Essentials: Procure to Pay

Essentials:

Procure to Pay

Version 6.2.0 –2019/04

Supply chain risk is often a top strategic risk. It doesn’t matter the type of organisation you’re in, government, retail,

hospitality, services, manufacturing, healthcare, utilities, or otherwise, all organisations procure goods and services. The

Procure-to-Pay (P2P) process covers the most material risk areas, including requisitions, procurement, vendors,

receiving, invoicing and payables.

PAGE 3Accounts Payable

Don’t let anything slip through the cracks.

Sampling and manual cross- matching

purchase orders (POs) with invoices simply

doesn’t provide adequate risk oversight over

this

material process. Assess 100% of your

payables dataset to know with certainty

whether your requisitions and vendor billing

processes are healthy and accurate

Sample Analytics:

• Identify instances of PO date

occurring after invoice date

• Identify invoices paid greater than the

PO amount approved

• Identify instances if vendor paid by both

PO and sundry expense

PAGE 39Purchase Order ManagementTrack purchasing patterns and trends to

monitor the adherence of company policies,

keep expenses low, and illuminate

problematic sub-processes

Sample Analytics:

• Identify split POs with same vendor/ same

material / same creator, within X days

• Find duplicate POs with same vendor /

Same material / same quantity

• Identify goods received vouchers that are

30 days past PO approval date

PAGE 62Vendor ManagementEnsure that vendors are approved and have

been vetted for compliance against your

organisation’s vendor management take-on /

registration process

Sample Analytics:

• Matching of vendor and employee bank

accounts

• Vendors with the same bank accounts

• Vendors with similar names

PAGE 100Cash DisbursementsEnsure your cash disbursement controls

such as access, authorisation and

segregation of duties (SOD) are effective,

and that payments are made accurately

when due.

Sample Analytics:

• Review large vendors with large

disbursements in a specific time frame

• Duplicate cash disbursements

Version 6.2.0 – 2019/04

ContentsPage Analytic Name

5 Duplicate paymentsAP Analytic 01

7 Duplicate invoicesAP Analytic 02

9 Duplicate invoices using vendor’s numeric invoice valuesAP Analytic 03

11 Duplicate invoices sub analyticsAP Analytic 04

13 Future dated invoicesAP Analytic 05

15 Recurring sundry expense reviewAP Analytic 06

17 Invoices for one-time vendorsAP Analytic 07

19 Vendor payments made over a weekendAP Analytic 08

21 Invoices captured over a weekendAP Analytic 09

23 Invoices greater than a thresholdAP Analytic 10

25 Purchase order date after the invoice dateAP Analytic 11

27 Vendor paid by both purchase order and sundry expense AP Analytic 12

29 Invoices greater than approved purchase ordersAP Analytic 13

31 Manually released invoices (no 3-way match)

AP Analytic 14

Version 6.2.0 – 2019/04


33 Three way match re-performanceAP Analytic 15

35 Outlier invoicesAP Analytic 16

37 Early payment of invoicesAP Analytic 17

Duplicate PaymentsAP_ANALYTIC_01_APCS102

Identifies all potential duplicate payments to the same vendor for the same amount made

within a configurable time period

ACCOUNTS PAYABLE

Essentials – Accounts Payable Page 5

ContextHigh volumes of payments from all areas of the business are processed through the Finance function every day or payment cycle. It is vital to closely and continuously monitor these payments to detect potential fraud or errors.

RiskA vendor is paid twice or more, often through administrative errors or fictitious vendor invoices being

submitted for payment with details similar to an original valid invoice. This may result in overpayment to

vendors or irrecoverable financial losses.

ProcedureIdentifies potential duplicate payments made to the same vendor for the same amount within a

configurable time period (e.g. 14 days, 30 days).

Analytic LogicExtracts payments within a user-determined period of days and identifies potential duplicate payments to

the same vendor (using system vendor ID) with the same value (using document/original currency), while

excluding reversed transactions.

VariablesPeriod (number of days) for payment analysis.

Duplicate Payments

Output Results Fields

Company Code Company Name Vendor ID Vendor Name 1 Vendor Name 2

Accounting Document Number Clearing Document Number

Item Description Debit / Credit Indicator Amount in Reporting Currency Report Currency

Output Visualization Example

Line Item Account Document Number

Document Currency Document Type Document Date

Clearing Date

Day Document Entered

Pay User ID

Pay User Name

Amount in Document Currency

Duplicate payments grouped by user

Essentials | Procure To Pay - Accounts Payable | AP_ANALYTIC_01_APCS102 Page 6

Example

VENDOR_ID VENDOR_NAME_1 ACCOUNTING_DOC_NUMBER DOCUMENT_DATE AMT_DOC_CURRE

NCY

100000523 ABC Inc 1500080094 1/11/2017 1000

100000523 ABC Inc 1500080841 15/11/2017 1000

100000479 XYZ Ltd 1500081862 2/11/2017 5000

Fields used for analytics logic

Exc

ep

tio

n

Duplicate InvoicesAP_ANALYTIC_02_APCS103

Identifies potential duplicate invoices after stripping out any special characters in the

invoice numbers

ACCOUNTS PAYABLE


RiskThe same vendor invoice is presented twice for payment or fictitious/invalid vendor invoices are paid.

This may result in either overpayment or incorrect payment to vendors and often irrecoverable financial

losses from fraudulent and/or invalid invoices being paid.

ProcedureIdentifies duplicate paid invoices for the same amount after stripping out any special characters in the

invoice numbers.

Analytic LogicExtracts all paid invoices and removes/strips out special characters (e.g. ~!@#$%) from the invoice

number field (which is normally a free text field in the ERP system). Thereafter the script performs a

duplicates test using the stripped invoice number and invoice value fields.

Duplicate Invoices

Output Results Field Names

Company Code Company Name Vendor ID Vendor Name Vendor Invoice Number

Document Currency Amount in Document Currency

Accounting Document Number

Document Date

Release User

Release User Name


ContextOften the same invoice is captured multiple times despite preventive system validation and controls being in place. Administrative errors or application control circumvention results in additional and/or changed characters to the invoice number, causing duplicate invoice capturing that would otherwise be undetectable.

Showing value over time


Vendor Stripped Invoice Number

Amount in Reporting CurrencyReport Currency

Example

Debit/Credit Indicator

VENDOR_NAME VENDOR_INV_NO STRIPPED_VENDOR_INV_NO DOCUMENT_DATE AMOUNT_DOC_CURRENCY

Vendor A IN001 IN001 1/11/2017 1000.00

Vendor A IN001$ IN001 15/11/2017 1000.00


Duplicate Invoices Using

Vendor’s Numeric Invoice

ValuesAP_ANALYTIC_03_APCS601

Identifies potential duplicate invoices after converting invoice numbers to numeric values

ACCOUNTS PAYABLE



This may result in either overpayment or incorrect payment to vendors and often irrecoverable financial

losses from fraudulent and/or invalid invoices being paid.

ProcedureIdentifies duplicate paid invoices for the same amount after converting the invoice numbers to numeric

values.

Analytic LogicExtracts all paid invoices and converts the invoice number from the invoice number field (which is

normally a free text field in the ERP system) to a numeric value (e.g. “INV101a” to “101”). Thereafter the

script performs a duplicates test using the numeric invoice number and invoice value fields.

Duplicate Invoices Using Vendor’s Numeric Invoice Values


Company Code Company Name Vendor ID Vendor Name 1 Debit/Credit Indicator

Vendor Invoice Number Vendor Stripped Invoice Number Amount in Document CurrencyDocument Currency

Report Currency Amount in Reporting Currency Accounting Document Number Document Date


ContextOften the same invoice is

captured multiple times despite

preventive system validation and

controls being in place.

Administrative errors or

application control circumvention

results in additional and/or

changed characters to the invoice

number, causing duplicate

invoice capturing that would

otherwise be undetectable.

Showing value over time


Release User Release User Name

Example

VENDOR_NAME VENDOR_INV_NO STRIPPED_VENDOR_INV_NO DOCUMENT_DATE AMOUNT_DOC_CURRENCY

Vendor A IN001 001 1/02/2017 4000.00

Vendor A INv001 001 15/02/2017 4000.00


Duplicate Invoices Sub

AnalyticsAP_ANALYTIC_04_APCS613.1 TO AP_ANALYTIC_04_APCS613.10

Identifies potential duplicate invoices using various sub analytics

ACCOUNTS PAYABLE



ProcedureIdentifies duplicate paid invoices by analysing for duplicates based on the ten variations in the table

below.

Analytic LogicExtracts all paid invoices and performs a duplicates test based on the ten variations in the table below,

for example identifying duplicate invoices where the vendor number and invoice number are the same.

Duplicate Invoices Sub Analytics


Company Code Company Name Vendor ID Vendor Name 1 Debit/Credit Indicator

Vendor Invoice Number Amount in Document Currency

Document Currency

Accounting Document Number Document Date

ContextOften the same invoice is

captured multiple times despite

preventive system validation and

controls being in place.

Administrative errors or

application control circumvention

results in additional and/or

changed characters to the

invoice number, causing

duplicate invoice capturing that

would otherwise be undetectable.

Essentials | Procure To Pay - Accounts Payable | AP_ANALYTIC_04_APCS613.1 to AP_ANALYTIC_04_APCS613.10 Page 11

Duplicate Payment Sub-analytic Variations

Vendor Address Vendor Postal Code

Vendor Tax Number

Vendor RegionVendor City

Vendor Bank Account Number Vendor Bank Account Holders Name Analytic Description

@ - the duplicate analytic is run on these fields i.e. when these fields are the same.

Future Dated InvoicesAP_ANALYTIC_05_APCS341

Extracts all invoices with invoice dates in the future

ACCOUNTS PAYABLE


RiskNon-payment of invoices due to incorrect invoice date capturing resulting in unnecessary interest or

penalties, or premature invoicing of services that have not been rendered, or potentially fictitious

invoices.

ProcedureExtracts all invoices with invoice dates in the future. The invoice date is manually inputted and not

system-generated. They are susceptible to human error during capturing and incorrect dates, including

dates in the future, may be captured.

Analytic LogicExtracts all invoices that have invoice dates in the future; for any date more than x days/ months after

the date the analytic is run will become an exception.

VariablesNumber of months.

Future Dated Invoices


Company Code Company Name Vendor ID Vendor Name

Debit / Credit Indicator

Amount in Reporting Currency

Report Currency Amount in Document Currency


Document Currency

Document Date

Vendor Invoice Number Vendor Stripped Invoice Number

Release User

Release User Name

Output Visualization Examples

ContextInvoices are expected to have a

date subsequent to the provision

of goods or services. Invoices

captured with dates far into the

future indicates either

administrative errors or

premature invoicing of services

not yet provided.

Analysis of dates per user

Count grouped by user

Essentials |Procure To Pay - Accounts Payable | AP_ANALYTIC_05_APCS341 Page 13

Recurring Sundry Expenses

ReviewAP_ANALYTIC_06_APCS108

Identifies all repetitive sundry invoices from the same vendor for the same amount

ACCOUNTS PAYABLE


RiskUnauthorised invoices could be paid because less stringent procurement controls exist for sundry

expenses. This has the potential to result in unauthorised, invalid, excessive or potentially fraudulent

payments.

ProcedureIdentifies all repetitive sundry invoices to the same vendor for the same amount. These vendors should

be reviewed to understand why repetitive invoices are paid as sundry expenses, rather than through

procurement, when there is an evident continuing business relationship.

Analytic LogicExtracts and filters invoices for sundry expenses using a unique invoice identifier (defined in scoping),

and performs a duplicate analysis using the vendor ID and value to provide a listing of all multiple sundry

expenses.

Recurring Sundry Expenses Review


Company Code Company Name Vendor ID Vendor Name Amount in Reporting Currency Report Currency

Amount in Document Currency Document Currency Document DateAccounting Document Number

Document Type Vendor Invoice Number Vendor Stripped Invoice Number Release User Released User Name


ContextSundry expenses are incurred

on a once-off or ad hoc basis,

and don’t require a purchase

order. These expenses

require less processing and

attract less controls and are

not expected to be repetitive

and should be analysed

further to discover if they need

to follow the full procurement

processes and attract greater

controls.

Value over time by vendor


Example

VENDOR_NAME ACCOUNTING_DOC_NO DOC_CURRENCY DOCUMENT_DATE INV_AMOUNT_DOC_CURRENCY

Sundry Inc. 1900165432 USD 5/08/2017 21 000.00

Sundry Inc. 1900175489 USD 15/08/2017 15 000.00

Unique sundry invoice identifier

Invoices For One-time VendorsAP_ANALYTIC_07_APCS302

Extracts all invoices made to one-time vendors

ACCOUNTS PAYABLE


RiskInvoices for one-time vendors could be invalid because the controls are less stringent. This may result in

unauthorized payment to vendors or irrecoverable financial losses from fraudulent/invalid invoices being

authorized and paid.

ProcedureExtracts all invoices made to one-time vendors classified as such on the vendor master file. Through

interpretations and visualizations, validation of one-time vendor invoices can proceed, raising

exceptions for further examination.

Analytic LogicExtracts all invoices from companies classified as one-time vendors in the ERP vendor master data, in a

given period.

Invoices For One-time Vendors


Company Code Company Name Vendor ID Vendor Name Debit / Credit Indicator


Report Currency

Amount in Document Currency Accounting Document NumberDocument Currency

Document Date Vendor Invoice Number Vendor Stripped Invoice Number Release User Released User Name


ContextVendors are created with an

expectation of a multi-transaction

relationship. Creation of a vendor

in the ERP system requires

supporting documentation and

vetting prior to transacting

(controls).

One-time vendors do not require

such stringent vendor creation

procedures. Abuse or overuse of

one-time vendors could represent

control circumvention and/or

fraud.

Data distribution of vendors for invoice value

Count by user


Vendor Payments Made Over

A WeekendAP_ANALYTIC_08_APCS112

Identifies where the payment release date falls on a weekend

ACCOUNTS PAYABLE


RiskPotentially invalid or fraudulent vendor transactions which may result in overpayment to vendors or often

irrecoverable financial losses.

ProcedureIdentifies where the payment release date falls on a weekend. Release dates are utilized as this is the

point of authorization and are expected to take place during normal business hours; occurrence on a

weekend could indicate unusual or unauthorized transactions.

Analytic LogicAnalyses all payment release dates in the system and indicates if this date falls on a Saturday or

Sunday whereby it will be listed as an exception.

Vendor Payments Made Over A Weekend


Company Code Company Name Vendor ID Vendor Name Accounting Document Number Day of Week

Document Date Debit / Credit IndicatorClearing Date

Report Currency Amount in Document Currency Document Currency Pay User ID Pay User Name



ContextVendor payments, being a

standard and regular

organizational process, are

expected to be executed during

normal business hours.

Payments over weekends may

indicate fraudulent or suspicious

activity and should be reviewed

for such.

Weekend values group by user

Percentage values per vendor


Vendor Invoice Number

Invoices Captured Over A

WeekendAP_ANALYTIC_09_APCS301

Identifies where invoices were captured over a weekend

ACCOUNTS PAYABLE


RiskPotentially invalid or fraudulent vendor transactions which may result in overpayment to vendors or often

irrecoverable financial losses.

ProcedureIdentifies where invoices were captured over a weekend. All invoices captured in the ERP system will

have an automatic entry/capture date attached which cannot be amended. The invoice date (as printed

on an invoice by a supplier) is not the date used for this analytic.

Analytic LogicExtracts where the entry/capture date of invoices fall on a Saturday or Sunday whereby it will be listed

as an exception.

Invoices Captured Over A Weekend




Report Currency


Document Date Vendor Invoice Number Vendor Stripped Invoice Number Release User

Released User Name


ContextInvoice capturing, being a

standard and regular

organizational process, is

expected to be executed during

normal business hours.

