Accounts Payable - Legal & General
Our specialist data acquisition team carried out a cost recovery review of more than four years’ worth of accounts payable data.
The necessary data was extracted by us, directly from Legal & General’s Oracle AP system, which equated to 126,863 invoices representing total expenditure of around £1.8 billion. The review was then split into two areas; a review of historical transactions to identify duplicate payments and a supplier statement review, to identify delays in processing and pinpoint outstanding credits.
DELIVERING RESULTS - QUICKLY
We revealed that 99.9% of transactions had been processed correctly but, on looking deeper, there were still opportunities for cost recovery.
The 0.01% of incorrectly-processed transactions that we identified translated to almost £180,000 in overpayments, relating to duplicate invoices, unprocessed credit notes and unallocated cash.
Additionally, as a result of our resources and expertise, we were able to recoup the overpayments in the space of just two months.
- £179,329 recovered
- £1.8 billion expenditure reviewed
In addition to presenting a detailed management assessment, we also provided recommendations to prevent similar issues from occurring in the future.
Our recommendations included advising Legal & General to:
- Implement an imaging system: This would enable the Accounts Payable Department to see invoices in seconds, respond to queries far more efficiently and provide a better overall service to customers
- Process invoices with a value of less than £250 electronically: We identified that 26% of all invoices fell into this cost bracket, which was proving particularly costly for the company. By changing the setting on their Oracle system, these could be self-approved, saving time, and money
- Carry out another audit in January 2018, unless they acquire a similar company in the meantime: This will enable them to ensure their accounts payable function is fully optimised and that there’s no margin for further overpayments.
Legal & General is a British multinational financial services company whose offer covers life insurance, general insurance, pensions and investments.
Founded in 1836, the company currently helps more than 10 million people globally with saving, investing, building retirement income and insuring.