Payment of suppliers
Ekurhuleni Metropolitan Municipality envisages additional control measures to streamline the payment of creditors’ accounts for services/goods rendered by suppliers
What is the objective?
- To obtain creditors’ statements from suppliers in order to reconcile payment requests.
- To keep creditors’ accounts up to date and ensure that payments are made within 30 days of the statement date.
- To ensure that all invoices are paid and discrepancies resolved within a financial year.
What is expected from the creditor/supplier?
- Submit invoices for payment after delivery of services/goods to the relevant EMM official.
- Submit a monthly statement within seven (7) working days of the following month.
- Suppliers must ensure that the number of the original invoice corresponds with the invoice number printed on the statement.
What is a statement?
- A statement is a document that consists of all the debit and credit transactions that took place between the supplier and Ekurhuleni Metropolitan Municipality during a month.
- A statement indicates the balance and age analysis of the above mentioned transactions.
How will this work?
- As soon as the statements for the previous month have been received from the supplier the account will be reconciled in order to pay the invoices by the end of the current month.
Where must suppliers send the statements? (Only for statements)
- The centralised e-mail address is:
- The centralised fax to mail number is 086 407 7751
- The postal address is: Private Bag X 65, Benoni,1500
- The Local Government Municipal Finance Management Act, No 56 of 2003, Article 65(2) e (Expenditure Management) says that “all money owing by the municipality be paid within 30 days of receiving the relevant invoice or statement, unless prescribed otherwise for certain categories of expenditure”.
- Ekurhuleni Metropolitan Municipality intends to change from payment on date of invoice to payment on date of statement.
- The aim is to pay all invoices of the previous month in one batch on the 15th, or at the end, of the current month after the creditor account of the supplier has been reconciled, therefore the supplier statement must be provided
When will this step be implemented?
- Reconciliations will commence immediately as soon as a statement is received.
- Payments will gradually change from weekly runs to payment once a month.
What will happen now?
- Service providers must, as usual, provide an invoice to the department with whom they have done business. From there the usual internal procedures will be followed in order to capture, verify and authorise the invoice and documents submitted to the Finance Department for payment.
- In addition, a creditor statement must be provided by the supplier in order for the Creditor Reconciliation Section to reconcile the account before payments are released.
- A copy of the statement may also be attached to the invoices and submitted to the relevant officials in the departments in order for them to be aware of any unpaid invoices.
- Suppliers and the relevant officials/heads of departments should liaise with each other to follow up on invoices in order to ensure that the documents reach the Finance Department for payment, while the reconciliations are being performed.
The following people can assist with any queries related to the new system, and will be able to assist with providing the statement template if needed.