GPI 462 – Do not make payments on verbal commands for anybody, except the boss.

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Teach all of your employees they are never to make payments or agree to wire transfers based upon verbal demands or conversations. No matter which vendor is demanding payment, make sure to provide your employees the following instructions.

What to request when a vendor calls and demands payment:

  • Clarify to the caller your firm never pays bills unless accompanied by the presentation of a complete invoice.
  • Tell the vendor to submit a written invoice to your company’s accounts payable department for approval and payment processing.
  • That invoice should reference your purchasing department’s purchase order or contract number.
  • Specify the clarification of any penalties or chargebacks that appear in the vendor’s invoice but that are not discussed in the purchase order.
  • Specify that the presented invoice must have a definite dollar amount and not contain a vague or unclear dollar range.
  • Specify that the invoice must stipulate whether the goods or services have been provided, the date they were provided and the physical location of the delivery.
  • Specify the total dollar amount of the order, currency if applicable (near or across country borders) and the percentage amount that is now due according to the agreement or contract,
  • Specify that the invoice must clarify which party pays for delivery, installation and other freight charges or fees incurred or any other additional costs associated with the goods or services obtained by your company.
  • Specify whether the purchase is sales /use tax exempt or taxable.
  • Specify clearly to the caller your firm cannot pay any invoice unless it is approved by your purchasing department.
  • Tell the vendor that the invoice when approved will be paid according to the payment terms on the company’s purchase order and not necessarily the payment terms on the invoice. This should have been discussed and worked out amicably between the two parties prior to proceeding with the contract.

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