Revenue Assurance Automation and Process Improvement
For any organization that wish to remain profitable and avoid revenue losses in its business operations, revenue assurance should be part of its business strategy and internal audit function. Due to errors in business application logic, broken links in the execution of revenue scripts in the core applications, human and other system related errors/defects, income/revenue are either not charged/recognized at the point of transaction processing, undercharged or overcharged. Where transaction charges/fees/commissions/interests are not charged or undercharged, the organization loses income on products and services rendered whereas customers could revolt to overcharging leading to reputational issues. In which case, its leaves bad taste in the mouth for both the organization and its customer. For process effectiveness and to ensure profitability, organizations most put in place a structure/process of providing that need assurance to management on its revenue earnings on periodic basis (either weekly, monthly, quarterly or annually). Given the volume of transactions being processed on daily basis and the cumbersomeness of manual review, an automated revenue assurance process ought to be in place to independently verify all income lines in the books to ensure completeness and integrity.
This automated process require the use of an computer assisted audit technique (CAAT) tool to reconstruct or recreate the transactions and income recognition flow independent of the core business system using historic transaction data. CAAT tools such as Audit Command Language (ACL) software or IDEA is used to develop scripts that will recalculate transaction charges/fees/commission/interest independently with the transaction data from the core business application. Income calculations from the core business system is then compared with the independent calculations from the CAAT tool and where there are dicrepancies, they are flagged for regularization and recovery by passing appropriate accounting entries for the shortfall to be recognized or overcharging to be refunded to the customer as the case may be.
The revenue assurance task is a data integrity test and mining on the big data of the organization. As such, requires highly competent personnel who have the skills to develop scripts or queries on the CAAT tools (ACL or IDEA software) or SQL queries to detect the anomalies on the production scripts that brought about the income leakage. This is where our Experts come handy. Our Revenue Assurance Analysts have the required skills to undertake this exercise.
Our Revenue Assurance Team are on hand to assist you build the required internal competence and capabilities to carry out this function by providing the needed technical and training support to your team for success. We can also develop the required scripts and workflow that will enable your team carry out revenue assurance function effectively at the click of a button. Our scripts are built in ACL software, which covers all income lines recognizable in the books. We will work with your operations and accounts teams to understand your processes, requirements and income lines to enable us customize the scripts to meet your business requirements.
You can Contact US if you need additional information on our service. Our Revenue Assurance Analysts are on hand to answer all your questions and walk you through the process seemlessly.