Key takeaways
- A vendor invoice is a supplier's request for payment, with the details of what was supplied and what is owed.
- Required fields vary by country but usually include the vendor, buyer, date, number, description, amounts, tax and payment terms.
- Accounts payable should reject or query invoices that lack an order reference, a valid tax number or matching quantities.
- Giving vendors a short guide to your invoice rules cuts rework.
Free PDF and Excel: Vendor invoice rules sheet and rejection log. Get it below
What a vendor invoice is
A vendor invoice is a document from a supplier to a customer that lists goods or services supplied, the amount due and the payment terms.
The same document is a sales invoice to the vendor and a purchase invoice to you. This page is aimed at the team that receives and sets the rules for vendor invoices.
A company publishes a one-page vendor guide: invoices must carry a PO number, be addressed to the legal entity, show tax registration and be sent to one mailbox. Within six months, the share of invoices rejected for missing PO numbers falls from 22 percent to 6 percent.
| Field | What goes in it | Why it matters |
|---|---|---|
| Vendor name, address and tax number | As on the vendor master. | Identifies the supplier. |
| Buyer name and address | Your legal entity. | Correct entity for tax. |
| Invoice number and date | Unique, sequential. | Duplicate check. |
| PO number | Your order reference. | Three-way match. |
| Description, quantity, price | Line by line. | Matches the order. |
| Tax | Rate and amount. | Credit claim. |
| Total and currency | Stated clearly. | Payment. |
| Payment terms and bank details | As contracted. | Scheduling. |
Common vendor errors
- No PO number.
- Wrong legal entity.
- Rates differ from the contract.
- Charges for items not delivered.
- Bank details changed without a verified request.
- Duplicate invoice numbers.
The processing flow is in the invoice approval and GRN guide. Disputes may end in a credit note.
- Mailbox or portal for invoices.
- PO number is mandatory.
- Legal entity names.
- Tax details required.
- Format accepted: PDF, e-invoice, portal.
- Contact for disputes.
Last checked: 19 October 2026. General practice. Tax invoice contents are set by local law.
Free PDF and Excel
Vendor invoice rules sheet and rejection log
A one-page rules sheet to send to vendors and a log for tracking rejected invoices and reasons.
- Rules sheet
- Required fields table
- Rejection reason log
- Excel rejection tracker
Frequently asked questions
What is a vendor invoice?
A supplier's bill to a customer for goods or services supplied.
What must a vendor invoice include?
Vendor and buyer details, date, number, description, amounts, tax and payment terms. Local law adds more.
How do you verify a vendor invoice?
Match it to the order and receipt, check the tax number and bank details, and test for duplicates.
Why do invoices get rejected?
Common reasons are missing PO numbers, wrong entity, mismatched prices or quantities, and missing tax details.
Where should vendors send invoices?
To a single, published mailbox or portal.