Vendor Invoice Checklist: What Should You Double-Check for Accuracy and Compliance?

What points need to be checked after the vendor (manpower supplier) submits an invoice?

After the vendor (manpower supplier) submits an invoice, several key points should be checked to ensure accuracy and compliance. First, verify that the invoice includes all the services provided as per the agreement. This involves cross-referencing the invoice details with the initial contract or purchase order to confirm the accuracy of the billing.

Checking for discrepancies

Next, check for any discrepancies in the quantities, rates, or additional charges listed on the invoice. It's essential to validate that the invoiced amounts align with the agreed-upon terms and conditions. Additionally, verify the invoice for any errors in calculations or typos that could impact the final amount owed.

Compliance with tax regulations

Furthermore, ensure that the invoice complies with any tax regulations and includes the necessary tax details if applicable. This is crucial for maintaining accurate financial records and adhering to legal requirements.

Invoice formatting and essential information

Lastly, confirm that the invoice is formatted correctly and contains all the essential information, such as the vendor's details, invoice number, payment terms, and due date. By thoroughly reviewing these points, you can facilitate smooth processing and payment of the vendor's invoice.

Please ensure that the vendor has attached a copy of the ECR/Challan supporting the payment of contributions to EPF/ESI, as applicable. The Challan should include the names of employees positioned at your plant. Also, check the agreed rates of wages, attendance, and the final cost to the company as per the contract. In no case should the rate be less than the notified minimum wages.

Please prepare a detailed checklist covering the following points and check on a monthly basis:

- CLRA License, if applicable
- Wages paid are not lower than the minimum wages
- Wages paid on or before the 7th of every month
- ESI contributions and supporting documents on a monthly basis
- EPF contributions and supporting documents on a monthly basis
- Leave with wages
- Bonus, if applicable
- BOCW RC, as applicable
- PT returns, as applicable
- LWF returns, as applicable
- Etc.

Statutory Compliance for Contractual Vendors

The statutory compliance in respect of contractual vendors includes the submission of documents as per the CLRA. A labor license is mandatory. EPF, ESIC challans, PT challans, MLWF challans, and various forms and returns like OT, wages cum muster roll, leave register, maternity leave register, bonus register, accident register, and fine register are required. Some of these are monthly, while others are periodic.