Disallowable Cost Detection

Target invoice verification where it matters most. Classify costs at scale and focus human review on high-risk items.

The challenge

Are fraudulent or misallocated costs slipping through your invoice checks?

You know disallowable costs exist in your supply chain invoices - sampling tells you it could be as high as 10%. But with thousands of invoices arriving each month, your team can only verify a fraction. The costs you catch are a function of luck, not strategy. On major programmes, the undetected leakage can run to tens of millions annually - money that should be delivering project value, not padding supplier margins.

10%

of invoices are automatically rejected and get sent back to suppliers simply because they don’t meet the customer’s rules

Causeway Technologies

98%

of megaprojects suffer cost overruns of more than 30 percent

McKinsey Global Institute
How we solve it

Strategic verification guided by intelligent classification

1

Comprehensive Line Item Extraction

Process every invoice, not just a sample. Extract individual line items with descriptions, values, quantities, and supplier details - building a complete picture of project spend rather than relying on spot checks.

2

Cost Classification Taxonomy

Classify extracted line items against your cost categories and contract allowability rules. Group spend by type to identify patterns that keyword searches would miss.

3

Risk-Based Prioritisation

Move from random sampling to strategic targeting. Identify high-value and high-risk invoices for human verification based on classification results, cost patterns, and anomaly detection - focusing your team's limited capacity where it delivers maximum recovery.

4

Certainty Scoring & Feedback Loops

Review flagged items with confidence scores that reflect classification certainty. Override false positives and feed corrections back into the model, improving detection accuracy over time as the system learns your specific contract rules and supplier behaviours.

The impact

What this achieves

When verification becomes strategic rather than random, your existing team achieves dramatically better results. Catch more disallowable costs without adding headcount. Build a defensible audit trail of what was checked and why. Detect errors early when correction is straightforward - avoiding costly clawback disputes and adjudication when issues surface months later.

10,000files
×
10mins
×
£50/hr

Manual effort saved

1.7k hrs

Manual cost saved

£83.50k

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