duplicate payment detection using idea
TRANSCRIPT
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Duplicate Payments
Accept they happen,
Use IDEA to find them
Andrew Cushion
Group Internal Audit
Dairy Crest
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DAIRY CREST
Company Profile
Cheese
• Dairy Crest is the leading
supplier of value-added
cheddar in the UK
• We sell 120,000 tonnes of
cheese per year in the UK
Household
• Supply over 600m litres of
milk per year
• Doorstep reach covers the
whole of the South of
England, serving 1.8m
homes a day
Liquid Products
• Dairy Crest has a 32%
share of all liquid milk sales
into UK multiples, making
us a strong No. 2 in this
market
Ingredients
• We are the largest UK Dairy
ingredients business and a
No1 exporter
Spreads
• Production of Packet Butter
has increased by over 400%
• Our key brand Clover is the
clear market leader in this
sector
Fresh Dairy Products
• Dairy Crest continue to hold
a leadership position in the
Fresh Dairy Products market
• We continue to build on the
successes of our brands Frijj
and Yoplait
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Accounts Payable Review – Choices ?
External
• No resource or expertise
in-house
• Better sales technique (No
win, no fee..)
• Specialist programmes
established by “Experts”
• Politically better if report of
errors provided by a
“Consultant”
• Access to data
Internal
• Can be done in-house!
• IDEA is the solution
• Can be part of people’s
development
• Enables better
understanding of
Accounts Payable
function
• Easier to find solutions,
fixes
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Accounts Payable Review – Steps
1. Obtain the data, (AP file and Supplier masterfile)
2. Import
3. Reconcile and validate data where possible
• Link AP file to Supplier Masterfile to identify Supplier
• Obtain site from Internal Invoice ref
4. Perform testing
• Same Supplier Invoice No.,date and amount
• Same Supplier Invoice No. and amount
• Same Amount and date ( Good Luck……..)
5. Identify and clear “corrected” entries
6. Review Supplier Masterfile
7. Extract reports for further investigation and reporting
8. Celebrate “unexpected income”
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Accounts Payable Review – Same Inv No, Date & Amt
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Accounts Payable Review – Same Inv No. & Amt
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Accounts Payable review
Review of Supplier masterfile & Invoices processed and paid
• 12,000 Suppliers on System
• A number of suppliers apparently set up more than once
• Quality of data ………..room for improvement
• 8,446 used in previous year
• 1,400 used only once
• 3,500 used 5 times or less
• 1,600 with spend less than £500 in previous year
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Accounts Payable review
Lessons learnt
• Need to understand AP systems, processes and
controls
• Must set “economic” levels to review
• “Areas for improvement” should be addressed ASAP
• Establish macros or better still…IDEA User Group
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Accounts Payable review
What else can you do?
• Identify “duplicated” suppliers
• Identify key suppliers to the business
• Link AP with GL, identifying expenditure by category by
supplier, opportunities for rationalisation
• Carry out VAT testing