How to Respond to an Invoice for Goods or Services Your Company Didn't Purchase
Be in a position to catch such invoices., Talk to staff responsible for the purchase., Do a search of the company, consultancy, or individual claiming the payment., Query the invoice., Get advice.
Step-by-Step Guide
-
Step 1: Be in a position to catch such invoices.
Have good checks in place in your accounting system.
Purchases should be signed off by someone else other than the purchaser, the system should be able to identify which purchases have been made and match them up to invoices, etc.
This is the side of your business that should already be in place and running smoothly; if not, sort this out now. -
Step 2: Talk to staff responsible for the purchase.
If they cannot recall requesting the goods or services, ask them to double check just in case it really is a memory lapse.
Check filed records and ask other staff members too.
If they still come up with a blank, start investigating further. , As soon as it becomes apparent that the invoice may not be one that your company should be paying for, try to identify the company or other entity by doing several searches:
Simply Google them.
If they return, you can do some deeper research.
If not, that's not a great sign in itself but doesn't mean that the entity doesn't exist.
Search the "companies register" in your jurisdiction.
From this you can tell whether or not the company is registered, when, and where, etc.
If you're in a federal system that allows registration at state and national levels, you'll need to check the relevant registers.
Look for clues from the invoice address.
Look in newspapers online and search using the names you've found from your other searches to see if they're returning.
There might be stories about their success or their being involved in fraud. , Get back to the person noted on the invoice as the person responsible for it.
It may be a simple misunderstanding or slip-up on behalf of either of you.
Be concerned if you try to contact them and they're not contactable.
This may indicate that they don't exist, that they haven't given you real contact details, or that they're avoiding you.
If the person on the other end claims to have sold your company goods and services but makes excuses that don't sound realistic to you, such as that the items are yet to be provided because they're still in transit, etc., you'll need to make a decision as to whether or not you're willing to pay or whether you'll expect arrival of goods or completion of services before making a payment on such tenuous grounds.
You could also ask to see their order form or contract signed by one of your company's staff. , If you're not sure what to do next but you're certain that the invoice is suspect, talk to your supervisor.
There should be a system in place for dealing with such instances, including contacting the police.
Talk to someone outside your company if you're concerned but not sure what to do next.
Call the government entity responsible for business and business scams for more advice and directions. -
Step 3: Do a search of the company
-
Step 4: consultancy
-
Step 5: or individual claiming the payment.
-
Step 6: Query the invoice.
-
Step 7: Get advice.
Detailed Guide
Have good checks in place in your accounting system.
Purchases should be signed off by someone else other than the purchaser, the system should be able to identify which purchases have been made and match them up to invoices, etc.
This is the side of your business that should already be in place and running smoothly; if not, sort this out now.
If they cannot recall requesting the goods or services, ask them to double check just in case it really is a memory lapse.
Check filed records and ask other staff members too.
If they still come up with a blank, start investigating further. , As soon as it becomes apparent that the invoice may not be one that your company should be paying for, try to identify the company or other entity by doing several searches:
Simply Google them.
If they return, you can do some deeper research.
If not, that's not a great sign in itself but doesn't mean that the entity doesn't exist.
Search the "companies register" in your jurisdiction.
From this you can tell whether or not the company is registered, when, and where, etc.
If you're in a federal system that allows registration at state and national levels, you'll need to check the relevant registers.
Look for clues from the invoice address.
Look in newspapers online and search using the names you've found from your other searches to see if they're returning.
There might be stories about their success or their being involved in fraud. , Get back to the person noted on the invoice as the person responsible for it.
It may be a simple misunderstanding or slip-up on behalf of either of you.
Be concerned if you try to contact them and they're not contactable.
This may indicate that they don't exist, that they haven't given you real contact details, or that they're avoiding you.
If the person on the other end claims to have sold your company goods and services but makes excuses that don't sound realistic to you, such as that the items are yet to be provided because they're still in transit, etc., you'll need to make a decision as to whether or not you're willing to pay or whether you'll expect arrival of goods or completion of services before making a payment on such tenuous grounds.
You could also ask to see their order form or contract signed by one of your company's staff. , If you're not sure what to do next but you're certain that the invoice is suspect, talk to your supervisor.
There should be a system in place for dealing with such instances, including contacting the police.
Talk to someone outside your company if you're concerned but not sure what to do next.
Call the government entity responsible for business and business scams for more advice and directions.
About the Author
Jose Young
With a background in education and learning, Jose Young brings 9 years of hands-on experience to every article. Jose believes in making complex topics accessible to everyone.
Rate This Guide
How helpful was this guide? Click to rate: