What is Accounts Payable Recovery Audit?
An AP Recovery Audit is the process of identifying and recovering incorrect payments or overpayments, discounts not taken, and credits not used, using powerful computer matching of your records, and the reconciliation of your supplier's statements.
Would you be surprised if 1% or more of your accounts payable were overpaid or did not take advantage of all the credits and discounts you were entitled to? These errors occur in every high-volume environment, even with the best processes. We can audit and recapture these for you, even several years later. Errors are usually due to:
- Misunderstanding of contract terms
- Human error
- Program problems
- Systemic issues, set up wrong at the beginning.
Using the powerful Carixa-M/R (Match and Reconcile) software, we identify the vendors requiring special attention, then perform a detailed Electronic Payment Analysis, using complex multi-variable field matching, of your payment data to uncover duplicate or excessive payments and missing allowances and discounts. Next, we Reconcile Suppliers Statements data to identify and recapture hidden cash and credits that are owed to you against your trial balance. Are you aware, for example, that only a small minority of vendors take advantage of all of their cash discounts?
This program is performed on a success fee basis – a percentage of the amount credited or repaid.
· Duplicate Payments
· Wrong vendor
· Discounts not taken
· Rebates not taken
· Freight paid in error
· Credit memos captured
· Hidden Cash on Account
· Unreconciled credits-debits
· Government unclaimed property
Our process is straightforward and does not require any support from your staff except for the required data. Supplier contacts are kept professional, friendly, and collaborative. The process is easy.
- You provide a data download and an introduction letter for us to use for your current and past suppliers. Contract terms may be required depending on our analysis.
- We run your payables data through our special Carixa AP Match software, find and audit the excess payments, plus any exceptions for further review.
- We obtain e-statements from the suppliers and carefully analyze them against your data to identify credits due to you.
- After a management review, we contact accounts payable to request repayment due to you, and we reconcile any discrepancies.
- We bill you our share only after the credits have been identified or you receive a refund. We will assist in that process if requested.
- You receive an end of engagement management report identifying steps to reduce such instances in the future.
Ready to find out more?
Drop us a line today to arrange a no-obligation review!