Multi-location health system combines SAS analytics with automation technology to detect root causes, enhance payment accuracy and protect bottom line.
Challenges
- Large Amount of Duplicate Payments
- New P2P System Implementation
- Leadership Change/ Staff Turnover
- Multiple Vendor Masters
- Paper AP Invoices
Objectives
- Identify and Prevent Duplicate Payments
- Minimize Contingent Audit Fees
- Streamline AP Processes
- Gain Visibility to Process Breakdowns & Compliance
The Situation
Upon joining the organization, the new CFO prioritized evaluating Accounts Payable (AP) processes and investigating financial losses. The assessment revealed significant deficiencies in AP processes, compliance, tools, and internal controls, including paper invoice processing and multiple unmanaged vendor masters. This environment increased the risk of duplicate payments and complicated financial management.
In an attempt to address these issues, the client implemented a new Procure-to-Pay (P2P) system designed to automate invoice data capture, workflow management, and document storage. Despite high expectations, the technology inadvertently exacerbated the underlying problems, triggering an increase in duplicate payments.
While root cause issues were identified, the organization lacked a systematic approach to detect and prevent duplicate invoices before payment. Over two years, the compounding effect of these issues left the client grappling with thousands of overpaid invoices, compromised cash management, reduced operating income – and a widespread duplicate payment problem.
