Procure To Pay (P2P) Internal audit - General Data analytics - Part II

 

Hi everyone, in this article you can find the common data analytics that can be performed in internal audit of Procure To Pay (P2P) process. The entire article contains around 30 key data analytics w.r.t P2P process in two parts (part I &II).

ALSO READ PART I HERE 

·        Inadequate price discovery

Compare the material prices with prices available on internet and provide results with deviations

 

·        Inadequate price negotiations with suppliers

Identify prices that have never changed for a considerable number of days

 

·        Splitting POs to by pass approval matrix – check for multiple POs with the same supplier in same time frame

To check if the multiple POs are created with the following conditions

o   Same PO (Provide an option to increase the number of days + same vendor code and name + Different POs 

 

·        Gap in the purchase order numbers in the PO dump

Check for any gap between sequential number in the purchase orders from the purchase register

 

·        To check if a PO has been created for the same material for which a previous PO is still open

To check the following combinations of PO has been created, while the PO of the same combination is still open

o   Same material + same vendor + different document + GRN date of the first PO is after the subsequent PO date 

 

·        Purchase order created post receipt of materials

Compare the PO details with respective GRN, to check on the following discrepancies

o   PO creation date = GRN date

o   PO creation date > GRN date 

 

·        PR and PO is created by the same user

Identify the cases where the user who has created the PO is as same as the user who created the PR

 

·        Duplicate Invoices

To check if the same invoices are recorded twice. Use the following logic for the conditions mentioned.

o   Same vendor code + same vendor invoice number + same GRN + same material code + same PO number + same document date 

 

·        To check if there any potential bonus purchase returns

Mapping purchase returns to the actual purchase transactions made with the following combinations

o   Same vendor number + same material code + same vendor invoice number + same GRN + negative of purchase value

 

·        Duplicate payments

To check if there is any duplicate payment made with the following combinations

o   Exact vendor code + same invoice number

 

·        To check on the availment of credit period

To check if any payments are made to the supplier prior to the payment due date

o   Pay term / payment due date (net due date) Vs payment date

ALSO READ PART I HERE