Throughout each audit, Audit Recovery runs thousands of electronic queries that are specific to each vendor while cross-referencing all available paper files. We gain a clear understanding of each vendor’s pricing and deal structures and operating procedures across each product line. Using this approach, Audit Recovery detects subtle inaccuracies that are extremely difficult to identify. Although errors are rare and occur randomly, they span a vast array of payments and deductions. The volume adds up to significant losses that Audit Recovery captures.
grocery debit examples
One of our clients had a yearlong EDLP allowance loaded to its portal system by the vendor. The comments specified that the EDLP was available for three of its four warehouses but not the fourth. However, the second warehouse did not receive the EDLP allowance for the first four months of the year. Audit Recovery recouped the first four months of the missed EDLP allowances for the second warehouse recovering $176k for our client.
An error due to the introduction of a new item amounted to a $35k under-deduction. There was a bill back allowance running on a product line the month of November for a Thanksgiving TPR. A new, like item was added to the product line in September. The vendor forgot to include the new item on the November offer so our client did not bill for the item. The item was included on all subsequent promotions for the family group. Audit Recovery noticed this error and we retrieved the $35k due for the new item.
In another instance, there was a $19k under-deduction for a scan billing. The scan rate for the items was 1.25 per unit for 2/$6 ads when the item cost was 3.59 per unit. In the month of May, the cost increased from 3.59 to 3.99 per unit. However, the July ad received the 1.25 scan rate that was commensurate with the lower 3.59 unit cost. All of the subsequent 2/$6 ads after July received a higher 1.65 scan rate, associated with the new 3.99 cost. Since the merchandise sold during the July ad was purchased at the new higher 3.99 cost, the scan rate should have been 1.65. Audit Recovery corrected the billing from 1.25 to 1.65 to reclaim the $19k.
An error caused by a change in pack size amounted to an $8k overbilling. A group of items was switched from 6-packs to 12-packs. There was an EDLP running during the case pack transition. The EDLP was .85 for the 6-packs and 1.70 for the 12-packs. Because the vendor submitted the new 12 pack EDLP deal a few days late, the first four purchases of the 12-packs did not receive the full EDLP allowance. Audit Recovery identified the small gap in EDLP allowances and billed for the $8k.
An incorrectly priced shipper amounted to an overpayment of almost $3k. The shipper contained 48 units of open stock merchandise. The open stock was receiving .25 per unit off-invoice allowance for an April promotion. The corresponding shipper merchandise that was received for the April promotion was invoiced at the same per unit list cost as the open stock. However, the vendor failed to provide the corresponding OI allowances. Since the shipper contained the exact same merchandise as the open stock, it should have received the same net unit cost after allowances.
Another error resulted from the late delivery of merchandise, amounting to a $28k overpayment. Our client placed an order that was to be received by April 28th, prior to a May 1st price increase. The vendor delayed the shipment and it was not shipped until May 3rd. Due to the late shipment, the vendor invoiced our client at the higher price. Since the merchandise was requested prior to the May 1st price increase, Audit Recovery produced a debit to receive the lower price.