Capturing over weekends may

indicate fraudulent/suspicious

activity and should be reviewed

for such.

Heatmap showing the user and

quantity

Values grouped by vendor


Day of Week

Date Document Entered

Invoice Greater Than A

ThresholdAP_ANALYTIC_10_APCS110

Produces a list of invoices paid above a configurable threshold to

determine authorization process for testing

ACCOUNTS PAYABLE


RiskInappropriately reviewed and authorized transactions which could be caused by a lack of, or outdated,

level of authority.

ProcedureProduces a listing of invoices paid above a configurable minimum and maximum threshold (financial

value) to determine authorization process for testing. These transactions should be tested for accuracy,

validity and approval.

Analytic LogicExtracts invoices greater than the client-configured thresholds to create a listing for level of authority

testing by audit, for example, all invoices greater than $2 500 and up to $5 000.

VariablesMinimum and maximum threshold value (for selecting invoices).

Invoice Greater Than A Threshold


Company Code Company Name Vendor ID Debit / Credit Indicator

Release User


Report Currency Amount in Document Currency Document Currency Accounting Document Number

Document Date Vendor Invoice Number Vendor Stripped Invoice Number


Release User Name

ContextAll vendor invoices should be

approved in terms of the correct

level of authority for the

organization. Differing levels of

authority are required for

purchases or invoices above

certain levels; more senior people

in the organization approve

higher value and materially

significant transactions.

Value of transactions by vendor

and releaser

Quantity and value of transactions by

vendor

Essentials | Procure To Pay - Accounts Payable | AP_ANALYTIC_10_APCS110 Page23

Invoice DateAP_ANALYTIC_11_APCS111

Identifies where the invoice date precedes the purchase order approval date

ACCOUNTS PAYABLE


RiskIneffective procurement due to finance and procurement procedures not being followed which may

result in the payment of invalid or unapproved purchases.

ProcedureIdentifies where the invoice date precedes the purchase order approval date.

Analytic LogicExtracts invoices and related purchase orders where the invoice date is before the purchase order

approval date.

Purchase Order Date After The Invoice

Date


Company Code Company Name Vendor ID Vendor Name Vendor Invoice Number

Accounting Document Number Document Type Purchase Order Creation DateDocument Date

Purchase Order Number Purchase Order User Name Purchase Order User ID Amount in Reporting Currency


Days Difference

Report Currency Amount in Document Currency Incl VAT Document Currency

ContextBest practice procurement

procedures dictate that purchase

order approvals should precede

an invoice. Any purchase orders

approved after an invoice should

be reviewed and examined to

understand the reasons and if

there was a control breakdown.

Date and materiality comparison

Days difference analysis by vendor


Vendor Paid By Both Purchase

Order And Sundry ExpenseAP_ANALYTIC_12_APCS109

Identifies the most recent instances where vendor invoices are paid by both a purchase

order and by a sundry expense

ACCOUNTS PAYABLE


RiskUnauthorised invoices outside the scope defined in the purchase order could be paid because less

stringent procurement controls exist for sundry expenses. This may result in unauthorized, invalid,

excessive or potentially fraudulent payments.

ProcedureIdentifies the most recent instances where vendor invoices are paid by both a purchase order and by a

sundry expense. These vendors should be reviewed to understand why they are being paid as both a

procurement and sundry expense when it is expected all transactions should be in line with a purchase

order for a repetitive vendor.

Analytic LogicSummarizes vendors' invoices to extract the latest transactions where vendor invoices were processed

through both a sundry expense and a purchase order.

Vendor Paid By Both Purchase Order & Sundry Expense




Report Currency


Document Date Vendor Invoice Number Vendor Stripped Invoice Number Release User

Released User Name


ContextVendor payments are expected to

be as a result of a transaction in

either the procurement system

(via purchase order) or a sundry

expense. A vendor should be

processed through either process

but not both. Sundry expenses

require less processing and

attract less controls.

Count of transactions by

vendor


Example

Document Type

VENDOR_NAME ACCOUNTING_DOC_NO STRIPPED_INV_NO DOCUMENT_DATE AMOUNT_DOC_CURRENCY

ABC Inc. 1899786258 INV00234 01/02/2017 21 000.00

ABC Inc. 5100196587 INV00245 15/02/2017 15 000.00

Different document numbers indicate PO

and sundry

Invoices Greater Than

Approved Purchase OrdersAP_ANALYTIC_13_APCS106

Extracts all invoices exceeding the value of the related approved purchase orders

ACCOUNTS PAYABLE


RiskInvoices exceeding purchase orders could be caused by unauthorised changes to the initially agreed

upon services or goods. This may result in unauthorised spending, overspending or potentially fraudulent

spending.

ProcedureExtracts all invoices exceeding the value of the related approved purchase order from a configurable

threshold value and above.

Analytic LogicExtracts and compares the value on the invoice to the total value of the approved purchase order and

identifies instances where invoice value exceed the purchase order by the configurable threshold value,

for example invoices greater than a purchase order from $50 and above.

In some countries, the effect of VAT or Sales tax can be removed from the invoice or added to the

purchase order value before comparison is done.

VariableMinimum acceptable variance.

Invoices Greater Than Approved Purchase Orders


Company Code Company Name Vendor ID Vendor Name Purchase Order Amount in Document Currency

Invoice Amount in Document Currency Excl VAT Invoice Amount in Document Currency Document Currency

Purchase Order Number Purchase Order Creation Date Purchase Order User ID

Purchase Order User Name


Invoice Number

ContextA vendor invoice should not

typically exceed the value

approved in the purchase order

as the underlying procurement

process has vetted the vendor at

a predetermined price.

Showing quantity grouped by the user

Page 29

Example

Difference

VENDOR_NAME PO_NUMBERPO_TOTAL_AMT_INCL_VAT_DOC

_CURR

INV_AMOUNT_DOC_CURRENC

YDIFFERENCE

Fake Corp 5105634213 7 650.00 8 250.00 (600.00)

Real Industries 5105768923 45 000.00 50 000.00 (5000.00)

Believe Ltd 5105891342 213 500. 00 220 000.00 (6 500.00)


Manually Released Invoices

(No 3-way Match)AP_ANALYTIC_14_APCS101

Identifies manually paid invoices where the three way match with the purchase order and

goods received note did not result in an automatically released payment, or where the

payment was manually released

ACCOUNTS PAYABLE


Essentials | Procure To Pay - Accounts Payable | AP_ANALYTIC_14_APCS101

ContextA three-way-match is performed

between a purchase order, goods

received note and invoice to

ensure details are correct before

making payment to the vendor. A

payment should not be

automatically made unless this

match is performed and

reconciliation achieved.

RiskFictitious, invalid or incorrect payments are caused by a user manually releasing a payment to a vendor

and not relying on the automatic payment from a successful three-way-match.

ProcedureIdentifies manually released invoices (paid and unpaid) where a three-way-match, between the invoice,

purchase order and goods received note did not occur.

Analytic LogicExtracts all invoices and highlights transactions without correct three-way-match which have been

manually released for payment (either before or after payment).

Manually Released Invoice (No 3 Way Match)


Company Code Company Name Vendor ID Vendor Name Amount in Reporting Currency Report Currency

Amount in Document Currency Document Currency Accounting Document NumberDocument Date

Vendor Invoice Number Vendor Stripped Invoice Number PO Number Release User Released User Name


Three-way-match violations, grouped

by releasing user

Example

VENDOR_NAME PO_NUMBER INV_AMOUNT_DOC_CURRENCY RELEASE_USER RELEASE_USER_NAME

ABC Inc. 5105634256 250.00 JSOAP Joe Soap

DEF Ltd 5105768925 100.00 ADOE Anne Doe

JHI Corp 5105891356 2 500.00 KSMART Ken Smart

Released by users indicate that not automatically released

Page 31

Three-way-match

Re-performanceAP_ANALYTIC_15_APCS602

Re-performs the three way match using purchase order and invoice amounts and

purchase order, goods received and invoice quantities

ACCOUNTS PAYABLE



ContextA three-way-match is performed

between a purchase order,

goods received note and invoice

to ensure details are correct

before making payment to the

vendor. A payment should not be

made unless this match is

performed and reconciliation

achieved.

