Deductions are generally taken upfront. Unlike post-audit claims, which hit suppliers quite late in the process. It could be even months after a transaction takes place.
Retailers or third parties may discover discrepancies, overpayments, or policy violations during post-transaction reviews. These factors are the triggers for such claims. They are unhelpfully common, too.
We will be looking deeper into post-audit claims in this segment. If you wish to read more about post-audit deductions, check out this blog here: Decoding Post-Audit Deductions.
Post-audit claims are retailer-initiated, retroactive financial adjustments. Their occurrence is noted after a payment has been made to the suppliers. Following this, a retailer reviews past transactions.
This is done to make sure that the terms agreed-upon are complied with. They can be related to pricing, promotions, freight, or contract obligations. When found, claims are filed for any errors or overpayments. These claims are often accompanied by relevant documentation and an explanation.
Now, if you have opted for automation, these deductions will be displayed on remittance reports and invoices in real-time. Unfortunately, without automation, the claims arrive after payment cycles are complete. You may not even notice them until a month or two, or even a quarter, has passed.
Retail audit teams or some outsourced audit firms typically generate post-audit claims. Many large retailers collaborate with companies like AP Recover or Profit Recovery Partners. They specialize in finding deeply buried historical purchase data.
This is what they may look for:
The more these audit teams recover, the more they earn. They usually work on such contingency. That is why the claims can be aggressive, detailed, and large in volume.
Timing and visibility are what set post-audit claims and deductions apart. Deductions are often visible in the invoice payment, remittance advice, or vendor portals. Hence, they are immediately considered. Deductions can also be disputed relatively quickly.
On the other hand, post-audit claims arrive as unpleasant surprises. They may find their way to the vendor’s accounts receivable team via direct or bulk mail. These claims may cover transactions not only from months but even years prior.
Documentation is another key difference between these two. Claims bring with them voluminous Excel files, invoices, contract excerpts, and demand letters. Suppliers are then tasked with research, validation, and responding, often under strict deadlines.
None of us would like to hear that we still owe money after closing the books. But post-audit claims come with more than one expense to your mental peace. Take a look at this:
All-in-all, you either pay the claim as a supplier, write it off, or spend thousands in labor for disputes.
This is why deduction management software is becoming a necessity for enterprises dealing with high-volume transactions and retail chargebacks.
Let’s understand where post-audit claims originate from with everyday supplier situations:
These small errors can be unintentional, but they lead to real claims. Suppliers must address and reconcile these on time.
Trying to settle the post-audit claims is not a walk in the park. It requires:
This is a laborious, tedious, and error-prone process. To make it worse, it consumes the time that you can spend on revenue-generating tasks. In many companies, post-audit claim resolution is rather reactive than strategic. This is because the AR teams are stretched thin.
For the same reason, we automate everything. This is 2025, and not using automation now is not going to work in our favor.
With iNymbus, you get a completely automated platform that handles post-audit claim ingestion, document matching, validation, and dispute filing. Our platform uses Robotic Process Automation (RPA) to:
The processing time is reduced by 80-90%. You can save thousands in operational costs this way.
Delaying the resolution of post-audit claims may not look harmful. But it can create huge risks if ignored:
Most important of all, it tells the audit teams that you are lax in verification or pushing back. This is quite an expensive reputation to uphold.
Leave the documents and deadlines struggle behind with a process where claims are:
Retailers are adapting to tighter compliance and recovery models. This can mark an increase in post-audit claims for suppliers. But you can stay ahead with the right tools and strategies. Automate your processes to prevent historical mistakes from becoming financial liabilities.
Check out our page - iNymbus to learn more about how we can help you and your business.