There are times when an invoice must be sent back to a vendor because it is not valid or correct and cannot be processed as it is. To send an invoice back, use one of the Invoice Return Letters in this section.
Notifying the Vendor
- The vendor must be notified in writing within 21 calendar days from the date Texas State received the invoice. Notifying the vendor in writing will stop the 30-day processing time under the Prompt Payment Act. Use one of the Invoice Return Letters.
- You may send the Invoice Return Letter to the vendor via fax. However, the confirmation fax report must be attached to the invoice as supporting documentation when the corrected invoices are submitted for payment to Accounts Payable Office.
- You may notify the vendor by e-mail or over the phone to stop the 30-day processing time. If over the phone, you must document the telephone number, the person, their title and what was discussed.
- Provide copies of this documentation to the Accounts Payable Office.
Returning the invoice
The instructions for completing an Invoice Return Letter state to attach the original invoice to the letter when returning it to the vendor. However, the following vendors do not have an accounting system that will allow them to resubmit corrected invoices:
- Telecommunication vendors
- Utility vendors
- Commercial freight and shipping vendors
Therefore, Accounts Payable needs your assistance when dealing with these vendors. Return a copy of the invoice along with the original Invoice Return Letter to the vendor. Mail the original invoice attached to a copy of the Invoice Return Letter to the Accounts Payable Office. Remember to keep a copy of the invoice and letter for your files.
Processing a Re-submitted Invoice
An invoice that has been resubmitted should have “Re-submittal” written on it by the vendor. However, you can process the invoice even if “Re-submittal” is not on the invoice. Be sure to stamp the invoice with your date stamp. Submit all required documents to Accounts Payable for processing.
When not to return an invoice to the vendor
If an invoice is received in Accounts Payable and the contract/PO clearly indicates that the invoice should be sent to the department, the invoice can still be processed without sending it back to the vendor. Accounts Payable will first try to process the invoice if possible. Accounts Payable will follow these steps.
- Identify which department the invoice belongs to based on the PO number.
- If Accounts Payable can identify the invoice the accounting clerk will:
- Fax or email the invoice to the applicable administrative staff, account manager, or principal investigator.
- Upon receiving the invoice, the Department will:
- Approve the invoice and if it is time sensitive, fax it back within 1 working day from the date of receipt. If the invoice is not time sensitive, the department will route it back to Accounts Payable through campus mail.
- Request the vendor to submit future invoices to the correct billing address.
- Invoices should be faxed to 512-245-9161.
- If the invoice cannot be identified with the PO number
- Accounts Payable will return it to the vendor.
Paying a Partial Invoice
There are instances when a partial payment can be processed. Documentation is still required in a similar fashion as if you were returning the entire invoice.
- When to partially pay an invoice
- Payment on the agreed purchases is required to continue service.
- The agency has a business need to continue purchasing or services with the vendor.
- When not to partially pay an invoice
- No letter or documentation disputing the pending charges has been completed and delivered to the vendor.
- A new invoice for the disputed purchases will not be resubmitted.
- Receipt of all the goods or service is required to fulfill the requirements of the purchase order or contract.