Discount Verification Agent

Validates applied discounts on invoices, ensuring alignment with company policies and customer eligibility.

About the Agent

The Discount Verification Agent cross-checks discounts applied to invoices with the company's predefined discount policies, ensuring customers only receive eligible discounts. It plays a critical role in preventing revenue leakage from unauthorized discounts.

This agent provides detailed reports to the billing team on discount accuracy, supporting compliance with financial policies and enhancing trust with customers by maintaining fair and accurate billing.

Accuracy
TBD

Speed
TBD

Input Data Set

Sample of data set required for Discount Verification Agent:

discount_codedescriptiondiscount_percentageeligibility_criteriavalidity_period
DISC10Seasonal Discount10%All customers on orders above $1002024-01-01 to 2024-12-31
NEWCUST15New Customer Discount15%New customers on first order2024-01-01 to 2024-06-30
LOYAL20Loyalty Discount20%Customers with 3+ purchases in the last year2024-01-01 to 2024-12-31
BULK25Bulk Order Discount25%Orders over 100 units2024-01-01 to 2024-12-31
CLEAR30Clearance Discount30%Selected clearance items only2024-06-01 to 2024-06-30
invoice_idcustomer_idinvoice_dateinvoice_amountdiscount_codeapplied_discountfinal_amount
INV9001CUST10012024-02-10150DISC1010%135.0
INV9002CUST10022024-02-1280NEWCUST1515%68.0
INV9003CUST10032024-02-13250LOYAL2020%200.0
INV9004CUST10042024-02-151200BULK2525%900.0
INV9005CUST10052024-02-18400CLEAR3030%280.0
INV9006CUST10012024-02-2090DISC1010%81.0
INV9007CUST10062024-02-21500LOYAL2020%400.0
INV9008CUST10072024-02-2250NEWCUST1515%42.5
INV9009CUST10022024-02-24105DISC1010%94.5
INV9010CUST10082024-02-25150CLEAR3030%105.0

Deliverable Example

Sample output delivered by the Discount Verification Agent:

Discount Verification Report

Date Generated: 2024-02-25
Prepared by: Discount Verification Agent - Billing Department


Executive Summary

This report examines the discounts applied on recent invoices to ensure compliance with our company’s discount policies and eligibility criteria. The Discount Verification Agent reviewed each applied discount against predefined policies, identifying both verified applications and discrepancies requiring further investigation.

Key Findings:

  • 5 Discounts Flagged: Out of 10 invoices, 5 discounts were applied incorrectly due to either eligibility violations or policy validity issues.
  • Revenue Integrity: Ensuring discounts are applied accurately could prevent potential revenue leakage from unauthorized or incorrect discounts.
  • Compliance Support: The verification process enhances financial policy compliance, fostering customer trust and billing accuracy.

1. Discount Policy Overview

Discount Code Description Discount % Eligibility Criteria Validity Period
DISC10 Seasonal Discount 10% All customers on orders above $100 2024-01-01 to 2024-12-31
NEWCUST15 New Customer Discount 15% New customers on first order 2024-01-01 to 2024-06-30
LOYAL20 Loyalty Discount 20% Customers with 3+ purchases in the last year 2024-01-01 to 2024-12-31
BULK25 Bulk Order Discount 25% Orders over 100 units 2024-01-01 to 2024-12-31
CLEAR30 Clearance Discount 30% Selected clearance items only 2024-06-01 to 2024-06-30

These policies are intended to control discount application accurately, ensuring eligible customers receive benefits while minimizing unauthorized discounts.


2. Matched Entries

The following invoices applied discounts in strict compliance with policy criteria, aligning both eligibility and discount percentages with company guidelines.

Invoice ID Customer ID Discount Code Applied Discount Eligibility Criteria Validity Period Final Amount
INV9001 CUST1001 DISC10 10% Orders above $100 2024-01-01 to 2024-12-31 $135
INV9003 CUST1003 LOYAL20 20% 3+ purchases in last year 2024-01-01 to 2024-12-31 $200
INV9004 CUST1004 BULK25 25% Orders over 100 units 2024-01-01 to 2024-12-31 $900
INV9005 CUST1005 CLEAR30 30% Clearance items only 2024-06-01 to 2024-06-30 $280
INV9009 CUST1002 DISC10 10% Orders above $100 2024-01-01 to 2024-12-31 $94.5

Observations:

  • Accurate Discount Applications: All matched entries adhered strictly to eligibility and policy requirements.
  • Financial Impact: Proper discount application reinforces customer trust in transparent billing and supports compliance efforts.

3. Flagged Entries (Discrepancies Detected)

The following invoices were flagged due to inconsistencies in discount application, eligibility, or policy validity. These discrepancies suggest manual review to ensure billing accuracy.

Invoice ID Customer ID Discount Code Applied Discount Expected Discount Discrepancy Reason Final Amount
INV9002 CUST1002 NEWCUST15 15% Not Eligible Order below $100 not eligible $68
INV9006 CUST1001 DISC10 10% Not Eligible Order below $100 not eligible $81
INV9007 CUST1006 LOYAL20 20% Not Eligible Customer does not meet loyalty criteria $400
INV9008 CUST1007 NEWCUST15 15% Not Eligible Order below $100 not eligible $42.5
INV9010 CUST1008 CLEAR30 30% Invalid Period Discount applied outside policy period $105

Observations:

  • Ineligibility Issues: Several invoices applied discounts to customers or order values that didn’t meet the eligibility criteria.
  • Policy Period Violation: One discount was applied outside its valid date range, underscoring the need for date-check automation in discount processing.
  • Potential Revenue Leakage: Misapplied discounts can lead to unintentional revenue losses; immediate corrective actions are recommended to address these discrepancies.

4. Summary of Findings

Compliance Summary

  • 50% Compliance Rate: 5 out of 10 invoices were compliant with discount policies.
  • 5 Discrepancies Identified: Issues included ineligible customers, incorrect order values, and invalid discount periods.

Financial Impact

Ensuring accurate discount application is essential for preventing revenue leakage, enhancing customer trust, and maintaining fair billing practices. Flagged discounts represent potential revenue losses that could be mitigated with stricter automated eligibility checks.

Recommendations

  1. Enhance Automation: Integrate automated discount validation checks in the invoicing system to prevent application of unauthorized discounts.
  2. Policy Period Validation: Implement date range checks to ensure discounts are only applied within their valid periods.
  3. Regular Compliance Audits: Schedule periodic audits of discount applications to identify and rectify any discrepancies early.

Conclusion

The Discount Verification Agent's role in validating discounts has proven essential in maintaining billing accuracy and ensuring policy compliance. This report highlights both compliant entries and areas for improvement, offering actionable insights to support the billing department in achieving financial integrity.

Next Steps: Immediate review of flagged invoices and adjustments to the discount application process are recommended to uphold revenue protection and transparency.

End of Report