Case Study: The Cash Application Conundrum Lisa Tanner Manager Credit and Collections.

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Case Study: The Cash Application Conundrum Lisa Tanner Manager Credit and Collections

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Case Study: The Cash Application ConundrumLisa TannerManager Credit and CollectionsBEFORECustomer-Related IssuesMultitude of payment forms (Check, ACH, Wire Transfer)Remittance Detail provided in variety of formats (Paper, EDI, Web, Email)Remittance line items may refer to alternate reference #s (PO, BOL, etc)

ERP Lockbox System requires direct reference to invoice # to auto-applyBank-Related IssuesBank Keying fees are expensive and produce low on-invoice hit-rate

Labor intensive manual application for all non-standard and residual lines

Colemans Conundrum

Time consumingError-proneManualExpensiveCross Functional ChallengesPoor operational data available relative to root cause margin lossesConsolidation of claims and claim types by check masks residual volumes and prevents identification of potential core operational issues early in the process. (pricing, shortages, case pack, etc)Creates non value added tasks to break out claims and types to prepare for credit issuance/rejection and settlement.

Difficulty reconciling customer disputes requiring labor intensive researchHome Depot Costco West Marine write off losses in excess of 100K due to inability to reconcile credits issued to claims taken.THE INTERNAL RESULTS.

Lets Hire an Army of IT EngineersSoftware UpgradeSupportBackup/RestoreService PackDevelopmentNetwork issues

Our Business NeedsSecurityPrivacyReliabilityHigh AvailabilityThe initial response but.9

Lets BuildHuge Data CenterCapacity PlanningDisaster PlanCooling Management Server CrashesThe cost just kept going up 10THE EXTERNAL RESULTS.Hosting PlayersReliability, High Availability, Capacity ElasticityCloud PlayersBuilt-in RedundancyVirtually unlimited storage, computing powerYou have to manage reliability, fail over yourselfBring your own or rentservers to increase capacity

12Hosting PlayersOften and dearlyYour contractsCloud Players

Pay As You GoPay only what you use

13OK, now tell that to the business owner

How most CEOs would feelMy first serious challenge was our legal department.15HighRadius SolutionEnd to End AutomationRules Engine handles customer specific rules for invoice matching, residual identification & coding, cash discount analysis.

Data Aggregation Engine Amasses remittance detail from a variety of sources (Customer portals, Bank Websites, FTPs, Emails,) and formats (EDI, paper, web email etc.)

Syndication Engine produces a single file specific to SAP allowing the ability to fully leverage standard ERP cash posting.Benefits We ExperiencedHigher on-invoice auto apply rate 94% and improvingSame day cash applicationAuto-create residuals and capture deduction detailReduced Post Audit lossesReliable Operations reporting through improved residual visibilityNo more consolidation of claimsMinimize keying errorsSoftware as a service: Adding new customers/rules does not require internal IT effortNo Additional HardwareFree up resources for more value-added tasks (research & analysis, collections, data entry of credits to relieve AR)