WorkflowProcurement

Supplier Invoice Audit

Supplier invoice audit that checks every line against the contract before you pay it

Overcharges caught against contract, rate card and PO before payment.

See one case, screen by screen ↓
demo10of 10 linesof Quillon's $438,322.00 CRO invoice checked by six agents — 5 above contract, $23,065.60
demo27,840lineschecked in the last 30 days on $68.4M of spend — every invoice, no sampling
target96%of invoices released clean to the payment run; a person sees only the exceptions
target4minmedian from invoice arrival to a verdict on every line, ahead of the payment run
In short

What is Supplier Invoice Audit?

Checking each supplier invoice line against the contract, rate card, PO and delivery records to find what was billed above contract. Supplier Invoice Audit does it before payment, on every line of every invoice: agents lay each line beside its evidence with the difference in red, and the payables audit lead decides each finding.

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Updated

The problem

Why overcharges inside a CRO invoice get paid

A drug company pays thousands of supplier invoices a week — CROs, CDMOs, central labs, cold-chain carriers, agencies, software. Accounts payable matches each one to its PO and goods receipt on the total and pays it. On a blanket PO for CRO work there is often headroom, so the total passes. Nobody reads the lines against the master services agreement, the SOW amendment and the signed rate card.

That is where the money goes: a CRA hourly rate $20 above the 2026 rate card, two monitoring visits billed that the visit log shows were cancelled or moved, a site management fee with the volume tier left out, an 8% handling fee on pass-through lab kits the contract says are at cost, business-class fares, a duplicate "-R" invoice, Net 30 asked where the contract gives Net 60. If anyone finds it, it is a recovery audit months after payment — and an agreed claim still has to be matched to its credit note.

demo1.2%of audited spend found billed above contract in 30 days on the sample data — $0.84M
demo29%of that leakage is a rate above contract; 26% a volume tier or rebate not applied
demo9%is duplicate invoices — paid twice unless someone looks back
Where the hours go on one contested CRO invoiceestimated
By hand10 days
With the solution1.2 days
  • Finding the agreement, the latest amendment and the signed rate card2 → 0.1 d
  • Checking each line's rate, escalation cap and volume tier2 → 0.2 d
  • Matching visits, active sites and receipts to what was billed1.5 → 0.1 d
  • Checking pass-through costs, fees and travel1 → 0.1 d
  • Writing the dispute letter with each clause1.5 → 0.2 d
  • Following the claim to its credit note2 → 0.5 d

Estimated split for one monthly CRO invoice with findings, checked by hand and with the solution.

How it works

How an invoice moves

Specialist agents read every invoice, set each line beside its contract, rate card and PO, and draft the recovery claim; the payables audit lead decides each finding.

What comes in
Invoices inEvery invoice · PDF, e-invoice or email
Agents at work
Invoice readerlines, rates, terms
Then
Contract terms librarian
Three-way matcher
Then
Rate & tier checker
Pass-through & expense checker
Duplicate & terms sentinel
Then
Dispute letter writercites each clause
A person decides
Payables audit leaddecides each finding, approves the letter
What comes out
Clean invoices released
Short-pay posted in the ERP
Claim tracked to its credit note
One case, step by step

One CRO invoice, from arrival to credit note

Quillon Clinical Research sends invoice MCR-26-0917 for VLT-302 monitoring and site management in September 2026: ten lines, $438,322.00, against PO 4500-8790 and MSA-0417 with SOW-VLT302-03 (Amendment 2). Northwind Bio's payment run is Thursday at 14:00. Here is what happens, screen by screen, in the working solution.

  1. 01Wednesday, 09:40

    What is held before Thursday's run, on one screen

    Priya Raman · Payables audit lead

    Across the top: every invoice held before the run — Quillon $23,065.60, Summit $15,600.00, Brightwater $6,800.00, Harborline $3,803.78, Kestrel $2,012.60, a Corvane duplicate, and 3 new arrivals to check. The Quillon invoice is open as a ledger: billed $438,322.00, per contract $415,256.40, above contract $23,065.60, with the difference in red on each line and a recovery tracker beside it.

