A contract compliance audit of every invoice line, before payment, with each claim line cited to its contract page
Overbilling and missed rebates recovered as cash, each line cited to its contract page.
See one case, screen by screen ↓Contract Compliance Audit checks every supplier invoice line against the contract prices, rebates and terms in force on that line's date. Eight agents read every agreement and amendment into dated, cited rules, check every line and rebate tier, recompute indexed prices and build one cited claim per supplier, argued from the supplier's side first. A category manager signs each claim, and overbilling and missed rebates are recovered as cash.
How to choose AI solutions for back-office and enterprise work →
Updated
Accounts payable checks an invoice against the purchase order and the goods receipt. Nobody checks it against the contract. So when a supplier bills last year's rate, forgets an amendment, adds a fee the agreement bans, raises a price by more than its index clause allows or never credits the volume rebate the business earned, the invoice still matches the PO and gets paid.
A contract compliance audit is meant to catch it, but it usually runs once a year, after payment, on a sample of lines in a spreadsheet. The amendment that changed the rate is in someone's inbox, the rebate is taken as the supplier's statement presents it, and the index letter is accepted without recomputing the formula. Findings that miss the look-back window are lost, and the same supplier bills the old rate again next quarter because the rate was never fixed in the ERP.
Estimated split for one supplier's quarter of invoices, audited by hand and with the solution.
Eight agents read every contract into dated rules, check every invoice line and rebate tier, and argue the supplier's side; a category manager signs each claim.
Kestrel & Vane Group buys senior consultants from Brightline Staffing under master services agreement MSA-BLS-2024-07. Its September invoice, BLS-26-0917, is unpaid and due on 1 November. Here is what happens to it, screen by screen, in the working solution.
From her morning briefing, Elena opens Brightline's September invoice: $97,304.00 billed on 26 lines, $91,452.00 at the rate in force on each line's date, $5,852.00 over the contract on 13 lines. Every line sits on the rate card overlay — billed rate, contract rate, gap and a running total — and the side panel shows the clause and the page it came from.
“Payment hold · short-pay $5,852.00 before the 29 Oct run. Leakage over $1,000 on an unpaid invoice is held for Kwame Asante, AP lead.”
The contract reader turned Brightline's seven documents — the master agreement, three amendments, the Schedule C rebate, SOW 14 and change order 2 — into 92 dated rules, each cited to page and clause. The senior consultant rate went from $135.00 to $138.00, then $142.00, then $128.00 from 1 Jul 2026, when amendment 3 capped it in exchange for a 12-month extension. The rule checker re-read every page on its own and agreed.
“If documents conflict, a later amendment prevails over an earlier one and over this agreement” — MSA §1.4.
Thornbury Security Services' amendment 2 sets guard hours in Louisville at $31.40 from 1 Aug 2026 in Schedule 1, but §3 says it takes effect on signature, and it was signed on 12 Aug. The contract reader took 1 August; the rule checker disagreed, so August's $2,601.60 finding waits. Tomas chooses in force from 1 Aug, from 12 Aug ($1,678.45), or send it to counsel, and writes a note for the record.
The rule checker never settles legal ambiguity itself: it sends the difference to a person.
Brightline's Q3 statement counted K&V Motion Systems only: $171,480.00, below the $200,000 tier, rebate $0.00. MSA §3.4 counts every affiliate, and the ERP adds K&V Services' $29,635.00. At contract rates — September at $128.00, not $142.00 — the quarter is $201,115.00, still $1,115.00 over the tier, so Schedule C §5.2 pays 2% from the first dollar: $4,022.30, due by 30 Oct.
The rebate tracker always counts at contract prices, and never counts spend the contract excludes.
Ostrava Packaging raised HDPE bottles and closures, 46 SKUs, by 6.2%. Annex A of amendment 2 allows only the change in the published HDPE blow-moulding resin index — the April–June average against January–March, +2.4% — capped at 3.0% a quarter. The 3.8 points above it come to $11,402.16 this quarter. The same screen shows Corvane Freight's fuel surcharge billed at band 14 where the clause allows band 13, and Velden's copper surcharge taken at the spot price instead of the prior-month average.
“Two published series carry the “HDPE” name. Annex A names the blow-moulding series; the film-grade series moved +3.1%, still capped at 3.0%.”
