Invoice Rejection Letter Sample

Before you accept any invoice, you need to first make sure that it is valid. Let us examine the situations where an invoice should not be accepted.

Steps to check whether an invoice is valid or not:

Incorrect or missing PO (purchase order)

Check if the invoice corresponds to an existing order (which is the case most of the time). If so, the invoice needs to include the purchase order number. Also, make sure that the PO number is correct.

Incorrect or duplicate item(s) in the item list

Examine the item list. Make sure that all items are correct, not repeated, and are not in other invoices received earlier.

Incorrect item name, description, unit price, quantity, or item total

For each item, make sure that all details are correct.

Incorrect or missing shipment code

If applicable, make sure that the shipment code exists and that it is correct.

Incorrect or missing bank account

If you are paying through wire transfers, then the bank details should be on the invoice. This is especially important in case something goes wrong while transferring the funds. Do not rely on bank details from older invoices.

Incorrect or missing payee details

If you are paying by cheque, make sure that the payee details are on the invoice.

VAT issues: Incorrect or missing VAT number/rate/amount etc.

Check that all VAT related values are correct. Refer to the VAT certificate that was provided by the supplier.

Incorrect calculations: total, VAT calculation, discount calculation, etc.

Check totals and calculations on the invoice. Do not trust the vendor on this, they could unwillingly make mistakes.

Incorrect, missing, or duplicate invoice number

Every invoice needs to have a unique number. Make sure that the invoice number is valid and that it hasn’t been used before for that particular vendor or supplier.

Incorrect or missing invoice date

Check the invoice date.

Invoice still not due

You have the right to reject an invoice if it is not due. See to PO, read the terms and conditions section.

Work not done as per the agreed scope

Check that the work has been completed according to the scope. See project sign-off letter.

Work done not in the scope

Check that all items are in the project scope. You don’t have to pay for anything not in the scope.

Items not per the specification

Check that the received goods or services are in line with the specifications.

Low work or product quality

Reject the invoice if the quality standards have not been met.

Duplicate invoice

Make sure that items in the list are not in any other invoice.

Missing signature or stamp

If the invoice is not electronic, it must have a stamp and a signature to indicate that it has been officially authorized by the other side.