Given the challenges, many large companies ignore the vendor credit opportunity as statistically inconsequential. In this case, our customer’s Director of Shared Services saw things differently. He presented the CFO with a plan that would make a steady increment to the bottom line with no upfront investment, no alteration to normal AP accounting practices, and no disruption of vendor relationships. Recovering vendor credits, and sending revenue to the bottom line, is clearly a good thing. This is, essentially, an untapped resource, a straightforward way to increase working capital. However, it shouldn’t be handled in a haphazard manner that would potentially damage vendor relationships. One option is to develop dedicated in-house expertise that can accurately identify and professionally

Join for free to read