Trade payables + Fixed assets suppliers

For the Group’s purposes, the components are as follows:

Trade payables (L40100)

• Include
  
  • Trade payables (including agents) within one year, which covers payables with an initial maturity of one year at the most and payables or parts of payables with an initial maturity of more than one year but which are due within 12 months. They comprise:
    
    • Trade payables, i.e. those arising from the purchase of consumables, goods for resale, inventories and services (invoices, credit notes). Are considered in here:
      • Debts to external suppliers with respect to purchases of goods and services
      • Debts to external and internal suppliers with respect to deliveries of goods and finished products (= transactions generating net sales)
      • Debts with agents
      • Intercompany commercial credit balances
      • Invoices to be received (purchase accruals)
    • Trade notes payable, i.e. trade debts in the form of bills (bills of exchange and promissory notes) accepted by the company as a drawee, provided the debts result from the purchase of goods and services.
      Note: There is no difference whether the supplier has put the bill into circulation or transferred them to a credit institution.
    • Royalties payable (non-commercial), when they are billed. When accrued, they are reported under "miscellaneous creditors" (non-trade payables).
    • Downpayments made to suppliers, without receipt of goods or services.
  • Current portion of trade payables and trade notes after one year.
  • Debit balances of trade receivables
    They are reported in here, as from January 2014; not any longer in A41100. This results from the alignment between both legacies
  • Credit balances of trade receivables : VOID
    It has been decided with the process owner to align between both legacies the reporting of trade receivables with credit balances and trade payables with debit balances.
    The credit balances of trade receivables are reported, as from January 2014, in A41100 .
    
    
• Exclude
  
  • Downpayments on inventories and on consolidated and non-consolidated subsidiaries are recognized in "A40160 - Advance paid to suppliers" within the "Other short-term receivables".
  • Vendor payments: reported under "A51100 - Banks-Debit"
  
  
• Comments
  • Amounts due from and payable to the same company may be netted within accounts receivable if the payable and receivable amount are linked to the same transaction. This is restricted to the issue of credit notes due to replacement deliveries, corrections to invoices or the return of goods by the customer.
    Otherwise, it is not permitted to net amounts receivable and amounts payable relating to the same party.
  • Clarification of items to be considered as trade payables and those to be considered as "Miscellaneous creditors" (non-trade payables):
    When there is an invoice, we consider that there is a trade transaction. This applies both to third parties than to Group entities.
    However, this convention does not apply to social or financial transactions.

Fixed assets suppliers (L40800)

• Include
  • Payables arising from the purchase of fixed assets (CAPEX)
  • Purchase accruals-Assets
  • Purchase accruals-Licenses
    
• Comments
  • They are NOT taken into account in the Working Capital.
  • They are linked to the computation of free cash flow (FCF). A specific issue is to identify the cash-out linked to capital expenditures:
    • The cash-out for fixed assets should be computed as follows:
      Fixed assets expenditures - "R53200 - Capitalized interests" - Change in suppliers of fixed assets
    • The "fixed assets suppliers" (L40800) is needed in order to compute the change in suppliers of fixed assets which is separate from the change in working capital.