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Metrics / Facts

Causes Of payment Error

  • Installation of New Computer Systems / Modifications of Existing Computer Systems - Our customers utilize a wide range of computer systems. Some use home-grown / in-house developed systems. Others use commercially available software packages. From time to time new systems are installed or modifications are made to existing systems to improve functionality. While these system changes undergo user acceptance testing, it is not unusual for these tests to miss certain unusual circumstances. Our independent review will identify any systemic issues that may exist, quantify the extent to which any over-payments occurred, and recover these funds for you.
  • Inconsistent User Training And System Knowledge - If new software is installed or if system changes occur, the accounts payable staff will need to be re-trained. It is unlikely that all users consistently learn and apply the new functionality. It is therefore possible for new features to be mis-used, at least for a period of time during conversion.
  • Staff Turnover - Organizations will experience turnover in their procurement and payables departments. When this happens, new associates will need to pick up where their predecessor left off. Arrangements with suppliers may not be completely communicated, making it easy for special terms, allowances or pricing to be over-looked.
  • Staff Vacations or Absences - When key associates take time off for vacations or other leave, it is common for workloads to get re-allocated among the remaining staff members or assigned to temporary associates. Associates that are "filling in" may not be fully aware of all processing requirements that exist for suppliers. This can result in payment error.
  • Demanding Workloads / Headcount Constraints - Organizations are continually challenged to do more with less. As operating budgets tighten, more pressure is exerted on finance and accounting personnel to meet everyday obligations with fewer resources. As more transactions are handled by fewer people, the potential for an occasional error increases.
  • Delays In Communication Between Procurement and Payables - It is very common for the procurement staff to negotiate a new supplier agreement that is to be effective immediately, or as of a certain date. It is also very common for delays to occur in the communication and implementation of these new terms. Delays can range from a few days to weeks, during which you are potentially missing the negotiated benefits.
  • Basic Human Error - Last but not least, from time-to-time we all make mistakes. When transaction volume is high, the likelihood of at least some error exists.

Depending on the environment, some or all of these factors may be at work within the disbursement process. It is precisely for these reasons that an on-going recovery program should be put in place. It is virtually impossible to avoid ALL processing errors.

Let Disbursement Review, LLC be your safety net to recover what would otherwise be lost funds. An independent, transaction-level review will provide assurance that any payment errors or omissions are identified and recovered.




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