Technology is continuously reshaping how finance teams manage their processes. While software is designed to minimize errors, it can paradoxically become a source of them.
In this article, we highlight the most common types of incorrect payments — and show how organizations can turn these issues into process optimization opportunities.
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1. The most common accounts payable (AP) errors
At Averdes, we have spent 23 years analyzing spend and vendor data and have gained unique insights into the most common types of erroneous payments. The graph is based on Averdes’s data analyz:ing 30k claims:
∎ Credit notes (23%): Credit memos often go unrecorded due to missing communication, incorrect routing, approval delays — or because they were never sent by the supplier in the first place.
∎ Incorrect or missing VAT entries (20%): Misinterpreted invoice layouts or retroactive corrections frequently result in VAT not being claimed — a costly oversight.
∎ Incorrect import VAT bookings (17%): Misclassified or misunderstood supplier invoices can lead to missing entries for recoverable import VAT. In many cases, a few seconds of correction can unlock these values.
∎ Data entry & OCR errors (16%): Manual entry issues (like digit swaps) or automated OCR misreads (wrong amounts, misidentified fields) often cause "fat-finger" mistakes.
∎ Duplicate payments (9%): These stem from issues like multiple departments paying the same invoice, invoice resubmissions, or complications during system migrations.
A brief side note: Advanced software solutions like SAP are generally equipped with robust mechanisms to prevent such issues. That’s precisely why many of our clients ask us:
“We’re using SAP – how can duplicate payments still occur?”
There are many possible reasons. Even a seemingly minor action—like changing the invoice reference or using different characters—can lead to a duplicate payment.Common causes include, for example:
– "Original & Copy": The original and a copy or reminder are both processed.
– "Different invoices": Sometimes different invoices are mistakenly paid for the same services or products.
– "Multiple approvers": Different teams might approve and pay the same invoice.
– "Different divisions": Occasionally, different divisions within a company pay the same invoice.
– "Duplicate vendor master data":The same vendor set up under multiple IDs can bypass duplicate checks.
– "System migrations": Switching ERP systems can result in the same invoice being recorded in both old and new environments.
∎ Incorrect payments (6%): Mistaken payments to the wrong supplier due to input errors, poor master data, or name similarities.
∎ Unmatched payments (4%):Payments that can’t be assigned to an invoice — usually due to missing or incorrect booking references.
∎ Unused credit notes (3%): Credits are entered in the system but never applied.
∎ Other overpayments (2%):Includes partial overpayments or payments made in the wrong currency.
2. Turning Errors into Value
Identifying and correcting AP errors brings substantial benefits:
∎ Recover lost money: Companies can reclaim overpaid amounts. Our data shows that, on average, €1–2 million is recovered per €1 billion in spend analyzed.
∎ Improve internal processes: Understanding why errors occur enables targeted improvements in invoice processing and controls.
∎ Enhance data quality: Clean, consistent supplier master data helps reduce manual work and avoid future errors.
∎ Strengthen supplier relationships: Proactive resolution of issues builds trust and stability with suppliers.
3. Taking the First Step
At Averdes, we help organizations turn mistakes into measurable improvements. Our overpayment audits analyze your transaction and supplier data to uncover hidden losses — and fix them.
Why we deliver more than software alone:
∎ Kombination aus Technologie und menschlicher Expertise: We combine algorithm-driven insights with direct supplier outreach to resolve issues software alone often misses.
∎ Hohe Antwortquoten von Lieferanten: Thanks to our global team and multilingual support, we achieve industry-leading engagement from suppliers.
∎ Umfassende Fehleranalyse: We go far beyond duplicates to identify a wide range of accounting and booking errors.
∎ Kein finanzielles Risiko: Our success-based model means: no recoveries, no fees.
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Founder and Managing Director
