The goal is 100% straight-through processing of remittances of all types, and we get very close.
What we mean by “straight-through” is that all remittances are applied, with the few exception entries accounted for, so the financial accounts balance and the day’s cash can be closed out. Any follow-up exceptions are routed into an automated resolution workflow; for example, a payor that is unknown and with no matching invoices.
A daily closing of cash is vital as, without it, accounting is off, and the credit and collection departments are dealing with old data and prioritizing accounts that have already been paid. Scalability is an important reason to employ an optimal Auto-Cash system, as it removes the problem of constantly increasing staffing to handle volumes, eliminate overtime, etc.
Tools that Power Our Cash Application Technology
Robotic Process Automation (RPA) replicates sequential human actions, for example, going to a web portal, logging in, finding what is needed and downloading it, or opening an email and extracting documents or data. RPA can interact with websites and systems and replace human tasks, but beyond that, it is also being viewed as an essential part of corporate strategy to transform and digitize business.
Cognitive Document Automation (CDA). CDA is used by smart systems to automatically extract data from Structured Forms, Semi-Structured Documents where the data location may vary, and Unstructured Documents, say an email where the data we are looking for (an invoice number) may or may not be there.
Machine Learning. Machine learning is the science of getting computers to act without being explicitly programmed. In our case, it means not having to handle the same exception twice, as the system recognizes the correction and will handle it automatically the next time.
Deep Experience. Unlike other software providers, we are practitioners with decades of experience managing accounts receivable operations. There is no substitute for real experience.
Carixa Auto Cash Application
Profit from our experience ™
Carixa Cash Automation works independently of your ERP, and it can coordinate with various ERP systems. It will eliminate almost all the manual work associated with cash remittance applications while closing the books daily. In addition, there is a detailed auditable history of all transactions. Every step of every transaction is auditable as to what, who, when, and why.
- Flexible, Cognitive Document Automation for remittance details from BAI2, EDI820, Electronic Funds Transfer (EFT), check, image, web portals, emails, and all formats including PDF, CSV, JPE, PNG, Excel, and HTML.
- Eliminate lockbox fees using OCR-based solutions to eliminate bank keying
- Access Electronic Payments with remittance details through emails, EDIs, and Vendor Portals (automated using RPA).
- Match Payments to A/R accounts using MICR numbers (from checks) or account numbers from other types of remittances.
- AI-Powered Matching.Powerful algorithms with a multi-level matching look at parent-child mapping, invoices, amounts, due dates, purchase order numbers, RMAs, etc., adjusting for cash discounts and freight charges.
- Machine Learning Self-Correcting Smart Systems. If an account is not recognized the first time, the system remembers the resolution and self-corrects for future remittances.
- Automatic Mapping. System mapping of customer transaction coding to your internal coding so that, as an example, a customer concealed shortage code converts to yours, which is essential for downstream tracking, matching, and resolution.
- Write off de minimis exceptions under your tolerance rules and (our recommendation) accumulate them in a memo account for later audit or settlement.
- Automatic Chargeback of unearned discounts or freight charges and inclusion into deduction workflow for a seamless process.
- Short Pays, Chargebacks, Claims, Deductions. The post-cash-application resolution of deductions is a significant cost center for the Credit, Collection and A/R Department and often leads to substantial corporate profit leakage. Because of our billions of dollars of deduction experience, we know how important this is and have given it serious attention. If there are corresponding credit memos on the books, the deductions are automatically applied based on multi-factor matching, including Reason Codes, PO Numbers, Invoice Numbers, RMAs, and Amounts.
- Trade Promotions- Billbacks. Suppose you also use our TPM Module (deal sheets, accruals, validation). In that case, we validate the trade deduction based on invoice sales data and accrual balances, adjust the accrual, and credit the deduction with the appropriate entry. If it’s a non-bill back claim and you want to send a check, we can transmit an AP file and maintain the accruals.
- Deduction and Chargeback Workflow. This powerful solution is configurable so that work is always handled by the right people (freight charges in Traffic, for example), with escalation procedures depending on the category, amount, customer time bars, etc.
- Customer and Carrier Web Portals. Carixa determines when backup documentation is needed, say from a web portal, automatically accesses it, downloads the data, and appends it to the entry. Similarly, if a customer takes a carton shortage deduction, the system will access the carrier portal and download the POD.
- Performance Tracking Metrics/ As with any accounts receivable process, we provide full customized reporting of cash application metrics and exceptions, deductions, and chargebacks by category and customer.
CARIXA CLOUD SUITE PERFECTS “AUTO-CASH”
Carixa Cloud Suite automates and streamlines cash application, collection, and deduction management including robotic process automation and AI, to instantly capture and reconcile chargebacks with accounts receivable, thus speeding the successful disputing of chargebacks. These automation routines can do follow-ups, and gather and distribute documentation from internal and external portals.
Optimal Automated Cash Application is important not only for the impact on accounts receivable accounting, but also for the downstream impact on credit, collections, and deduction management. Every industry is somewhat different, but the results can be equally powerful regardless of your customer base, and scale of operation. Call the team at Carixa for more insight into how you can transform your cash application operations. Contact us at firstname.lastname@example.org for more information.