RiskFictitious, invalid or incorrect payments made on transactions not correctly matched.

ProcedureIdentifies invoices (paid and unpaid) where the invoice amount and purchase order amount differ as

well as where a three-way-match, between the invoice, purchase order and goods received note

quantities did not occur.

Analytic LogicExtracts all invoices and highlights transactions without correct three-way-match between purchase

order, good received note and invoice quantities and invoice and purchase order amounts.

Three-way-match Re-performance


Company Code Company Name Vendor ID Vendor Name Amount in Reporting Currency

Report Currency

Invoice Amount in Document Currency Excl VAT

Purchase Order Amount In Document Currency Excl VAT

Document Currency

DifferenceInvoice Quantity Good Received Quantity

PO Number

Purchase Order Creation Date


Total amount differences between invoice amounts and purchase order amounts

Page 33

Amount in Document Currency Incl VAT

Purchase Order Quantity

GR Document Number Invoice Number

PO Line Number

Reason for Exception

Outlier InvoicesAP_ANALYTIC_16_APCS611

Identify invoice amounts greater than x standard deviations from the median amount of

that vendor

ACCOUNTS PAYABLE



ContextAn outlier is an observation point

that is distant from other

observations. Transactions

outside the norm with vendors

are generally not expected, but

could go unnoticed if high

volumes of transactions are

processed.

RiskFictitious, invalid or incorrect payments made to vendors.

ProcedureIdentifies outlier invoices by using standard deviations to determine amounts that deviate significantly

from the expected amounts posted to a vendor.

Analytic LogicExtracts all invoice amounts greater than a configurable number of standard deviations from the median

amount for that vendor.

VariableNumber of standard deviations.

Outlier Invoices

Output Results Field Names – Summary by Vendor

Company Code Company Name Vendor ID Vendor Name Invoice Count

Maximum Invoice Number

Number of invoices with same max value

Number of invoices with same min value

Minimum Invoice Number

Maximum Invoice Date

Average Invoice AmountMinimum Amount

Invoice Amount in Document Currency Total

Standard Deviation

Page 35

Maximum Amount

Minimum Invoice Date

Output Results Field Names – Outliers

Company Code Company Name Vendor ID Vendor Name Document Date Item Text

Invoice Amount in Document Currency Vendor Stripped Invoice Number

Early Payment of InvoicesAP_ANALYTIC_17_APCS612

Identify invoices that were paid after the discount dictated in the payment terms and

calculate the value of those missed discounts

ACCOUNTS PAYABLE



ContextMany suppliers offer discounts in

order to encourage early

settlement of their invoices.

Taking advantage of these

discounts presents an opportunity

to improve cash flow.

RiskOpportunity cost arising from missing out on the discount.

ProcedureIdentifies invoices that were paid after the discount dictated in the payment terms and calculate the lost

opportunity of missing out on that discount.

Analytic LogicExtracts all invoices that were paid after the discount as per the payment terms and calculates the

discount that could have been claimed had the invoice been paid within the discount payment terms.

Early Payment Of Invoices


Company Code Company Name Vendor ID Vendor Name Debit/ Credit Indicator

Report Currency

Amount in Document Currency


Document CurrencyVendor Stripped Invoice Number

Vendor Invoice Number

Invoice Amount Reporting Currency

Payment Terms Code


Page 37

Document Date

No Days Lapsed Days Overlapped

Amount Eligible for cash discount in Document Currency

Cash Discount Amount

Released User Released User NamePayment Terms Description

Cash discounts missed by vendor


40 Split purchase ordersPO Analytic 01

42 Duplicate purchase ordersPO Analytic 02

44 Purchase orders created and approved by the same userPO Analytic 03

46 Goods received voucher before purchase order datePO Analytic 04

48 Goods received voucher is 30 days past the purchase orders approval datePO Analytic 05

50 Price differences between purchase order items with the same vendorPO Analytic 06

52 Same user created the purchase order and receipted the goods received voucherPO Analytic 07

54 Purchase orders report by monthPO Analytic 08

56 Split purchase requisitionsPO Analytic 09

58 Compare purchase orders to purchase requisitionsPO Analytic 10

60Purchase orders with no purchase requisitionsPO Analytic 11

Version 6.2.0 – 2019/04

Split Purchase OrdersPO_ANALYTIC_01_PMCS101

Identifies split purchase orders where the same material was ordered from the same

vendor by the same creator within a configurable number of days

ACCOUNTS PAYABLE

Page 40Essentials – Purchase Order Management

Essentials | Procure to pay - Purchase Order Management | PO_ANALYTIC_01_PMCS101

ContextIdentifies possible incorrect or

fictitious purchase

transactions that should be

investigated. Additionally, less

stringent approvals are

applied to lower value

purchase orders.

RiskIncorrect or fraudulent purchase transactions resulting in a possible financial loss.

ProcedureIdentifies split purchase orders where the same material was ordered from the same vendor

by the same creator within a configurable number of days.

Note: In some businesses, separate purchase orders are created for delivery of the same

materials to different locations. These orders may look like split purchase orders.

Analytic LogicExtracts all approved purchased orders for the period under review to determine potential split

purchase orders where the order is for the same vendor for the same material by the same

creator within a determinable number of days of each order. The quantity may differ between

orders.

VariablesNumber of days.

Split Purchase Orders



Page 41

Net price by description

for a vendor

Grouping PO Number PO Line Number Line Description Quantity Date

Group 1 23586 01 Steel sheet 2 21/03/2018



Example

PO Vendor ID Vendor Name

PO Creator

Material Line DescriptionMaterial Number

PO Creator Name

PO Document Date PO Number

PO Line Net Price PO Line Net Price CurrencyPO Line Quantity

PO Line Number

Company Code Company Name Plant code for PO Line Plant name for PO

Results Grouping

Duplicate Purchase OrdersPO_ANALYTIC_02_PMCS102

Identifies duplicate purchase orders where the same quantity of material was ordered from

the same vendor within a configurable number of days

ACCOUNTS PAYABLE


ContextIdentifying possible incorrect

or fraudulent orders placed.


ProcedureIdentifies duplicate purchase orders where the same quantity of material was ordered from the

same vendor within a configurable number of days.

Note: In some cases purchase orders may be the same but are for staggered delivery dates

and are intended to be raised as such.

Analytic LogicExtracts all approved purchase orders for the period under review to determine potential

duplicate purchase orders where the order is for the same vendor for the same material and the

same quantity within a determinable number of days of each order. The orders can be created

by different users.


Duplicate Purchase Orders



Essentials |Procure To Pay - Purchase Order Management | PO_ANALYTIC_02_PMCS102 Page 43

Company Code Company Name Plant code for PO Line Plant name for PO PO Vendor ID Vendor Name


PO Line Net Price PO Line Net Price Currency PO CreatorPO Line Quantity

PO Material DescriptionMaterial NumberPO Line Number

PO Creator Name

Bar chart analysis by PO

amount, material number

and user

Example

Results Grouping

Grouping PO Number Po Line Number Line Description Quantity Date

Group 1 24621 01 Hard drives 2 21/03/2018




Purchase Orders Created And

Approved By The Same UserPO_ANALYTIC_03_PMCS103

Identifies where the same user created and approved the purchase order

ACCOUNTS PAYABLE



ProcedureIdentifies where the same user created and approved the purchase order.

Analytic LogicExtracts the creator and approver of all purchases orders to detect where the creator is the

same as the approver of the purchase order.

Purchase Orders Created And Approved By The Same User



ContextGood business practice

requires adequate

segregation of duties

between the creation and

approval of purchase orders

to ensure accuracy and

validity of purchase orders.

