Accounts receivable management is rife with functions that are only partially automated, still manual, or which need to be done offline, for example, by using Excel. The right system will encompass all of these and will automate, at a minimum, these features and eliminate offline processes:
- EDI capabilities from 810 invoice processing to 820 cash remittance
- Auto-match with character string matching against multiple fields
- Automatic deduction – chargeback creation and workflow routing for action and approvals
- Splitting deductions amongst expense categories and/or credit memos
- Acquisition of proofs of deliveries and debit memo documents from carriers and customer systems
- Mapping your system to customer codes
Workflow and Scheduling Actions
When managing your cash application services and deduction management, you need powerful rules engines so that the right people handle payment exceptions and deductions at the right time. Profit leakage resulting from receivables that slip through the cracks can be eliminated. Your system needs both account and transaction-level default and user-specified follow-up rules, but it also needs to be able to escalate important issues to upper management by type, customer, dollar amount, or age rules set up in advance.. Using these preset (but flexible) rules on allowable resolution times, the system should generate a follow-up with the right person, as well as escalate the issue at the right time.
- Customizable workflows at the customer and detail level with a built-in escalation
- Prioritizing actions based on user-definable criteria
- Customer A’s freight deductions go to Joe in traffic
- Customer B’s trade-promotion issues go to your sales manager or broker
- Approvals for write-offs or adjustments would be routed to management for approval
Contacts, Communications, and Actions
The system should expedite internal and external communication, collection, and resolution. Check to see that it will automatically communicate by fax, email, letter, etc.
- Enable mass communication to a group of customers by email, letter, or fax, say for a terms reminder or address change.
- Automatic transmission of chargebacks and collection letters
- “One-click” placement with collection and outsourcing firms
Customizable Management Reporting and Dashboards
You need hierarchical views and reporting from the CEO level to sales to the manager and analyst to provide a quick performance overview, with drill-down capability. Extensive deduction coding and analysis to provide root-cause feedback to nip systemic problems in the bud.
With all the Sarbanes-Oxley issues concerning trade promotion and pricing allowances, you need to track how related deductions are resolved and accounted. Trade payments accounting is especially important. What is required is the ability to view the history of past applications and offsets.
Communication with Other Systems
Lastly, if using SaaS system partners, such as Carixa, so called “integration” is easy via a structured, scheduled data transfer upload/download (by the hour, day, etc.). This type of solution is fast, uncomplicated and much less costly, even manageable by small users. The perception that “real-time,” second-by-second updating with AR data is needed is almost always misguided.
The Carixa™ Cash Application Software
The Carixa credit-to-cash software delivers all the desired features of a deduction management system. By compiling automated credit workflow technology, you can accelerate your cash flow, increase accounts reconciled, and reduce process time.
Achieve best-in-class cash application. Harness the power of Carixa.