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Accounts Payable |
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This section outlines important information for new vendor setup, changes in vendor information, invoice requirements and payment policies. Accurate information will insure timely invoice processing. Also please refer to Supplier Portal. VENDOR INFORMATION - NEW VENDORS New vendors cannot be added to the Rite Aid Vendor File until the vendor has been designated as an Authorized vendor by Rite Aids Category Manager. In addition, each vendor must meet all of Rite Aids vendor insurance and product liability requirements as confirmed by our Risk Management Department. New vendors are provided a New Vendor Packet by a Category Manager that explains Rite Aids corporate buying policies and liability / insurance requirements. This packet contains:
Vendors must provide a single address for all Rite Aid remittances. VENDOR INFORMATION - CHANGES TO EXISTING VENDOR FILES Changes to the corporate address, name, or legal structure changes such as company mergers, company sold, Chapter 11 or going out of business must be communicated in writing on a company letterhead and signed by a senior officer of your company. The letter must contain the following information:
Rite Aid Attn: The Appropriate Category Manager 30 Hunter Lane Camp Hill, PA 17011 VENDOR INFORMATION - CHANGES TO REMIT TO ADDRESSES Accounts Payable will update a Vendor File for remit address changes when noted on an invoice as well as from written notification. If there is a change in ownership and the new owner is not currently on our Vendor File as an approved vendor, your company will be treated like a new vendor and will be required to complete a new vendor packet and gain approval as set forth in previous paragraphs. INVOICE REQUIREMENTS Rite Aid Accounts Payable is dedicated to paying all merchandise invoices within the established payment terms as well as providing the vendors with superior customer service. EDI 810 Invoicing is required for DSD shipments and for Distribution Center shipments. Full EDI 810 Invoicing is mandatory. Listed below are the procedures that must be followed to make sure your invoices are paid on a timely basis: Distribution Center Invoice Requirements 1. Receive from Rite Aid a valid purchase order, either EDI or a printed purchase order form (phone orders, worksheets and verbal commitments are not valid). 2. Verify the accuracy of all purchase order details including cost price, payment terms, etc. Do not ship merchandise until all discrepancies on the PO have been corrected and proof of correction is provided to you by the buyer in the form of a new PO or a print of the style correction (cost and payment term differences are not reimbursable). 3. After shipping goods, submit invoices via the EDI 810 document. Do not begin transmitting 810s until the testing process is complete. For more information call the EDI contacts listed on page 11. 4. Multiple distribution center deliveries cannot be included on a single purchase order. 5. Each invoice for a Rite Aid distribution center receipt must correspond to one unique purchase order. 6. Multiple purchase orders may not be combined on a single invoice. 7. Items with extended terms must be invoiced separately. 8. Vendors may not invoice prior to shipment and must invoice only for the product shipped. Direct Store Delivery (DSD) Invoice Requirements 1. A separate paper invoice must accompany each delivery to a Rite Aid store location. The paper invoice must provide a complete itemization of the products shipped, complete with unit costs and retails. The paper invoice will be used by the store to check in the merchandise and confirm the receipt electronically to Rite Aid HQ. No paperwork is sent from the store to HQ. 2. The vendor must send a corresponding EDI invoice to Rite Aid HQ. The EDI invoice must be matched to the stores electronic confirmation to become eligible for payment. RITE AID PAYMENT POLICIES Payment Due Date Calculation The invoice due date will be calculated based on receipt of goods and based upon the most favorable of the invoice or purchase order terms. Vendor terms will be standard across entities. Checks will not be sent via overnight services. Cash Discount Calculation Cash discounts and allowances will be calculated based on the gross amount of the invoiced items and based upon the most favorable of the invoice or purchase order terms. Shipping Discrepancies Deductions will be taken for quantity variances caused by shipment / picking error, shortages, and damaged merchandise. Adjustments for vendor shortages or damages, observed at the time of receipt at a Rite Aid location, will be documented at that time. In the case of backhauls and drop trailer programs, where inspection is not feasible or permitted, undisclosed shortages or damages discovered during the Rite Aid receiving process, will result in an adjustment to the vendor billing. Pricing Discrepancies Invoices are paid based upon the purchase order cost or the invoice cost of an item whichever is lower. Deductions will be taken for pricing greater than Rite Aids Purchase Order cost. Other Deductions Rite Aid reserves the right to deduct from outstanding vendor payables for allowances, bill backs, returns, post audits, coupons rejected by manufacturers processor and other receivables including assessments and fees. Rite Aid also reserves the right to request payment by check on balances past due. Shipping Requirements All merchandise is required to be shipped in accordance with our Transportation Guidelines (See Shipment & Routing Guide Instructions). Penalties will be assessed and deductions will be taken for violations of these guidelines. RITE AID POST AUDIT POLICY Rite Aid conducts Post Audits of all aspects of its payable units. Our goal is to conform to the Joint Industry Guidelines and to file all claims within 24 months of the event occurrence. However, Rite Aid reserves the right, as protected under Section 8.2-725 of the UCC, to file claims within 48 months of the event. Rite Aids auditors submit all claims in writing to our vendors and allow the vendors 30 days to review and respond to the claims before any deduction is initiated. All issues must be resolved in 60 days. VENDOR INQUIRIES AND CORRESPONDENCE 1. Initial Vendor telephone inquiries regarding A/P payments, transactions, balances, and discrepancies should be directed to 717-761-2633 and follow A/P prompts. A number of A/P correspondence are available to process vendor inquiries and problems. 2. Our correspondents work with a continuous backlog of vendor inquiries --- therefore, wherever possible, vendors should state their situation in writing, attach supporting documentation to their written inquiry, and send their package to either the Warehouse Accounts Payable Department or the DSD Accounts Payable Department. Allow 2-4 weeks for response. Except for emergency situations, telephone inquiries will be logged and processed by our correspondents based upon their backlog agenda and the time / date of the telephone inquiry. 3. Initial inquiries sent by facsimile transmissions (FAX) will also be processed based upon our backlog agenda. To be fair to all our vendors, FAX inquiries will not be inserted into our processing schedule ahead of written and / or telephone inquiries. 4. Rite Aid must be notified in writing of any invoice payment dispute within 30 days of the check date. 5. Vendor correspondence on open invoices must be initiated within six months of the initial invoice date. RITE AID ACCOUNTS PAYABLE CONTACTS Warehouse Accounts Payable (for Distribution Centers) Mail: Rite Aid Corporation PO Box 8432 Harrisburg, PA 17105-8432 Fax: 717-972-3985 Phone: Please call 717-761-2633 and follow the prompts to reach the appropriate party within accounts payable. Direct Store Delivery Accounts Payable Mail: Rite Aid Corporation PO Box 8431 Harrisburg, PA 17105-8431 Fax: 717-975-5901 Phone: Please call 717-761-2633 and follow the prompts to reach the appropriate party within accounts payable. |