Conditions-Check –
Detection of Unknown Outstanding Credits
Conditions agreements have become increasingly complex, making unknown and still outstanding credits for your business almost inevitable. With the experience of hundreds of Conditions-Checks, we know exactly where to look and which of your business partners to examine in order to uncover existing claims for your company.
There are Numerous Reasons Why Credits may still be Outstanding:
Outstanding reimbursements owed to you
Advertising cost subsidies
Unreceived discounts
Missing year-end or prior-year sales bonuses
Credit notes for returns not issued or not received
Price fluctuations in regulated markets
Payments for unused services
Outstanding credits for quality defects or contract violations
Purchases made outside the PO process, not included in bonus calculations
A Conditions-Check Offers Several Key Benefits to You:
Additional revenue from recovering previously unknown credits
Identification of future cost-saving opportunities
Testing and optimization of your processes
Encouraging compliance among suppliers
No risk: Our success-based fee ensures the check pays for itself REQUEST
FAQ about the Conditions-Check
The most frequently asked questions about the conditions check – answered clearly and honestly.
beantwortet.
There are many things that can result in contract compliance errors, including:
- Ambiguous contract terms
- Differing interpretations of contract terms
- System and control limitations
- Incongruent or overlapping systems
- Supplier self-reporting
- Highly complex procurement process
- Organizational changes
- Supplier changes
- Complex supply chains
- Personnel turnover
- Human error
Even with the most sophisticated ERP systems like S4 HANA, errors do still occur. Common mistakes that result in lost profits include:
- Missing or uncommunicated refunds
- Incorrectly posted credit notes
- Incomplete advertising allowances (co-op funds)
- Overpayments
- Duplicate payments
- Incomplete deductions on individual invoices
- Unused discounts
- Incorrect promotional price calculations
- Missing year-end or prior-year sales bonuses
- Credit notes for returns not issued or not received
- Price fluctuations in regulated markets
- Payments for unused services
- Outstanding credits for quality defects or contract violations
- Purchases made outside the PO process, not included in bonus calculations
Even with the most sophisticated ERP systems like S4 HANA, errors do still occur. Common mistakes that result in lost profits include:
- Missing or uncommunicated refunds
- Incorrectly posted credit notes
- Incomplete advertising allowances (co-op funds)
- Overpayments
- Duplicate payments
- Incomplete deductions on individual invoices
- Unused discounts
- Incorrect promotional price calculations
- Missing year-end or prior-year sales bonuses
- Credit notes for returns not issued or not received
- Price fluctuations in regulated markets
- Payments for unused services
- Outstanding credits for quality defects or contract violations
- Purchases made outside the PO process, not included in bonus calculations
Even with the most sophisticated ERP systems like S4 HANA, errors do still occur. Common mistakes that result in lost profits include:
- Missing or uncommunicated refunds
- Incorrectly posted credit notes
- Incomplete advertising allowances (co-op funds)
- Overpayments
- Duplicate payments
- Incomplete deductions on individual invoices
- Unused discounts
- Incorrect promotional price calculations
- Missing year-end or prior-year sales bonuses
- Credit notes for returns not issued or not received
- Price fluctuations in regulated markets
- Payments for unused services
- Outstanding credits for quality defects or contract violations
- Purchases made outside the PO process, not included in bonus calculations
Our conditions check is a highly effective way to minimize financial losses. Our clients often recover up to 10% of their spendings with individual suppliers. At the same time, you have no additional workload – on request, we handle the entire process, from the data analysis to the final reconciliation with your business partners
Our team will guide you through every step of the process. In general, preparation includes:
- Identifying relevant stakeholders and obtaining their approval
- Analyzing internal processes and defining the project scope
- Gathering all required documentation
- Which contracts are reviewed during a Terms & Conditions Check?
- Averdes analysiert Ihre Lieferantenverträge, um das größte Einsparpotenzial zu identifizieren.
More than 30 different risk factors are taken into account, including:
- Volume and number of invoices and credit notes
- Contract complexity
- Previous irregularities with the supplier
- Our experience with this supplier from earlier projects. The supplier’s strategic importance to your organization
Our approach is divided into four phases:
- Preparation – Definition of project strategy, stakeholder training and alignment, risk analysis, and program design
- Planning – Approval process, collection of relevant data, supplier contact, sample selection, and preliminary testing.
- Execution – Data review, reconciliation with suppliers, recovery of identified credits (only after your approval), and development of preliminary conclusions.
- Resolution – Presentation of findings, delivery of the final audit report, and implementation of recommended process improvements.
While the cost of a Conditions-Check varies based on project size and scope, in many cases our Conditions-Check Checks can be designed to be self-funding. The amount of money we recover generally dramatically exceeds the cost, resulting in a net positive for you.
The effort required from your team is minimal. Thanks to our experienced specialists
and advanced technology, the client-side project lead typically invests no more than one hour per week – mainly for brief updates during regular status meetings, which can be further reduced if necessary.
A Conditions-Check typically takes from 4 weeks to 3 months from the kick-off meeting through to final recovery of funds – depending on the number of vendors and contracts included.
Some of the main benefits include:
- Evaluation and improvement of supplier compliance
- Reduction of financial and operational risks
- Recovery of overpaid amounts and improved cash flow
- Lower operating costs
- Optimization of contract structures to prevent future errors
The primary reason is assurance: to confirm that the values and conditions negotiated in your supplier contracts are actually realized.
In addition, Averdes identifies weaknesses in your internal processes and helps you avoid future financial losses.
verhandelten Werte auch tatsächlich realisiert werden. Averdes identifiziert zudem Schwachstellen in Ihren Prozessen und hilft Ihnen, künftige finanzielle Verluste zu vermeiden.
A Conditions Check is relevant for almost every industry, including:
- Retail (highly relevant)
- Banking
- Consumer goods
- Insurance
- Telecommunications
- Media and entertainment
- Pharmaceutical industry
- Energy
Any company working with external suppliers can benefit from a Conditions Check. Global supply chains, varying contract terms, siloed departments, and fragmented systems often make it difficult to ensure that negotiated prices and conditions are applied correctly. We help you overcome these challenges, reduce the workload on your internal teams, and generate additional returns through the recovery of identified cases.