This is the most important step in the audit review. Meeting with our client’s representatives to explain what AP audits are and how they can benefit our client’s bottom-line. Remember, in most cases our client does not even realize these overpayments have occurred.

We will provide a list of data needed for the audit to be conducted. This usually includes payment history to the vendors, invoice data, and vendor contact information. This information will be kept confidential and ERJ will be acting as an extension of our client’s accounting department.

After the acceptance of ERJ services, our client will designate a representative to collect and provide the historical data needed to conduct the post audit review. Generally, post audit reviews are historical reviews that can go as far back as 4 years from the current date. The time needed to prepare data for 12 months versus 48 months is usually the same process and time. Therefore, it benefits our client to perform a multi-year audit versus a one-year audit. Additionally, errors can occur through multiple years, maximizing the findings and returns for our client.

Once the data is received, ERJ will review to better understand our client’s payment processes and adjustments. This is usually accomplished in a short period of time along with a short discussion with our client’s rep who will help ERJ understand the data and how it flows.

At first, several potential claims will be presented allowing our client the opportunity to review the validity of the claim/error discovered by ERJ and approve as such. Once our client is comfortable the claim is correct and an overpayment was made, the audit will then proceed to recover maximum dollars due our client.

Once ERJ receives the data, the process to complete the audit will take approximately 8 to 12 weeks. However, the timeframe can vary per audit.

Once a claim has been discovered, ERJ will contact the vendor and provide a claim report. This report will include all data needed by the vendor to research the claim and understand an overpayment was made. The vendor will have an opportunity to dispute the claim and provide data showing the claim was previously corrected or is itself incorrect. If the vendor agrees or does not respond in a timely manner (generally 21-days), the claim will be provided to our client for deduction.

After the audit has been completed, ERJ offers an opportunity for a virtual meeting to go over the results of the audit and how the errors were discovered. This is a great tool for our client to make changes/corrections internally to help eliminate some of the over payments. We will provide examples of what was duplicated and where it was discovered.

ERJ’s best in class approach to any AP recovery audit engagement begins with an effective recovery audit project plan that is developed in collaboration with our client’s specifications and needs. Our recovery audit process is precise, controlled and defined, specifically targeting duplicate payment errors and statement review audits on behalf of our client.

An AP Accounts Payable Audit is a historical or real-time review of our client’s Accounts Payable data to identify erroneous overpayments and/or under-deductions made to their suppliers. There are many areas of an Accounts Payable Recovery Audit, such as payment terms, accruals, rebates, allowances, pricing, contract terms, real estate leases, among others. However, ERJ specializes and is laser focused on duplicate payments and statement audits maximizing ERJ findings for our clients. Bottom-line, fast money back for our client.

After the planning, communication, and receipt of the client’s data, and depending on the quality of data received from our client, a duplicate and statement audit takes approximately 60 to 120 days to complete.

The audit has minimal intrusion of our client’s staff. Generally, there will be an IT contact to communicate and receive the data and then a representative to review and approve the validity of errors discovered by ERJ. Finally, a means to have the errors deducted from the suppliers so the error can be recovered.

Our recovery rate is 94% to 96% of all recovery claims submitted to our client’s suppliers. With our experience, knowledge, and systematic reviews, we eliminate many false positives prior to submitting any claims for deduction.

It can vary. For example, the quality of data provided and the gross dollar amount paid out to suppliers. For example, from our most recently completed audit, we discovered and collected $300k in just duplicate payment errors alone.

Payment to ERJ will be on a contingency basis, and ERJ is paid a percentage of our client’s net recoveries. Net recoveries mean only sums actually received by our client directly as a result of ERJ's performance.

After a claim is deducted and 21 days later, ERJ will prepare and submit an invoice to our client for our services and will continue in a similar manner until all claims have been settled.