Essentials | Procure To Pay - Purchase Order Management | PO_ANALYTIC_03_PMCS103 Page 45

Company Code Company Name Plant code for PO Line Plant name for PO Approved PO Number

PO Line Number PO Creator PO Creator Name

PO Document Date PO Line Description PO Product NumberVendor NamePO Vendor ID

PO Approver NamePO Approver ID

PO Line QuantityPO Line Net Order Value

Total amount of exceptions by

vendor

Example

PO Number PO Approver ID PO Approver Name PO Creator ID PO Creator Name

23586 1234 Joe Soap 1234 Joe Soap

23587 2562 Jane Doe 2562 Jane Doe

23589 1485 Mark Smith 1485 Mark Smith


Goods Received Voucher

Before Purchase Order DatePO_ANALYTIC_04_PMCS104

Identifies where the goods received voucher is before purchase order date

ACCOUNTS PAYABLE


.

Goods Received Voucher Before Purchase Order Date



ContextGoods should be ordered and

received only after the

purchase order is created and

approved. Instances where

the receipt date of goods is

before the date the purchase

order is created should be

investigated to determine the

validity and accuracy of the

transaction.

PAGE 10


ProcedureIdentifies where the goods received voucher is before purchase order date.

Note: In some businesses there is a need for emergency or last minute purchases that are

necessary to keep operations running. In these cases, a purchase order may be raised after

the services or goods are received.

Analytic LogicExtracts the date of the goods receipt and the approval date of the purchase order and

compare where goods were received before the PO.

Company Code Company Name Goods Received Plant Goods Received Plant Name

Goods Received Document Number Goods Received Reference Document Number Goods Received Quantity

Goods Received Creator Name

PO Line Number PO Vendor ID Vendor NamePO NumberPO Document Date

Goods Received Posting DateGoods Received Document Date

Product Code

PO Description PO Quantity PO Line Net Price PO Price Currency PO Creator

PO Creator NameDays Difference Between PO Date and GR Date

Exceptions by days difference, GR

posting and vendor name

Example

GR Doc Number GR Doc Date PO Number PO Doc Date Day Diff PO GR

15875 27/12/2016 23685 04/01/2017 8

16958 02/03/2017 24697 14/03/2017 12

17542 19/05/2017 25894 29/05/2017 10



PAGE 11

Goods Received Voucher Is 30

Days Past The Purchase Order

Approval DatePO_ANALYTIC_05_PMCS105

Identifies where the goods received voucher is 30 days past the purchase order approval date

Essentials – Purchase Order Management Page 48

RiskPossible delay in service delivery experienced.

ProcedureIdentifies where the goods received voucher is 30 days past the purchase order approval date.

Note: Goods that are imported or known to take a long time to deliver based on the vendor or

nature of stock may result in false positives for this analytic.

Analytic LogicExtracts the date of goods receipts that is more than 30 days after the approval date of the

purchase order.

Goods Received Voucher Is 30 Days Past The

Purchase Order Approval Date



ContextTurnaround time between

ordering goods and receiving

goods should be kept to a

minimum. Instances where

order and receipt of goods

are 30 days and more apart

should be investigated.

PAGE 12

Company Code Company Name Goods Received Plant Goods Received Plant Name

GRN Number GRN Reference Document Number Goods Received Quantity GRN Date

PO Number PO Line Number

PO Vendor ID

PO Approval NumberGRN Creator NameGRN Creator

GRN Posting Date

Vendor NamePO Line Material Number PO Line Description PO Line Net Order Value

PO Creator PO Creator Name Days Difference Between PO Date and GRN Date

Bar chart of exceptions by number of days, GR

posting date and vendor

Example

GR Doc Number GR Doc Date PO Number PO Approval Date Day Diff PO GR

15875 01/06/2017 23685 27/04/2017 35

16958 03/07/2017 24697 28/05/2017 40

17542 24/08/2017 25894 15/07/2017 40

Fields used for analytics logicThis date is 30 days or more past the PO

approval date


PAGE 13Essentials – Purchase Order Management

Price Differences Between

Purchase Order Items With The

Same VendorPO_ANALYTIC_06_PMCS107

Identifies price differences between purchase order items with the same vendor

Page 50

RiskDecreased profit margins due to incorrect capturing or ineffective supplier management.

ProcedureIdentifies price differences between purchase order items with the same vendor.

Note: If this analytic is run for a period that is a relatively long cycle for a business, differences

may occur because of inflation or expected price increases. The period for analysis is key to

obtaining relevant results. For example, if this analytic is run for a month, it is not expected

that there would be material differences.

Analytic LogicExtracts the materials purchased from the same vendor and compares the per unit price (per

the stock system) between orders for the period under review to identify where prices are

different for the same material between orders.

Price Differences Between Purchase Order

Items With The Same Vendor



ContextPrice differences with the

same vendor should be

investigated as this could be a

result of incorrect capturing. It

could also be used to manage

supplier performance and

service delivery.

PAGE 14

Company Code Company Name PO Plant Code PO Plant Name PO Vendor ID Vendor Name


PO Line Net Price PO Line Net Price Currency PO CreatorPO Line Quantity

PO Line DescriptionPO Line Material NumberPO Line Number

PO Creator Name

Total amount of exceptions by

creator

Example

Vendor Name PO Material NO PO Doc Date PO Line Text PO Line Net Price

Abc Supplies 2001254 06/01/2017 Red pens 1.5




Price differs for

same item


PAGE 15Essentials – Purchase Order Management Page 52

Same User Created The

Purchase Order And Receipted

The Goods Received VoucherPO_ANALYTIC_07_PMCS108

Identifies where the same user created the purchase order and receipted the goods received

voucher


ProcedureIdentifies where the same user created the purchase order and receipted the goods received

voucher.

Analytic LogicExtracts the user ID of the creator of a purchase order and the user ID of who receipted the

goods and extracts records where it is the same user ID.

Same User Created The Purchase Order

And Receipted The Goods Received Voucher



ContextGood business practice

requires adequate

segregation of duties between

the person creating the

purchase order and the

person receiving goods

ordered to ensure accuracy

and validity of the purchase

transaction.

PAGE 16

Company Code Company Name Goods Received Plant PO Plant Name Goods Received Plant Name

GRN Document Number GRN Reference Document Number Goods Received Quantity

PO Creator PO Creator Name

PO Document Date

Goods Received Creator NameGoods Received CreatorGRN Posting Date

GRN Document Date

PO Number

PO Line Material Number

PO Line Description

PO Vendor IDPO Line Number

PO Line Quantity

Vendor Name

PO Line Net Price CurrencyPO Line Net Price

Total amount of exceptions

by creator

Example

PO Number PO Creator ID PO Creator Name GR Creator ID GR Creator Name

23586 1245 Sarah Jane 1245 Sarah Jane

23587 2595 Jennifer Roberts 2595 Jennifer Roberts

23589 1467 Tom Harris 1467 Tom Harris




Purchase Orders Report By

MonthPO_ANALYTIC_08_PMCS301

Report of purchase orders per item per month

RiskIneffective planning and performance management.

ProcedureReport of purchase orders per item per month.

Analytic LogicExtracts orders of materials from underlying purchase orders and present the data by month

and by material.

Purchase Orders Report By Month



ContextManagement information

used to analyze performance

and identify variations from

expected/budgeted

performance. Deviations

should be investigated and

results used as input for future

planning.

Company Code PO Line Material Number PO Material Description PO Line Quantity by Month

Total amount of PO line quantity

by material number and

description

Total quantity by material

Summary table of PO quantity

by material and month



Split Purchase RequisitionsPO_ANALYTIC_09_PMCS611

Identifies split purchase requisitions where the same material is requested by the same

creator within a configurable number of days

ContextIdentifies possible incorrect or

fictitious purchase

transactions that should be

investigated.


ProcedureIdentifies split purchase requisitions where the same material is requested by the same

creator within a configurable number of days.

Analytic LogicExtracts all approved purchased requisitions for the period under review to determine

potential split purchase requisitions where the requisition is for the same material by the same

creator within a determinable number of days of each requisition. The quantity may differ

between requisitions.


