Why should any company processing 50,000 invoices per year use AP audits?
As our error tracking report shows, there are 28 ways payment errors can occur, the error rate in a sophisticated accounts payable department of any large company will be .03% to .08%. For every $100 million in non-payroll spend, $30,000 to $80,000 in payments errors should be anticipated, regardless of ERP used. (Example: SAP will allow an invoice to be paid twice crossing different BUKRS company codes.) If you use SAP, PeopleSoft, Lawson, Baan, JD Edwards, Sage etc. you are more vulnerable to payment errors than you may have been lead to believe.
Although some errors are detected internally, maintaining the status quo robs you of visibility and control and assurance necessary to lead your company effectively. It also lets your vendors keep the money that rightfully belongs to your company.
What really brings your accounting to a new era of error-free performance is a remote accounts payables audit that recaptures overspent money and eliminates the traditional burdens and expenses that result from paying out and chasing down these errors.
DCI'’s AP audit produces these outcomes…
- Multiplies effectiveness of your internal control efforts.
- Decreases lost accounting hours.
- Cleans up non-aligned practices causing payment errors.
- Proactively expedites internal corrections for best practices.
- Increase your controls for SOX compliance.
- Unobtrusive technology prevents unnecessary distractions.
- Shows you “how, when, and where” of your payment errors.
- Automated review performed remotely.
- Actionable results within 5 business days directly to payables staff.
DCI's Error Tracking Report Gives You Critical Visibility into 28 Types of Vendor Payment Errors
|
Number of Errors |
Total Dollars Overpaid |
Reason for Error |
|---|---|---|
|
12 |
$12,505.18 |
1-Vendor setup twice within the same AP System. |
|
5 |
$5,493.25 |
2-Two different vendor locations. |
|
21 |
$9,277.20 |
3-Wrong vendor was paid. |
|
0 |
0 |
4-Two different business units. |
|
2 |
$3,721.47 |
5-Two different invoice dates. |
|
17 |
$3,830.97 |
6-Invoice entered in two different formats. |
|
1 |
$422.18 |
7-Vendor setup twice crossing two business units. |
|
1 |
$250.00 |
8-Same invoice paid twice for the same vendor – unknown reason. |
|
3 |
$8,224.31 |
9-Inconsistent invoice number for vendor. |
|
10 |
$8,639.40 |
10-Two different invoice formats and business units. |
|
19 |
$14,844.37 |
11-Two different invoice formats and invoice dates. |
|
0 |
0 |
12-Two different invoice formats and vendor locations. |
|
0 |
0 |
13-Two different invoice formats and vendor setup twice. |
|
15 |
$23,910.97 |
14-Two different invoice formats and wrong vendor paid. |
|
0 |
0 |
15-Two different invoice formats, business units and vendor locations. |
|
0 |
0 |
16-Two different invoice formats, business units and vendor setup twice. |
|
1 |
$3,269.00 |
17-Two different invoice formats, business units and wrong vendor paid. |
|
0 |
0 |
18-Two different invoice formats, invoice dates and business units. |
|
0 |
0 |
19-Two different invoice formats, invoice dates and vendor locations. |
|
0 |
0 |
20-Two different invoice formats, invoice dates and vendor setup twice. |
|
0 |
0 |
21-Two different invoice formats, invoice dates, business units and vendor locations. |
|
0 |
0 |
22-Two different invoice dates and business units. |
|
0 |
0 |
23-Two different invoice dates and vendor locations. |
|
3 |
$6,481.38 |
24-Two different invoice dates and vendor setup twice. |
|
3 |
$2,568.03 |
25-Two different invoice dates and wrong vendor paid. |
|
0 |
0 |
26-Two different invoice dates, business units and vendor setup twice. |
|
5 |
$696.33 |
27- Two different invoice dates, business units and wrong vendor paid. |
|
4 |
$1,869.58 |
28- Wrong vendor paid and two different business units. |
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