Audit Exception Change Continues to Cause Cash Flow Problems
July 8, 2011 
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Last week, we noted the update that SDDC had published, covering a few different problems in DPS invoicing. The problem that caused the most concern was an Audit Exception error in the US Bank Payment system. Unfortunately, that problem has still not been repaired, and the number of invoices affected is starting to climb.
A change occurred in early June to the way the US Bank system handles the situation when a TSP invoices less than the amount that the DPS (or CWA) rating engine calculates. Prior to this change, US Bank would pay the lesser amount of the TSP invoice. Since the change, any invoice where the DPS rated order is higher than the invoice goes into Audit Exception status in the US Bank system. As we stated in the previous post:
So now if a TSP invoices the correct amount, and DPS incorrectly rates it too high, the invoice will go into Audit Exception. Now the TSP is in a difficult position, because if they match the DPS rating, which is the only way to get it out of Audit Exception status, they will be overpaid. The TSP is in essence stuck between not getting paid or being overpaid.
US Bank hoped to have a fix in place by then end of last week, but that was delayed until this Tuesday, and has been delayed again indefinitely. Unfortunately, the number of invoices continue to pile up. As of our last report, we were tracking nearly $900,000 in invoices that are in audit exception status due to this problem. We have recently submitted a list of these invoices to SDDC, as instructed by the recent message, but we expect it will be a time-consuming and labor intensive process for SDDC to manually match these invoices.
We continue to be in daily contact with representatives from US Bank and Syncada, and are hopeful this situation is resolved soon. There is never a good time to have a problem that affects cash flow, but it is particularly troublesome during the peak season.
Update: We have received notification that the fix for this issue is now currently scheduled for 7/12/11.
If you have any questions about this issue, or thoughts on how it is affecting your cash flow, please feel free to use the comments below:
Related Posts
- Audit Exception Letter from SDDC - July 18th, 2006
- Audit Exception Procedures Approved by SDDC - January 24th, 2006
- Audit Exception Matching Numbers - January 27th, 2006
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