Post-Audit Claims Policy
February 2, 2022
February 2, 2022
Post-Audit Deductions are one of the most vexing business issues faced by vendors, especially in the retail channel.
Most post-audit claims are by third-party auditors paid a commission to charge you back These claims can be one to several years old, representing hundreds of supposed infractions, and are always difficult and sometimes impossible to research.
Post audit claims management is a zero-sum game; the customer deducts the claim and you have to disprove and fight to get the money back, and often they only give you a short time to research it The onus is always on the vendor to investigate, reconcile and challenge the claims, or take a hit to profits.
Disturbingly, our experience is that a very high percentage of post-audit claims are overstated or even entirely wrong, which can be attributed to double deductions, bad documentation, or misinterpretation of trade promotion details.
It is essential that you have a written corporate policy, clearly communicated to customers (and post auditors), which serves as your notice to them as to what proof you require for consideration of post-audit claims If you have a written policy, your position is stronger than without a policy Your policy document needs to be signed by your President or CFO and sent to the appropriate customers and auditors.
Remember that a post-audit deduction can include hundreds of line items from many orders and invoices Consequently, you need powerful variance matching and reconciliation automation and an expert post-audit defense in order to prevent losing profits.
The following is just a guide If you have any questions about managing post-audit claims, please use our contact page.
Post-Audits do not have to be a “cost of doing business”. Defend yourself.
Our product, promotion, pricing, operations, and customer information are confidential and trade secrets and must not be disclosed or shared without our express approval. Confidential information may not be shared between post-auditors outside of your organization.
We must be allowed 75 days to research post-audit claims and respond before taking a deduction. Deductions violating this will not be honored
All post-audit claims must be submitted within six (6)months of the transaction. Otherwise, they are invalid and will not be considered by us. If deducted, they must be repaid.
Claims for shortages or other shipping issues must be presented within four (4) months so that we have the opportunity to investigate and file claims with carriers where appropriate.
Complete documentation, sufficient for us to properly research the post-audit deduction must be provided, including:
All post-audit claims must be submitted to the following address, attention: Post Audit Department, providing a physical and Email Address, phone, and fax number.
Signed ______________________, Your President or CFO