Missing credits can potentially be costing your business a lot of money.
From experience, missing credits make up to 60% of all our recoveries, sometimes equalling thousands of pounds of outstanding credit from suppliers.
A supplier matching exercise can highlight these missing credits, with the autorecs. software quickly identifying any outstanding credit on supplier statements. The missing payment will be flagged via a push notification to automatically notify your supplier.
autorecs. promotes a prompt payment practice.
By analysing and reviewing contractual compliance, suppliers who regularly pay early will be rewarded with subsequent rebates, benefitting the supplier and finance teams respectively.
The Prompt Payment Code is becoming more and more important in the supply chain and will be coming into law in the near future.
Human error and a hectic workload can lead to numerous mistakes in the supplier statement process for AP functions.
Everything from duplicate supplier names, addresses, codes and inactive accounts can lead to errors. Which is why autorecs. allows AP functions to download reports highlighting any discrepancies, streamlining the process and avoiding payment errors.
Recovery audits often highlight credit notes being paid as invoices.
The autorecs. portal highlights if the supplier has a record as a credit note, and that this will appear on an AP function’s purchase ledger as an invoice.
From here, finance teams can reclaim further revenue where a payment record has been created, where they should have used it as a credit against further remittance.
Overpayments and underpayments are very common in the world of accounts payable, and they often create additional admin work for busy AP functions and finance teams.
The benefits of autorecs. clear user-interface means AP functions and customers see the total amount of invoices in value, which highlights over or underpayments clearly for both parties.
Statement reconciliation is a critical part of an AP function or finance team’s role. The process involves AP functions monitoring supplier invoices, reviewing whether a supplier’s balance is correct against their accounts payable ledger.
As part of the process, a statement or record of transactions will be submitted by a supplier, and the AP function’s role is to discover any potential discrepancies or errors against their ledger.
If there are any discrepancies or inconsistencies, an AP will have to chase them over or underpayments to ensure the ledger is balanced.
The statement reconciliation process is vital, as it ensures that any missing payments are recuperated, as, in some cases, businesses can lose thousands of pounds in underpayments or missed payments relating to invoices or credit notes.
It can be broken down into 3 key steps
AP teams should firstly always check the VAT number and remittance address matches your ledger or system.
AP team should then be aware that the date you receive the statement will be different to the date on the statement, meaning the run date will need to be adjusted to reflect this in the Aged Payables report.
After comparing the documents, all transactions that have been accounted for can be marked as ‘agreed’ and therefore removed from the reconciliation process.
AP teams must then confirm that any recent discrepancies or unallocated payments and credit notes are included in the statements. This is to ensure that all payments are accounted for.
After all invoices and credit notes that match to the ledger have been agreed, for any remaining items, these will become the basis of the reconciliation.
Due to timescale lagging, in some cases, you may see a situation where copy invoices are being requested or sent which aren’t required. This is when duplicate payments start to occur.
With such a high volume of statements being sent by clients, the traditional statement reconciliation process is open to human error.
So, as the workload increases for AP functions, any errors may be overlooked, and as time passes, it makes it much harder to recuperate any missing payments.
These continual errors can potentially lead to unsatisfied customers, which can devastatingly lead to losing business you’ve worked hard to keep over the years.
Autorecs. is an automated supplier statement reconciliation software, which offers plenty of benefits to busy AP and finance teams.
By investing in automation you can ensure:
By choosing to go automated, finance teams can easily follow up on any discrepancies, ensure that all teams receive invoices and credit notes and that there is never a backlog of statements.
This means businesses can ensure their suppliers are paid on time, reduce the likelihood of incorrect or late payments, stay on top of their cash flow and make sure they make the most of early payment discounts.
Save time, reduce enquiries and, most importantly, pay suppliers on time by automating your supplier statement reconciliation process with autorecs.