Accounts Payable

Medtronic believes in strong relationships with our suppliers. It is our goal that through an efficient, effective and accurate process we strengthen our relationship with our suppliers. The opportunity for a "touchless and paperless" process resides primarily in two areas: supplier invoice processing and supplier payment processing.

Supplier Invoice Processing
Supplier Payment Processing
Payment Terms
Purchase Orders
Evaluated Receipt Settlement
Dedicated Supplier Relations

Supplier Invoice Processing (Back to top)

Medtronic supports multiple electronic invoicing opportunities from simple fax to Evaluated Receipt Settlement (ERS). Through a more paperless and automated invoicing process, invoices are typically received and processed more quickly. The issuing of on-time invoices and payments strengthens the relationship between Medtronic and the supplier.

Supplier Payment Processing (Back to top)

Medtronic's policy is to issue all payments electronically. Electronic payments are typically received much sooner than check payments. There is generally one business day from when payment is issued by Medtronic until payment is received in the supplier’s bank account. Medtronic provides payment in the US via Automated Clearing House (ACH) CTX format providing both the payment amount and all remittance detail to the suppliers bank. This allows for full settlement by the supplier's Accounts Receivable function. Payments to non-US suppliers are also completed in an electronic format utilizing the SWIFT Network.

Payment Terms (Back to top)

Medtronic's standard payment terms are Net 60 for all products and services. This term may include a variable component that can be adjusted at Medtronic's discretion as part of a prompt payment incentive where 2% of the invoice total is deducted if the payment is issued within 15 days of invoice receipt.

Facilitating Payment

Purchase Orders (Back to top)

Medtronic generally requires purchase orders for all purchases. Failure to provide a valid purchase order number and Medtronic contact person on all invoices may result in the rejection of the invoice, and at a minimum results in delayed payment.

Evaluated Receipt Settlement (Back to top)

Medtronic's preferred invoicing method is Evaluated Receipt Settlement (ERS) for any product that is received into inventory by Medtronic. ERS results in suppliers being paid based on Goods Receipt Quantities and Purchase Order Pricing without the need for the supplier to send an invoice. This approach eliminates invoice exception handling and expedites the invoice processing time through automation. This results in the amounts due to suppliers being entered into Medtronic's accounts payable system faster than traditional paper based invoices.

Dedicated Supplier Relations (Back to top)

In order to ensure a strong relationship with suppliers, Medtronic has a dedicated "Supplier Relations" team to field inquiries from its suppliers. The Accounts Payable Supplier Relations Team is available to address supplier e-mails and phone calls. Medtronic knows that a strong relationship with its suppliers is critical to a successful business and this team is dedicated to supporting that relationship. Medtronic "Supplier Relations" can be reached at +1 763 514 8975 or via e-mail at ap.inquiry@medtronic.com.

Next: Becoming a Supplier

Last updated: 23 Dec 2011