Australia’s Payment Times Reporting Scheme, launched in January 2020, seeks to improve how small businesses get paid. Big businesses and government agencies must share their payment terms and schedules, helping smaller counterparts choose partners wisely. This transparency fosters better payment practices and fairness. Dynamics 365, a powerful tool, aids in navigating this scheme.
Managed by the Payment Times Reporting Regulator since January 2021, it ensures smooth operation. This initiative levels the playing field, ensuring prompt and equitable payments, and Dynamics 365 makes complying with it uncomplicated and efficient.
What is the purpose of the Payment Times Reporting Scheme?
The Payment Times Reporting Scheme doesn’t force quick payments for small businesses, but it does push big businesses to be clear about their payment ways and urges them to pay smaller suppliers on time.
The open Payment Times Reporting list holds important details about the Scheme for all reporting groups. It shows things like the reporting group’s payment rules, how well they meet set standards, and if they use supply chain financing.
How does Dynamics 365 work for Payment time reporting?
Generating the Payment Times Report within Dynamics 365 Finance involves a straightforward process. Initially, users should configure the Payment Times Reporting schema and create a designated booking period.
Subsequently, the report can be effortlessly generated on the Statistics on Invoices page by opting for PTRS processing and selecting the relevant booking period on a balance sheet. This streamlined approach ensures seamless access to the Payment Times Report, facilitating efficient reporting within the Dynamics 365 Finance system.
The PTRS makes big businesses share their payment info with small ones. Dynamics 365 now automates report-making. This saves time and errors. Together, they create fairness and efficiency.
To create this report, mark needed vendors as “Small businesses,” like in the picture. After, head to Accounts Payables > Periodic Tasks > Statistics on invoices and click “Calculate Statistics.”
This method produces stats for all AP invoices and payments. Once stats are ready, click “PTRS report” to create Excel files for sending to the Australian government.
Excel-generated PTRS reports will comprise a summary tab and a detailed tab. The summary tab will encompass the report header and payment statistics for the chosen period.
The detailed tab will display an invoice list along with payment dates for the chosen period.
You can use these reports to submit your PTRS information on the Payment Times Reporting Portal.
Who Needs to Follow the Rules?
Big businesses and certain government bodies with a yearly income of over 100 million AUD must share details about when they pay small businesses.
What the Report Includes The report has info like:
- The time frames for paying small businesses, like how quickly or slowly.
- The percent of small business invoices paid during different time frames (20 days, 21-30 days, 31-60 days, etc.).
- How much money do you spend on things from small Australian businesses compared to everything you buy?
- Other details about how you handle payments and business stuff.
How can businesses benefit from the Payment Times Reporting Scheme?
One major thing is The PTR tool effortlessly retrieves supplier Australian Business Number ABN numbers to classify as small businesses. This classification is then intelligently utilized to prepare pertinent payment data for small businesses seamlessly. Moreover, Businesses can benefit from the Payment Times Reporting Scheme in the following ways:
Benefits of the Payment Times Reporting Scheme for Small Businesses:
- Clear View: Understand when and how large businesses pay small suppliers.
- Timely Payments: Promote prompt payments for small businesses through enforced reporting.
- Informed Choices: Make smarter industry decisions with payment time insights.
- Fair Play: Ensure large businesses pay small suppliers promptly, leveling the field.
- Enhanced credibility: Having ABN details and complying with the Payment Times Reporting Scheme can enhance a business's credibility.
Benefits of the Payment Times Reporting Scheme for Large Businesses:
- Stronger Bonds: Build better relations with small suppliers by paying on time.
- Transparency Boost: Identify areas to enhance payment practices and times.
- Reputation Safekeeping: Stay compliant to prevent harm to reputation.
- Competitive Edge: Showcase timely payments for a competitive advantage.
- Improved tax deductions: With an ABN lookup, businesses can claim tax credits for business expenses when lodging their tax return.
Process for submitting a payment times report in Dynamics 365 for Australian businesses
The procedure for submitting a Payment Times Report within Dynamics 365 for Australian businesses encompasses the subsequent steps:
- Establishment of the Payment Times Reporting schema in Dynamics 365 Finance.
- Creation of a designated booking and standard payment periods.
- Generation of the Payment Times Report by opting for PTRS processing and selecting the corresponding booking period on the Statistics on the invoices page.
For reporting entities, the process involves sharing payment times and terms with small businesses every 6 months. The initial reporting period spans the first half of an income year, followed by the second reporting period covering the remainder. Reports must be submitted within 3 months after the reporting period concludes, and late submissions could lead to penalties. Entities facing exceptional or uncontrollable circumstances can request an extension.
A comprehensive Payment Times Report encompasses contract payment periods provided by reporting entities to their small business suppliers. These entities must detail payment times associated with invoices for goods or services provided by small business suppliers. The Payment Times Reporting Portal offers tools for registering as a reporting entity, utilizing the Small Business Identification Tool, and submitting payment times reports register.
Information you need to generate a payment times report in Dynamics 365 for Australian businesses
Generating a Payment Times Report in Dynamics 365 for Australian businesses involves the following key details:
Reporting entities must share payment periods outlined in contracts with small business suppliers, including agreed-upon timeframes.
Payment times must be based on invoices for goods or services from small business suppliers, requiring information collection.
Payment times use either the invoice’s received date or, if unclear, the issue date for accurate tracking.
Detailed records of methodology and data collection processes ensure transparent and accurate reporting.
Beyond invoices, supporting data like contracts and bank statements offer context and accuracy.
Maintaining thorough and precise records of this information is crucial for Payment times reporting scheme ptrs compliance and effective report generation.
Bottom Line
Ultimately, using Dynamics 365 for generating Payment Times Reports aids ABN-registered businesses in adhering to government rules, enhancing payment efficiency, and bolstering credibility for improved access to government services.
If you have some questions about Payment Times Reporting in Dynamics 365 or need to start the implementation process, our DHRP consultants are ready to answer.
