Proper invoice (glossary)

An invoice that contains everything the contract and payment rules require, which is what starts the government's payment clock.

Under the federal Prompt Payment Act and its implementing regulations, the government's time to pay generally runs from receipt of a proper invoice, and interest for late payment applies only to proper invoices. An invoice is proper when it contains the information the regulation and the contract require, typically including the contractor's name and address, invoice date and number, contract number and line items, description, quantity, unit and price of what was delivered, shipping and payment terms, and the name and contact for the person to notify about defects.

If an invoice is defective, the agency is supposed to return it with the reasons within a stated period, and the clock restarts when a corrected invoice is received. Electronic systems such as IPP and WAWF enforce many of these elements before an invoice is accepted.