To operate at top efficiency in today’s difficult business environment, manufacturers must have complete confidence that their major supplier agreements and accounts payable processes are fully protecting their company’s interests. AMS-PAR offers recognized expertise to help your management team evaluate and improve expenditure controls.

We will help recover profits lost to vendor overpayments, contract misinterpretations, or other payment errors. With our team on your side, you will have a higher level of assurance that your traditional supply agreements, new project expenditures, and accounts payable processes are operating accurately and fully protecting your company’s interests.

Our reviews are self-funding, require minimal client staff involvement, and result in detailed reporting of findings and recommendations for process and procedural improvement.

Manufacturing

Vendor/Supplier Review

Vendors rarely invoice with 100% accuracy. Errors can arise simply from mispostings or from misinterpretation of complex contractual agreements. In today’s business environment where internal staff are challenged to review and process invoices on time, it is critical to have outside expertise available to identify and recover lost profits. A comprehensive AMS-PAR vendor review program will determine the current level of contract compliance of key suppliers without adding additional burden to the client’s staff. We will examine the agreements that are the basis for the commercial relationship, verify that the resulting invoice activity complies with the terms of those agreements and confirm that payments made under the agreements are accurate. AMS-PAR will also assess the vendor’s compliance with the client’s business ethics policy.

Our reports not only provide sufficient detail to facilitate collection, but they also include specific recommendations for improving contracting procedures and contract management processes to ensure that errors do not recur. With your concurrence, we also recover overpayments.

AMS-PAR conducts a wide variety of reviews, including:

Material suppliers
Service suppliers
Sales and Use tax
Construction contractors
Business ethics

Project Construction Review

In today’s construction environment, it is vital to have processes in place that provide your company with the assurance that your primary contractor and subcontractors are in compliance with your contracts. These contractor compliance reviews are a valuable component of any risk management and post-procurement process.

Our post-construction review offers the opportunity to detect control weaknesses, close gaps on future contracts, and recover lost profits. In our typical reviews, recoveries are made in areas like improper billing for contractor time, inappropriate mark-up of costs, and rebilling for items that are contractually covered by overhead. AMS-PAR’s professional staff will carefully analyze payment processes, identify payment errors, and provide recommendations for contracting and payment process improvements.

Accounts Payable Review

Accounts Payable departments operate in a complex environment with both intra-corporate and external factors impacting their performance. AMS-PAR recognizes that you have distinct needs and varying capabilities to support a post-payment transaction analysis. In spite of these differences, one overriding factor is constant: today’s business demands that all assets perform at their maximum efficiency, and the A/P Department is no exception.

AMS-PAR can provide the client with a comprehensive examination of the A/P function. This detailed look will recover revenues lost to vendor overpayments, mispayments, and contractual misinterpretations. AMS-PAR’s experienced team will also analyze the root causes of these inaccurate payments and give substantive recommendations regarding process and procedural improvements, which can prevent the recurrence of these errors. AMS-PAR will help our clients ensure their payable processes are functioning at peak efficiency.

We will provide written and electronic reporting data to support our analysis. Your report will detail each discrepancy, its root cause, the vendor’s recognition of overpayment, and recommended actions for preventing future discrepancies.

Your AMS-PAR team will review all areas where inaccuracies can occur in their search for discrepancies. These areas include:

Vendor master file
Purchasing
Receiving
Returns
Capital expenditures
Tax and regulatory issues
Contracts
Internal controls

Joint Venture Review

AMS-PAR represents companies involved with domestic and international joint ventures to ensure that agreements are interpreted and applied correctly. We can also provide assistance when preparing agreements to make certain your interests are protected. The AMS-APR team has the experience to evaluate whether revenues, billings, and production allocations made to the joint venture partners were made in compliance with the contractual terms and conditions underlying the venture.

Our report will detail each discrepancy and provide guidance for resolving the identified concerns. We will provide written and electronic data to support each of the discrepancies.

Types of co-venture compliance reviews include:

Expense
Capital investment
Production allocation
Claim resolution
Project assistance

Licensing Review

When a manufacturing process or product is licensed to another company, one particularly difficult area to administer is the verification of a licensee’s compliance with the terms of the licensing agreement. Evaluating compliance is a prudent business practice that will examine the licensee’s adherence to their reporting and property protection responsibilities.

AMS-PAR validates the revenue generated from the developer’s intellectual property and confirms that the payment stream and all other performance requirements by the licensee are in compliance with the agreement. Our engagement findings are presented to you in a detailed report that sets out the underpaid licensing revenues, as well as identifying any other areas in which the licensee is not in compliance. The report will recommend improvements in the contract language to strengthen your position now and in future agreements. At your request, AMS-PAR will assist in the negotiation of a settlement of these contractual shortfalls.