Guide
Equipment rental invoice audit checklist
An equipment rental invoice can match the PO and still be wrong: a rate above the quote, days after the off-rent call, a delivery billed twice. This checklist covers what to compare on each line and which document settles it.
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The checklist
Before you start
The invoice belongs to your account and job
Check the customer number, job or PO number and the jobsite address. Rentals for another job, or for a different company in your group, are a common reason an invoice does not match anything.
You have the documents behind it
The rental agreement or contract terms, the rate sheet or quote, and the delivery tickets, pickup tickets and off-rent confirmations for the units on the invoice. Without them you can only check the arithmetic.
Each rental line
Match each line to a unit by the asset or unit number, then check:
The rate matches the agreement
Compare the day, week or 4-week rate on the line with the rate sheet or quote for that equipment class, not with the last invoice. A rate that crept up between quote and invoice is easy to miss when nobody has the quote open.
The billed period ends when charges should end
Find the clause that says when rental charges end (at the off-rent notice, at pickup or at return) and compare that date with the end of the billed period. Days after it are billed after off-rent.
The units are the cheapest combination
For the billable days, work out the lowest charge using day, week and 4-week rates. Many rate sheets cap daily charges at the weekly rate. Check how yours words it.
The unit was on your job for the whole period
The delivery ticket date should be on or before the start of the billed period. A period that starts before delivery is billing for days you did not have the machine.
Delivery and pickup charges
One charge per trip
Each delivery or pickup charge should point to a ticket number, and each ticket should appear once. The same ticket on two lines, often with slightly different descriptions, is a duplicate.
The trip happened
A pickup charge needs a pickup ticket. If the machine is still on site, or was moved to another of your jobs, there should be no pickup charge yet.
The trip rate matches the agreement
Compare the per-trip charge with the agreement or quote. Check whether the agreement allows extra charges for distance, after-hours or a second driver before accepting them.
Fuel, damage waiver and other fees
Fuel is charged only when the tank came back short
The pickup ticket usually records the fuel level. A refuelling charge on a machine picked up full is an overcharge. Also check the price per gallon against the agreement.
The damage waiver applies to you
Many agreements waive the damage waiver (often called RPP or LDW) when you have a certificate of insurance on file naming the rental company. If you do, the fee should not be there. If you cannot find the certificate, ask your insurance broker before you dispute.
Every other fee is in the agreement
Environmental, cleaning, transport surcharge and admin fees should each trace to a clause or the rate sheet, with the same percentage or amount. A fee you cannot trace is a question for the rental company, not yet an overcharge.
Totals
The lines add up and the tax is right
Add the lines and compare with the subtotal, then check the tax rate for the jobsite location and whether tax was charged on items your state does not tax.
The invoice was not billed before
Search your AP system for the same invoice number and for the same unit and period on a different invoice number. A rebilled period is a duplicate even when the invoice number is new.
For the off-rent check in detail, with the day count and repricing step by step, see how to check an equipment rental invoice against the off-rent date.
Worked example
Illustrative documents from a made-up rental company. The full result, with each document, is the sample audit.
One invoice of 9 lines totalling $10,186.75, checked with this list against the agreement, the rate schedule, one delivery ticket, one pickup ticket and one off-rent confirmation. 3 lines matched. These did not:
| Check that failed | Document that settles it | Amount |
|---|---|---|
| 7 days billed after off-rent | Off-rent confirmation OR-2291 and clause 6.3 | $1,360.00 |
| Rate higher than the agreement: 60' boom at a 4-week rate above the rate schedule | Rate schedule | $265.00 |
| Duplicate delivery fee: ticket DT-5521 on two lines | Delivery ticket DT-5521 | $195.00 |
| Fuel charged on a full-tank return | Pickup ticket PU-3390: fuel 8/8 | $118.75 |
| Confirmed overcharges (4) | $1,938.75 | |
One more line, a damage waiver of $318.00, may not apply: the agreement drops the fee when a certificate of insurance is on file, and the certificate was not in the pack. That amount is kept apart from the $1,938.75 until the certificate is found.
Common questions
- How often should equipment rental invoices be audited?
- Every invoice, before it is paid, is the simplest rule: a corrected invoice is easier to get than a credit memo. If that is not practical, start with long rentals, invoices for machines that were called off-rent in the billing period, and any invoice with delivery, pickup or fuel lines.
- Who should do the check: AP or the jobsite?
- Usually both. AP has the invoice, the agreement and the rates. The jobsite has the off-rent dates, the tickets and knows what was really on site. The check works best when the off-rent confirmations and tickets reach AP with the invoice.
- What if a document is missing?
- Do not dispute on a guess. Note the line as needing evidence, list the document that would settle it, and ask for it from the jobsite, your broker or the rental company. Keep these amounts separate from the overcharges you can prove.
Run the checklist on every invoice
EquipRecon reads your rental invoices, agreements, rate sheets and tickets and runs these checks on every line. Each finding comes with the document it is based on and the calculation, ready to send. The first 25 invoices are free, no card required.