Invoice Rejection Letter Sample
Dear [Vendor Name],
With reference to invoice number [12345] that we received from you on [some date], we would like to inform you that the invoice will not be processed due to [rejection reason].
We kindly ask you to rectify the mistakes outlined above and revert back to us with the amended version.
Best Regards
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Invoice Rejection Letter Sample
Subject: Invoice Rejection Letter
Dear [Supplier's Name],
I hope this letter finds you well. I am writing to inform you that we are unable to accept and process the invoice dated [Invoice Date] for the following reasons:
1. Inaccurate Billing Information: Upon reviewing the invoice, we have identified discrepancies in the billing information provided. The details such as product quantities, unit prices, or discounts do not align with the terms agreed upon in our previous discussions or written agreements.
2. Incorrect Calculation: We have observed errors in the calculation of the total amount due on the invoice. The amounts mentioned for individual line items and the final total do not match our records or the agreed-upon pricing structure.
3. Missing Documentation: The invoice lacks supporting documentation or necessary attachments that are required for verification purposes. These missing documents could include receipts, purchase orders, or any other relevant information that helps validate the charges mentioned.
4. Late Submission: The invoice has been received beyond the agreed-upon deadline for invoice submission. As per our contractual agreement, invoices should be submitted within [number of days] days of service completion, and unfortunately, this deadline has not been met.
We kindly request that you review the invoice in question and make the necessary corrections or amendments to address the issues mentioned above. Once you have revised the invoice, we would appreciate it if you could resend it to us for further processing. If you have any questions or require additional information, please do not hesitate to contact our accounts payable department at [phone number] or [email address].
We value our business relationship and believe that open communication is crucial to resolving any discrepancies promptly. We look forward to your cooperation in rectifying these concerns, allowing us to process the invoice efficiently.
Thank you for your attention to this matter. We appreciate your understanding and prompt action in resolving the mentioned issues. We remain committed to maintaining a positive working relationship with your company.
Sincerely,
[Your Name]
[Your Position/Title]
[Your Company Name]
Professional Invoice Rejection Letter
Subject: Rejection of Invoice # [Invoice Number]
Dear [Vendor Name],
We have reviewed your submitted invoice # [Invoice Number] dated [Invoice Date] for [Product/Service].
Unfortunately, we are unable to process this invoice due to [Reason for Rejection – e.g., incorrect amount, missing details, service not rendered]. Kindly review the invoice and submit a corrected version.
Please contact our accounts department for any clarification regarding the discrepancies.
Sincerely,
[Your Name]
[Position]
[Company Name]
Quick Email Rejection of Invoice
Subject: Invoice Submission Issue – # [Invoice Number]
Hi [Vendor Name],
We cannot approve your invoice # [Invoice Number] dated [Invoice Date] at this time due to [Specific Reason].
Please revise and resend the invoice at your earliest convenience.
Thank you,
[Your Name]
[Position]
[Company Name]
Formal Invoice Rejection Letter
Subject: Rejection of Invoice for [Product/Service]
Dear [Vendor Name],
This letter is to formally notify you that invoice # [Invoice Number] dated [Invoice Date] has been rejected. The primary reason for rejection is [Detailed Reason].
We request that you review the invoice, make necessary corrections, and resubmit. Please contact [Accounts Department Contact] if you require guidance on the amendments.
Sincerely,
[Your Name]
[Position]
[Company Name]
Informal Invoice Rejection Email
Subject: Issue With Invoice # [Invoice Number]
Hi [Vendor Name],
We noticed an issue with your invoice # [Invoice Number] and cannot process it for payment. The reason is [Brief Reason].
Please fix the issue and send it back to us. Let me know if you have any questions.
Best,
[Your Name]
Provisional Invoice Rejection Letter
Subject: Temporary Rejection of Invoice # [Invoice Number]
Dear [Vendor Name],
Upon preliminary review, your invoice # [Invoice Number] dated [Invoice Date] cannot be approved. This is due to [Provisional Reason].
Once the discrepancies are addressed, we will reassess and process your invoice. Kindly make necessary revisions and resend.
Regards,
[Your Name]
[Position]
[Company Name]
Creative Tone Invoice Rejection Email
Subject: Oops! Invoice # [Invoice Number] Needs Revision
Hi [Vendor Name],
We spotted a hiccup with your invoice # [Invoice Number] and can’t process it yet. The glitch is [Reason].
