Invoice Audit Clause Samples
The Invoice Audit clause grants one party the right to review and verify the accuracy of invoices submitted under a contract. Typically, this involves allowing access to relevant financial records, supporting documentation, and other materials necessary to confirm that charges are correct and comply with the agreement. By enabling such audits, the clause helps prevent overbilling, ensures transparency, and resolves potential disputes over payments.
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Invoice Audit. During the term of the Agreement and for a period of three (3) years following termination of the Agreement, ADP shall make available, upon written request by Client, the contract, and books, documents and records necessary to certify the nature and extent of the invoices issued to Client associated with providing services under the Agreement. Client shall provide reasonable, prior written notice to ADP of its intent to review such records, and any such review shall occur at ADP’s offices, during business hours, or at such other address mutually agreed to by Client and ADP. Such Client audits may not be performed more than once every twelve (12) month period, unless, the State or other government agency audits the Client more frequently and Client reasonably believes it must invoke this audit right to comply.”
5. Section 7 of Annex A – General Terms and Conditions of the Agreement, entitled “Limit on Liability”, is hereby amended by adding the following as a new subsection 7.6:
Invoice Audit. Upon Consortium request, and within a mutually agreed upon timeframe, Supplier will provide sales data to demonstrate that prices paid for services received by Participants are in accordance with this Agreement and any additional terms/pricing that is specific to a Participant. If a sampling of transactions from Participant(s) demonstrates that the invoices are consistent with this Agreement, the sampling method will be sufficient. If issues are identified, the transactions for review may be increased, and the Participant shall have the right to recover any overpaid amounts as a credit memo. The Consortium agrees that any pricing dispute for overcharge must be made within twelve (12) months of the invoice date. The form of this reporting shall be mutually agreed upon prior to the first request for pricing review.
Invoice Audit