    “10 of 10 lines checked against MSA-0417, its rate card and PO 4500-8790 · six agents · 5 above contract”

  2. 02Received 07:12

    Six agents read the invoice and gather its evidence

    The agents

    The invoice reader takes the ten lines, header and payment terms from the e-invoice. The contract terms librarian assembles MSA-0417's terms with their clauses. The three-way matcher pulls PO 4500-8790 and, from the clinical trial system, the visit log — 12 visits completed — and 38 active sites. Then the rate and tier, pass-through and expense, and duplicate and terms checks run on every line. The evidence view puts the invoice, the contract and the evidence side by side, with the source document highlighted.

    Each step is on screen with its time — the invoice reader 3.1 s, the contract terms librarian 4.4 s.

  3. 03Line 01

    CRA hours at $180 against a $160 rate card

    Rate & tier checker

    486 monitoring hours billed at $180.00. Exhibit B, the 2026 rate card signed on Jan 9, 2026, sets $160.00. $180.00 is the rate in Quillon's unsigned 2027 proposal of Aug 14 — 15.9% above the 2025 rate of $155.34, beyond the 3% cap in §4.3 — and no change order lists it. 486 h × ($180.00 − $160.00) = $9,720.00.

    The contract terms librarian's rule: the latest signed amendment wins; drafts are ignored.

  4. 04Lines 04 and 05

    Two visits that did not happen, and a tier left out

    Three-way matcher · Rate & tier checker

    Quillon bills 14 on-site monitoring visits. §5.4 bills completed visits only, and the September visit log shows 12: the Site 118 visit on Sep 24 was cancelled and Site 131 moved to Oct 6, so it belongs on the October invoice — $4,900.00. Amendment 2 sets $980 for each active site above 30; all 38 were billed at $1,150 — $1,360.00.

    The three-way matcher takes quantities from the delivery records, never from the invoice.

  5. 05Lines 07 and 10

    A handling fee on pass-through, and two business fares

    Pass-through & expense checker

    The central lab kits are billed at the receipt amount, $58,420.00, as §7.2 requires — then an 8% handling fee of $4,673.60 is added on top, which §7.2 rules out. Two business-class fares, Boston–Chicago and Newark–Atlanta, are both under three hours; §7.4 allows economy under six hours, and the economy fare on the same flights was $1,006.00 — $2,412.00 above the contract.

    “Section 7.2 rules out any handling fee on pass-through costs. The lab kits are already billed at the receipt amount, so the whole 8% line is extra.”

  6. 06One click

    Dispute all five — the recovery claim drafts itself

    Priya Raman · Payables audit lead

    Priya disputes the five findings, each with the amount withheld. The dispute letter writer drafts RC-122 to Quillon's billing team from only the items she disputed, citing Exhibit B, §5.4, §5.2, §7.2 and §7.4. The duplicate and terms sentinel has also flagged the terms row: the invoice asks Net 30, due Oct 31; §9.1 gives 60 days from receipt of a correct invoice, so the undisputed amount is due Dec 6, 2026.

    The letter: “We are paying the undisputed $415,256.40 on Dec 6, 2026 under section 9.1 and withholding $23,065.60.”

  7. 07Approve

    Over $10,000, the category manager co-signs

    Priya Raman and Omar Haddad

    Approving the short-pay shows what was billed, what is withheld across the 5 disputed items and what is payable on contract terms, with the letter in full. Because the claim is over $10,000, Omar Haddad, category manager for clinical and manufacturing, co-signs after Priya. Nothing is sent until both have approved.

    The dispute letter writer never sends — a person approves every supplier letter.

  8. 08Sent · short-paid

    The claim is tracked to its credit note

    Recovery tracker

    RC-122 goes to billing@quillon-cr.example on Oct 7 and moves to Sent to supplier. The letter asks for a credit note for the withheld amount, or a corrected invoice, within 30 days, with the clause text and evidence for each item attached. The tracker's next steps are Supplier agreed and Credit note received — expected $23,065.60, matched automatically.

    “If you see it differently, reply with the document that supports your figure and we will look at it within five business days.”

  9. 09Same queue

    A "-R" invoice blocked before it is paid twice

    Duplicate & terms sentinel

    Corvane Analytical Labs sends CAL-7781-R for stability testing on Corventa lot CR-2214 — $22,750.00. Every line matches invoice CAL-7781, already paid, and the "-R" copy does not reference or cancel the original; TSA-0712 §8.3 says each service is invoiced once. It is blocked, not paid, and claim RC-119 asks for the cancellation.

