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Supplying Principles and Practices > USPS Supplying Practices Process Process Step 5: Measure and Manage Supply > Process Invoices
Process Invoices
An invoice is the document issued by the Supplier to the Postal Service that
provides a detailed list of products delivered or professional services
rendered, with an account of all costs to be paid. Invoices may arrive in
written and/or electronic form and are then processed by the Contracting
Officer. Not all individual deliveries will incorporate an invoice. For those
deliveries of purchased items that do require an invoice, Supplier invoices
must be submitted before payment can be made, in accordance with
Clause 4-1: General Terms and Conditions, Invoices (paragraph g) or Clause
B-20: Invoices. Clause 4-1: General Terms and Conditions contains the
basic terms and conditions for Postal Service contracts. Depending on the
particular purchase, these terms and conditions may be modified or added to
protect the interests of all parties and ensure the success of the purchase.
The Supplier agrees that submission of an invoice to the Postal Service for
payment is a certification that:
• Any services being billed for have been performed in accordance
with the contract requirements
• Any supplies for which the Postal Service is being billed have
been shipped or delivered in accordance with shipping
instructions issued by the Contracting Officer in the quantities
shown on the invoice, and that the supplies are in the quantity
and of the quality designated in the contract
Invoices are submitted for each delivery and shipment, discussed in detail in
the Shipping and Receipt and Inspection topics of the Complete Delivery task
of Process Step 4: Deliver and Receive Requirements. In accordance with
Clause 4-1: General Terms and Conditions, Invoices (paragraph g) or
Clause B-20: Invoices, to ensure prompt payment, an invoice must be
submitted for each destination and each shipment. Each invoice must
contain:
• The Supplier's name and address
• The contract number
• Any applicable task or delivery order number
• A description of the supplies or services and the dates delivered
or performed
• The point of shipment or delivery
• Any applicable unit prices and extensions
• Shipping and payment terms
• Any additional information required by the contract
In accordance with Clause 4-6: Invoices (Professional Services), invoices
that are submitted for the rendering of professional services must also
contain and indicate the following additional information:
• Person performing service each day by hour and part of an hour
• Services performed each day by hour and part of an hour
• Rates and charges for each service so detailed
• Individual expenses charged, if allowed under this agreement
Minimum charges for portions of an hour may be allowed if discussed in the
contract.
Depending on the product ordered or service rendered, certain invoices
should contain additional detailed information regarding contract performance
(e.g., work in progress). The Contracting Officer will address such specific
invoices in conjunction with the Client and Item Manager, who have specific
knowledge about particular items delivered and services rendered.
Invoices, when in written form, must be sent to the office specified in the
awarded contract or order. An invoice that is received by anyone other than
the office specified in the contract or order is not properly submitted. Invoices
that do not contain the relevant and necessary data (e.g., contract number,
point of delivery, payment terms) are not considered to have been properly
submitted. Invoices that are received before contract performance or order
delivery violate the certification requirement established in Clause 4-1:
General Terms and Conditions, Invoices (paragraph g) and Clause B-20:
Invoices. The Supplier may also submit invoices electronically to the
Contracting Officer.
Invoice amounts should always match the purchase order amount. When the
amount to be paid by the Postal Service to the Supplier is correct, the
specified office can approve the invoice and the activities associated with the
Make Payment topic of the Make Payment task of Process Step 5: Measure
and Manage Supply. The accuracy of the purchase order amount and,
contingently, of the invoice is verified by reviewing the prices established for
products and/or services in the contract.
When the amount on the invoice does not match the purchase order amount,
the specified office is responsible for giving notice to the Supplier within
seven days and for resolving the issue. Problems with invoices arise when
the amounts charged are different from the amounts documented in the
purchase order, which are usually based on prices established and
referenced in the actual contract. In such cases, the Supplier resolves these
problems by resubmitting a new invoice with the correct amount, or the
Supplier submits a credit memo to be applied to the original invoice. A credit
memo is the document issued by the Supplier to record an adjustment
against, and applied to, an invoice.
When invoices contain proper data and have been received for actual
contract performance, the specified office must approve the invoice. Invoices
must be approved within seven days of receipt. When improper invoices are
received, the Contracting Officer is required to verify, reject, and give notice
to the Supplier within seven days of the receipt of these improper invoices.
The activities associated with making payments on an approved invoice can
be viewed in their entirety in the Make Payment topic of the Make Payment
task of Process Step 5: Measure and Manage Supply.
The Contracting Officer may decide to reject an invoice and consequently not
pay the Supplier. Nonpayment may be damaging to the Supplier's business
and may jeopardize performance, as well as harming the working relationship
between the Postal Service and the Supplier. Therefore, the Contracting
Officer must carefully consider the reasons for withholding or refusing
payment and must address problems regarding payment expeditiously.
The Contracting Officer may refuse to pay the Supplier or may withhold
payments otherwise due, in whole or in part, when:
• The contract provides for withholding (for instance, when
retainage [a percentage of a contract price retained from the
Supplier as assurance that Subcontractors will be paid and that
contract performance will be completed] is authorized)
• Elements of the amount invoiced by the Supplier are not
allowable
• The Supplier has been overpaid or otherwise owes the Postal
Service money as a result of the Supplier's actions or inactions
under the contract
• The Supplier owes the Postal Service money for reasons
unrelated to the contract
• As a result of judicial action or applicable law, parties other than
the Supplier have made claims against the Postal Service or have
not waived rights exercisable against the Postal Service
Shipping topic, Complete Delivery task, Process Step 4: Deliver and Receive
Requirements
Receipt and Inspection topic, Complete Delivery task, Process Step 4:
Deliver and Receive Requirements
Make Payment topic, Make Payment task, Process Step 5: Measure and
Manage Supply
Clause 4-1: General Terms and Conditions
Clause 1-2: Advance Payments
Clause 1-3: Progress Payments
Clause 2-30: Allowable Cost and Payment
Clause 4-6: Invoices (Professional Services)
Clause B-20: Invoices
Clause B-48: Payment (Construction)
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