If you own a small business, you're used to receiving invoices from suppliers.If you're having renovations done to your home, you might get invoices as a private individual.You pay the amount owed when the invoices are accurate.Sometimes an invoice isn't right, it may be charging you more than you agreed, or it might include goods or services you have not received.If you need to dispute an invoice, it's a good idea to do it as soon as possible to maintain goodwill with the supplier and to ensure smooth dealings in the future.
Step 1: Take a close look at the invoice you've received.
If you're not sure if the invoice is correct, look over it again and make sure you read it correctly.If you have previous invoices from the same company, you should compare them with the current one.The source of the problem could be revealed.It is possible that the company failed to note payment for the previous invoice and included both totals in the current invoice.Proof of payment would hopefully resolve the issue.
Step 2: You can check your books.
The amount of the discrepancy can be calculated by comparing the invoice to your records.If the company claims you didn't pay an invoice, you should include a copy of the canceled check that you sent.Email confirmations and bank statements showing the cleared payment can be helpful in proving your position.
Step 3: You should review your contract.
If you have a written contract with the company that sent the invoice, you should check it to find out the method of resolving disputes.Payment is contingent on the receipt of the goods or services in a form consistent with the contract.You don't owe payment under the contract if the company is billing you for goods or services that you have not received.Your contract may include deadlines for notifying of a disputed invoice.If the supplier is not notified of a dispute within 10 days of receipt, your contract might say "All invoices are considered correct and accepted."
Step 4: Call the company.
Call the contact number listed on the invoice to rule out simple error before writing a letter to the company.If you have a question about the invoice you received, be calm and courteous on the phone.Allow the company's representative to explain the invoice to you.Tell her that the amount she stated doesn't match your records if you dispute her information.The dispute could be a clerical error or a wrong digit.Ask the person you're talking to to send a corrected invoice if the mistake can be corrected over the phone.If you come to an agreement over the phone, immediately send a letter to the company to confirm it.You should not rely on statements or agreements until you have received a corrected invoice.
Step 5: You need evidence to support your claim.
If you have any receipts or other records that support your contention that the invoice is incorrect, make copies of them and send them to the other company.The company might have billed you 45 units, but you only received 20 units.You have packing receipts for the 20 units.
Step 6: It's a good idea to research the company.
If you haven't worked with the company for a long time, you may be able to find out if other customers have had similar issues.You can check with the Better Business Bureau, which fields complaints from consumers.If other people have had similar issues, you can find out how they were able to resolve their dispute.
Step 7: Business format should be used.
If possible, print your letter on company stationery.If you're a private individual, you can use one of the templates available in most word processing applications to make your own professional letterhead.You can find templates online or within a word processing application that will allow you to quickly and easily create your letter by entering the applicable information within pre-formatted fields.It's a good idea to include the date of the letter and the methods by which you're sending it.Refer to the date of the invoice, the company's reference number, or both, for the subject line of a letter.You could write: "Subject: dispute of invoice 99537, dated October 7, 2015."
Step 8: Accept the invoice.
The first thing you should do is identify the invoice you're writing about and thank the company that sent it.If you dispute the entire invoice, simply state that you disagree with it in its entirety, and then proceed with your dispute.If the amount of the invoice is not in dispute, you might want to send a payment.Let them know if you are doing that.You could write: "I am in receipt of your invoice dated October 7, 2015, and thank you for the same."Please find a check for the full amount of the undisputed amount due.When you sign your check, use wording such as "This check is payment in full and is final satisfaction of [invoice]."The invoice date or reference number is used to identify it.The amount has been accepted as full payment if the company cashes or deposits it.If you are later sued for the remaining amount that you dispute, you can raise the endorsement as an affirmative defense.
Step 9: Discuss the basis of your dispute.
Refer to the documents within the body of the letter and then attach a copy.Stick to the facts.You should not make accusations that the company is trying to cheat you.If you have reason to believe that it's not the case, simply treat it as a simple error that can easily be fixed.If the company is sending you an invoice for goods that have not yet been delivered, you should state that you will pay for them when they are received.
Step 10: Mention any calls you've had.
If you've spoken to any company employees or the person you are addressing the letter to, your letter should address those conversations.You could write "I spoke to Sharon in your accounts receivable office on October 8 and she indicated that I should reach out to you about this issue."Even if you were told that the invoice was correct and there was no error, don't provide this information within the letter, it only gives the person the ability to hide behind the employee with whom you've already spoken.It's probably a simple mistake or misunderstanding if you were unable to reach anyone.
Step 11: Request the company to fix the problem.
Give the company a deadline to respond to your specifics about how you'd like the issue to be solved.Give the company a reasonable period of time to address the problem, a week to 10 days from receipt of your letter should suffice.If the matter is not resolved in your favor, you don't have to threaten to take any specific action.If your deadline isn't met you will pursue other options.
Step 12: The letter needs you to sign it.
Conclude your letter with a firm note and include your printed name, position within your company, and direct contact information.Before you sign it, make sure you read over it and check it for errors.Make sure to double check the numbers against your records.The documents you're enclosing should be listed at the bottom of your letter.Before you send your letter to the company, make at least one copy for your records.
Step 13: Send your letter.
After you've received the invoice, mail your letter together with any enclosures as soon as possible.You typically have 30 days to notify a company of a dispute, but in some cases you have less time.Delaware requires notice of dispute of a construction invoice within 7 days of receipt, or the invoice is considered accepted for the amount listed in it.You can also send the letter via fax or email.If you plan to send it using more than one method, make sure it's noted on the letter.If you have proof of when the company received your letter, consider using certified mail or a private delivery service.
Step 14: You should follow up after the deadline.
If you've given the company a deadline to resolve the issue and haven't heard from anyone by that date, call to follow up on that day.If the company isn't willing to work with you to resolve the discrepancy, you might want to end your relationship.If you have heard from the company that they are unwilling to compromise on the matter and insist that the invoice is correct, you may have to pursue other means to resolve the issue.
Step 15: Consider hiring an attorney.
An attorney might be able to get a better result for you if the company refuses to deal with you or doesn't respond to your letter.If the other company files a lawsuit against you for the disputed amount, an attorney can advise you on your legal options.
Step 16: You can contact the state licensing board.
If the individual or company that you invoiced is regulated by a state agency, that agency may have procedures in place for resolving disputes similar to yours.If you are a homeowner and have a dispute over an invoice you received from a general contractor who worked on renovations to your home, you may be able to file a complaint with your state's construction contractor board.Some states, such as Oregon, require that you give at least 30 days' notice to the contractor before you file a complaint with the board.
Step 17: Send a new letter.
The content of your second letter will vary depending on the response you received from your first, but generally should follow the same format with a stronger and firmer tone.Refer to your previous letter and any conversations or correspondence you've had with the company in the interim, then reiterate your position.Refer to the methods discussed in the contract for resolving disputes if you have a written contract.
Step 18: Suggest mediation.
If you have a written contract that includes a mediation clause, consider using a neutral, third-party mediation to help you reach a compromise.If you want to find a solution that works for both parties, mediation is the way to go.Depending on the context of your invoice dispute, you may be able to find mediation services for free.A free mediation program is offered by the Maryland Home Improvement Commission.