Invoice Auditing Definition

Invoice auditing is the process of reviewing supplier invoices to ensure that they are accurate, compliant with contract terms, and represent the best value for the organization. Invoice audits can be performed by internal staff or by external consultants.

When performed correctly, invoice auditing can result in significant cost savings for the organization. Inaccurate and non-compliant invoices can be corrected, and opportunities for cost reduction can be identified. For example, if a supplier is charging more than the contract rate, the organization can negotiate a lower rate going forward.

To ensure accuracy and compliance, invoice auditors should review each invoice line item in detail. They should also compare invoices to purchase orders and contracts to verify pricing and terms. In some cases, it may also be necessary to contact the supplier directly to clarify billing issues.