Quantity disputes — where a customer claims they received fewer goods or hours than the invoice shows — are among the most frustrating debt recovery scenarios. Unlike a quality dispute (where at least both parties agree on what was delivered), a quantity dispute is fundamentally a factual disagreement about what happened, and the outcome depends almost entirely on which party has better documentation.
Prevention: documentation that eliminates disputes
The best defence against a quantity dispute is documentation created at the point of delivery. For goods, this means:
- A signed delivery docket or proof of delivery (POD) showing the quantity delivered, signed by an authorised representative of the customer at the time of delivery.
- Photographs of the delivery, particularly for bulk goods where counting is impractical.
- Electronic proof of delivery through a delivery management system where the customer signs on a device — these create a timestamped, GPS-located record that is difficult to dispute.
For services (particularly hourly-rate engagements), this means:
- Timesheets approved by the customer, or weekly or monthly reports signed off by the customer's representative.
- Email confirmation of work performed at regular intervals during the engagement.
- A clear project or task management trail showing what was done and when.
When a quantity dispute is raised
When a customer raises a quantity dispute, respond promptly with your supporting documentation. Do not let the dispute age without engagement. The appropriate response is: acknowledge the dispute, provide copies of your delivery docket, timesheet, or other documentation, and ask the customer to identify specifically what discrepancy they believe exists.
A customer who cannot specify what quantity they actually received — who simply says "it wasn't as much as you billed" — is raising a general objection, not a specific dispute. Ask them to quantify the discrepancy. If they cannot, the dispute is unlikely to be genuine.
Partial payment on disputed invoices
If a customer is disputing part of an invoice, they should pay the undisputed portion while the dispute is being resolved. Withholding payment of the entire invoice because a portion is disputed is not appropriate and creates a basis for a formal demand on the undisputed amount.
Issue a separate invoice for the disputed portion if necessary, so the undisputed amount can be recovered while the dispute is ongoing. Do not let a partial dispute freeze your entire recovery position.
When documentation is limited
If your documentation is poor and you cannot prove the quantities delivered or hours worked, the dispute becomes difficult to resolve without the customer's cooperation. This is a costly lesson about documentation standards. Corroborating evidence — emails requesting or confirming delivery, project communications referencing the work performed, third-party observations — can sometimes fill the gap, but it is rarely as effective as a signed docket.
Contact Merion if you are dealing with a quantity dispute on a significant invoice — we can advise on the best approach to resolving it or recovering the undisputed portion.