Essential information
Procure-to-Pay analysis & recoveryProcure-to-Pay analysis is the systematic process of reviewing payment transactions and related supporting data to identify and recover various forms of payment errors to suppliers. Any procurement transaction offers opportunities for payment errors, irrespective of the sophistication of Accounts Payable (AP) transaction systems. These errors elude even the best control systems and can create meaningful 'lost' profits. Data entry mistakes, duplicate payments, missed discounts, overlooked pricing agreements, missed input VAT - these small errors can take many forms. Why do errors occur?Almost every AP system, whether Enterprise Resource Planning (ERP), or legacy, has built-in controls to track, flag and eliminate duplicate payments. Due to the human interaction none of these systems are robust enough to prevent more than 70 to 80 percent of payment errors on their own. The simple truth is that people make mistakes from time to time. Although the percentages of transactions that contain errors are extremely low, it creates meaningful “lost” profits. Typically an invoice entry includes the supplier number, invoice number, invoice date and invoice amount. If any of these fields are entered inconsistently, most systems' inherent payment verification will not be effective. Add to this payment requests that may not have a defined or matching invoice number and it is understandable how payment errors can slip through the cracks. Completing a Procure-to-Pay analysisYou could perform your own internal analysis, but the reality is that you do not have the dedicated tools to perform it effectively, therefore you would probably only review a sample set of transactions. Furthermore your staff would be taken away from their real responsibilities. With our state of the art proprietary technology, we perform sophisticated data mining and analysis to cost-effectively review 100% of your transactions to identify payment errors. Once payment errors are identified we engage with your suppliers to recover the payments made in error. How much does it cost?BITTS works on a contingency fee basis. If we do not identify & recover any errors, you do not have to pay us anything for our service. We provide a guarenteed 100% return on investment (ROI). Staff involvementBITTS will minimize the involvement from your staff during the engagement. We execute the project largely off-site at our office. Occasionally we will require assistance for verification & clarification purposes during the data acquisition. We guarantee to keep to a minimum the disruption to your staff. During a Procure-to-Pay Analysis & Recovery service, we encourage regular meetings to keep you informed on the status & progress of the project. Supplier relationshipsBITTS acknowledges that supplier relationships are a critical aspect of your business. We will not contact any supplier without your approval. We will not spoil any supplier relationships with our process. Our Staff is specially trained to manage supplier relationships. Confidentiality of dataAll data and documents provided to BITTS are kept strictly confidential. We have confidentiality agreements in place with all of our customers. Furthermore our servers are located in a secure environment and access to any of the data is restricted and controlled. |
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