Approximately 0.5% of all invoices paid are paid more than once
Unnecessary payments made due to duplicated invoices are a bigger problem than most organisations realise. The Accounts Payable Association found nearly two thirds of UK finance professionals have received duplicate invoices, with a third ending up paying them, while other studies suggest duplicate payments make up approximately 0.5% of all invoices paid.
Accidentally paying the same invoice twice may not be a huge issue if it is an isolated event, but if it is a common occurrence over several years, it could cost organisations hundreds of thousands of pounds, which is still recoverable.
At a time when the financial impacts of Covid-19 are forcing both private and public sector organisations to revisit their expenditure, duplicated payments are not a mistake they can afford to make. Action needs to be taken sooner rather than later, or organisations risk continuing to make costly over payments.
How do duplicated payments occur?
Organisations use trusted suppliers, but unnecessary payments continue to be made leading to potential loss of revenue … so why are you receiving duplicate invoices?
- Data entry errors – From loss of concentration when manually creating hundreds of invoices a day
- Supplier duplicates – Duplicate suppliers in your systems may lead to duplicate invoices being generated
- Paying from multiple source documents – When two separate source documents are submitted for a single payment
- Invoices sent via different methods – Duplicates can occur if invoices are posted, faxed and / or emailed
- Lack of PO number – Duplicate payments may occur if the supplier does not include the PO number
How Can Liberata Help?
The Duplicate Payment Recovery Service from Liberata, identifies duplicate invoices that have been submitted for payment using a risk scoring mechanism to identify the highest risk items, enabling finance teams to commence recovery of duplicated payments that they potentially didn’t even know were lost. This on average can equate to between £750,000 and £1,250,000 for a £50m annual spend over 5 years.
Built using our cutting edge Finance Cloud technology, the Duplicate Payment Recovery service utilises a standard workflow with appropriate checks and balances to ensure that each potential duplication is validated, recorded, and actioned appropriately. Organisations can undertake the review on a completely risk-free basis, should no duplicate invoices be identified there is no payment required for the service.
Click here to identify how much you may have paid in duplicate payments over a 5 year period by utilising our duplicate payments calculator.