Use Cases: Transforming Legacy ERP with Carixa Auto Cash, Collections, Deductions

Adding Receivables Automation to a Legacy ERP System

  • Cash Application
  • Collections
  • Deduction Management
  • Management Reporting
  • Robotic Process Automation

A $20 billion pharmaceutical company needed an automated solution that would provide advanced and integrated cash application, collections, and deduction management, "bolting on" to a legacy ERP, and later SAP. Their objective was to dramatically improve receivables and cash flow performance and administration with a streamlined solution that would eliminate cumbersome, manual processes solve backlogged operations and enable them to close the books on time.

Adding further complexity, a significant merger tripled transaction volumes overnight and, in addition, the client repatriated a failed offshore BPO operation. Lastly, they had a cumbersome process for aging and cash forecasting, which would take many days of manual effort every month to close the books.

Solution:

We organized and facilitated practices and policies to better manage their business, including seeing them through a corporate divestiture. With Carixa, they had a seamless data interface to Peoplesoft.

The project went live with receivables management and auto-cash, invoice collections, deduction management, and reconciliation, and EIPP with a customer portal with invoice copy access and payments capture.

We applied Robotic Process Automation to access customer debit memos and returns data directly from returns centers, and then automatically reconciled the transactions. As the client sold a diverse customer base from large wholesalers to independent retailers, workflow rules were adjusted based on the customer class, policy, amount, etc.

Impact:

Carixa has supported the growth of the clients' business during the almost doubling of their organization by automating the processing, collection, and settlement of one million invoices annually. Carixa's reconciliation automation offsets credit and debits, formerly a burdensome manual process. Their DSO metric has been reduced dramatically, backlogs gone, and they close their AR books on time.

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Smyyth Carixa