Post Audit Recovery

Post audits can create significant deduction exposure for CPG companies. These claims often relate to alleged historical overpayments, pricing issues, missed allowances, promotional funding, freight terms, compliance issues, or other transaction-level activity.

Post-audit claims can be difficult because they often involve:

• Older transactions
• Multiple invoices
• Historical pricing files
• Trade agreements
• Customer contracts
• Prior credits
• Payment history
• Promotional documentation
• Large claim populations
• Complex supporting schedules

A strong post-audit recovery process should include:

• Detailed claim validation
• Review of backup and supporting schedules
• ERP reconciliation
• Credit memo review
• Duplicate claim identification
• Pricing and trade agreement validation
• Documentation of disputed amounts
• Clear follow-up with the customer or auditor
• Tracking of repayments, denials, and remaining exposure

Post-audit deductions should not be accepted at face value without validation. Like other deductions, they may include valid amounts, invalid amounts, duplicate claims, unsupported items, or partially recoverable balances.

IAB Insight: Post-audit claims often involve large dollar amounts and multiple years of transaction history. Because of their size and complexity, even small validation errors can create significant financial exposure or missed recovery opportunities.

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