Verify Invoices

Verify invoices means checking an invoice against the applicable contract or purchase order before payment is authorized. The check covers the agreed prices, the quantities, the supporting documentation, and evidence that the goods or services were actually received.

It is an invoice-control and accounts-payable activity, not a named standard or an acronym. In Canadian federal financial management, the corresponding process is generally called account verification. NATO's Procurement Manual describes the same control as verifying invoices against the prices and quantities agreed in the contract and the quantities received.

How account verification works in the Government of Canada

Under the Government of Canada's procure-to-payment process, account verification is performed when an invoice is received. Its purpose is to provide evidence on several points:

• The work was performed.
• Goods were supplied or services were rendered.
• The terms and conditions of the contract or agreement were met.
• The transaction is accurate.
• The required authorities were followed.

The verification draws on three kinds of data: the contract, the deliverable receipt, and the invoice or credit memo. Supporting documentation must demonstrate the agreed price and specifications, the receipt of goods or services, and authorization under delegated financial authorities.

Primary responsibility for verifying individual accounts rests with the responsibility-centre manager. That manager confirms and certifies entitlement to payment under section 34 of the Financial Administration Act.

What NATO's Procurement Manual requires of invoice checks

The NATO Procurement Manual treats invoice verification as a control against questionable invoices, fraud, and corruption. It also asks for confirmation that each invoice complies with the contract's invoice-documentation requirements. Its recommendations are specific:

• Reject invoices that do not carry the contract or order reference.
• Check invoiced prices against the contract prices.
• Check invoiced quantities against the agreed quantities and the quantities received.
• Block payment where prices or quantities do not match.
• Verify that the required invoice data is present.

Suppliers working on defence and NATO-linked contracts should expect these checks to be applied strictly, since a missing reference alone is grounds for rejection.

Verification on goods and services contracts

On a standard goods or services contract, the sequence is straightforward. The department accepts the work, confirms that the invoice matches both the work delivered and the contract terms, and then proceeds with payment processing. The Office of the Procurement Ombud outlines this procurement process in its overview. Acceptance and invoice matching are separate steps, and payment follows only after both are complete.

Cost-reimbursable contracts and supplier records

Cost-reimbursable contracts add another layer. Public Services and Procurement Canada uses cost audits to validate whether contract payments for goods and services are appropriate, and to help determine a final contract price. The Office of the Procurement Ombud's review of the cost-audit program describes this work.

Suppliers may be required to keep supporting records such as timesheets, invoices, and subcontractor agreements for six years. They must make those records available for audit, inspection, or examination.

What verifying invoices means for a supplier bidding on Canadian public contracts

An invoice that matches the contract is paid faster than one that does not. Quote the contract or purchase order reference on every invoice. Use the prices in the contract and invoice only the quantities delivered. Keep proof of delivery or acceptance, because the department must be able to show that the work was performed before it certifies payment.

Bid teams should plan for this at the proposal stage. Confirm how deliverables will be documented and accepted, and make sure your billing system can produce invoices that line up with contract line items. On cost-reimbursable work, set up record retention to cover the full six years so audit requests can be met without delay.