Split Purchase Requisitions


Recommended Vendor ID


Material Unit PriceMaterial Quantity

Material Item NumberPR Line Item Number

Material items which are split

in requisitions

Company Code Company Name

Purchase Requisition Number

Example

Results Grouping

Purchase Requisition Plant Code

Purchase Requisition Approver Name

Purchase Requisition Date

Unit of Measure

Purchase Requisition Plant Name

Recommended Vendor Name Requisitioner User ID

Material Description

Grouping PR Number PR Line Number Line Description Quantity Date

Group 1 78569 01 Exam pads 2 21/04/2018

Group 1 78575 01 Exam pads 3 24/04/2018

Group 1 78582 01 Exam pads 6 25/04/2018




Compare Purchase Orders To

Purchase RequisitionsPO_ANALYTIC_10_PMCS612

Identifies any purchase orders where there are differences between the purchase order and

purchase requisition quantities and items

ContextOrders that are placed by

procurement should be based

on the item and quantities

requested by end users from

the purchase requisition

submitted.

RiskIncorrect items or quantities ordered resulting in possible over stocking.

ProcedureIdentifies where there are differences between the purchase order and purchase requisition

material item and quantity.

Analytic LogicExtracts all purchase order and purchase requisition information where the purchase

requisition material item description and quantity differs from the purchase order material item

and description.

Compare Purchase Orders To Purchase Requisitions




PAGE 22


Purchase Requisition Material Quantity Difference

PO Line QuantityPO Material DescriptionPO Material Number

Differences between

total purchase orders

and purchase

requisitions


Example

Purchase Requisition Number

Purchase Requisition Date PO Creator Name

Purchase Requisition Approver Name

PO Number PO Line Description PO Qty PR Number PR Line Description PR Qty

25698 Red pens 10 17854 Red pens 8

25369 Exam pads 20 17853 Exam pads 12

25487 Post It Flags 5 17652 Post It Flags 2




Purchase Orders With No

Purchase RequisitionsPO_ANALYTIC_11_PMCS613

Identifies those purchase orders that have been created without a purchase requisition

ContextBefore a purchase order for a

particular item can be

generated, the need for the

item needs to be

communicated to the

procurement department.

This is generally done by

means of a purchase

requisition.

RiskIncorrect items or quantities ordered resulting in possible over stocking.

ProcedureIdentifies any purchase orders that have been created without having a purchase requisition

that initiated the order.

Analytic LogicExtracts all purchase order information where there is no purchase requisition linked to that

purchase order.

Purchase Orders With No Purchase Requisitions




PAGE 22


PO Material Description PO Line Net PricePO Line QuantityPO Line Material NumberPO Line Number

Purchase orders by vendor with no purchase requisitions


PO Line Net Price Currency PO CreatorPO Creator Name



64 Vendors with similar namesVM Analytic 01

66 Vendors with the same addressVM Analytic 02

68 Vendors with the same phone numbersVM Analytic 03

70 Vendors with the same bank accountsVM Analytic 04

72 Vendors with the same Sales Tax registration numbersVM Analytic 05

74 Vendors with the same business numberVM Analytic 06

76 Frequently changed vendor bank account detailsVM Analytic 07

78 Matching of vendor and employee namesVM Analytic 08

80 Matching of vendor and employee physical addressVM Analytic 09

82 Matching of vendor and employee primary phone numbersVM Analytic 10

84 Matching of vendor and employee bank accountsVM Analytic 11

86 Vendors with the no business numberVM Analytic 12

88 Vendors with the no Sales Tax registration numbersVM Analytic 13

90 Blank critical data: Telephone numbersVM Analytic 14

92 Blank critical data: Bank detailsVM Analytic 15

94 Vendors with only postal box addressesVM Analytic 16

Version 6.2.0 –2019/04


Vendors with a single posterVM Analytic 17

Vendor hit matrixVM HIT MATRIX

Version 6.2.0 –2019/04

Vendors With Similar NamesVM_ANALYTIC_01_VMCS101

Identifies vendors with similar names

ACCOUNTS PAYABLE

Essentials – Vendor Management Page 64

Essentials |Procure To Pay - Vendor Management | VM_ANALYTIC_01_VMCS101

ContextVendor data should be

accurate to enable correct

processing and accurate

reporting. Identifying duplicate

vendors prevents possible

incorrect/duplicate and/or

fraudulent vendor

transactions/payments.

RiskPossible fictitious/incorrect vendor accounts created, resulting in fraudulent/incorrect vendor

transactions and payments.

ProcedureIdentifies vendors with similar names using the cleaned vendor names (i.e. removing

company suffixes). The results of this analytic are presented in groups of similarly named or

duplicate vendors.

Note: In an ERP system with various units/branches, plants and/or cost codes, a single

vendor often needs to be created and managed per location and these multiple vendors can

come through as false positives.

Analytic LogicExecutes the Fuzzy Duplicates ACL Function which analyses cleaned vendor names to

assess their similarity and group vendor names that are similar.

Vendors With Similar Names


Company Code Company Name Group Full Vendor Name Vendor Number

Marked for Deletion


Page 65

Heatmap of vendors with

similar names

Count of exceptions of

vendors with similar

names

Stripped Vendor Name Last Invoice Number

Last Invoice Amount in Document Currency

Last Transaction Date

Last Invoice Document Currency

Vendors With The Same

AddressVM_ANALYTIC_02_VMCS103

Identifies vendors with the same address

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with the same address. Note: If a company is part of a group of companies,

they can operate out of a single location and all companies in the group will have the same

registered address causing some false positive results. In a system with various branches,

plants and/or cost codes, a single vendor often needs to be created and managed per location

and these multiple vendors can come through as false positives.

Analytic LogicCompares the physical address of vendors in the vendor master file.

Vendors With The Same Address


Company Code Company Name Vendor Number Full Vendor Name Vendor Street Address

Vendor City Vendor Postal Code Marked For Deletion


ContextDifferent vendors from a

common address is not a

usual occurrence, and could

indicate either fictitiously

created vendors and/or

incorrect vendor master data.

Vendor data should be



reporting.

Essentials | Procure To Pay - Vendor Management | VM_ANALYTIC_02_VMCS103 Page 67

Heatmap of

exceptions

Count of exceptions

grouped by address

Last Invoice Number

Last Invoice Amount in Document CurrencyLast Transaction Date Last Invoice Document Currency

Vendors With The Same Phone

NumbersVM_ANALYTIC_03_VMCS125

Identifies vendors with the same phone numbers

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with the same phone numbers.

Note: In a system with various branches, plants and/or cost codes, a single vendor often needs

to be created and managed per location and these multiple vendors can come through as false

positives.

Analytic LogicCompares vendor phone numbers in the vendor master file to detect those which are the same.

Vendors With The Same Phone Numbers


Company Code Company Name Vendor Number Full Vendor Name Vendor Telephone Number 1

Vendor Telephone Number 2


ContextDifferent vendors with

common contact details are

not expected and could







reporting.

Essentials |Procure To Pay - Vendor Management | VM_ANALYTIC_03_VMCS125 Page 69

Count of exceptions by

vendor name and phone

number

Heatmap of exceptions

by vendor name and

phone number

Last Invoice Number




Vendors With The Same Bank

Account DetailsVM_ANALYTIC_04_VMCS118

Identifies vendors with the same bank account details

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with the same bank account details. Note: In a system with various

branches, plants and/or cost codes, a single vendor often needs to be created and managed

per location and these multiple vendors can come through as false positives.

Analytic LogicCompares captured bank account details of vendors in the vendor master file to detect those

which are the same.

Vendors With The Same Bank Account Details


Company Code Company Name Vendor Number Full Vendor Name Vendor Bank Account

Vendor Bank Branch CodeVendor Bank Country Code


ContextDifferent vendors with

common bank account details

are not expected and could







reporting.


Heatmap of vendors with

the same bank account

Count of vendors with the

same bank account

Last Invoice Number





Sales Tax Registration NumberVM_ANALYTIC_05_VMCS126

Identifies vendors with the same sales tax numbers

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with the same sales tax registration numbers.

Note: In a system with various branches, plants and/or cost codes, a single vendor often

needs to be created and managed per location and these multiple vendors can come through

as false positives.

