Studies have reported that the payment error rate in most enterprises is typically between 0.1% and 0.4%, which seems miniscule until you consider that these figures add up to $1 million or more for a company with a $1 billion total spend.
HP has five tips on how finance organizations can “fall back in love” with their procure-to-payment (P2P) processes:
1. Rekindle an old flame by analyzing supplier transaction databases to find financial recovery opportunities
2. Kiss and make up by identifying the issues that led to the payment errors
3. Compromise (a must in every relationship) by negotiating repayments with suppliers
4. Avoid future heartbreak by creating a roadmap to improve existing P2P processes and prevent loss recurrence
5. Steer clear of lovers quarrels by establishing best practices to avoid past mistakes and P2P heartache
HP helps finance organizations implement a long-lasting and successful Payment Recovery Services strategy. Capturing and recovering overpayments can have a tremendous positive impact on any firm’s bottom line. Payment recovery audits create opportunities to further optimize the P2P process. They also contribute to the integrity of the financial information through the review and correction of spend transactions for the organization. All this translates into a love story that will give CFOs butterflies when they think of their P2P processes
(Photo courtesy of Salvatore Vuono)
