Order To Cash (O2C) Analytics – Internal Audit

 



Hi everyone, as a continuation of the previous article on analytics in P2P process, I am here to present you the same kind of analysis that can be performed in Order To Cash process.


ALSO READ PROCURE TO PAY ANALYTICS HERE https://commercejob5.blogspot.com/2021/09/procure-to-pay-p2p-internal-audit.html

 

·        To Check if there are any duplicate customer codes in master data

To check if there are any multiple customer / duplicate accounts created with the following details

o   Customer name + company code + Same address + Different customer code

 

·        To check on the potential bogus transactions

o   Sales transactions (Basic amount in INR) ending with ‘999

o   Sales transactions (Basic amount in INR) ending with ‘000

 

·        Transactions with default suppliers

o   Sales transactions with customers identified by RBI and MCA as parties in default

 

·        High value sales return made at the start of the quarter

o   Check whether there are any high value sales returns made at the start of the quarter. This may be as a result of bogus sales booked at the end of the previous quarter to window dress the financials

 

·        Transactions with related parties or with parties of interest

o   Observe carefully of any sales made to related parties and to parties of interest to check if they are carried on at arm’s length price

 

 

·        High unit price variations (Trend analysis)

o   Same material sold to same customer at different price (Same material code + same customer code and name)

o   Same material procured from different vendors at different price (Same material code + Different customer code and name)

 

·        Transactions with customers who have outstanding for more than 180 days

o   Check if there are any transactions with customers whose balance is outstanding for more than 180 days (long pending dues) using invoice date and credit period given, if any

 

·        To check on the excess dispatch of finished goods

o   Perform reconciliation of outward weighment report at the plant (at the time FG moves out of the plant) against the invoice quantity with the following details

o   Exact vendor code + same material code


ALSO READ PROCURE TO PAY ANALYTICS HERE https://commercejob5.blogspot.com/2021/09/procure-to-pay-p2p-internal-audit.html

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