Verify the supplier and purchase order first, then compare line items, units, quantities, and prices against the documented receipts. Classify the discrepancy, assign an owner, and retain evidence of how it was resolved.
Start with the document context
An apparently incorrect invoice may belong to another order. Check the supplier, purchase order, project, and dates. If an invoice covers several orders or deliveries, split the review into the relevant parts.
Check for an existing invoice using the supplier, invoice number, and amount. A minor typing variation does not necessarily represent a new document. Retain the original document throughout the review.
Separate quantity differences from price differences
For quantities, check field receipts, additional shipments, shortages, and returns. For prices, compare the purchase order, discounts, unit prices, and extra charges. Different people may need to resolve each type of issue.
The total alone is not enough. A higher price and a lower quantity can offset one another. Check the line items and review separate charges, such as freight, on their own terms.
Example: ten additional units on an invoice
Suppose 70 units were received at an agreed price of $168 per unit, but the invoice lists 80 units. The difference is ten units, or $1,680 before any other charges. This is an illustrative calculation.
Check for another delivery or an unrecorded ticket. If the discrepancy remains unexplained, request a supplier correction through the company's process. Do not invent a receipt quantity simply to clear the alert.
Assign an owner and a review date
For each discrepancy, record its type, amount or quantity, supporting documents, owner, and next review date. A status of sent to supplier is incomplete without someone responsible for the follow-up.
Separate the investigation status from payment approval. Closing a conversation is not the same as approving a business transaction. Follow the company's permissions and procedures; this is an operational guide, while billing terms depend on the relevant agreements.
- What exactly differs?
- Which documents were compared?
- Who can verify the quantity or price?
- What information is still needed for a decision?
- When will the issue be reviewed again?
Close with supporting evidence and improve the source process
Retain a corrected document or a documented explanation and link it to the original investigation. If the change affects an order balance or an expense, check that the project view updates consistently as well.
Review recurring causes periodically. Unit discrepancies may indicate an unclear item catalog; missing documents may point to an undefined receiving step. Resolving today's issue can then improve the next transaction too.
Frequently asked questions
Does every discrepancy mean the supplier made a mistake?
No. A missing document, another shipment, a different unit of measure, or an agreed billing term may explain a difference. Investigate the context before classifying it as an error.
Can an investigation close without a corrected document?
If the difference has been explained and approved through the company's process, retain the explanation and approval. If the document itself is incorrect, arrange the appropriate correction; simply deleting an alert is not a resolution.
Keep reading
Three-Way Matching: Purchase Orders, Delivery Tickets and Invoices →
Construction Budget vs. Actual: What to Review Throughout a Project →