Why Duplicate Payments Still Exist and How Can You Catch Them?

Despite all the advances in ERP systems and AP automation, duplicate payments remain one of the most persistent and costly issues in accounts payable. According to APQC’s Open Standards Benchmarking^® Assessment in Accounts Payable, even top performers report that nearly a full percentage point of their annual disbursements is duplicate or erroneous. For bottom performers, that figure more than doubles¹.

So why are companies still sending the same payment twice—and what can be done about it?

The Impact of Duplicate Payments

“Duplicate payments are a financial pitfall that can affect any organization’s bottom line” (Accounting Insights)². They reduce cash flow, create vendor disputes, increase reconciliation workloads, and in some cases, open the door to fraud or regulatory scrutiny. Left unchecked, these issues quietly chip away at your bottom line and operational efficiency.

Why They Still Happen

Even with controls in place, the following factors continue to create opportunities for duplicate payments:

1. Human Error

”One common cause of duplicate payments is simply human error” (BCS ProSoft)³. Small inconsistencies, such as a space or dash, like “INV-1001” vs. “INV1001” or assigning different due dates to the same invoice can bypass system checks and lead to duplicates.

2. Multiple Submission Channels

When vendors submit invoices by email, mail, portal, or EDI to different contacts—AP teams without centralized tracking may process both versions.

3. Loose Workflow Controls

Urgent payments made outside of the AP system, delays in updating invoice statuses, or system glitches can all result in untracked or repeated payments.

4. Inconsistent PO Matching

When invoices are not consistently matched to purchase orders and receipts, duplicate payments may be approved, especially in the case of partial shipments or multiple billings against one PO.

5. Duplicate Vendor Records

Non-standardized naming conventions (e.g., “ABC Co.” vs. “ABC Company, Inc.”) or lack of vendor master file maintenance can result in multiple payments to the same supplier.

What Can You Do About It?

Preventing duplicate payments requires layered safeguards, no single tactic is enough. Here are several strategies that work best, in combination:

1. Automate Invoice Matching

Implement three-way matching within your ERP or AP system. This ensures invoices align with approved POs and receipts before payment is released. If receiving data is not available, two-way match would be an alternative safeguard.

2. Use Duplicate Detection Software

Advanced tools apply sophisticated algorithms and fuzzy logic can identify potential duplicates far beyond what basic ERP rules can catch. Learn more about our DupeDEFENSE real-time detection software.”

3. Establish Clear Data Entry Protocols

Set company-wide standards for invoice entry (e.g., vendor naming conventions, handling of hyphens, leading zeros), ensure AP staff is up to date on training and updates, and implement a senior level approval process for both urgent and large payments.

4. Clean Your Vendor Master File

According to CFO.com, “Every organization should do quarterly (or at the very least, annual) maintenance on the MVF to ensure records are complete, duplicate entries are removed, and inactive vendors are archived or deactivated.”. (CFO.com)⁴. In short, “…do everything possible to ensure the vendor database your systems are relying on is as complete, accurate, and robust as possible.” (Strategic Audit Solutions)⁵

5. Bring in an AP Recovery Audit Partner

An Accounts Payable recovery audit provides a broad safety net for identifying financial discrepancies. Experienced audit firms use a combination of specialized software and highly skilled professional auditors to detect and recover overpayments and offer insights on root causes to prevent future occurrences. Discover how our duplicate payment recovery audits work.

Final Thought: It’s About Progress, Not Perfection

Let’s face it—eliminating duplicates is not realistic for most organizations. “Duplicate payments are simply a fact within the accounts payable world… they can happen, they do happen, and they’ll happen again” (MHC)⁶. But with the right tools, policies, and oversight, you can dramatically reduce their frequency and impact. Think of it as a continuous improvement effort: the fewer duplicates you make, the more confident and cost-effective your AP process becomes.

Ready to Take Action Against Duplicate Payments?

Whether you need to recover existing duplicate payments or prevent future ones, Strategic Audit Solutions has the expertise and technology to help. Schedule a consultation to discuss your specific needs.

¹ APQC. Open Standards Benchmarking® in Accounts Payable. Retrieved from www.apqc.org

² Accounting Insights. (May 2, 2024). Preventing and Resolving Duplicate Payment Issues. https://accountinginsights.org/preventing-and-resolving-duplicate-payment-issues/

³ Wiggins, Perry D.  (March 3, 2020) Metric of the Month: Detect and Prevent Duplicate or Erroneous Payments, CFO.com. https://www.cfo.com/news/metric-of-the-month-detect-and-prevent-duplicate-or-erroneous-payments/656852/

⁴ Lazarine, Ray Duplicate Payments in Accounts Payable: 10 Ways to Prevent Them, BCS ProSoft. https://www.bcsprosoft.com/duplicate-payments/

⁵ Strategic Audit Solutions (July 2020). Vendor Master Database – The Cornerstone to a Successful Supply Chain. https://www.sasrecovery.com/vendor-master-database-the-cornerstone-to-a-successful-supply-chain/

⁶ Team MHC. (July 28, 2023) Duplicate Payments: Best Practices to Prevent Them. MHC. https://www.mhcautomation.com/blog/how-to-prevent-duplicate