Analytic LogicCompares captured sales tax registration numbers of vendors in the vendor master file and

analyses for duplicates.

Vendors With The Same Sales Tax Registration Number


Company Code Company Name Vendor Number Full Vendor Number Vendor VAT Number

Marked for Deletion


ContextCommon sales tax

registration numbers across

multiple vendors are not

expected and could indicate

either fictitiously created

vendors and/or incorrect

vendor master data.


Heatmap of exceptions

Count of exceptions

Last Invoice Number





Business NumberVM_ANALYTIC_06_VMCS301

Identifies vendors with same business number

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with same business number.

Note: In a system with various branches, plants and/or cost codes, a single vendor often

needs to be created and managed per location and these multiple vendors can come through

as false positives.

Analytic LogicCompares captured business numbers (or equivalent corporate tax reference numbers) of

vendors in the vendor master file and analyses for duplicates.

Vendors With The Same Business Number


Company Code Company Name Vendor Number Full Vendor Name Vendor Tax Number 1

Vendor Tax Number 2 Vendor Address Vendor City Marked for Deletion


ContextCommon business numbers

across multiple vendors are

not expected and could




Essentials |Procure To Pay - Vendor Management | VM_ANALYTIC_06_VMCS301 Page 75

Heatmap of vendors with a

common tax number

Count of vendors with a

common tax number

Last Invoice Number


Frequently Changed Vendor

Bank Account DetailsVM_ANALYTIC_07_VMCS119

Identifies frequently changed vendor bank account details

ACCOUNTS PAYABLE




ProcedureIdentifies frequently changed vendor bank account details.

Analytic LogicExtracts and analyzes all changes made to a vendor's bank account details and highlights

records that changed more than twice in a defined period.

Frequently Changed Vendor Bank Account Details


Vendor Number Vendor Name 1 Change Document Number Changed Table Changed Field Name

Vendor Creator User IDUser ID Full Name Vendor Management Account Group Change Date


ContextVendors do not frequently

amend their banking facility.

Frequently changed vendor

master data, especially

banking information, should

be investigated as this may

indicate suspicious activity.


Count by date of bank

accounts frequently

changed

Pie chart of changes

per vendor

Matching Of Vendor And

Employee NamesVM_ANALYTIC_08_VMCS122

Identifies where names match between employees and vendors

ACCOUNTS PAYABLE




ProcedureIdentifies where names match between employees and vendors, using cleaned vendor

names. Employee vendors are sometimes created for paying out reimbursed expenses

through accounts payable and not through payroll, so there may be false positives for these

employee vendors.

Analytic LogicExtracts cleaned names of vendors in the vendor master file and compares to first and last

names of employees in the employee master file.

Matching Of Vendor And Employee Names


Company Code Company Name Vendor Number Full Vendor Name Marked For Deletion

Personnel AreaEmployee Status Employee Personnel Number Employee Full Name


ContextInstances where the

employee and vendor names

match should be investigated

as these could possibly

indicate fraudulent

transactions and/or incorrect

vendor master data.

Essentials | Procure To Pay - Vendor Management | VM_ANLYTIC_08_VMCS122 Page 79

Count of employee and

vendor name match

Pie chart of employee

and vendor name match


Employee Physical AddressVM_ANALYTIC_09_VMCS123

Identifies where physical addresses match between employees and vendors

ACCOUNTS PAYABLE




ProcedureIdentifies where physical addresses match between employees and vendors.

Employee vendors are sometimes created for paying out reimbursed expenses through

accounts payable and not through payroll, so there may be false positives for these employee

vendors.

Analytic LogicExtracts captured physical or registered addresses of vendors in the vendor master file and

compares to physical addresses of employees in the employee master file.

Matching Of Vendor And Employee Physical Addresses


Company Code Company Name Vendor Number Full Vendor Name Vendor Address

Marked for Deletion Personnel Area Employee Personnel Number Employee AddressEmployee Full Name


ContextInstances where the

employee and vendor

addresses match should be

investigated as these could

possibly indicate fraudulent


vendor master data.


Count of employee-vendor

address match

Pie chart of employee-

vendor address match

Last Invoice Number Last Invoice Amount in Document CurrencyLast Transaction Date Last Invoice Document Currency


Employee Primary Phone


Identifies where primary phone numbers match between employees and vendors

ACCOUNTS PAYABLE




ProcedureIdentifies where primary phone numbers match between employees and vendors.



vendors.

Analytic LogicExtracts the main phone number of vendors in the vendor master file and compares to the

personal phone numbers of employees in the employee master file.

Matching of Vendor & Employee Primary Phone Numbers



Marked for DeletionPersonnel Area Employee Status Employee Full NameEmployee Personnel Number

Employee Telephone Number


ContextInstances where the employee

and vendor telephone

numbers match should be

investigated as these could

possibly indicate fraudulent


vendor master data.

Essentials | Procure To Pay - Vendor Management | Vm_analytic_10_vmcs124 Page 83

Count of exceptions by

phone number

Heatmap of exceptions by

employee & vendor

Last Invoice Number


Last Transaction Date Last Invoice Document Currency


Employee Bank AccountsVM_ANALYTIC_11_VMCS117

Identifies where bank accounts match between employees and vendors

ACCOUNTS PAYABLE

Page 84Essentials – Vendor Management



ProcedureIdentifies where bank accounts match between employees and vendors.



vendors.

Analytic LogicExtracts captured bank account details of vendors in the vendor master file and compares to

bank accounts details of employees in the employee master file to detect those which are the

same.

Matching Of Vendor And Employee Bank Accounts


Company Code Company Name Vendor Number Full Vendor Name Vendor Bank Account Branch Code

Employee Company Code Personnel Area Employee Full NameEmployee Personnel Number

Employee Bank Account Number Employee Bank Branch Code

Employee Status


ContextSegregation of employee and

vendor payments should

always exist. Ordinarily,

employees should not be

created as vendors which

would avoid mixing these

payment types. If correctly

applied, this would ensure

that no vendor banking details

will match employee banking

details.


Heatmap of vendors and

employee bank

accounts

Exceptions by vendor

name and employee

bank account

Vendor Bank Branch Code Last Invoice Number


Vendors With No Business

NumberVM_ANALYTIC_12_VMCS120

Identifies vendors with no business number

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with no business number.

Analytic LogicExtracts and analyses the business number, or equivalent corporate tax registration number,

field in the vendor master file to detect blank fields.

Vendors With No Business Number


Company Code Company Name Vendor Number Full Vendor Name Vendor Tax Number 1

Vendor Tax Number 2 Vendor Country Key


ContextComplete and accurate

vendor master data requires

the vendor’s business number

to be captured. If the number

is not captured it could

indicate incomplete vendor

master data and/or a fictitious

vendor.


Count of vendors with

blank details

List of vendors with

blank details

Count of vendors with

blank details

Last Invoice Number




Vendors With No Sales Tax

Registration NumberVM_ANALYTIC_13_VMCS121

Identifies vendors with no sales tax registration number

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with no sales tax registration number.

This analytic depends on the data quality of vendor master data. If this detail is not captured or

even asked of vendors, then there will be a high volume of blanks.

Analytic LogicExtracts the sales tax registration number or equivalent registration number for the purposes

of indirect sales tax and highlights all vendors with no sales tax registration number.

Vendors With No Sales Tax Registration Number


Company Code Company Name Vendor Number Full Vendor Name Vendor VAT Number




the vendor’s sales tax

registration number to be

captured. If the sales tax

registration number is not

captured it could indicate

incomplete vendor master

data and/or a fictitious vendor.


Count of exceptions

grouped by vendor

Count of exceptions

grouped by vendor

Last Invoice Number


Blank Critical Data: Telephone


Identifies vendors with no telephone number in the vendor master file

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with no telephone number in the vendor master file.

Data quality will always be a risk with this analytic and extracting false positives but given such

a key field, these exceptions should be investigated.

Analytic LogicExtracts and analyzes the telephone number field of the vendor master file and highlights all

those without a telephone number.

