The Secret Of How To Eliminate the High cost caused by Unauthorised payment Features and Improve the Cash collection in Your Accounts activity

Duplicate billsare one of frequent types of overpayment mistakes that transpire within the accounts payable management department. The Institute of Internal Auditors have recognised that duplicate payments make up between 0.5% and 0.1% of annual supplier invoice payments which means one in a 1000 bills could be a duplicate. If your organisation makes £50 million in annual invoice payments you are possibly paying out £50,000 or more in duplicate payments per year..

How Do They Happen?

A normal invoice entry includes an invoice number, date, amount, vendor number and many other fields. If any of these fields are enteredmistakenly or inconsistently, the software’s inherent check for duplicate payment will not be effective. Add to this fact there might not be a clear invoice numbering system it’s clear to witness how overpayments can slip through the net.

Internal Audit

This problem issue can be resolved by completing out the subsequent steps :
1.) Obtain a record of the full payment history
The key data items which are required are Supplier Reference, Invoice Number, Amount and Invoice Date. Where relevant, Purchase Order number can also be useful.
-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 irritation of finding large duplicate payments which have already been found 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 necessitate the use of a system that can identify classify 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 ask for 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 possible when contacting former suppliers.

FISCAL Technologies is the only organisation to specialise in overpayment detection software. We empower Accounts Payable controllers and have analysed client data from all the major financial systems and in 100% of cases we have discovered accidental duplicate payments that they were unaware of saved each many thousands of pounds. We offer a no cost overpayment health check and reportto all qualifying organisations. Please visit - www.fiscaltechnologies.com