Frequently Asked Questions about Audit Exception

In light of the recent changes to the CONOPS for Audit Exception (AE) procedures established by SDDC, we thought you might be interested to hear a few of the most commonly asked questions received by our customer support department regarding AE issues.

Why is my invoice in AE?
Invoices go into AE for many reasons. Here are the top five causes for invoices we have billed to end up in AE for the month of February:

1. Bunker Surcharge/War Risk/Port Security Denied (36.5 percent )
2. 520A CWA Rating Error (13.6 percent)
3. 130C/130D CWA Rating Interpretation Difference (4.9 percent)
4. 512A CWA Rating Error (4.2 percent)
5. 509A CWA Rating Error (3.7 percent)

How do I fix an invoice in AE status?
For our billing customers for which we do the CWA/PowerTrack follow-up, we actively match the invoices in Audit Exception status daily, so there is no work required on your end. For those customers who do not choose for us to do the follow-up or are an AccuBill or EDI File Translation customer, the procedures require that all invoices in Audit Exception status must have the invoice lines causing the discrepancy to be updated in PowerTrack by the TSP, to reflect the charge calculated by SDDC.

Why did you change the rate on a particular item?
When you receive an updated voucher from our office reflecting a rate that is not the correct rate as outlined by the solicitation, it is due to the matching process for the AE invoices. When we match a line to the charges calculated by CWA, our system recalculates the rate to reflect that charge. We are not saying that we agree or disagree with that rate; we are only matching the invoice to allow it to continue on toward payment status. We will later review the matched line to determine which rate (ours or CWA’s) was correct. If we find that our rate was correct, we will rebill for the amount due the TSP for that item.

Why do I have an invoice with a total of $0.00?
If all lines on the invoice in AE are in discrepancy and rated at $0.00, we have to match the charges calculated by CWA. Again, we are not saying that we agree or disagree with the matched charges; each item will be reviewed to determine if rebilling is applicable.

Related Posts

1. Audit Exception Issues - January 23rd, 2006
2. Audit Exception Letter from SDDC - July 18th, 2006
3. Audit Exception Procedures Approved by SDDC - January 24th, 2006