What are Retail Post-Audit Claims?
Post-Audit Claims, common in chain retail, are deductions initiated by third-party accounts payable auditors for what they believe are vendor errors in billing, shipping, trade promotions, pricing, and "vendor compliance". These claims can be issued even one to three years after the fact and are very hard to investigate. Our experience with recovery audits in the retail industry is that in some cases, up to 50% of all post-audit claims and deductions have errors. The errors can be attributed to overzealous auditors, improper application of past deductions and credits, a misinterpretation of a trade promotion or terms, or duplicate deductions.
Post-audit deductions are among the most difficult business issues faced by vendors to the retail channel. Most post-audit claims are generated by auditors who are paid a commission to find and deduct claims. These post-audit claims cover business transactions one to several years old, and given the pressures of current business, they are difficult and frequently impossible to research. The burden of proof is always placed on the vendor to challenge and disprove any claims that arise from a retail recovery audit.
We offer full-service post-audit claims audit and audit collection services, using state-of-the-art reconciliation and accounts receivable auditing software.
Our Full-Service Post Audit & Recovery Process
- Smyyth AuditPro claims audit software will retrieve and analyze your support documents, including invoices, order files, shipping, trade promotions, and other pertinent records.
- Using the AuditPro technology our expert team will reconcile the claims down to the detailed line item SKU level, something that other services cannot do.
- We approve legitimate post-audit claims that are correct and meet your policy parameters and reject the claims that do not.
- For erroneous or excessive deductions, we will work with the post-auditor and customer to recapture the monies for your business.
- You will receive a periodic Management Findings Report with actionable insights into root causes and recommended fixes.
- We provide Post-Audit Claims Management Services on either a one-time “cure” basis or as a continuous outsource process for a long-term solution.
Our Actionable Post-Audit Best Practices and Policies are available on our Insights Blog page, including Post-Audit Policy Guidelines that you can immediately put to work for you.
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 be focused on a specific category or customer, or on 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!