What are the most common invoice exceptions and how can you manage them?

1 Missing or incorrect information

One of the most frequent causes of invoice exceptions is missing or incorrect information on the invoice. This can include the invoice number, date, amount, vendor name, address, tax details, or payment terms. If any of these fields are missing or inaccurate, the invoice may be rejected or returned by the accounts payable department or the approval workflow. To avoid this, you should always check the invoice details carefully before sending or receiving it, and use standardized templates or formats that comply with the requirements of your organization and your vendors.

2 Duplicate or fraudulent invoices

Another common type of invoice exception is when you receive or send a duplicate or fraudulent invoice. This can happen when a vendor sends the same invoice twice, either by mistake or intentionally, or when a fraudster impersonates a vendor and sends a fake invoice. If you pay a duplicate or fraudulent invoice, you may lose money or expose your organization to legal risks. To prevent this, you should always verify the identity and authenticity of the vendor, compare the invoice with the purchase order and the receipt, and use a unique invoice number system that prevents duplication.

3 Price or quantity discrepancies

A third type of invoice exception is when there is a mismatch between the price or quantity of the goods or services invoiced and the agreed terms or the actual delivery. This can occur when there is a change in the order, a discount or a surcharge applied, a damaged or defective item, or a human error in the calculation. If you do not resolve this discrepancy, you may end up paying more or less than you should, or receiving more or less than you ordered. To handle this, you should always review the invoice against the contract or the purchase order, and request or issue a credit note or a debit note if necessary.

4 Approval or payment delays

A fourth type of invoice exception is when there is a delay in the approval or payment of the invoice. This can happen when there is a lack of clarity or communication in the approval workflow, a dispute or a query about the invoice, a cash flow issue, or a technical problem. If you do not address this delay, you may incur late fees or penalties, damage your relationship with your vendor or your customer, or miss out on early payment discounts or incentives. To manage this, you should always follow the agreed payment terms and conditions, communicate clearly and promptly with the relevant parties, and use automation or digital tools to streamline the approval and payment process.

5 Compliance or regulatory issues

A fifth type of invoice exception is when there is a violation or a risk of violating the compliance or regulatory requirements related to the invoice. This can include the tax laws, the accounting standards, the data protection rules, or the industry-specific regulations of your organization or your vendor's jurisdiction. If you do not comply with these requirements, you may face fines, audits, lawsuits, or reputational damage. To avoid this, you should always be aware of and follow the applicable laws and standards, keep accurate and complete records of your invoices, and use secure and reliable systems to store and transmit your invoice data.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?