Concept Definition
What is a contract reference on an invoice?
A contract reference is an identifier linking an invoice to the underlying contract or framework agreement. It is commonly required in public sector procurement where invoices must reference the contract under which goods or services are authorized. In UBL, ContractDocumentReference carries this field.
When is contract reference required?
Contract references are mandatory in many public sector e-invoicing frameworks:
- EU public procurement: Invoices must reference the contract notice or framework agreement.
- Chorus Pro (France): Contract or commitment number required for invoices to public entities.
- Peppol B2G: ContractDocumentReference/ID (BT-12) is commonly required.
Frequently Asked Questions
- Is contract reference the same as purchase order number?
- No. A contract reference identifies the overarching agreement. A purchase order number identifies a specific call-off under that contract. Both may be required on an invoice, especially in public sector frameworks where each delivery is authorized by a PO under a framework contract.
- What happens if the contract reference is wrong?
- An incorrect contract reference will cause matching failure in public sector AP systems, leading to invoice rejection. The supplier must issue a corrected invoice or credit note and re-submit with the correct contract reference.