Overpayment mistakes are a common issue for B2B finance teams, causing millions in lost funds each year. The good news? There are steps you can take today to lower the chances of overpayments going out the door.
1. Limit Invoice Submission Methods
One of the easiest ways to stop overpayment mistakes is to reduce the ways suppliers can send invoices. When there are many ways to submit, it’s easy to accidentally enter the same invoice twice. If a supplier uses electronic invoicing, avoid allowing manual submissions as an additional option. A consistent submission method reduces the chance of errors and ensures smoother processing.
2. Keep Invoice Coding Consistent
While it may seem basic, inconsistent invoice coding can be a root cause of duplicate payments. Ensure that your team adheres to a standardized approach, whether it’s keying invoices as they appear or stripping out zeros and alphas. Consistency in coding helps reduce the chances of overpayment exceptions.
3. Reduce Manually Processed Invoices
Handling invoices manually can lead to a lot of mistakes. Human error is inevitable, especially when dealing with high volumes of data. By decreasing the number of invoices processed manually, you lower the chances of mistakes.
4. Be Careful with Blanket POs
Blanket purchase orders (POs) can simplify procurement, but they also increase the risk of duplicate payments. While POs provide necessary controls, larger numbers of duplicates often arise when using blanket POs. Be cautious and consider employing more specific POs, even if it requires additional administrative work. Detailed POs ensure better tracking and fewer errors.
5. Implement a 24-Hour Payment Delay
Adopting a mandatory 24-hour delay before processing payments can act as a failsafe against errors. This buffer period allows for proper due diligence and review of all invoice details. While some may argue that this could delay payments, the benefits of catching potential issues early outweigh the minor inconvenience.
6. Work with a Third-Party Expert for Better Solutions
Teaming up with experts like apexanalytix can help prevent overpayments more effectively:
- Recovery Audit Services: Regular audits can find overpayments that have already happened and figure out why, whether it’s due to coding problems or bad master data.
- Overpayment Prevention Tools: Use software that stops duplicate payments before they occur. apexanalytix provides a solution designed specifically for this purpose.
- Vendor Master Maintenance: Keep supplier information accurate and updated. Tools that enhance and check vendor data in real-time, like Intelligent Data from apexanalytix, help avoid issues that can lead to overpayments.
By taking these straightforward steps, you can greatly reduce the chances of overpayment mistakes, ensuring your company’s financial health and strengthening supplier relationships. Start integrating these tips into your daily work and think about the solutions offered by experts like apexanalytix to improve your strategy.
Working with apexanalytix not only gives you access to expert knowledge and advanced technology but also brings you peace of mind, knowing you are partnering with an industry leader in supplier risk management. We have 35 years of experience conducting recovery audits, providing specialized software, and maintaining vendor data. Get started today.
