SECTION OVERVIEW AND POLICIES

This section provides agencies with guidance regarding a proper invoice.

Process and Transaction Preparation:

A proper invoice is a written or electronic request for payment submitted by the vendor that must contain the following information:

• Vendor name;
• Name of NYS Agency that ordered the goods or services;
• Description of goods or services requesting payment for (may be in narrative or code values format);
• Quantity of goods, property, or services delivered or rendered*;
• Amount requested; and
• Purchase order (PO) number, if applicable, as provided by ordering agency.

When an invoice does not contain the above information, agencies must reject the invoice. Moreover, it is a best practice to notify the vendor within one business day of identifying the improper invoice to submit a proper invoice with the necessary information.

*Consistent with New York State Finance Law §§ 109(1) and 179-e(5), vendors should only invoice an agency once the goods, property, or services have been delivered or rendered. If the goods, property, or services included on an invoice have not been delivered or rendered, agencies should return the unpaid invoice and notify the vendor within one business day to resubmit a proper invoice once the goods, property, or services have been delivered or rendered. By accepting an invoice before the goods, property, or services have been delivered or rendered, agencies may lose available early payment discounts or lose short-term interest by paying the invoice earlier than necessary.

In addition, an invoice should contain the following information:

• NYS Vendor ID number;
• Invoice Date;
• Unique invoice number as described in Section 5.B – Unique Invoice Number Requirements of this Chapter;
• Payment terms being offered, if other than Net 30; and
• Any other information or substantiating documentation the agency may reasonably require.

Agencies may work with vendors to obtain the above information, or return the invoice to the vendor for correction. When an agency determines it will return the invoice to the vendor to correct these items, it is a best practice for the agency to notify the vendor within one business day of the determination to submit a proper invoice with the necessary information.

Other Information:

While it is a best practice to reject an invoice within one day of identifying it as improper, § 179f(3)(b) provides further guidance on timeframes for notifying vendors of defects in an invoice. These timeframes relate to preserving the allotted time an agency has to make a payment on time, thereby avoiding prompt payment interest.

The Invoice Checklist can assist agencies in communicating invoice requirements to vendors. Agencies should use the checklist to ensure consistency and completeness of invoices submitted to New York State for payment.

Agencies should refer to Section 4.B.1 – Supporting Information of this Chapter for guidance related to documentation to support an invoice.

Guide to Financial Operations

REV. 03/10/2020