The Finofo blog

Three instruments cover most procurement situations. Choosing the wrong one creates either friction or control gaps. Here is the decision framework that holds up.

Blanket purchase orders cut administrative work for repeat spend. They also weaken controls in ways most procurement teams underestimate. Here is the honest tradeoff.

Year end is the natural cleanup point for credit balances. The discipline of clearing the queue before close prevents the accumulation problem and gives external auditors a cleaner position to review.

Goods get returned. Credits should follow. The handoff between receiving and AP is where most returns related credits go missing.

Duplicate payments happen at every company. The question is whether you find them, recover them, and prevent the next batch.

Rebate programs are a meaningful working capital lever. Most teams either underclaim them or recognize them at the wrong time. Here is how the lifecycle should actually run.

Vendor statements are the most direct way to surface credits the buyer is missing. Most AP teams either do not run the reconciliation or run it inconsistently.

Credits do not stay valid forever. Vendor terms expire them, accounting policies write them down, and at some point the cash is gone. Here is how to manage the aging.

The language around credits is inconsistent across ERPs, vendors, and accounting teams. The confusion creates posting errors that are surprisingly hard to unwind.

Recovery audits regularly surface six and seven figure refunds at mid market companies. Here is when to run one, what they find, and how to do as much internally as possible.

Credits should follow a workflow as structured as invoices. Most do not. Here is what the lifecycle should look like end to end.

Credit notes, returns, and overpayment recoveries sit unapplied in vendor accounts at almost every company. The cash is real. The visibility is not.

Strategic vendor relationships need structured review at a cadence that supports decisions. The quarterly business review is the standard mechanism. Most companies hold them inconsistently for their most important vendors.

When a vendor relationship ends, the offboarding work that should follow rarely happens systematically. The gaps create access, data, and compliance exposures that surface later as audit findings.

Multi entity organizations end up with the same vendor appearing in multiple vendor masters, often with inconsistent data and missed opportunities to consolidate.

Vendor statement reconciliation surfaces discrepancies that no other process catches. Most companies either do not do it or do it inconsistently for their largest vendors only.

Compliance verification at onboarding is necessary. Compliance verification only at onboarding is insufficient. The discipline of ongoing compliance management is where most companies have a gap.

Changing vendor banking details is the most common pattern in business email compromise fraud. The controls to catch the fraudulent change need to operate at the moment of change, not after the payment.