But why do these payment errors occur?
The vast majority of payment errors made to suppliers in accounts payable occur due to human error, which is an inevitability considering the transaction intensive environment that is AP. Typically internal controls are breached within an ERP which allows the payment errors to occur; be it a duplicate payment due to duplicate invoices being in circulation and there being multiple vendor codes for that particular supplier.
The AP market place is now flooded with solutions promising to eradicate any payment errors ensuring 100% of transactions are made correctly and to the correct supplier. This just isn’t, and can never be the case. There is always a ‘random’.
As advocates for best practice within Accounts Payable, we believe that following certain practices can help reduce NOT eradicate payment errors, and utilising particular solutions, payment errors can be located and recovered.