Common Recoveries
Video: Common Recoveries Found in Accounts Payable Audits
From duplicate payments to missed rebates, every AP audit uncovers hidden opportunities for recovery. In this video, AP Impact’s Karl Andersson explains the top categories of recoveries and why they occur — including data entry issues, vendor master errors, and process breakdowns.
A must-watch for finance leaders, controllers, and AP managers who want to understand where recoveries come from and how to prevent them in the future.
Transcript
Common Recoveries in Accounts Payable Audits
Presented by Karl Andersson, AP Impact
Hi, this is Karl Andersson from AP Impact, and today we’re going to talk about common recoveries that occur in accounts payable audits.
Here’s a listing of some of the more frequent types of recoveries that happen within most accounts payable audits. Every organization is different — some may experience more of one type versus another — but this overview will give you a sense of the most common recovery opportunities we see across companies.
1. Returned Merchandise or Product
One of the most common recovery types we identify involves returned merchandise.
Essentially, you ordered something, it was delivered, and you paid for it — but for some reason, the item was returned, and the corresponding credit never made its way back into Accounts Payable.
This can happen with:
• Inventory items
• Capital purchases
• Office supplies or consumables
In many cases, the return is processed operationally but isn’t properly tracked or matched back through the AP system, leaving the payment unrecovered.
2. Missed Rebates
Another frequent recovery category is missed rebates.
You might have reached certain purchase volume thresholds that automatically trigger rebate credits or pricing incentives from suppliers — but those credits never reach Accounts Payable.
They often remain only on the supplier’s records, meaning the buying organization never realizes the benefit it earned.
3. Defective or Erroneous Payments
There can also be a range of defective payments, such as:
• Overpayments
• Duplicate payments
• Incorrectly matched receipts or invoices
We frequently see receiving errors that trigger recoveries — especially when two-way or three-way match processes are involved. If a receipt is entered incorrectly, it can lead to overpayments or unreconciled balances that need to be recovered.
4. Duplicate Payment Errors
Perhaps the most recognizable type of recovery is the duplicate payment.
At AP Impact, our AP.Guru platform identifies duplicate payments that can occur for a variety of reasons, including:
• Data entry errors
• Unclean or incomplete vendor master files
• Duplicate vendor master records
• Multiple ERP systems not fully integrated
• Improperly configured system controls
For example, an invoice could be entered in two separate systems after an acquisition, or within the same ERP under slightly different vendor details.
By leveraging the advanced analytics within AP.Guru, we can pinpoint and recover these duplicates as part of a comprehensive accounts payable audit.
Closing Thoughts
There are many different types of recoveries that surface during an AP audit — from returns and rebates to duplicate and overpayments. Each represents an opportunity to improve process accuracy and reclaim lost dollars for your organization.
If you found this information useful or have questions about how to uncover similar recoveries within your environment, we’d love to hear from you.
Please visit us at www.apimpact.com or contact our team for more information.
Thank you for your time, and have a great day.