2C: Identify & report for resolution discrepancies between invoices

and delivery notes/ service agreements.

Before any invoice is paid by a business it is standard practice to check that what is written on the
delivery documentation matches what is on the invoice, that is, what is being paid for has actually
been delivered.

Delivery documentation can include:

dispatch notes
receival notes
credit notes
statements
sales tax statements
consignment notes
bills of lading
any other delivery documentation provided by the supplier

Checking the delivery documentation does not mean that the goods and services have been
received. This requires the actual goods to be checked and counted as they are received. This
incoming checking process is usually undertaken by the person who ordered the goods/ services
or receives them not a member of the finance team. If they find a discrepancy, they should note it
on the delivery docket to indicate what the problem is, for example wrong quantity delivered, or
one box not delivered. These notes allow the payments clerk to understand what has occurred and
to check and adjust the invoice accordingly. Any later deliveries on the same order are usually
invoiced on delivery as a separate invoice relating to the order number these items form part of.

Back orders
Where a supplier can deliver some of the items but not all of them, it is common to place the
undelivered items of the order on back order. This means that the supplier intends to deliver the
goods when they are able to. In this instance the finance payments clerk should consult their
policy about whether they can pay the invoice for items received or whether they should wait until
the entire order is filled. In most cases the supplier only invoices for the part of the order that they
have delivered.

Reporting discrepancies
When a problem is identified the first thing a payments clerk should do is to re-check that they have
read the information on the documentation correctly. When people are busy or stressed they can often
misread things, make simple calculation errors, or overlook reading some important information
completely.

Once a recheck has been done and the problem still exists then there is a need to investigate possible
reasons. Investigations might involve asking a colleague for assistance, or contacting the supplier to re-
send paperwork. It might also involve returning paperwork to a colleague for additional checking.

When following up discrepancies you need to be aware of how others might view a request for
further information. You need to adjust the communication style to suit the circumstances as this
can often lead to better results. For example, if using confrontational language such as 'I am not
paying this until it is fixed - fix it', or 'I don't believe that these goods actually arrived', might be
interpreted as an accusation. A confrontational tone is likely to offend others and they are less
likely to assist in sorting it out.

Alternatively, using a more diplomatic approach with phrases such as 'This invoice does not
appear to match the purchase order, could you please check it?', or 'I didn't see these goods
arrive, can you confirm where they are?', the tone is conciliatory and is more likely to get a
positive response.
 Where a discrepancy has been investigated and it cannot be resolved it must be reported to the
supervisor or other appropriate person. In most cases a payments clerk should report invoice
discrepancies to their immediate supervisor, but depending on the structure of the business it might
need to be reported to another person in authority, such as the warehouse manager or the manager of
procurement, or the person who generates the purchase orders

When reporting discrepancies the payments clerk should have all of the relevant information in
front of them, including copies of the relevant documentation such as order requests, delivery dockets
and invoices. Clearly and succinctly explain areas where the data does not match, what has been
done to check and investigate it and what the implications may be. This can be as simple as
identifying areas of concern to draw attention to information on the documentation through to
printing out detailed reports from financial management software.

Now complete the learning task below. (called task 7 in the

activities tab)
1. As part of your duties you have ordered some stationary items used regularly in your office. Office of
Dreams has received the delivery from their supplier. You have to validate the delivery against the
original order. Validate that the contents of the delivery match the documentation provided. Report any
discrepancies.

Purchase order:
Office of Dreams
1203 Lost Way
Our Town

Purchase Order
Date: 22/08/20XX Date Req: 29/08/20XX Order by: Bob

Delivery:
1203 Lost Way
Our Town
Deliveries accepted between 8:30am and 4:30pm only. Delivery to rear entrance
via door 3

Vendor:
Office Warehouse
27 Bumpy Road
Outathaway
Qty Item # Description unit price
total price
3 9024311 Lead pencil HB box 12 2.69
1 9137289 Ballpoint pen black box 12 4.57
4.57
1 0381928 Ballpoint pen blue box 12 4.57
1 4300981 Ballpoint pen red box 12 4.57
1 6712938 File cards 150x100mm pack 100 1.83
1 89134C4 foldback paper clips 25mm Box 100 6.41
2 1000111 Copy paper A4 ream 3.76
5 7888991 Coloured pencils pack 12 asstd 1.26
4 3893345 Display folders A4 Avery 2.88
3 2340002 Correction fluid bottle 1.92
1 2910332 26/6 staples box 5000 5.55
 1 4902034 4 asstd colour whiteboard markers (pack) 6.41
2 6783493 Post it notes 78x78mm pack 6 8.12
1 3402935 Highliter blue box 10 12.23
1 5424256 Highliter pink box 10 12.23
1 7564734 Highliter yellow box 10 12.23
1 3245633 Highliter orange box 10 12.23
1 4551235 A4 laminating pouches 80microgram box 100 37.24

Subtotal
GST (10%)
Total

Packing list from vendor:

Office Warehouse
27 Bumpy Road
Outathaway

Supplied to:

Office of Dreams
1203 Lost Way
Our Town
Date: 28/08/20XX

Qty Item Description supplied backorder

ordered
3 9024311 Lead pencil HB box 12 3
1 9137289 Ballpoint pen black box 12 1
1 0381928 Ballpoint pen blue box 12 1
1 4300981 Ballpoint pen red box 12 1
1 6712938 File cards 150x100mm pack 100 1
1 89134C4 foldback paper clips 25mm Box 100 1
2 1000111 Copy paper A4 ream 2
5 7888991 Coloured pencils pack 12 asstd 5
4 3893345 Display folders A4 Avery 4
3 2340002 Correction fluid bottle 3
1 2910332 26/6 staples box 5000 1
1 4902034 4 asstd colour whiteboard markers (pack) 1
2 6783493 Post it notes 78x78mm pack 6 2
1 3402935 Highliter blue box 10 1only 9
1 5424256 Highliter pink box 10 1only 9
1 7564734 Highliter yellow box 10 1only
1 3245633 Highliter orange box 10 1only
1 4551235 A4 laminating pouches 80microgram box 100 1

Goods received:
 2 reams copypaper

Pack whiteboard markers

4 display folders 1pack laminating

pouches

3 boxes pencils

4 only highliters
Box staples

1 pack file cards

3 bottles whiteout

2 pads post-it notes

3boxes biros red, blue

5x 12packcolour pencils
black
The above photograph is of the delivery for your order which is shown below.

a) How would you check that the items received were what you actually ordered?

b) What would you do if the items shown in the photo above did not match your order?