    The sentinel blocks a duplicate before payment, and never cancels a paid invoice.

  10. 103 new to check

    A new arrival checked before the run

    Priya Raman · Payables audit lead

    Harborline Logistics' cold-chain invoice HL-1005-4502 for Oct 1–5 arrives at 09:02, $28,581.11. Priya runs the audit: three lines match TSA-0933, and a residential delivery surcharge of 4 × $310 = $1,240.00 does not — all four deliveries went to hospital pharmacies, which the schedule treats as commercial addresses. Under $10,000, she approves the claim alone.

Who it’s for

Built for everyone between the invoice and the payment run.

The same invoices, seen by the five people who answer for them — what their week looked like, and what it looks like now.

PR
Priya RamanPayables audit lead · decides findings, approves letters to $10,000
Payables audit lead
Before
Decides every held invoice before Thursday's 14:00 run, with the contract, rate card and receipts in different places.
Now
“Show me the line, the clause and the receipt — I'll decide in a minute.” Every line arrives that way, with the arithmetic shown.
OH
Omar HaddadCategory manager, clinical & manufacturing · co-signs over $10,000
Category manager
Before
Negotiated the CRO and CDMO rate cards, tiers and caps — and could not see whether they were billed that way.
Now
“I negotiated that rate card. I want it billed.” He sees each contract's terms sheet, every term with its clause, and co-signs claims over $10,000.
DO
Dana OkaforFinance controller · sets hold rules, co-signs over $100,000
Finance controller
Before
Wants leakage stopped without paying suppliers late on the amounts nobody disputes.
Now
“Withhold in good faith, pay the rest on time.” Sets the hold threshold and approvals once, and sees found, withheld and recovered by supplier and category.
LO
Lena OrtizAccounts payable specialist · releases invoices, answers suppliers
Accounts payable specialist
Before
Releases invoices and answers suppliers' questions — with clean invoices waiting in the same queue as the ones that need a decision.
Now
“Clean ones should never wait for me.” Clean invoices release to the payment run untouched; the held, blocked and to-check ones sit at the top of her list.
SP
Sam PatelInternal audit · tests payment controls each quarter
Internal audit
Before
Tests payment controls on a sample of paid invoices.
Now
“Every line checked beats any sample I could pull.” Reads who checked, cited, decided and co-signed, on every invoice.
Built on the engine

7 agents. Each with one job, and hard limits.

Specialist agents read every invoice, set each line beside its contract, rate card and PO, and draft the recovery claim; the payables audit lead decides each finding.

Invoice reader

Reads PDF and e-invoices — header, lines, quantities, rates, tax and payment terms — and cites each field.

  • Reads and cites only — never changes an amount
  • Fields below 0.90 confidence go to a person
Contract terms librarian

Finds the supplier's agreement, SOWs, amendments, rate cards and rebate schedules, and keeps a terms sheet with clause citations.

  • The latest signed amendment wins; drafts are ignored
  • Every term carries its clause number
Three-way matcher

Matches each line to the PO, the goods receipt or service entry, and delivery records such as the visit log and the active-site list.

  • Quantities come from delivery records, not from the invoice
Rate & tier checker

Checks the arithmetic on every line: contracted rate, escalation cap, volume tiers, discounts and index-linked surcharges.

  • Every finding cites the invoice line and the clause
  • Shows its arithmetic in full
Pass-through & expense checker

Checks pass-through costs against receipts, markups and handling fees, travel class and fees the contract does not allow.

  • A missing receipt is a question, not a finding
Duplicate & terms sentinel

Looks back 24 months for duplicates and compares the invoice's payment terms with the contract.

  • Blocks a duplicate before payment; never cancels a paid one
Dispute letter writer

Drafts a courteous dispute or claim letter from the items a person disputed, citing each clause.

  • Never sends — a person approves every supplier letter
  • Only items a person disputed
  • Plain, courteous tone
Payables audit lead

Decides each finding, approves the letter. The agents propose; a named person decides.

Ask in plain words

Ask about any invoice, supplier or contract term

Ask in plain words, or tell it what to check. It answers from the invoices, the contracts and rate cards, the POs and receipts and the visit logs, and cites the exact line and clause.

Why is the Quillon invoice on hold?

