Cost Recovery
The flaws in the business’ Accounts payables systems leads to duplicate payments. When the Accounts Payables process fails to detect the presence of prior payment, it could result in payment of same invoice twice. Double payment of invoice could have a significant impact on profitability.
The causes of duplicate payments could be due to vendor duplicates in ERP system, mergers and acquisitions, vendors sending same invoice via multiple channels, adjusted quantity or price on invoice, Accounts payable team making payment for same invoice via multiple channels, upgradation of software , etc. Overpayment can occur from a simple typographical error to something as big as software migration.
How do you we detect and prevent duplicate payments?
One of a kind situation to detect a duplicate payment is when a vendor returns a duplicate check. Identification of duplicate payments could be too difficult before payment is processed if no control is put in place. Regular audits of Account payables system would help us minimize duplicate payments. The main reason behind any errors could be manual intervention. If the systems are automated, the processes would be hassle and error free. Bringing in the Continuous Transaction Monitoring tool would help automate the process and detect duplicate vendors and invoices.
We help you to detect and resolve errors through Artificial Intelligence and Data Analytics.
Duplicate payments can be prevented by
• Establishing a consistent vendor payment policy,
• Standardizing the data entry system,
• Setting standard policy for invoice numbering,
• And Implement Continuous Transaction monitoring that checks duplicate invoices prior to processing check run.