In my earlier post, I’ve discussed about various challenges faced by accounts receivables teams using traditional A/R system combined with manual processing to apply cash. This post talks about HighRadius’ ReceivablesRadius Cash Application Automation accelerator and how this helps in automating your cash application process.
Imagine a system which could pull remittance data and lockbox information from myriad of sources, which could understand different formats of data and normalize them into one format, which could integrate paper and electronic data into one single data flow, which could apply complex customer specific rules to produce outputs compatible to your existing A/R system, which could completely eliminate manual intervention while applying cash back to your A/R system. Now, imagine the system works for you as a service, which means no in-house development or infrastructure costs. Also imagine the system works seamlessly with your existing A/R system which means practically nothing to setup if you want to employ this new system. Yes, the system you are imaging is nothing but HighRadius’ ReceivablesRadius Cash Application Automation accelerator in the real world.
Following illustration explains how ReceivablesRadius Cash Application Automation solution fits into your existing A/R landscape without disrupting the setup. The solution can be conceived as a level of abstraction where it acts as single point source for all your remittance and payment confirmation inputs. Behind the scenes (actually, in the cloud), the solution performs all tasks required to aggregate data from various input sources in different formats, applies various pre-defined rules and transforms the data to one unified format which can be consumed by your A/R system to apply cash.
Let’s examine how ReceivablesRadius Cash Application Automation accelerator solves the challenges discussed in earlier post:
Hybrid Remittance Environment – Solved:
When you are dealing with cash application, you are essentially dealing with same data (remittances and payment confirmations). However, the data could be coming in different formats depending on how your customer wants to send it. The same data can be sent as an EDI, in the form of Excel or scanned copies of checks. As we discussed earlier, collecting all this data from different sources and entering into your A/R system is manual intensive process. ReceivablesRadius Cash Application Accelerator is equipped with robust data aggregation engine which can receive and digest data in multiple formats
Customer Specific Rules and Lower Hit Rates – Solved:
The distinguishing factor which makes ReceivablesRadius Cash Application Accelerator different from any other solution available in the space is the hit rate it promises. The solution is designed to employ business rules engine at the heart of it which could intelligently transform remittance data taking each customer into consideration.
Infrastructure Issues – Solved:
ReceivablesRadius Cash Application Accelerator is basically a service working out of cloud. The only installation or development on your system would be developing/enabling interfaces to consume the output files generated by the Accelerator. This requires minimal or no in-house technical expertise to work with the solution. Following are few advantages of adapting the solution in this context:
In conclusion, I just wanted to discuss various challenges being faced in cash application process and possible solutions. In the times where we saw huge financial setbacks recently, adapting innovative solutions to reduce DSO and eliminate manual intervention is very much required for companies’ sustenance. Choosing the right solution is always a tough choice and I hope this post helps in taking that decision. I am going to discuss more technical details about the solution in my forthcoming posts. Stay Tuned!
About the Author:
Seshadri Sastry is java team lead currently leading the development efforts for On-Demand Cash App in HighRadius Technologies with solid business rules background using Drools and SAP NetWeaver BRM.
Imagine a system which could pull remittance data and lockbox information from myriad of sources, which could understand different formats of data and normalize them into one format, which could integrate paper and electronic data into one single data flow, which could apply complex customer specific rules to produce outputs compatible to your existing A/R system, which could completely eliminate manual intervention while applying cash back to your A/R system. Now, imagine the system works for you as a service, which means no in-house development or infrastructure costs. Also imagine the system works seamlessly with your existing A/R system which means practically nothing to setup if you want to employ this new system. Yes, the system you are imaging is nothing but HighRadius’ ReceivablesRadius Cash Application Automation accelerator in the real world.
Following illustration explains how ReceivablesRadius Cash Application Automation solution fits into your existing A/R landscape without disrupting the setup. The solution can be conceived as a level of abstraction where it acts as single point source for all your remittance and payment confirmation inputs. Behind the scenes (actually, in the cloud), the solution performs all tasks required to aggregate data from various input sources in different formats, applies various pre-defined rules and transforms the data to one unified format which can be consumed by your A/R system to apply cash.
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Figure 1: A/R systems employing HR Cash Application accelerator
Let’s examine how ReceivablesRadius Cash Application Automation accelerator solves the challenges discussed in earlier post:
Hybrid Remittance Environment – Solved:
When you are dealing with cash application, you are essentially dealing with same data (remittances and payment confirmations). However, the data could be coming in different formats depending on how your customer wants to send it. The same data can be sent as an EDI, in the form of Excel or scanned copies of checks. As we discussed earlier, collecting all this data from different sources and entering into your A/R system is manual intensive process. ReceivablesRadius Cash Application Accelerator is equipped with robust data aggregation engine which can receive and digest data in multiple formats
Customer Specific Rules and Lower Hit Rates – Solved:
The distinguishing factor which makes ReceivablesRadius Cash Application Accelerator different from any other solution available in the space is the hit rate it promises. The solution is designed to employ business rules engine at the heart of it which could intelligently transform remittance data taking each customer into consideration.
Infrastructure Issues – Solved:
ReceivablesRadius Cash Application Accelerator is basically a service working out of cloud. The only installation or development on your system would be developing/enabling interfaces to consume the output files generated by the Accelerator. This requires minimal or no in-house technical expertise to work with the solution. Following are few advantages of adapting the solution in this context:
- No local server installation
- Pay- as- you- go model
- Rapid scalability
- System maintenance updates are included in the service; don’t have to bother about technical know-how.
- Reduced implementation time frames.
In conclusion, I just wanted to discuss various challenges being faced in cash application process and possible solutions. In the times where we saw huge financial setbacks recently, adapting innovative solutions to reduce DSO and eliminate manual intervention is very much required for companies’ sustenance. Choosing the right solution is always a tough choice and I hope this post helps in taking that decision. I am going to discuss more technical details about the solution in my forthcoming posts. Stay Tuned!
About the Author:
Seshadri Sastry is java team lead currently leading the development efforts for On-Demand Cash App in HighRadius Technologies with solid business rules background using Drools and SAP NetWeaver BRM.
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