Ontario Power Generation

Invoicing OPG

Invoicing Instructions
Evaluated Receipt Settlement (ERS)
Invoice Processing

Invoicing Instructions
To ensure prompt payment, all original invoices and associated backup must be submitted directly to the billing address shown on your Purchase Order. Original invoices are not to be sent to any other individuals at OPG. Copies of invoices may be sent to an OPG requisitioner on request; however, these invoices are for information purposes only and will not be processed by OPG Accounts Payable. By sending your invoices directly to Accounts Payable, you are ensuring that we capture and track the invoice through the matching, posting, and approval cycle thus ensuring that payment is made to you in a timely manner.

All invoices and associated backup must be submitted to OPG using one of the following methods:

Send electronically (This is the preferred method and will reduce payment processing time.)

Fax Corporate Accounts Payable at (416) 592-2388, or
Email, with attached invoice (.pdf or .tif), apmailroom@opg.com.

Alternatively, mail to:

Ontario Power Generation
Accounts Payable
P.O. Box 850
135 West Beaver Creek
Richmond Hill, Ontario, Canada
L4B 4R7

The invoice must contain the following information:

• Valid Purchase Order number and release number where applicable;
• Vendor Name and Address; as stated in the Purchase Order;
• Vendor Contact Name and Phone Number;
• Remittance Address if different than mailing address;
• A unique invoice number;
• Invoice date;
• Total Invoice Amount including currency (as stated in the Purchase Order);
• GST Registration number if charging GST; and
• Other substantiating documentation as noted in the Purchase Order.

The invoice must match to the issued OPG Purchase Order in terms of catalogue ID, PO line item, labour rates/price, quantity, and unit of measure, where applicable.

Separate invoices must be submitted for each shipment against each Purchase Order and must indicate the packing slip number that the invoice pertains to. If there are any charges listed in the "PO Line Sublines" section of your Purchase Order, they must be billed together on the same invoice along with the applicable line item.

IT IS IMPERATIVE THAT ALL MANDATORY INFORMATION BE PROVIDED OR YOUR INVOICE WILL BE REJECTED AND RETURNED.

Payment terms are pay on the 25th of the month of receipt of invoice unless stated otherwise in an OPG purchase order. We encourage all Canadian vendors to sign up for electronic payments (EFT) and electronic remittances.

Invoice payment will be withheld for any non-conformance issues until such time that the issue is resolved. Material goods received into inventory require acceptance approval prior to release of payment. Services require approval of work completion prior to release of payment.

Any changes to an issued Purchase Order must be reviewed and authorized by an OPG buyer and an amended Purchase Order issued to ensure that the change is contractually binding.

Evaluated Receipt Settlement (ERS)
ERS is a process whereby OPG will automatically create payment upon receipt of goods. Certain PO's are identified as being ERS and invoicing is based on contract pricing.

For Evaluated Receipt Settlement (ERS) Purchase Orders, DO NOT submit invoices against this PO. OPG will automatically create a payment invoice upon receipt of material against an OPG Purchase Order. Payment amounts are based on the prices contained within the Purchase Order.

Payment terms are pay on the 25th of the month upon acceptance of goods unless stated otherwise in the purchase order. We encourage all Canadian vendors to sign up for electronic payments (EFT) and electronic remittances.

Payment will be withheld for any non-conformance issues until such time that the issue is resolved. Material goods received into inventory require acceptance approval prior to release of payment.

Any changes to an issued Purchase Order must be reviewed and authorized by an OPG buyer and an amended Purchase Order issued to ensure that the change is contractually binding.

Invoice Processing

Review Process
Invoices are reviewed for compliance with Purchase Order terms and conditions before payment. If the invoice cannot be matched to Purchase Order line items based on description or catalogue ID Number/Material Code, the invoice will be returned to the vendor.

Partial shipments with corresponding invoices are acceptable provided that the invoiced quantity references the applicable packing slip and does not exceed the total quantity noted on the Purchase Order.

Invoices for services provided to OPG are entered into the Accounts Payable system for tracking purposes and then routed electronically to the requisitioner for review and approval before payment is issued. Invoicing terms, price per unit, must be consistent with the Purchase Order.

Payment Terms
OPG's policy is that calculation of the payment date is dictated by the terms laid out in the Purchase Order.

OPG has implemented Electronic Funds Transfer (EFT) for supplier based invoice payments. Using EFT, invoice payments will be made directly to the supplier's bank account. This process eliminates mail and deposit time and is available to all Canadian based suppliers with a Canadian bank account. EFT also helps OPG by eliminating the process of issuing paper checks and the postage costs for mailing.

In addition to the introduction of EFT, OPG is also introducing electronic remittances. OPG will be providing payment details to you via your choice of fax or email. Soon, we will also make this information available on a vendor self-service Internet site. For our EDI suppliers, we can also issue this remittance detail through our bank as an EDI 820 message.

