Accounts Receivable (AR) organizations struggle to apply all the cash they receive -- even with lockbox feeds and electronic payments. Typically feeds don't contain enough information to allocate payments correctly. When payments are not allocated automatically by the ERP system, cash applications employees become part detective, part psychologist and part translator as they decipher, research, resolve and explain the short payments, possible duplicate payments and overpayments. Electronic feeds do not include full remittance advice in a standard format, forcing AR to go to backup information, whether that is a remittance advice, packing slip, proof of delivery documents, original invoice or original purchase order. Best-in-class organizations try to allocate payments the day they are received; the time-consuming resolution process is a critical bottleneck to achieving this level of service.
Benefits With Document Management/ECM
When all relevant documents are stored in a central document pool, questions can be immediately cleared up and copies can be sent out with a couple of mouse clicks. This removes many of the time consuming payment obstacles and ensures prompter payments. With less time spent hunting documents, employees have more time for their core work. Motivation and job satisfaction grow considerably.
An efficient AR process has a direct, positive impact on cash flow, reduces bad debt, reduces days of sales outstanding (DSO) and improves valued customer relationships. Inception Technologies with technology from Kofax dramatically streamlines processes in the AR lifecycle including credit management and cash applications, while strengthening internal controls, reducing costs and increasing customer satisfaction.