Blank Critical Data: Telephone Numbers






the vendor’s telephone

number(s) to be captured. If

the contact details are not

captured it could indicate

incomplete vendor master

data and/or a fictitious vendor.


Count of blank

telephone number fields

Pie chart of blank

telephone number fields

Last Invoice Number Last Invoice Amount in Document CurrencyLast Transaction Date Last Invoice Document Currency

Blank Critical Data: Bank

DetailsVM_ANALYTIC_15_VMCS516

Identifies vendors with no bank account number in the vendor master file

ACCOUNTS PAYABLE




ProcedureIdentifies vendors with no bank account number in the vendor master file.

Analytic LogicExtracts and analyses the bank account number field of the vendor master file and highlights

all those without a bank account number.

Blank Critical Data: Bank Details


Company Code Company Name Vendor Number Full Vendor Name Vendor Bank Account

Vendor Bank Branch CodeVendor Bank Country Code




the vendor’s bank details to

be captured. If the information

is not captured it could

indicate incomplete vendor

master data and/or a fictitious vendor.


Pie chart of blank bank

vendor details

List of blank bank vendor

details

Last Invoice Number




Vendors With Only Postal Box

AddressVM_ANALYTIC_16_VMCS102

Identifies vendors with only a postal box address

ACCOUNTS PAYABLE


ContextVendors without a physical

address may be fictitious and

lead to fraudulent

transactions. Vendor data

should be accurate to enable

correct processing and

accurate reporting.



ProcedureIdentifies vendors with only postal box addresses.

Those vendors without a physical address may represent incomplete data or may be fictitious.

Although a lot of exceptions will come from poor data quality, a false positive does not really

exist as all vendors should have a registered physical address.

Analytic LogicExtracts vendor data and analyses for vendors without a physical address loaded.

Vendors With Only Postal Box Address


Company Code Company Name Vendor Number Full Vendor Name Vendor PO Box Vendor City


Vendor PO Box Postal Code


Exceptions listed by

both vendor and city

Count of exceptions

grouped by the vendor

Last Invoice Number


Last Transaction Date Last Invoice Document Currency

Vendors With a Single PosterVM_ANALYTIC_17_VMCS612

Identifies vendors that have a single user posting to that vendor over a certain period of

time

ACCOUNTS PAYABLE


ContextIf a single user is posting

transactions to a particular

vendor, this could indicate a

potential relationship between

the poster and the vendor or

a bias towards that particular

vendor.

RiskPossible collusion between an employee and a vendor.

ProcedureIdentifies any vendor with more than X transactions at more than Y amount over Z period of

time that have only a single user posting to the vendor.

Analytic LogicExtracts vendors with more than a configurable number of transactions, more than a

configurable amount over a configurable time period, that only have a single user poster to the

vendor.

Vendors With a Single Poster


Company Code Company Name Vendor Number Full Vendor Name Vendor Invoice Number

Document DateInvoice Amount Document Currency


Results Grouping Parked User ID

Released User ID

Parked User Name

Released User Name

Vendor Hit MatrixVM_HIT_MATRIX

Hit matrix of all vendors with exceptions from the analytics in this analysis app

ACCOUNTS PAYABLE


ContextThe vendor hit matrix allows

you to better analyse

exceptions from this analysis

app. It provides a report of all

exceptions by vendor and by

analytic. This will assist in

directing efforts to verifying

the validity of those vendors

with the most hits.

RiskVendors with many hits for missing data could potentially be fictitious vendors or an indication

of poor data quality.

ProcedurePresents vendors by exceptions, i.e. shows the number of hits per vendor per analytic to

identify high risk vendors.

Analytic LogicCollates all exceptions noted in all the analytics in this analysis app by vendor and by analytic.

Vendor Hit Matrix


Vendor Number Vendor Name Vendor Name 2 Marked for deletion Total hits VM_Analytic_01


Essentials | Procure To Pay - Vendor Management | VM_HIT_MATRIX Page 99

VM_Analytic_02 VM_Analytic_03 VM_Analytic_04 VM_Analytic_05 VM_Analytic_06 VM_Analytic_07

VM_Analytic_08 VM_Analytic_10VM_Analytic_09 VM_Analytic_11 VM_Analytic_12 VM_Analytic_13

VM_Analytic_14 VM_Analytic_15 VM_Analytic_16

Vendor Hit Matrix


101 Cash disbursements by vendorCD Analytic 01

103Summary of cash disbursements by vendorCD Analytic 02

105Duplicate cash disbursementsCD Analytic 03

107Vendors with large numbers of cash disbursementsCD Analytic 04

Version 6.2.0 – 2019/04

Cash Disbursements By

VendorCD_ANALYTIC_01_CDCS101

Extracts all cash disbursements by vendor

ACCOUNTS PAYABLE

Page 101Essentials – Cash Disbursements

Essentials | Cash Disbursements | CD_ANALYTIC_01_CDCS101

ContextCash disbursements refers to

the outflow or payment of

money to settle financial

obligations during a particular

period in order to carry out

business activities.

RiskCash disbursements made to the incorrect vendor.

ProcedureIdentifies all cash disbursements by vendor.

Analytic LogicExtracts disbursements with vendor information.

Cash Disbursements By Vendor


Company Code Company Name Vendor ID Vendor Name Accounting Document Number


Page 102

Line Item Accounting Document Number Report Payment Amount Report Currency

Document Date Clearing Document Number Clearing Date Pay User Name

Item Description

Pay User ID

Total net price of cash

disbursements by

vendor & type

Net price by description

for a vendor

Summary Of Cash

Disbursements By VendorCD_ANALYTIC_02_CDCS102

Summarizes cash disbursements by vendor

ACCOUNTS PAYABLE


ContextCash disbursements refers to

the outflow or payment of

money to settle financial

obligations during a particular

period in order to carry out

business activities.

RiskCash disbursements made to the incorrect vendor.

ProcedureSummarizes cash disbursements by vendor.

Analytic LogicExtracts, summarizes and aggregates disbursements by vendor.

Summary Of Cash Disbursements By Vendor



Essentials | Cash Disbursements | CD_ANALYTIC_02_CDCS102 Page 104

Company Code Company Name Vendor ID Vendor Name 1 Amount in Reporting Currency

Report Currency

Summary of cash disbursements by vendor

Total payment amount in report currency by vendor

Duplicate Cash DisbursementsCD_ANALYTIC_03_CDCS103

Extracts duplicate cash disbursements by vendor

ACCOUNTS PAYABLE


RiskOverpayment to vendors and potential irrecoverable financial loss.

ProcedureIdentifies duplicate cash disbursements by vendor.

Analytic LogicExtracts duplicate payments from the disbursements listing using the vendor number and

value of the payment.

Duplicate Cash Disbursements



ContextProcessing high volumes of

payments from all areas of the

business may result in

potential duplicate cash

disbursements going

undetected.


Company Code Company Name Vendor ID Vendor Name Accounting Document Number

Line Item Accounting Document Number Amount in Reporting Currency

Document Date Clearing Document Number

Report Currency Item Description

Clearing Date Pay User IDPay User Name

Total amount of postings by

posting date and posting user

Total amount of exceptions by PO Creator

Name and Vendor

Statistics of duplicate cash disbursements

Vendors With Large Numbers

Of Cash DisbursementsCD_ANALYTIC_04_CDCS104

Extracts vendors with large numbers of cash disbursements

ACCOUNTS PAYABLE


RiskFictitious and/or invalid vendor payments.

ProcedureIdentifies vendors with large numbers of cash disbursements.

Analytic LogicExtracts a summary of disbursements by vendor and adds a count for each vendor, which is

sorted in descending order on the count to highlight vendors with a high value of cash

disbursements.

Vendors With Large Numbers Of Cash Disbursements

ContextFictitious or incorrect vendor

payments may not be easily

detected when a large

number of cash

disbursements are made to a

particular vendor.




Company Code Company Name Vendor ID Vendor Name Amount in Reporting Currency

Report Currency Count

Exceptions by total

amount and vendor

Exceptions by total

amount, quantity and

vendor

Documents

Essentials: Procure to Pay