The claim builder bundled 14 lines into CLM-2026-031 for $9,874.30: 13 senior consultant lines, 418 hours at $14.00 over the cap ($5,852.00), and the Q3 rebate ($4,022.30). The challenger then argued Brightline's side — a new billing platform, rates that rise with consumer prices, K&V Services as a separate customer, a tier reached only on higher prices — and each argument fails on the contract. The $450.00 rush placement fee was dropped: MSA §7.3 bans it unless a written change order allows it, and change order CO-2, signed 4 Sep, does.
Defensibility 94 out of 100. The challenger never adds lines or changes amounts.
The claim builder recommends short-paying $5,852.00 on the unpaid invoice and taking the rebate as a credit note. Elena may sign claims up to $25,000; above that the procurement director signs after her, and Tomas Reyes, who prepared the claim, cannot approve it. She ticks CL-01 · Billed above the contract rate and CL-03 · Rebate tier earned, not credited, and adds a note for the record.
“Signing records your name, the time, the codes and the claim's contents in the audit trail. Nothing is sent until you press Send.”
The claim goes to Jordan Pike, Brightline's account manager, copying Kwame Asante, AP lead, and Owen Marsh, buyer, with the schedule of 14 cited lines, amendment 3 page 2, Schedule C and ERP spend by entity. The reply is due in 10 business days, on 28 Oct. The short-pay goes into Kwame's 29 Oct payment run, and the corrected $128.00 rate goes to Owen to confirm in the ERP, so September does not repeat.
Meridale Facility Services disputes claim CLM-2026-029, $3,712.00 of a 4% administration fee that MSA §6.2 does not allow: it says the fee was agreed by email with a Columbus site manager. The recovery tracker reads the reply, finds that §14.2 allows changes only in writing signed by an authorised signatory and that §14.3 does not include site managers, and drafts the answer. It waits for a person to send it, escalate it to Ingrid Solheim or record a credit note.
The recovery tracker never accepts a settlement and never posts to the ERP.
The Q3 wave checked $9.66M of spend across 11 suppliers — 18,406 lines on 1,312 invoices, every line. It found $68,963.13, 0.71% of spend, on 10 of them; $46,143.68 is in five claims, $17,570.62 agreed and $6,918.42 already back as a credit note. Below it, the agents list the fixes that stop the leakage coming back next quarter, each for a named person to confirm: Brightline's $128.00 rate on its PO, Thornbury's $31.40 guard rate, Meridale's administration fee blocked.
The same supplier claim, seen by five of the people who carry it — what their quarter looked like, and what it looks like now.
Eight agents read every contract into dated rules, check every invoice line and rebate tier, and argue the supplier's side; a category manager signs each claim.
Reads agreements, amendments, statements of work, price lists and rebate schedules, and writes dated price rules, each cited to page and clause.
Re-reads the source page on its own and agrees or disagrees with each rule, applying the contract's order-of-precedence clause.
Applies the rule in force on each line's date to every invoice line, before payment and back over the look-back period, and holds unpaid invoices with leakage over the threshold.
Adds qualifying spend across every affiliate the contract counts, at contract prices, recomputes the tier and compares it with the credits received.
Fetches published index values for the reference period, recomputes the allowed price from the clause's formula and applies the cap.
Bundles a supplier's findings into one cited claim, weighs the settlement — short-pay, credit note or offset — and drafts the letter.
Argues the supplier's side of every claim line — change orders, approvals, emails, index dates — scores defensibility and drops weak lines with the reason.
Runs the reply and look-back clocks, reads supplier replies, matches credit notes and short-payments, prepares rebuttals and proposes rate fixes at the source.
Confirm rules the agents dispute; sign and send claims. The agents propose; a named person decides.
Ask in plain words, or say what to do. Every figure in the answer points to its contract page or invoice line, every action it takes is on the record, and a claim still leaves only when a person presses Send.
Why is Brightline's claim $9,874.30?
Two things, each cited. September invoice BLS-26-0917 bills 418 senior consultant hours at $142.00; amendment 3 caps the rate at $128.00 from 1 Jul: 418 × $14.00 = $5,852.00. And Q3 spend across Motion Systems and Services is $201,115.00 at contract rates, over the $200,000 tier, so 2% is owed from the first dollar: $4,022.30; Brightline counted one entity and credited nothing. The challenger dropped a $450.00 rush fee that change order CO-2 allows.
Which suppliers are close to a rebate tier?
Halden Industrial Supply: $6,412.00 short of its 3% annual tier. 2026 purchases are $1,793,588.00; at $1,800,000 the whole year moves from 2% to 3%, about $18,000.00 more by 31 Dec. Corvane is 16 loads short of its tier, which is correct.
