Just pay it twice: auditing payments in SAP

Posted by Prof. Dr. Nick Gehrke on Oct 31, 2016 5:00:00 PM

Part VI of the series: “Digitization of auditing SAP purchase processes”

Today’s blog post introduces three interesting indicators for exposing process shortcomings in the area of outgoing payments in purchasing processes.

  1. Digitization of auditing SAP purchase processes
  2. How process auditing is transformed through digitization
  3. Automated auditing of SAP master data
  4. Auditing of purchase orders and goods received
  5. Invoice auditing in SAP
  6. Just pay it twice: auditing payments in SAP
  7. The search for exotic processes
  8. Segregation of Duties in the SAP purchase process
  9. SAP data structure for the purchase to payables process
  10. The end of digitization - professional judgement in procurement

 

Before you proceed reading on the details of the indicators, I would recommend to read the concept of indicators in part 3 of the series first.

Auditing payments in SAP.png

 

Three TOP indicators for transactions in purchasing processes

Every indicator is associated with one process, one process area, one audit objective and one risk respectively. In the following, three indicators from the area of transactions in purchasing processes will be introduced.

Altogether I have designed and implemented 45 indicators for the purchase process. You can download the details about all purchase indicators here.


Download

 

Indications for duplicate payments

This indicator is associated with the audit objective of saving opportunities.

There is the risk that potential duplicate payments have a direct impact on P&L and cash flow.

The criteria for this indicator is:

A document with duplicate amount and high number of matching properties compared to other documents will be marked. Recurring entries are not compared.

 

Lost discounts

This indicator is associated with the audit objective of saving opportunities.

There is the risk that inefficiencies or working capital losses caused by loose payment management.

The criteria for this indicator is:

The document will be marked when the invoice has been paid after the defined due date. Cases are only taken into consideration when a positive discount has been maintained.

 

Payment to a bank account also used by another vendor

This indicator is associated with the audit objective of process standardization.

There is the risk of non-compliance of standard payment processes as well as the risk of duplicate master data entries.

The criteria for this indicator is:

The document will be marked when it is linked to a payment (CPD payments are not taken into consideration) and the used bank account is also associated with other vendors.

Topics: Purchase, payment, SAP, Audit

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