The goal is 100% straight-through auto-cash application processing of remittances of all types, and we are getting very close.
By “straight-through,” we mean 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, an unknown payor with no matching invoices. We also offer the option of an expert cash application team to resolve any stragglers for you.
Without a daily cash closing, accounting is off, and the credit and collection departments are dealing with old data. 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 Carixa
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 and is viewed today as an essential part of corporate strategy to transform and digitize business.
Cognitive Document Automation (CDA). CDA is used 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 involves 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 experience.
Carixa Auto-Cash Application
Carixa Cash Automation works with any ERP. 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 100% of lockbox fees using our multi-matching, OCR-based solutions that eliminate bank keying and related charges.
- 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 multi-level matching, including parent-child mapping, invoices, amounts, due dates, purchase order numbers, RMAs, etc., adjusting for cash discounts and freight charges. If the customer did not provide remittance data, Carixa uses alternate criteria to find the correct match.
- Machine Learning
- Self-Correcting Smart Systems. The system remembers the resolution and self-corrects future remittances if a new customer is not recognized.
- Automatic Deduction Coding. Mapping customer transaction coding to your internal coding is automated so, for example, a customer shortage code converts to your code, 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 and freight charge deductions 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 remittance or backup documentation is needed, say from a web portal, triggers its Retriever™ Bot, 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.
- Multi-Currency. Carixa has a multi-currency capability.
- Cash Forecaster. Incorporating our Carixa Collection application includes a Collection-Cash Forecaster using due dates, promises to pay, and customers’ unique payment habits.
- 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, fast-tracking the disputing of chargebacks. In addition, these automation routines do the follow-ups and gather and distribute documentation from internal and external portals.
Optimal Automated Cash Application facilitates accounts receivable accounting and impacts credit, collections, and deduction management downstream. 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.