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Why Do Contractors Keep Rejecting Our Tool Hire Invoices, and How Do We Stop It?

Contractors reject tool hire invoices with no order number, wrong site or merged jobs. We build contract checks so each invoice matches what the account needs.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Contractors reject hire invoices because their accounts teams match every invoice to an order number and a site, and the hire contract was written at the counter without them. We build account rules into the contract so an order number and site are required where the account needs them, check invoices before they go out, and route missing information back to the site contact to fill in.

The invoice bounced back again

A builder's accounts department emails back: 'Invoice rejected, no PO number.' Another: 'Please split this invoice by site.' A third: 'We do not recognise the job Fenwick Rd, please re-issue.' Each one means finding the contract, ringing the site manager for the order number, re-issuing the invoice and waiting for their next payment run, which may be a month away.

The tools were hired, used and returned. The money is stuck on paperwork.

Where the order number goes missing

  • The hire is taken at the counter at 7am from a site operative who does not have the order number.
  • Each contractor has different rules: order number per site, per job or per hire; separate invoices by site; a particular reference format.
  • Those rules live in the credit controller's head, not on the account.
  • Hires for different sites are added to one contract to save time.
  • Nobody checks an invoice against the account's rules before it goes.

What rejected invoices cost

Slower payment on work you did weeks ago. Credit control time on phone calls and re-issues. Some invoices that fall into a gap and are never paid because they were never re-sent. And strain on the relationship with site managers who are asked for order numbers again and again.

Invoices that match the account's rules

  1. Each trade account holds its own invoicing rules: whether an order number is required, whether invoices must be split by site, and any reference format.
  2. At the counter or on the phone, the contract screen asks for what that account needs and will not accept a hire without it, unless a manager allows a temporary 'to follow' flag.
  3. Hires marked 'order number to follow' trigger a text or email to the site contact with a link to add it.
  4. Before an invoice run, each invoice is checked against the account's rules, and ones that would be rejected are held for fixing.
  5. Invoices are split by site or order number automatically where the account asks for it.
  6. Rejections that still happen are logged with the reason, so the account rules can be updated.

Examples of account rules

AccountRuleWhat the counter sees
Main contractor AOrder number per siteOrder number required, pick site
Builder BOne invoice per jobPick job, invoices split
Local authority CReference in their formatField checks the format
Cash trade DNoneNo extra fields

Illustrative. Your accounts' real rules are set up from your credit control notes.

Invoices go out with what the contractor's accounts team needs. Missing order numbers are chased while the hire is still fresh. Credit control spends time on real disputes. And the account rules are written down, so they do not leave when a person does.

What makes hire invoices harder than most

Hire invoices are awkward for contractors' accounts teams because they cover time, not just goods. A single contract can span two invoice periods, move between sites, pick up extra items halfway through and have an off-hire date the site manager disputes. If the order number or site on the hire is wrong, every one of those invoices inherits the mistake.

That is why the check has to happen when the hire is written, not when the invoice is produced. Getting the order number and site right on the contract at 7am, or chasing it automatically the same day, is far easier than correcting three months of invoices later.

Are your invoices bouncing?

  • Contractors reject invoices for missing order numbers.
  • You re-issue invoices to split them by site.
  • Account rules are known only by your credit controller.
  • Site operatives hire without the order number.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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Does this replace our accounts software?

No. It sits between your hire system and your invoicing, whether that is inside the hire software or in Xero, Sage or similar.

What if the site does not have an order number?

The hire can go ahead with a 'to follow' flag if you allow it, and the site contact is asked for it automatically.

Can it split invoices by site?

Yes, where the account requires it, as long as the site is recorded on each hire line.

Where do the account rules come from?

From your credit controller, and from past rejections. We set them up together at the start.

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