Remind every supplier whose reply is due soon
Sent 2 reminders: Meridale Facility Services (reply due 22 Oct, disputes $3,712.00; the rebuttal on MSA §14.2 is ready) and Corvane Freight (week 35, $3,584.60, due 23 Oct). Halden is closed and recovered. Each reminder is on the record.
What did we recover this quarter, and what is still open?
$68,963.13 found on 10 of 11 suppliers, 0.71% of $9.66M of spend. $46,143.68 is in claims, $17,570.62 agreed (Halden in full; Corvane weeks 32–34) and $6,918.42 already back as a credit note. Still open, not yet claimed: $22,819.45 on Pellstone, Quenby, Thornbury, Velden and Arrowmere.
13 screens from the working solution, on its sample data. Pick one to see it large.
What counts as leakage, when an invoice is held and when a person must decide are settings. A change becomes a draft version, and the procurement director approves it.
| Setting | Default | Choose from |
|---|---|---|
| Ignore a gap under | $5.00 or 0.5% a line | Small rounding is not leakage |
| Minimum claim | $250.00 a supplier | Below this, findings roll into the next quarter |
| Hold an unpaid invoice for short-pay above | $1,000.00 of leakage | Paid invoices are recovered by claim |
| Look-back | 24 months, or the audit clause if shorter | Brightline MSA §12.2: 24 months |
| Challenger bands | Drop under 60 · flag 60–79 · pass 80+ | Flagged lines go to the category manager |
| Rule needs a person when | The two agents disagree, or confidence < 85 | Every other rule goes live when both agree |
| Supplier reply clock | 10 business days | From the day a claim is sent |
| Rebate credit expected | 30 days | After a period ends, unless the contract says otherwise |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (WorldCC and Deloitte, The ROI of Contracting Excellence, 2023 — 8.6% average value erosion; City of Albuquerque Office of Internal Audit vendor audits — 2–13% sampled error rates). Kestrel & Vane Group, its suppliers and the people named on this page are fictional — characters and sample data in the working solution.
Contract Compliance Audit checks every supplier invoice line against the contract prices, rebates and terms in force on that line's date. Eight agents read every agreement and amendment into dated, cited rules, check every line and rebate tier, recompute indexed prices and build one cited claim per supplier, argued from the supplier's side first. A category manager signs each claim, and overbilling and missed rebates are recovered as cash.
Three-way match checks the invoice against the PO and the goods receipt. If the PO carries last year's rate, or the supplier forgets an amendment, adds a banned fee or never credits a rebate, the invoice still matches and is paid. Contract Compliance Audit checks the line against the contract itself, dated to the day the work was done.
Both. New invoice lines from the ERP are checked every 30 minutes, and an unpaid invoice with more than $1,000.00 of leakage is held for a short-pay before the payment run. Paid invoices are checked back over the look-back period — 24 months, or the supplier's audit clause if shorter — and recovered by claim.
The rebate tracker adds qualifying spend across every affiliate the contract counts, at contract prices, and compares the tier earned with the credit received. In the demo, Brightline counted one entity and credited nothing; adding the second entity took the quarter past the $200,000 tier, and $4,022.30 was owed.
Yes. The index agent fetches the published index the contract names for the reference period, recomputes the allowed price and applies the cap — resin, diesel and copper in the demo. It never uses an index the contract does not name, and when two published series share a name it flags it, so the category manager can send the question to counsel.
The rule checker re-reads every page without seeing the contract reader's answer. When the two disagree — like an amendment dated 1 August in its schedule but in force on signature — the rule waits for an analyst, who confirms it with a note, and legal ambiguity goes to counsel.
Yes. The agents find, recompute and draft; they never send, pay or post. The category manager signs claims up to $25,000 and the procurement director above, with reason codes; the preparer cannot approve; nothing reaches a supplier until a person presses Send; and every step is on a chained audit trail.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your contracts, an ERP extract of invoice lines and your approval policy — and it goes live once every quality gate has passed. In the working solution, connecting the ERP, contract repository, index feeds and timesheets took about two hours, and the first baseline ran overnight.
Blocked invoices released before late fees and supplier holds, every fix checked twice.
1-min demoVendor Payment Fraud PreventionEvery bank change proven by a call-back before a single dollar moves.
1-min demoExpense Report AuditEvery report checked, not a sample, and no forged receipt paid without proof of payment.
1-min demoWe'll run Contract Compliance Audit on your own contracts and a quarter of invoice lines from your ERP.