Please tweak the details and shoot it back over. Happy to clarify if anything is unclear!
Cheers,
[Your Name]
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:
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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.
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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.
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Incorrect item name, description, unit price, quantity, or item total For each item, make sure that all details are correct.
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Incorrect or missing shipment code If applicable, make sure that the shipment code exists and that it is correct.
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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.
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Incorrect or missing payee details If you are paying by cheque, make sure that the payee details are on the invoice.
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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.
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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.
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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.
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Incorrect or missing invoice date Check the invoice date.
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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.
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Work not done as per the agreed scope Check that the work has been completed according to the scope. See project sign-off letter.
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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.
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Items not per the specification Check that the received goods or services are in line with the specifications.
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Low work or product quality Reject the invoice if the quality standards have not been met.
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Duplicate invoice Make sure that items in the list are not in any other invoice.
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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.
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Cancelled item(s) Check whether any of the items have been canceled or scraped from the scope.
How to write a letter to reject an invalid invoice, the three step process:
- Indicate the rejected invoice number and the sent date.
- Explain why you decided to reject the invoice. Give a valid reason. Refer to the list above or provide your own reason.
- Request for amendments.
Understanding What an Invoice Rejection Letter Is and Why It Is Important
An invoice rejection letter is a formal or informal communication used to notify a vendor or service provider that their submitted invoice cannot be processed. Its purpose includes:
- Providing clear feedback on why the invoice was rejected.
- Ensuring vendors correct mistakes promptly.
- Maintaining accurate accounting records.
- Preventing misunderstandings or disputes over payments.
Who Should Send an Invoice Rejection Letter
- Accounts payable or finance team members.
- Project managers overseeing service delivery.
- Company executives handling vendor relations.
- Administrative staff managing billing processes.
Whom Should Receive an Invoice Rejection Letter
- Vendors or suppliers who submitted the invoice.
- Contractors providing services or goods.
- External partners responsible for billing.
- Internal departments coordinating payments.
When to Issue an Invoice Rejection Letter
- Invoice contains incorrect amounts or calculations.
- Services or products billed were not delivered.
- Required details or supporting documentation are missing.
- Duplicate invoices are submitted.
- Contract or purchase order terms are not met.
How to Write and Send an Invoice Rejection Letter
- Identify the invoice number, date, and vendor name.
- Clearly state the reason(s) for rejection.
- Suggest corrections or next steps.
- Provide contact information for clarification.
- Decide on mode: email for speed, printed letter for formal or legal purposes.
Requirements and Prerequisites Before Sending an Invoice Rejection Letter
- Verify the invoice against purchase orders and contracts.
- Gather evidence for the rejection reason.
- Ensure internal approvals if needed.
- Confirm communication protocol with the vendor.
Formatting Guidelines for Invoice Rejection Letters
- Tone: Professional, concise, and polite.
- Length: One concise page for printed letters; short and clear for emails.
- Include invoice details, rejection reason, and next steps.
- Ensure proper salutation and closing.
Common Mistakes to Avoid When Rejecting an Invoice
- Not specifying the reason for rejection.
- Using harsh or unprofessional language.
- Forgetting to include contact information for queries.
- Delaying communication, causing vendor frustration.
Elements and Structure of an Invoice Rejection Letter
- Subject or heading specifying invoice number.
- Salutation addressing the vendor.
- Clear statement of rejection and reason.
- Suggested actions or corrections.
- Contact information for questions.
- Polite closing and signature.
After Sending an Invoice Rejection Letter
- Confirm receipt by the vendor.
- Track the revised invoice submission.
- Maintain records for accounting and audit purposes.
- Follow up to ensure resolution and payment processing.
Tips and Best Practices for Writing Invoice Rejection Letters
- Keep the language professional but courteous.
- Provide precise and actionable reasons.
- Avoid ambiguity to prevent confusion.
- Maintain consistent documentation for future reference.
- Offer assistance for correcting the invoice if needed.
Pros and Cons of Sending an Invoice Rejection Letter
Pros:
- Ensures accurate financial records.
- Encourages vendors to correct errors promptly.
- Prevents payment disputes.
Cons:
- May strain vendor relations if not worded carefully.
- Can delay payment processing if revisions take time.
