How do you manage duplicate payments in accounts payable?

So, you’ve found a duplicate payment, now what?

Each accounts payable team will have their own process for handling double payments. This depends on their team and departmental structure, and the systems the organisation has in place. Therefore, if you in any doubt on how to handle those duplicate payments, speak to your manager.

How to manage duplicate payments:

1. Discover the error. Errors are often found through routine checks and reconciliations, automated systems that flag duplicate invoices or vendors such as FISCAL’s platform, or by vendor notifications.
2. If possible, amend your invoice management system and notify internal stakeholders before the payment run. Try to prevent the duplicate payment before it is paid.
3. If the payment has already been made, notify the supplier, and request a refund or credit. The refund may need to be processed.
4. Once received, record the refund or credit transaction.
5. Investigate the root cause of the duplicate payment by reviewing records, checking communications with suppliers, looking at your audit data, and verifying your internal processes. Once the cause is found, you can take measures to prevent future double payments. This step can be completed once you begin the reconciliation process, or after the payment has been prevented. 

By following these steps, organisations like yours can effectively manage the impact of duplicate payments in their accounts payable process to reduce working capital leakage and maintain more accurate ledgers.