How Winshuttle Helps You Fight Fraud & Ensure SAP Compliance
By Clinton Jones on Aug 3, 2016
It’s no surprise that companies running SAP want to identify and minimize business fraud and ensure SAP compliance. If you’re considering using Winshuttle with SAP, you might think adding additional software or more complexity to the end-to-end process could introduce fraudulent activity. In reality, this couldn’t be further from the truth. Controls and governance reduce the opportunity for fraudulent activity, and Winshuttle actually allows you to implement more control. You can reduce or eliminate fraudulent activity through segregation of duties, approval workflows, management review and audit reporting.
The 2016 Report to the Nations on Occupational Fraud and Abuse provides details on how frauds are perpetrated, detected, and combatted in various industries and regions. It estimates that a typical company loses 5% of revenue to fraudulent activity. The most common way is through asset misappropriation. While the value of this type of fraud may be small, they can add up. Financial statement frauds are less commonplace but tend to have a higher value. Check out the fraud tree on page 11 of the report to understand where fraudsters often identify opportunities. This report states that organizations engaging in proactive data monitoring and analysis, suffer less than 50% of the losses compared to organizations without controls in place.
How Winshuttle can help fight fraud and ensure SAP compliance
There are several areas where implementing Winshuttle can help resolve asset misappropriation. The number one area is probably fraudulent disbursements. This is an area where you can use Winshuttle templates for gathering data for payroll, reimbursement and payments processing. Depending on the specifics of your process, you can choose to use Excel or form templates to structure and manage data collection. You can also use workflow based processes. Using workflow allows you to ensure SAP compliance and show that multiple participants are involved in a payment or disbursement process for entry, review and approval before posting actual events in SAP.
Most importantly, not only do you have the auditable event in SAP, you also have a supplementary Winshuttle audit trail for the entry, review and approval part of the process. You can also have additional reviewers or inject audit at any point in the end-to-end process. While this approach is most commonly used with financial postings like the manual journal entry process, it can also be used with any SAP transaction that can be automated using Winshuttle. This is not limited to transactional data, it can encompass master data and master records as well. Check out Winshuttle’s ROI calculator for details of the most common scenarios.
Inventory and all other assets
Misuse and theft are the other areas that make up the 5% of revenue lost to fraud. While your SAP system provides an excellent environment for managing assets and inventory, it has a voracious appetite for data. The quality of reporting and analysis is only as good as the quality and validity of the data you enter into SAP. Winshuttle customers often deploy Winshuttle as an additive solution to the mix of data collection and management tools used in asset management. You can also use it when handling goods receipt, quality inspection and supplier quality management.
Many customers like medical device company B.Braun, use ad-hoc reporting with Winshuttle Studio queries against their SAP systems to earmark records for further scrutiny and pinpoint opportunities for process and control improvement. Winshuttle is not only a key tool in the data collection and review process, but also in data verification and post processing. Aside from benefits like improved data collection and data quality improvement, there are additional facets to deploy Winshuttle that can augment the controls your business needs to reduce and eliminate occupational fraud. Using SAP certified technology, Winshuttle requires no particular software developer skills to augment processes for your existing systems permissions and rights. Winshuttle enables you to not only accelerate business and process efficiency, but also allows you to confidently sign off on whether application data management processes have improved controls and reduced risk of fraud.
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The Winshuttle blog is written by professional thought leaders who are dedicated to providing content on a variety of topics, including industry news, best practices, software updates, continued education, tips and techniques, and much more.
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