FlexTecs Launches Invoice Compliance Module for Contract Checks

FlexTecs, a recovery audit and contract compliance company, has launched a new module called Invoice Compliance. This module integrates into the Accounts Payable (AP) workflow to ensure that invoices are checked against negotiated pricing, rate cards, discounts, and terms before payment. The goal is to prevent overcharges that can slip through standard AP controls.

According to Tom Cook, CEO of FlexTecs, companies often negotiate hard for favorable pricing, but overcharges can occur when invoices are not thoroughly checked against the contract.

Standard AP controls, such as the three-way match, confirm that an invoice agrees with the purchase order and the receipt, but they do not verify that the purchase order price reflects the contract. When a volume tier takes effect, a negotiated discount isn't applied, or a freight charge falls outside the agreement, the invoice can pass every check and be paid. This means that contract overcharges can go unnoticed for months, leading to financial losses.

Invoice Compliance addresses this issue by moving the contract check before payment. Organizations can choose which suppliers and contracts to monitor, focusing on those with complex pricing and the highest financial exposure. The module flags prices above contracted rates, incorrectly applied terms or discounts, charges with no contractual basis, and invoices outside expected procurement processes. Each finding provides the contracted price, the invoiced price, and the variance, along with a root cause and invoice action, allowing AP teams to resolve the issue without digging through contracts.

Finance leaders can see the total exception value from each compliance run, giving them a dollar figure on contract exposure. Procurement teams can track which contracts and categories drift from their terms over time. The module is trained on 30 years of recovery audit experience across more than $1 trillion in AP transactions, ensuring that it knows where contract overcharges tend to hide.

For complex contracts, the FlexTecs team can provide optional validation to confirm discrepancies, quantify overcharges, and support the recovery of value already paid. Invoice Compliance joins Payment Error Prevention, Statement Reconciliation, and AP Inbox Assist on the FlexTrap platform, adding contractual accuracy to the transaction accuracy, balance accuracy, and workflow efficiency the other modules address. Compliance findings also feed the FlexTrap Intelligence Layer, allowing finance and AP leaders to see contract performance alongside payment, reconciliation, and supplier communication insights in one place.

FlexTrap, the AP Intelligence Platform, integrates with more than 80 ERP systems and has no contingency fee, so organizations keep 100% of what they save. On average, clients see more than a fivefold return on investment in the first year.