How to Handle "Mystery" Invoices

From: IOMA's AccountsPayable360

How often does this happen to you? An invoice shows up in the AP department with absolutely no identification as to who ordered the goods. Occasionally, these invoices will float from desk to desk throughout the company before finding their way into AP. Sometimes, by looking at what is included on the invoice, a savvy AP associate will be able to figure out who the likely purchaser is and will then forward the invoice to that person for approval. However, that is frequently not the case, especially in the case of generic items such as printer cartridges or paper for the copy machine. Often, the dollar amount involved is small and does not appear to be worth the time and effort to research who ordered the goods.

Some companies feel the best approach is to send these unidentified invoices back to the sender, asking them to indicate who ordered the goods. If it is not feasible to simply return the invoice, pick up the phone and call the vendor. When provided with the information, request that in the future the vendor include the requestors' names on invoices. If this is a recurring problem, keep a list of vendors who routinely omit the purchasers' name along with the employees' names who regularly order from these companies. Again, ask the employees to request that their name or department be included on all invoices.

This is one of those headaches that in all likelihood will never go away completely. However, AP should do what it can to minimize the problem. By working with these suppliers, many of whom are small and will be amenable to listening to suggestions (rather than demands) and employees, AP will be able to make a dent in the problem.

WATCH OUT: For small invoices, don't simply pay them, reasoning that the dollar amount is too tiny to bother with. This can quickly get your company on the "sucker list." There are unscrupulous operators who prey on overworked AP departments, sending invoices for goods not ordered, knowing full well that small-dollar invoices are often paid without authorization. Once you pay that unidentified invoice, your company will be hit over and over again-and probably for increasingly larger amounts of money as time goes on.