The purchase to payment process (P2P) remains one of the most complex business processes, often spanning multiple systems and operations. Despite the level of automation, including enterprise resource planning (ERP) implementations, P2P remains an area prone to fraud, money leakage and inefficiencies. ERP systems are by nature, platforms for continuous business improvements. However, as ERP systems evolve to accommodate changes in business processes and polices, the internal control environment may become compromised and deteriorate as a result of the very changes introduced to initially help the business.
Overpayments, false invoicing and theft of inventory remain as major sources of fraud. Interestingly, it takes an average of 342 days to detect a fraud, at which point 89% of all proceeds are unrecoverable.* For the average organization with $1.5M in fraud per year, $1.34M is lost.
CaseWare™ Analytics Procure-to-Pay Monitoring
With CaseWare Analytics, Management is provided with an independent point of observation over its P2P business processes. Any P2P process can be monitored, regardless of the underlying systems, data sources or locations. In a single analytics platform, data from these disparate sources are consolidated and the anomalies are presented for management to review. The analytics platform provides insight into the overall health of procurement controls from Requisitioning through to Payment as well as Segregation of Duties and Vendor Master Data. With automated monitoring, Business Process Owners are able to reap significant cost savings by identifying and resolving issues at source, rather than during periodic audits. The organization also gets the added intelligence of identifying root causes that can now be addressed to help with overall improvement of the procurement process.
- Identify and Resolve Control Failures closer to the Point of Occurrence
Bring cost recovery savings in-house by identifying and resolving control failures as they occur, thereby improving recovery rates and lessening reliance on post-recovery audits.
- Fewer Improper Payments
Immediately detect fraudulent, erroneous or duplicate payments. Avoid business transactions with unapproved or potentially duplicate vendors.
- Sustaining Compliance while Implementing Change
Introduce business changes with confidence knowing that you have a bird’s eye view of all application and process controls. Let day-to-day operations run their course by allowing for known control deficiencies while continuously monitoring for its abuse.
*2012 ACFE Global Fraud Study
- Dead stock analysis
- Top/Bottom purchased items
- Highest/Lowest turnover
- Excessive inventory level changes
- Price Change impact
- Invoice made before Purchase Order
- Invoice does not match Purchase Order
- Invoice limits exceeded
- Invoice numbers sequence anomalies
- Invoices to prohibited Vendors
- Invoicing SoD conflicts
- Payments do not match Invoice
- Duplicate payments across payment systems (ERP, E-payables, P-cards)
- Split Payments
- Rapid Payments
- Gaps in Check numbers
- Payment SoD conflicts
- Purchase Orders limits exceeded
- Split Purchase Orders
- Old Purchase Orders
- Duplicate Purchase Orders
- Purchase Orders do not match Requisitions
- Purchase Order SoD conflicts
- Receiving vs. Purchased
- Receiving SoD conflicts
- Potential Duplicated Vendors
- Vendors with invalid or missing information
- Vendor-Employee and other related parties matching
- Vendors removed/added
- Vendors on PEP, OFAC lists