Freight Payables Review

Issue: A large equipment rental company wanted to maximize freight payables recoveries and identify opportunities for process improvement. Findings: These findings were the result of identifying and recovering invalid freight charges on vendor invoices. According to the contract, these freight charges should have been paid by the vendor and not passed along to the client. A thorough data analysis of accounts payable history was performed using industry leading audit software. Inconsistencies were identified and flagged for audit review. Specific exception items by vendor and date were detailed. Even more important than electronic exception reporting was the detailed review by experienced audit professionals of source documents (invoices, purchase orders and receivables) as well as vendor program sheets. Financial Impact: Our root cause analysis identified a freight recovery opportunity which generated $280,000 in net recoveries for the annual period under review. Solution: As a result of the claim findings and best practice recommendations published in the post-audit management reports, the client has an opportunity to significantly reduce future freight expenses.

For more information on Freight Payables Review talk to Cost and Compliance Associates Ltd