Extensive Re-designing of Payables Process: Cogneesol Increased Processing Accuracy and Prevent 160k Euro in Frauds

The Client:

A Netherland-based CA working for 800+ clients.

Scope of Work

Complete support with:

End-to-end accounts payable, including vendor master maintenance, data entry of trade invoices, and payment of trade invoices.

The Client

Process Bottlenecks

The primary issue affecting the Payables’ processes was the receipt of invoices in the Dutch language that impaired posting accuracy. The use of custom-made software to code invoices that had both English and Dutch as part of its interface further delayed invoice processing. These collectively resulted in delayed vendor inquiry acknowledgment response and resolution timelines.

Additionally, the client unearthed fraudulent transactions dating to previous reporting periods.

Cogneesol’s Optimization Solution

Over thorough due diligence, our team identified and ranked the issues in order of their impact on the process. Language barrier, being the major cause of discrepancies, our team made extensive use of Google translator to code invoices in the Dutch language. They further introduced new process flows to remove language barriers.

Working with the client team to implement the same in the platform, we solved the finer issues and soon converted the highly used software functions to English. Once streamlined, we saw a marked change in the invoice processing processes.

In addition to the language solution, our team redefined and implemented the following:

  • Remittance advice issued to vendors post-payment run with complete details of payment
  • Payment process revised with added security check to verify and approve changes in account details before processing
  • Customized weekly report to provide a one-glance view of outstanding items, issues, action taken, work status, and their subsequent resolution

We have been finally able to control our AP process, thanks to the overhauling Cogneesol effected. With the house in order now, we look forward to growing our business.

Impact Delivered

Extensive Re-designing of Accounts Payable Process Increases Processing Accuracy and Timeliness and Prevents 160k Euro in Frauds.

The redesigning and deploying of changed processes and additional controls, in conjunction with a better-interfaced software, helped improve process health with immediate benefits:

  • Invoice processing accuracy increased from 95% to 98%; and processing timelines before the due date increased from 97% to 100%
  • Vendor Satisfaction rate increased by 5%
  • 160k Euro worth fraudulent transactions identified before processing in the year

Client Testimonials

It is always a pleasure to learn that the work we do has positively impacted our clients and that they are happy to share their experiences.

Get in Touch With Us

Find out more about how Cogneesol can help you transform your business. Let us know your key areas of interest so we can serve you better.
Contact Us