AP Duplicate Payment Recovery Audits Recover Lost Profits

Additionally, maintaining a centralized vendor database can prevent the confusion that often leads to duplicate payments. This database should contain updated information on each supplier, including payment terms and history. When a centralized system is in place, it becomes easier to verify the uniqueness of each invoice, as all relevant data is readily accessible in one location. In payment recovery, a technician searches for all these erroneous payments and takes steps to recover them.

Risk management for AP & P2P teams:

Consequently, it is more efficient for the vendor to list the credit on a statement and shift the burden of utilizing this credit back to the client. Developed over many years, our risk detection software is designed specifically for finance professionals. We analyse over 145,000 new invoices every day accounting for over £300bn each year. Underpinned by our history and building new context every day, our algorithms automatically find your organisation’s specific risks, now and in the future. Training staff on the nuances of invoice processing is another proactive step. Employees should be well-versed in the organization’s procedures for handling invoices and be alert to the common red flags that may Restaurant Cash Flow Management indicate a duplicate payment.

What are the Benefits of Auto-Remittance Aggregation for Consumer Goods Companies?

• However, keep in mind that you will pay added fees which will take away from your bottom line.
• Strengthening program integrity and tackling fraud, waste, and abuse in Medicare, as well as in other government programs, has been a priority across prior administrations.
• By analyzing vast amounts of transactional data, organizations can uncover patterns and trends that inform strategic actions.
• The cash recoveries will usually come from overpayments or duplicate payments, missing credits or supplier discounts.
• As the number of beneficiaries enrolled in Medicare Advantage has increased, the HHS OIG has focused more of its efforts on addressing the risks of fraud, waste, and abuse in Medicare Advantage and has developed a strategic plan for its oversight.
• In September 2023, Cigna paid $172 million dollars to the federal government in order to resolve False Claims Act allegations that it provided inaccurate data on patients’ diagnoses to inflate payments, though there was no determination of liability.

Using our proprietary software, our auditors ran an exception report to analyze all invoices to identify each instance of duplicate payments. The duplicate payments balance sheet uncovered during this process were flagged due to patterns such as identical PO and invoice numbers, invoice dates, and invoice amounts for individual vendors. Establishing matching criteria to identify potential duplicates enabled our team to clearly identify instances where the same payment was made more than once. To enhance the detection process, companies can employ software tools designed for financial analysis.

results

The review is a historical look at supplier spend, combined with a comprehensive audit process. It begins with the collection of data which typically requires a simple transmission of specific files without any need for special programming. OCR-enabled tools digitize invoice details and match them against purchase orders, vendor records, and past transactions.

What are AP automation tools?

Preventing duplicate payments requires a multifaceted approach encompassing people, processes, and technology. Implementing robust internal controls and segregation of duties can help mitigate the risk of duplicate payments arising from human error or fraudulent activities. Establishing clear approval workflows and documentation procedures can streamline the invoice approval process and reduce the likelihood of duplicate payments slipping through the cracks. Additionally, a  well-maintained vendor master file is critical to duplicate payment prevention. Moreover, leveraging automation and software solutions, including duplicate payment prevention tools in addition to controls in the ERP, can enhance the efficiency and accuracy of Accounts Payable processes, minimizing the risk of duplicate payments. During the duplicate payment exception report analysis portion of the full-scale accounts payable recovery audit, we conducted a thorough root cause analysis to identify any systemic issues, process gaps, or human errors contributing to the problem.

I’m sure it takes some creative and sometimes aggressive tactics to get the money back. Strategic Audit Solutions, Inc. we specialize in delivering exceptional Recovery Audit services backed by decades of expertise and cutting-edge tools. Contact us today to learn how we can help your organization unlock hidden value and achieve financial excellence. We can merge data sets of any size and from a variety of different sources to examine possible recoveries across group companies and organisations. To manage these processes and ensure you’re hitting targets, utilize resources like the Financial Audit Preparation Checklist. In the continuously advancing world of technology and automation, there are inherent risks.

• There is no cost until you receive an economic benefit for each recovery, in the form of a deduction from payment, or receipt of a check from the respective supplier.
• The impact of duplicate payments extends beyond mere monetary losses, tarnishing the reputation of businesses and eroding trust with vendors.
• Before undertaking any audit, prep your team so they are on board from the get-go.
• Our Duplicate Payment Identification case study outlines how we’ve helped a multi-billion dollar regional healthcare system recover over $2,700 per staffed bed, including duplicate payments, that would otherwise have been lost.
• For example, the Justice Department is litigating actions against UnitedHealth Group, Elevance Health, and KaiserPermanente regarding the accuracy of their diagnosis data used for risk adjustment.

Measure performance and improve P2P process efficiency

It is an opportunity to evaluate and strengthen your controls and streamline processes. It also ensures compliance with regulations, internal procedures and supplier contracts or agreements, and can even alert you to potential fraud. There duplicate payment recovery are accounting tools that can identify fraudulent activity and duplicate payments. Implementing such software into your business operations adds another layer of security to your financials. In short, duplicate payments are erroneous instances in which an original invoice is entered incorrectly or a second invoice enters the processing system.

• Technology adds multiple checkpoints across the invoice lifecycle—helping teams catch errors early while reducing reliance on manual oversight.
• Accounts Payable Audits play a pivotal role in identifying and rectifying duplicate payments.
• Automation of invoice data entry reduces the risk of human errors and duplicate payments.
• For example, you might overpay a utility bill or issue a duplicate payment for the same invoice, in which case you’d need to get in touch with the service provider to recover your overpaid funds.
• I wonder how many people return a check for overpayment that doesn’t belong to them.

Ensuring the accuracy and integrity of accounts payable processes is key to reducing duplicate vendor payments for your healthcare system. Duplicate payments represent a significant challenge, often resulting from human error, system glitches, or inefficiencies in internal controls. Using our risk detection software, our experts perform an audit of the last 2-3 years of your transactional data. They identify and verify duplicates, overpayments and potential occurrences of fraud.