Accounts Payable Overpayment Recovery

Get a Retrospective Accounts Payable Audit

Retrospective accounts payable auditing is the process of identifying and recovering discounts not taken, and credits not used, using powerful computer matching of your records, and the reconciliation of your supplier's statements.

You might be surprised to find that 1% or more of your accounts payable were overpaid or did not take advantage of all the credits and discounts to which you were entitled. These errors happen, even with the best processes. We can audit and recapture these for you, even several years later. Errors are usually due to misunderstanding contract terms, human error and systemic issues.

Powerful Match and Reconcile Software

We identify the vendors requiring special attention, then perform a detailed analysis, using complex multi-variable field matching to uncover duplicate or excessive payments and missing allowances and discounts. With this information, we reconcile suppliers statement data to identify and recapture hidden cash and credits that you are owed. For example, 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.

A Sampling of Errors we Find:

  • Duplicate Payments
  • Overpayments
  • Wrong vendor
  • Discounts not taken
  • Rebates not taken
  • Freight paid in error
  • Credit memos captured
  • Hidden Cash on Account
  • Unreconciled credits-debits
  • Escheatment
  • Government unclaimed property

Straightforward Process

Our process 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.

  1. You provide a data download and an introduction letter for us to use for your current and past suppliers.
  2. We run your data through our special AP Match software, find and audit the excess payments, plus any exceptions for further review.
  3. We obtain statements from the suppliers and carefully analyze them against your data to identify credits due to you.
  4. After a management review, we contact accounts payable to request repayment due to you, and we reconcile any discrepancies.
  5. 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.
  6. You receive an end of engagement management report identifying steps to reduce such instances in the future.

Related Content: Carixa Automated Cash Application Video

Contact us to learn more about how this Carixa module can function independently or as part of a total Accounts Receivable software system.

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Smyyth Carixa