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    Added Sep 11, 2017 Views 25 Rating
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    2 Ways Duplicate Payment Audit Is Carried Out

    Making duplicate payment is a serious financial drain that a lot of organizations are dealing with. When you pay for the same invoice twice accidentally, then you obviously are tossing money, which is the reason why any business has to practice duplicate payment audit. This will otherwise eat your margin and inhibit the financial progress of your company at the same time.

    On average, there are around .05 percent of paid invoices made in error and for that, it result to a huge loss on the part of the company. It is vitally important that the accounts payable team be on the lookout constantly and take the stpes to prevent paying the invoice twice. Obviously, duplicate payments may be prevented through duplicate payment audit which may also provide great benefits in terms of boosting profits, curbing losses and also helping the company to maintain a better cash flow.

    The steps below are going to help you tighten controls that surround invoice processing which will then allow you to permanently eliminate making duplicate payments.

    Tip number 1. Review your vendor master files regularly to remove duplicated vendors – your accounts payable system or also known as ERP system must be designed to accommodate just one vendor master file record on every supplier. On the other hand, there are other activities that may prompt duplication of the vendor master file.

    To give you an example, when the vendor invoice is entered into ERP system manually or automatically, duplicate vendor master file will be made if there is a different vendor code selected. This new file and code would be attached to the same vendor that has the same or possibly different bank details.

    The end goal here of duplicate payment audit is on eliminating outdated information, removing duplicate vendors and possibly sending letter to all vendors requesting them to confirm their contact info.

    Tip number 2. Control rush check requests – yet another vital process of duplicate payment audit in avoiding making duplicate payments. This is due to the reason that there are some vendors that are requesting for rush check which is typically issued with check request form before they send in their invoice. It isn’t bad to give out a check but problems do rise when there’s no appropriate backup for the said rush check or perhaps the info indicate that the vendor has already been issued a check. There’s a chance that duplicate payment occurs when the vendor sends the original invoice.

    Well what the accounts payable team do in their duplicate payment audit is to ensure that there’s a solid backup and at the same time, the payment info is entered ASAP to the system once the check is issued.

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