Contract Compliance Review
Validate that supplier billing aligns with negotiated pricing, beneficial terms, and contractual requirements.
Contracts define the financial terms of your supplier relationships, but complexity, transaction volume, and system limitations can create gaps between agreement and execution. Broniec’s contract compliance reviews help confirm that you are paying what was negotiated.
When Contract Terms Don’t Translate to Transactions
Contract pricing structures are rarely simple.
Tiered pricing, rebates, freight terms, allowances, and revenue-share agreements introduce layers of complexity that systems and workflows do not consistently capture.
These gaps rarely appear as obvious errors, but they can create ongoing financial leakage.
Pricing Tiers
Pricing tiers not properly applied.
Pricing Changes
Pricing changes misaligned with purchase orders.
Rebates & Incentives
Rebates and incentives not tracked or claimed.
Freight Terms
Freight terms inconsistently billed.
Contract Updates
Contract updates not reflected in ERP systems or contract repositories.
Contract Management
Decentralized contract storage or interpretation.
Timing Discrepancies
Timing differences can create another point of disconnect between contractual terms and execution.
A Structured Evaluation of Contract Alignment
Broniec’s contract compliance review examines supplier billing against contractual agreements to identify discrepancies and missed value.
vs. Billing Execution
Pricing Alignment
Verification of unit pricing, tier structures, and escalation terms.
Rebates & Allowances
Identification of earned but unclaimed incentives.
Freight & Accessorial Charges
Validation of shipping terms and additional fees.
Revenue Share Agreements
Confirmation of calculated and remitted amounts.
Contract Interpretation Gaps
Identification of differences between contractual language and operational execution.
Independent, Document-Based Validation
Our process combines contract review, transactional analysis, and auditor validation to help ensure findings are accurate and defensible.
Contract & Amendment Review
Review of contractual agreements and related amendments.
Transactional Data Alignment
Alignment of transactional data with applicable contract terms.
Exception Identification
Identification of discrepancies requiring further review.
Auditor Validation & Root Cause Assessment
Auditor review and assessment of the underlying cause of identified issues.
Documentation & Recovery Support
Supporting documentation and recovery support for validated findings.
Every finding is tied directly to contract language and validated through supporting evidence.
Financial Accuracy and Contract Confidence
A contract compliance review delivers more than recovery. It helps restore alignment between negotiated intent and financial execution.
Recover Pricing Discrepancies and Missed Incentives
Identify opportunities associated with pricing discrepancies and incentives that were earned but not claimed.
Improved Contract Compliance Visibility
Gain greater visibility into whether contractual terms are reflected in supplier billing.
Greater Supplier Accountability
Support greater accountability around agreed contractual terms and billing.
Reduced Financial Leakage Over Time
Identify discrepancies that can contribute to ongoing financial leakage.
Insight Into Management & Implementation Gaps
Gain insight into gaps in contract management and implementation.
A Critical Layer Within Comprehensive Audit
Contract compliance reviews are often integrated into a broader accounts payable audit, but they can also be performed independently when contract complexity or supplier exposure is the primary concern.
Part of a Comprehensive AP Audit
Contract compliance can serve as one review layer within a broader evaluation of accounts payable activity.
Performed Independently
A focused contract review may be appropriate when contract complexity or supplier exposure is the primary concern.
Common Questions About Contract Compliance Reviews
A focused contract compliance review helps evaluate whether supplier billing reflects negotiated terms, pricing structures, and other contractual requirements.
What is a contract compliance review?
A contract compliance review examines supplier billing against contractual agreements to identify discrepancies and missed value. The review may include pricing structures, rebates and allowances, freight charges, revenue-share agreements, and differences between contractual language and operational execution.
What types of contract issues can Broniec review?
Review areas can include unit pricing, tier structures, escalation terms, earned but unclaimed rebates or incentives, freight and accessorial charges, revenue-share agreements, and contract interpretation gaps.
How are contract compliance findings validated?
Broniec’s process combines contract and amendment review, transactional data alignment, exception identification, auditor validation, root cause assessment, and supporting documentation. Every finding is tied directly to contract language and validated through supporting evidence.
What can a contract compliance review help identify?
A review can help identify pricing discrepancies, missed incentives, contract compliance gaps, and areas where negotiated terms are not being reflected consistently in financial execution.
Is contract compliance review part of an accounts payable audit?
It can be. Contract reviews are often integrated into a broader accounts payable audit, but they can also be performed independently when contract complexity or supplier exposure is the primary concern.
Ensure Your Contracts Are Working as Intended
Independent contract validation can provide greater clarity into supplier billing, identify recovery opportunities, and strengthen long-term financial control.