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Accelerating Cash Application for 300K+ Invoices by Eliminating Outdated & Inefficient Processes

  • 83% Automated Cash Application
  • 100% Deductions Automatically Coded by the System
Cash Application
Business Transformation Stories

“The single biggest challenge that forced us to look at automation was the extent of manual intervention of our daily processes, whether it was cash posting or any undirected ability to collect on our customers, who to collect and when to collect.”

Joseph Grass
Director, AR and Credit
DXP Enterprises
Challenges
How did HighRadius help
Impact

Challenges

100% Manual Cash Application Process for 300K+ Invoices Per Annum

The 5 member cash application team at DXP had to manually apply cash for 25,000+ invoices per month. With a check-dominated payment landscape, 60% of the incoming remittances were from checks, and the rest included web remittances, email remittances, and EDI remittances.

Slow Cash Posting Due to No-Remittance Scenarios

Almost 20% of the payments at DXP came in without remittances. In such scenarios, the cash application team would first identify those payments and reach out to the collections team who would follow up with the customer to retrieve remittances.The multiple back and forth between the collections team and the customer to receive the remittance details slowed down the process of cash application.

Excel-Based Deduction Coding for 1000+ Deductions per Month

DXP dealt with a high volume of deductions. Every customer had unique reason codes. The cash application team had to manually map the customer reason codes to their ERP-specific reason codes, based on certain business rules using spreadsheets.Considering that they received 1000+ deductions every month, deduction coding was error prone and became a tedious task.

ABOUT DXP ENTERPRISES

With a revenue of $1 billion, and a presence in 160+ countries, DXP Enterprises is a leader in the business of distributing rotating equipment, bearings & power transmission, metalworking, and industrial supplies to a variety of industries.

INDUSTRY

Industrial Manufacturing

REGION

North America

REVENUE

$1 Billion

PRODUCTS

Cash Application

How did HighRadius Help

Automated Remittance Aggregation and AI-Based Invoice Matching to Fast-Track Cash Posting

With HighRadius Cash Application Software, DXP’s cash application team was able to automatically aggregate remittances from checks, emails, EDIs and web portals, saving their team’s time.

Automated Suggestions on Missing Remittance Scenarios

HighRadius AI-Based Cash Application Software suggests missing remittances to payments coming in, and allows the DXP’s cash application team to choose from multiple suggestions provided by the solution.

100% Automated Deduction Coding for Short Payments

With Highradius Cash Application, the cash application analysts at DXP were able to identify the short payments, and automatically validate earned and unearned discounts taken by customers based on payment terms or trade promotions.

Impact

Automated Cash Application
Deductions Automatically Coded by the System

Autopilot for Order to Cash

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