Invoice-to-contract audit
An invoice-to-contract audit checks each invoice against the contract that governs it, including its amendments and rate cards.
It tests commercial terms such as rates, tiers, caps, fees, and credits, which goes further than matching an invoice to a purchase order. It is also called a contract compliance audit when the focus is on whether a supplier is following its agreement.
Worked example
A contract sets a labor rate of $85 per hour, and unit pricing that falls from $4.00 to $3.60 after 10,000 units. An invoice bills 600 hours at $92, and 2,500 units above the threshold at $4.00.
Labor overbilling: 600 hours × ($92 − $85) = $4,200
Tier not applied: 2,500 units × ($4.00 − $3.60) = $1,000
Total: $4,200 + $1,000 = $5,200
Both errors would pass a check that only confirms the invoice was approved.
Illustrative example with sample figures.
How it shows up in finance and procurement
Accounts payable uses it to catch errors that approvals and PO matching miss. Billing and revenue teams use the same check on outgoing invoices to catch underbilling before they go out.
Where AllCaps fits
AllCaps is contract-to-invoice audit software, and you can start with a Proof Audit on up to 100 historical invoices. Vendor Invoice Audit