What are Retail Post-Audit Claims?
Post-Audit Claims, common in chain retail, are deductions initiated by third-party accounts payable auditors for claimed vendor errors in billing, shipping, trade promotion allowances, rebates, cash discounts, price protection, and OTIF and vendor compliance penalties. These post-audit claims can be one or more years old and they are very difficult due to the age and number of line items, and often impossible to research without special systems.
The burden of proof is always on the supplier to disprove any claims that arise from a retail Accounts Payable Audit and, if not investigated within a short period, often 60 days, the retailer considers them binding.
Our experience is that up to 50% of all post-audit claims and deductions are excessive or wrong due to duplicate deductions, misinterpretation of policies, trade promotions, or terms, and overzealous contingency-paid AP auditors using non-applicable deals.
Actionable Post-Audit best practices and policies are available on our Insights Blog, including Post-Audit Policy Guidelines that you can put to work for you.
We offer professional, full-service Post-Audit Claims Management and Audit Collection Recovery services, using state-of-the-art matching, reconciliation, and accounts receivable auditing software.
Our Full-Service Post Audit Recovery Process
- We will match and reconcile all claims using AuditPro claims audit software down to the most granular level, usually SKU.
- Smyyth's Post AuditPro Teams will analyze customer claims vs. your trade deals, invoices, order files, shipping, and other records using our advanced technology.
- We will charge back the auditor or, if not yet deducted, reject the claims that are not valid.
- We will collect the invalid or excessive deductions, working with the post-auditor and accounts payable to get your money back.
- You will receive a periodic Management Findings Report with actionable insights into root causes and recommended fixes.
- We provide Post-Audit Claims Management Findings report as part of a deduction cleanup or an integrated, long-term solution.
Fees are structured to make us partners in the outcome, creating a guarantee of recovery of monies or no charge. Our deduction and post-audit claims solutions can focus on a specific category of claim or deduction, key retailers, or as a general solution to this vexing issue.
Please feel free to contact us if you need more information or guidance on post audits or deduction management, or on any of our services here at Smyyth.
Ready to find out more?
Drop us a line today to arrange a no-obligation review!