INV-24117 bills $438,322.00. Five lines differ from MSA-0417 by $23,065.60: CRA rate $180 vs $160 ($9,720.00); 14 visits billed, 12 completed ($4,900.00); sites above 30 at $980 ($1,360.00); 8% handling on pass-through ($4,673.60); business-class fares ($2,412.00). It also asks for Net 30; the contract gives Net 60, so the undisputed $415,256.40 is due Dec 6.

Which suppliers leak the most this quarter?

Harborline leaks most often — fuel surcharges above the index band. Quillon leaks the most money (about $593K): rates above the 2026 card and handling fees on pass-through costs. The supplier heatmap is open on the Dashboard.

Add a check: hold CRO invoices that bill more visits than the visit log

Done. New check: Visits billed against the visit log — on every CRO invoice, the billed on-site visits are compared with the visits marked completed in the clinical trial system for the same period. On this week's invoices it matches one: INV-24117, 14 billed against 12 completed, already held. The check is live in Settings and recorded in the audit trail.

Draft the 2025 rebate claim to Quillon

Drafted RC-121 to Quillon Clinical Research for $142,320.00. In 2025 we paid $11,860,000 across three SOWs; §9.5 gives a 1.2% rebate once a year passes $10,000,000, due by March 31. No credit note is in the ERP. Because it is over $100,000, Omar Haddad and Dana Okafor co-sign after you.

Every screen

The working solution, as it ships.

13 screens from the working solution, on its sample data. Pick one to see it large.

Line auditThe invoice as a ledger: each line beside its contract term, rate card and PO, receipt or visit log, the difference in red, and the recovery tracker beside it.
One line, its reasoningAn opened line: the arithmetic, the agent and its confidence, the citations, and Dispute or Accept with a reason.
Invoice, contract and evidenceThree panes: the invoice lines, what the invoice, the contract and the evidence each say, and the source document with the line highlighted.
The recovery claim draftsAll five findings disputed; the claim letter drafts into the tracker with each clause cited, ready to approve.
Approve the short-payBilled, withheld and payable on contract terms, the full letter, and the approvals it needs by amount.
The claim letterThe letter as sent, the claim's stage, the contract, the invoice and the evidence for each item.
A duplicate blockedA "-R" invoice matched line for line to one already paid, blocked before payment, with the cancellation asked.
A new arrival checkedA cold-chain invoice audited before the run: three lines match the transport agreement, one surcharge does not.
InvoicesEvery invoice with its status, lines checked, amount above contract and pay date — to check, held, blocked, short-paid, released and paid.
RecoveriesEvery amount withheld before payment and every overpayment found after it, by stage from drafted to credit received.
A contract and its termsThe agreement with the terms the agents check highlighted, and the terms sheet with each clause.
DashboardSpend audited, lines checked, found above contract, withheld and recovered; the kinds of leakage and the largest findings.
Your rulesPayment run, hold threshold, rounding tolerance, auto-release, approvals by amount and the checks that run on every line.
Governance

Built for payment controls: cited, decided, co-signed, on the record.

Every finding cites its line and clauseEach finding shows the invoice line, the contract clause and the evidence — rate card, PO, receipt, visit log — with the arithmetic written out and the agent's confidence.
A person decides every findingThe payables audit lead disputes or accepts each finding. Accepting one takes a reason — a change order not yet filed, an approved exception, a credit already given — and the reason goes on the audit trail.
Every supplier letter approved, co-signed by amountNo letter leaves without a person's approval. Over $10,000 the category manager co-signs; over $100,000 the finance controller co-signs as well.
Agents never change an amount in the ERPThe connections are read-only. A short-pay posts only after approval, and a duplicate is blocked before payment — a paid invoice is never cancelled by an agent.
Undisputed amounts paid on contract termsHeld invoices never reach the payment run, and clean ones release to it. What is not disputed is paid on the contract's date — the earlier date never wins — and the letter says what is withheld and why.
An audit trail for payment-control testingWho checked, cited, decided and co-signed is recorded on every invoice, and kept for 7 years so internal audit can test payment controls on every line rather than a sample.
Configuration

Your payment controls, not ours

When invoices are held, who approves and which checks run on every line are settings, and each change goes on the audit trail.

