Invoice Template for Recruitment Agency

Standard Operating Procedure: Recruitment Agency Billing & Invoice Generation

1. Executive Summary & Purpose

This SOP establishes the standardized workflow for generating, verifying, and issuing recruitment invoices. The objective is to ensure financial compliance, minimize Days Sales Outstanding (DSO), and maintain audit-ready documentation for placement fees, retained searches, and temporary staffing services.

2. Scope & Prerequisites

• Scope: Applies to all recruitment consultants and finance personnel issuing invoices for permanent placement or contract staffing.
• Prerequisites:
  • Signed Master Service Agreement (MSA) or Terms of Business (TOB).
  • Authorized Placement Confirmation/Purchase Order (PO).
  • Access to ERP/Accounting software (e.g., Xero, QuickBooks, NetSuite).
  • Standardized Template (Ref: TR-INV-REC-MASTER).

3. Roles & Responsibilities (RACI Matrix)

4. Step-by-Step Procedure

Phase I: Verification & Data Intake

• Validate candidate start date against the signed offer letter.
• Confirm salary/fee structure matches the signed TOB.
• Verify if a Client Purchase Order (PO) number is required for payment processing.
• Ensure all candidate onboarding documentation is verified by Compliance.

Phase II: Invoice Generation

• Open approved template TR-INV-REC-MASTER.
• Populate mandatory fields: Invoice #, Date, Client Entity, Service Description (Candidate Name/Role), Fee Amount, VAT/Tax calculations.
• Append necessary documentation (e.g., timesheets for temp staff, signed offer letter for perm placements).
• Perform a secondary check on mathematical accuracy (Fee % vs. Base Salary).

Phase III: Quality Assurance & Issuance

• Route draft invoice to Finance Manager for sign-off.
• Generate PDF version to prevent unauthorized post-generation edits.
• Send invoice via secure email or accounting portal.
• Update internal CRM/ERP with "Invoice Issued" status.

5. Quality Assurance & Pro-Tips

• Best Practice: Always include a "Payment Terms" clause clearly on the invoice (e.g., "Net 30 days from date of receipt").
• Common Pitfall: Failing to include the PO number when the client’s AP department requires it; this is the #1 cause of payment delays.
• Metric Thresholds:
  • Invoicing Cycle Time: < 48 hours post-placement.
  • Data Error Rate: < 0.5%.
• Compliance: Maintain a digital audit trail of the original MSA to justify the fee structure in case of client dispute.

6. Frequently Asked Questions (FAQ)

Q: What if the client claims the placement fee is incorrect? A: Reference the signed TOB/MSA immediately. Do not amend the invoice until the dispute is resolved. If an amendment is necessary, issue a Credit Note and a fresh replacement Invoice.

Q: Should I include the candidate's full address on the invoice? A: No. Due to GDPR/Privacy regulations, omit sensitive PII (Personally Identifiable Information) beyond the candidate's name and job title unless contractually required by the client for verification.

Q: Can I send the invoice via standard personal email? A: No. All financial documentation must originate from a verified agency domain (finance@agency.com) to prevent phishing and unauthorized interception.

Authorized by: Julian Vance, Chief Architect, Template Registry