Learn How Remove the Budget drain caused by Poor audit Features and Upgrade the Payment Methods in Your Accounts department
Sunday, December 30th, 2007Although the Duplicate payments numberand size is normally less than compliance or pricing errors this sort of overpayment is generally feared by accounts payable management as the accountability is on them to warrant that these errors do not ensueby using recovery audit software.
How Do They Happen?
A typical invoice entry includes an invoice number, date, amount, vendor number and many other fields. If any of these fields are typedmistakenly or inconsistently, the system’s inherent check for duplicate payment will not be effective. Add to this fact there might not be a defined invoice numbering system it’s reasonable to observe how overpayments can slip through the net.
Internal Audit
This problem issue can be resolved by carrying out the subsequent process :
1.) Obtain a file of the full payment history
The key data fields which are needed are Supplier Reference, Invoice Number, Amount and Invoice Date. Where applicable, Purchase Order number can also be helpful.
-For convenience, and to produce a lesser number of suspected duplicates, it is often useful to divide out suppliers such as landlords where the payments are always constantly the same identical amount.
-The data should include credit items. This will reduce the aggravation of finding large duplicate payments which have already been collected with recovery audit software or where errors have been immediately reversed at the time of entry.
2.) Query the data using dedicated duplicate-finding techniques or system.
-This will need the use of a system that can identify recognise the items most likely to be duplicates.
-Query results should of course be listed in descending order of monetary amount and chance of being a duplicate.
3.) Trace suspected items back to their supporting documents using recovery audit software.
4.) Contact overpaid suppliers, and demend repayment or a credit note.
-This step may require some tact, but suppliers are likely to be co-operative with their existing customers. Problems are probable when contacting former suppliers.
FISCAL Technologies is the only company to focus only on recovery audit software detection systems. We empower Accounts Payable professionals and have analysed client data from all the major financial systems and in 100% of cases we have discovered accidental overpayments that they were ingnorant of saved each many thousands of euros. We offer a no cost overpayment health check and whitepaperto all qualifying organisations.
Please visit – www.fiscaltechnologies.com