If you are interested in receiving your payment via EFT, please complete and return the following EFT registration form.

Rejected Invoices
Accounts Payable may reject and return an invoice based on the Review Process described above.

An invoice may be rejected and returned for any of the following reasons:

• The invoice is not addressed to Ontario Power Generation Inc.
• The invoice is not an original (see definition of an Original Invoice).
• The Requisitioner will not approve the invoice if work is not done to contract satisfaction or the work was unauthorized.
• We are unable to match the line items/description on your invoice to the Purchase Order line item detail.
• The amount being billed is in excess of the amount on the Purchase Order, in terms of price, hours/rates, or total Purchase Order value
• The invoice does not have a date or a unique invoice number.
• The Purchase Order number is missing, incorrect, or has been cancelled.

If we reject your invoice, we will return the invoice to you along with a discrepancy notice notifying you of the reason for rejection. Invoice returns will be done via email when possible, otherwise, by mail.

Invoice Adjustments
It is OPG Accounts Payable policy not to short pay invoices. If there are material issues with the invoice, it will be reviewed by a buyer and/or Accounts Payable and/or returned. However, OPG will make regulatory adjustments to invoices that will result in short payment, including:

• Withholding tax was collected (applies to foreign vendors providing services in Canada).
• PST was invoiced, but not paid as OPG has G-Permit exemption.
• Amount has been held back in accordance with the terms and conditions of the Purchase Order, i.e. Holdback contracts.

The Income Tax Act generally requires that every person making a payment to a non-resident person (includes individuals and corporations) withhold income tax on the payment. This includes payment to non-residents for services performed in Canada, rents, royalties and similar amounts.

Services Performed by Non-Residents for OPG
OPG is required to withhold 15% tax on payments made to non-residents for services of any kind performed in Canada, regardless of the currency in which the invoice is rendered. The tax is remitted to Canada Revenue Agency (CRA) on the non-resident's behalf. This amount withheld may only be reduced or waived by Canada Revenue Agency (CRA).

Withholding tax is submitted to the government monthly, on the 15th day of the calendar month following the calendar month in which the non-resident is paid. Annually, T4A-NR Supplementary tax documents are prepared for each non-resident.

Rents or Royalties Paid to Non-Residents by OPG
OPG is required to withhold tax on payments made to non-residents for rents, royalties and similar amounts paid or credited, regardless of the currency in which the invoice is rendered. The tax applies to all payments whether they are single, lump-sum or periodic. The tax is remitted to Canada Revenue Agency (CRA) on the non-resident's behalf, monthly on the 15th day of the calendar month following the calendar month in which the non-resident is paid.

The tax withheld on rents, royalties and similar amounts is generally 25% but may be reduced by tax treaties that Canada has with various countries depending on the type of payment and country to which the payment is made (e.g. 10% for the United States).

Rents, royalties or similar payments include amounts paid for:
The use of or the right to use in Canada any property, invention, trade-name, patent, plan, design or model, secret formula, process or trade-mark 'Know-how' ie. information concerning industrial, scientific, or commercial experience where the payment depends partially or wholly on the use to be made or benefit derived from the information; on profits; or on production or sales of goods or services

'Technical services' ie. services of an industrial, commercial or scientific character where the payment depends partially or wholly on the use to be made or benefit derived from the services; on profits; or on production or sales of goods or services. Note- payments for technical services performed in connection with the sale of property or negotiation of a contract are excluded and not subject to withholding tax.

The use of computer software Failure to withhold, remit and report the required withholdings where applicable will result in a tax liability to OPGI, plus interest and penalties, thereby increasing OPGI's costs if there is a failure to correctly identify the application of withholding tax at the beginning of the contract.

To print form for Waiver Application under Regulation 105:

www.cra-arc.gc.ca/E/pbg/tf/r105/README.html
(This is a form non-resident vendors should complete & submit (prior to commencement of the work) directly to CRA for ruling if non-resident vendor meets the criteria to be granted a waiver exempting the withholding income tax deductions.)

Contact information at CRA can be found at:

www.cra-arc.gc.ca/contact/international-e.html
This site provides all pertinent telephone numbers to contact CRA with regards to withholding income tax.

Income tax Information Circular for detail explanation about WHT go to:

www.cra-arc.gc.ca/E/pub/tp/ic75-6r2/ic75-6r2-e.html#Top
Information circular provides indepth information wrt the Required Withholding from Amounts Paid to Non-Residents Providing Services in Canada.

The Accounts Payable Help Desk provides vendors with a single point of contact for all calls concerning payment of vendor invoices.

• Emailing - Help Desk
• Telephoning - 416-592-4005 in the Toronto area or toll free at 1-888-264-3460
• Faxing - 416-592-2388