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THE

BEECHAMBER

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NEWS

Writer's pictureNewsletter Editor
May 7, 20241 min read

CLAIMING EARLY PAYMENTS

In 2013, changes to the B-BBEE (Broad-Based Black Economic Empowerment) legislation in South Africa closed a loophole that allowed organizations to claim Preferential Procurement points for early payment terms extended to Black-owned businesses. Under the amended regulations, only recognized Supplier Development Beneficiaries can qualify for early payment claims. Invoices for these claims must be included in an organization’s TMPS (Transactional Management and Payment System) and should only reflect the amount for early payment terms.

Changes to B-BBEE Legislation in 2013 closed a loophole that allowed early payment terms for Black Owned businesses in exchange for Preferential Procurement points. The amendments meant that an organisation may only claim early payment terms from Supplier Development Beneficiaries. Therefore, the following applies to an invoice on which a claim for early payment is going to be made:

 

  1. The invoice payable for goods or services must appear in an organisation’s TMPS;

  2. Only the amount for early payment terms must reflect.

 

Enterprise & Supplier Development Services are available to assist with claiming early payments.

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