountand advise once completed with your username and password.
Please use this time to review the training documents on our website to familiarise yourself with the iSupplier process.
You can then use iSupplier to review purchase orders and track the payment progress of submitted invoices and credit notes.
What changes does the Supplier need to make?
You will still maintain your current back-office invoicing processes, the difference is that the Submission of the invoice to us will be electronic via iSupplier rather than through the post.
Review the iSupplier Training Guides for more information. Please can you also upload an image of your invoice through this portal and details are supplied within the pack.
Click on the links below to either view the complete training guide, or the specific useful sections taken from it:
- Oracle iSupplier Portal complete training guide (4.85MB PDF)
- View PO/receipt/invoice/payment status (1.16MB PDF)
- Create an invoice (492KB PDF)
- Create a credit note (510KB PDF)
- iSupplier FAQs (447KB PDF)
Electronic invoicing (eInvoicing) service
A free service provided by Heathrow in partnership with The Royal Bank of Scotland (RBS). Multiple connection options ensure that there is a suitable submission method for every type of supplier.
Benefits to Heathrow suppliers are:
- Confirmation and speed of delivery of invoice
- Quicker invoice processing time facilitating payment of invoices to term.
To find out more about this service please read:-
To register for this service please go to e-invoicing.rbs.co.uk
Customs and Excise
Customs & Excise need to be made aware you will be trading electronically. You will need to write to your local HMCE office and advise them that you are submitting invoices electronically. This must be done during the first 30 days of electronic trading. The relevant legislation is - Regulation 13a of the HM Customs & Excise VAT Regulations 2003/3220 and Public Notice 700/63, both of which were published in December 2003.
All suppliers that are new to Heathrow must download and read the Supplier information pack. This ensures that Suppliers understand the way Heathrow trade, which in turn helps to minimise any ordering and payment issues that may arise.
- Supplier information pack (30KB PDF)
The Construction Industry Scheme (CIS) is a scheme administered by HM Revenue & Customs (HMRC) to ensure that tax is collected from all payments made to businesses providing construction type services (see list below for examples of services within CIS).
Businesses operating in the construction industry are known as subcontractors and they may be companies, partnerships or self-employed individuals.
With effect from 6 April 2007, before subcontractors can be paid under the scheme their customers have to ensure that they have verified with HMRC that their supplier is registered for CIS. Large tax compliant subcontractors can be paid the gross amount shown on their invoices but smaller subcontractors or those with a poor history of paying tax will not receive full payment as an amount will be deducted as tax and paid to HMRC on their behalf by their customer.
Who has to be CIS Registered?
Any supplier who will be carrying out maintenance or construction work on a Heathrow property has to be registered for CIS with HMRC before they can commence work on site.
As a company involved in major construction and maintenance work Heathrow must comply with the CIS regulations. This means that the use of subcontractors must only commence after the supplier carrying out the work has been verified as CIS registered with HMRC. If Heathrow allows works to begin on site without verification of the subcontractor's CIS status it will be liable, not only for the tax, but could also be subject to significant financial penalties.
Using subcontractors / sole traders
Because of the complexity of the tax rules and their interaction with employee tax regulations, Heathrow cannot directly employ a sole trader to carry out maintenance or construction work on any property belonging to Heathrow. Therefore, if a sole trader must be used then he/she will have to be employed by an agency that is itself CIS registered.
Examples of types of operations which are within CIS. (This list is not exhaustive!)
- Actual construction, alteration and civil engineering
- Installation of power, pipe and telecoms lines
- Road construction
- CCTV installation
- Fire protection systems
- Fitting floor coverings (excluding carpet)
- Painting and decorating
- Repairing street furniture
- Repairs to windows, doors and security barriers
- Repair to roads and bridges including white lining
- Demolition of buildings, structures and tree felling
- Site clearance
If you require further advice please contact the BSC Purchase to Pay Team at firstname.lastname@example.org or Vanessa Rand in Tax.
Heathrow has signed up to the Prompt Payment Code (PPC). The PPC sets standards for payment practices and best practice and is administered by the Chartered Institute of Credit Management. Compliance with the principles of the Code is monitored and enforced by the Prompt Payment Code Compliance Board. The Code covers prompt payment, as well as wider payment procedures.
Under the prompt payment code Heathrow will undertake to:
- Pay suppliers on time
- Give clear guidance to suppliers
- Encourage good practice