SettingDefaultChoose from
Payment runThursdays, 14:00Thursdays, 14:00 · Tuesdays and Thursdays, 14:00 · Daily, 16:00
Hold an invoice when its findings reach$250$250 · $1,000 · $5,000 — below it, the invoice is paid and the amount claimed back afterwards
Rounding tolerance per line$0.50Step up or down; differences this small are treated as a match
Release clean invoices automaticallyOnOn · Off (every invoice waits for a person)
Letters up to $10,000Priya Raman decides findings and approves the letterPriya Raman · Lena Ortiz
$10,000 to $100,000Omar Haddad · clinical & manufacturing co-signsOmar Haddad · clinical & manufacturing · Lena Ortiz · indirect
Over $100,000Dana Okafor, finance controller, co-signs as wellDana Okafor
Checks on every lineRates, rate cards and yearly increases · Volume tiers, discounts and rebates · Billed against delivered · Pass-through costs and expenses · Duplicates · Payment termsEach on or off · describe a new check in plain words
Connections

Works with the systems your payables already run on

ERP — accounts payableinvoices, POs, goods receipts and payments, read-only
E-invoicing networkstructured invoices from 1,940 suppliers
PDF invoices by emailread line by line, every field cited
Contract systemagreements, SOWs, amendments, rate cards and rebate schedules — 1,284 contracts
Clinical trial systemvisit logs and active sites, nightly
Rebate schedulesannual rebates and volume thresholds, checked against what was paid
What it changes

The difference, in numbers.

Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.

target
4min
median from invoice arrival to a verdict on every line, ahead of the payment run
By auditmonths after payment
With agents≈ 4 min
target
96%
of invoices released clean to the payment run; a person sees only the exceptions
Released clean this week
5 held, 1 duplicate blocked
target
1.4%
of audited spend found billed above contract, held before payment or recovered after

“demo” = seen in the working solution, on its sample data · “target” = the design goal, measured in the live solution · “estimated” = our estimate. Context: SOX §404 on payment controls; ICH E6(R3) on sponsor oversight of service providers. People, companies, contracts and invoices named on this page are fictional — characters and sample data in the working solution.

Questions

What procurement and finance teams ask us.

What is a supplier invoice audit?

Checking each supplier invoice line against the contract, rate card, PO and delivery records to find what was billed above contract. Supplier Invoice Audit does it before payment, on every line of every invoice: agents lay each line beside its evidence with the difference in red, and the payables audit lead decides each finding.

How does it reconcile CRO invoices?

It reads the CRO's invoice against the master services agreement, the SOW and its amendments and the signed rate card, and matches quantities to the PO, service entries, the visit log and the active-site list from the clinical trial system. Rates above the card or the escalation cap, visits billed but not completed, tiers not applied and markups on pass-through costs are each shown with the clause.

What kinds of overcharges does it find?

Rates above the signed rate card or yearly cap, volume tiers, discounts and rebates not applied, markups and handling fees on pass-through costs, more billed than delivered, expenses outside policy, fees not in the contract, duplicates across 24 months of paid invoices, and payment terms shorter than the contract's.

Does it change amounts in our ERP or pay suppliers late?

No. Its connections are read-only, and a short-pay posts only after a person approves it. Clean invoices release to the payment run, and the undisputed part of a held invoice is paid on the contract's terms.

Do people stay in control?

Yes. The payables audit lead disputes or accepts every finding, and accepting one takes a reason. The dispute letter writer drafts only from disputed items and never sends: a person approves every supplier letter, the category manager co-signs over $10,000 and the finance controller over $100,000.

Can it find overpayments on invoices we already paid?

Yes. A post-payment sweep checks paid invoices from the last 24 months for rebates and tiers that were never credited — in the working solution it found Quillon's 2025 volume rebate, $142,320.00, not credited. Each recovery is tracked from the finding to the credit note.

Can we set our own hold rules, approvals and checks?

Yes. The payment run, the hold threshold, the rounding tolerance per line, automatic release of clean invoices, the approvers by amount and each check are settings, and a new check can be described in plain words. Every change goes on the audit trail.

How long does it take to go live?

The Agentic Solution Engine builds and deploys it from your requirements and documents — your contracts, rate cards and a sample of past invoices — and it goes live once every quality gate has passed. We will walk you through it on your own invoices first.

See it on
your invoices.

We'll run Supplier Invoice Audit on a sample of your own supplier invoices and contracts.