For some reason, post-audit claims always seem to arrive in bunches. I just received two post-audit claims in less than 30 days. I know from experience that post-audit claims are time consuming and can be costly IF your company cannot provide the necessary documentation. Post audit claims typically involve a claim that a customer:
- Overpaid invoices, and/or
- Did not receive credits owed, and/or
- Never used credits issued to them
If you have the support of your senior management, it is not as hard as you think to turn the tables. With management’s support you can and should:
- Refuse to deal directly with the post audit firm.
- Immediately reject the auditor’s deadline (which is always too short anyway).
- Tell your customer how long you need to review the post audit claims.
- Inform your customer in writing that any deduction taken by them prior to you completing your analysis will result in an immediate credit hold.
- Prepare a specific, detailed, and comprehensive list of the documents that you require from your customer in order to begin your analysis, and
- Reject certain types of claims immediately. For example, if you are asked for proof of delivery but the time frame for obtaining a POD from the freight carrier has already passed, that claim should be rejected = thrown out.
I have been told these ideas are “too confrontational” and that is why it is so important that you have your management’s support in dealing with these post-audit organizations.
These are my suggestions. What has worked best for you in the past?
By: Michael C. Dennis. Michael is the co-author of the Encyclopedia of Credit. Please visit www.encyclopediaofcredit.com